Reduce your Taxes with a Prescribed Rate Loan (September 2019)
A popular tax strategy involves the use of a prescribed rate loan to split income amongst family members. Despite the recent increase in the prescribed interest rate, the income splitting benefits of this strategy remain.
The full article
BMO Bank of Montreal decreases mortgage rates (July 2019)
BMO Bank of Montreal announced today it is changing its residential mortgage rates, effective July 24, 2019.
The new posted rates are:
Fixed Rates: To: Change:
1 year Fixed Closed 3.64% -.15%
2 year Fixed Closed 3.89% -.10%
5 year Fixed Closed 5.19% -.15%
The interest rate for a fixed rate mortgage is calculated half-yearly not in advance.
The Aging Economy (October 2018)
People are living longer than ever before. However, while advances in medicine, health, nutrition and fitness have extended the lifespans of Canadians, the number of years they spend in retirement has not changed much over the last generation because they are also working longer.
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Tax Tips for Investors (June, 2018)
Prescribed Interest Rate (March 20, 2018)
The prescribed interest rate for spousal/family loans is increasing from 1% to 2% effective April 1. However if a prescribed rate loan is implemented by March 31, the current low 1% rate of interest can be locked in throughout the term of the loan, regardless of the rate increase in the 2nd
quarter (or thereafter), which will optimize the income splitting benefit of this strategy.
Income Tax Returns for Self-Employed Individuals (June 15)
Deadline for filing a 2017 income tax return if you (or spouse or common-law partner) are self-employed. It's important to note that any income taxes owing to the CRA or Revenu Quebec should have been paid by April 30.
How Investment Income is Taxed (May 2017)
Image Source: BMO financial Group: How Investment Income is Taxed
When it comes to investment income, all is not equal after tax. Knowing how tax rules affect your investments is essential in order to maximize your after tax return. This publication explains the taxation of investment income held in a taxable account as it pertains to an individual resident in Canada.
How Investment Income is Taxed
Taxation of Investment Income (May 26,2016)
It’s important to revisit the taxation of investment income, especially given the changes in the taxation of dividend income over the last few years. Even the most tax-conscious investor may not appreciate how these changes can impact their after-tax returns. It’s also important to remember that there are different tax rates depending on the type of investment income received – including interest, dividends and capital gains – and they are not equal on an after-tax basis.
This report provides an overview on the taxation of eligible dividends, in light of recent changes.