Tax season is just around the corner, so as the premier estate planners in Canada, it only seemed appropriate that we let our readers know about which changes might affect their taxes. Given the large changes to both Canadian and American taxes this year, affluent Canadians with property, assets, and income from both sides of border may want to consider scheduling an appointment with their estate planner. You may wish to review your tax plan to ensure you’re still taking the best advantage of the tools available to mitigate and defer tax.
Canadian Law Changes. There are quite a few changes coming up for 2018. Marijuana legalization and carbon taxes seem to be at the top of everyone’s mind, but there are few others to consider. Extended parental leave is offering Canadians the option to spread out their 12 months of EI over 18 months instead. This is something many Canadian employers will want to keep in mind when discussing an employee’s plan for maternity leave and hiring a temp worker. The big news to consider is, of course, the changes to small-business taxes. We covered the Liberal small-business changes in more detail in a previous blog, but one of the big differences is that income sprinkling among family members is no longer allowed.
American Law Changes. The Trump administration has also pushed through a change to taxes in the states. For Canadians who have substantial business or investments south of the border, it may be important to take these changes into consideration. Talking with your personal estate planner will help you keep on top of changes as the details are ironed out. This is especially important since many of the basic, long-standing tenets of US tax law have been altered, and the impacts of the law come into effect slowly.
Reviewing Your Tax Planning. Many of our clients work with us in order to mitigate or defer taxes. This is particularly important for generational planning. When large assets, like a family cottage, pass on to the next generation, the capital gain taxes can be more than the beneficiaries can handle. This may place these heirs in the sad position of having to sell the property in order to afford the tax burden. Generational tax planning is an ongoing process, and whenever there are large changes to the way taxes are done, it’s a good idea to sit down with your estate planner to make sure everything is on track for creating the legacy you want.
Are you tired of paying more than your fair share of taxes? Affluent Canadians are often burdened by excessive taxation, but our team can help you take advantage of numerous tools to reduce how much tax you’re paying. We know that you, like all of our clients, want to pay your fair share, but it isn’t the government’s place to punish successful Canadians with undue taxation. Contact MacMillan Estate Planning today to get started with your free consultation.