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Tax Planning

Tax Deferral for Foreign Spin-Offs

In recent years, many corporations have undergone corporate reorganizations to rationalize their business activities. These reorganizations are complex due to the corporate, securities and tax law requirements. This article reviews the income tax consequences for Canadian shareholders of a foreign corporation that distributes shares as part of a reorganization.

2021 Tax Documents Overview and Schedule

We appreciate that tax season is an important time of year for investors. Depending on your investment holdings and account activity, you could receive a variety of tax slips that you’ll need to prepare your annual tax return. To help simplify your tax preparation efforts we are providing a brief overview of the various tax slips and supporting documents you may receive from BMO, along with their expected availability dates.

Consider Tax-Loss Selling in Your Year-End Planning

As the end of the year approaches, you may want to review your investment portfolio to consider possible rebalancing opportunities. It may also make sense to consider engaging in a tax-loss selling strategy before the end of the year, to reduce your overall tax liability or to receive a refund of taxes paid in a previous year.

Strategies to Minimize Capital Gains Tax

Towards the end of the year, many investors review their investment portfolios to determine the anticipated tax impact of any capital gains and losses realized during the year. For investors who have realized significant capital gains, this article examines various strategies to help reduce the impact of a potential tax liability of these gains, regardless of whether they were the result of a voluntary or involuntary sale.

Retirement Planning

Pension Income-splitting Provides Tax Planning Opportunities for Couples

The pension income-splitting rules provide an effective, yet simple, strategy to lower family taxes. Being able to split pension income provides an opportunity for couples to reduce their overall family tax bill by taking advantage of a spouse’s or common law partner’s lower marginal tax rate where retirement incomes are disproportionate.

Understanding the Basic RRSP Rules

Investing in a Registered Retirement Savings Plan (“RRSP”) is one of the soundest ways to ensure you enjoy a financially secure retirement. In order to maximize the benefits of an RRSP, it’s important to have a basic understanding of the rules that govern them.

Retirement planning: CPP/QPP, RRIF and OAS considerations

When the time for retirement arrives, payments from the Canada Pension Plan or Quebec Pension Plan (CPP/QPP), Registered Retirement Income Fund (RRIF), and Old Age Security (OAS) are the main sources of retirement income for many Canadians. It is important to consider these income streams and discuss the planning opportunities with your financial professional as you approach your retirement years. This publication provides an overview of these programs and some factors affecting the decision-making process.

Strategies for Your Retirement Savings Plan

A formalized savings plan that uses a registered plan, such as a Registered Retirement Savings Plan (RRSP), Tax-Free Savings Account (TFSA) or a Registered Retirement Income Fund (RRIF), is one of the soundest ways to realize your retirement goals. Here are some strategies you can use to maximize the benefits of your RRSP, TFSA and RRIF.

RRSPs - Saving Tips and Strategies

A Registered Retirement Savings Plan (RRSP) remains the cornerstone of most retirement plans, particularly if you don’t have a company pension plan. An RRSP is a tax-deferred plan designed to help you save for retirement.

RRSP Withdrawals

There is often a temptation to withdraw funds from your Registered Retirement Savings Plan (RRSP) prior to your retirement. Careful consideration should be given to the financial impact of this decision.

LIF Minimum & Maximum Withdrawal Schedule

Each year the amount that you can withdraw from your Life Income Fund (LIF) will vary depending on your age, the value of your plan at the beginning of the calendar year, and the provincial or federal pension legislation governing your plan.

Residential care checklist

Arranging residential care for an aging friend or relative is often an uncertain process, especially when you are responsible for choosing a nursing home or retirement residence. The following questions may be useful to consider when visiting and evaluating a residence and can be used to assess and compare each option. Use a copy of this checklist at each of the residences you are visiting.

Caregiving in Canada

When someone becomes a caregiver, they can often be confused and overwhelmed by trying to find services to assist them in caring for their loved one. Many people do not know what services are available or where to begin to find these services. The good news is there are several options to assist you.

Remarriage in Retirement

Things to consider: Remarrying during your retirement years can impact your family and financial situation in ways you may not have anticipated.

Tax-Free Savings Account (TFSA)

The Tax-Free Savings Account (TFSA) is a savings plan that allows Canadians to invest and earn tax-free returns. Any income (interest, dividends, and capital gains) earned is tax-free.

Philanthropy

Donating Appreciated Securities

The benefits of making a charitable donation are countless – from helping those in need to the personal satisfaction of giving back to the causes that are important to us. Charitable giving also makes good sense from a tax perspective. With proper planning, you can reduce your total income tax liability and maximize the value of your donation.

BMO Charitable Giving Program

Philanthropy is an important financial planning consideration for many Canadians, and an integral part of their wealth management plan. A Charitable Gift Fund (“donor advised fund”), established through the BMO Charitable Giving Program, allows you to create a flexible and customized philanthropic solution that will have a lasting impact on causes that matter to you and your family.

Financial Planning

Financial Planning Year-End Checklist

As year-end quickly approaches, it’s important to be mindful of potential year-end investment and financial planning strategies and reminders that could help you reduce your 2020 tax bill and prepare you for a successful 2021.

Will and Estate Planning

Survivor Income Needs

Protecting your lifestyle

Appointing a Corporate Executor

Let professionals help you with your duties as executor

Wills that Work

Estate planning is an essential component of a successful wealth management program. A good estate plan will provide you with the peace of mind that comes from knowing your family will be taken care of, and your financial affairs will be in order and administered according to your wishes. An important key element of any estate plan is a Will.

Education Planning

Education Planning

Most parents hope their children will pursue higher education – and for good reason. A post-secondary education can prepare your child for a fulfilling career, lead to enhanced earnings potential and, ultimately, steer them on the path to a successful and rewarding life. However, if adequate savings are not in place for post-secondary education, your child could graduate with the added stress of carrying significant student debt before they’ve even secured their first job.

Registered Education Savings Plan

At BMO Nesbitt Burns we can help you determine the best way to finance your child’s education and work with you to develop a savings program that helps meet your educational savings goals.

Taking Money Out Of An RESP

This article provides information on how, and when, to withdraw funds from an RESP, as well as information on qualifying educational institutions and programs. In situations where the RESP beneficiary decides not to pursue post-secondary studies or leaves before completing a qualifying program, the subscriber of the plan must decide what to do with the money that has accumulated in the RESP.

Business Advisory & Succession Planning

Business Succession Planning Tool

Shareholders' Agreement

Succession Planning Is Key For Small Business Owners

Nearly two in five business owners are wondering who will take over their business and how they will transition it to a successor. However, the majority of them do not have a formal plan to exit their business or preserve the continuity of the business upon retirement. As small business owners shift gears and look to retirement, decisions about when and how to retire will have a significant impact on their personal financial situations and the future of their businesses.

Holding Investments inside a Company – Taxes upon Death

In the absence of planning, when an individual passes away owning shares of a private company, they could be exposed to double or triple taxation. Professional expertise is required to effectively execute and realize the available tax savings. For more information, speak with your BMO financial professional.

COVID-19 Update

COVID-19 Podcast

February 02: In this episode, Sylvain Brisebois, National Sales Manager, BMO Private Wealth is joined by Larry Zelvin, Head, BMO Financial Crimes Unit, for an insightful discussion on the rise in cybersecurity threats and steps we can take to better protect ourselves in the digital world.

Other

Tax Planning Strategies

2022 Personal Tax Calendar

While most Canadians are aware of the April 30 personal income tax filing deadline, there are other important tax deadlines that must be observed over the course of the year – especially if you want to take advantage of certain tax deductions and credits. This calendar summarizes several important dates on the tax calendar and offers some tips to help you with your overall wealth planning. Where a deadline falls on a weekend or a holiday recognized by the Canada Revenue Agency (“CRA”), the deadline is generally extended to the next business day.

Completing Your 2021 Income Tax Return Checklist

As the tax filing deadline approaches, here are some reminders to help ensure you’re prepared to file your personal income tax return, and that you maximize your tax savings.

Tax Tips For Investors

Knowing how tax rules affect your investments is essential to maximizing your after-tax return. In addition, keeping up to date on changes to the tax rules ensures that you take advantage of all the tax savings available to Canadian-resident individuals. This article provides an overview of select strategies to assist you in reducing your tax bill.

Pension Income-splitting Provides Tax Planning Opportunities for Couples

The pension income-splitting rules provide an effective, yet simple, strategy to lower family taxes. Being able to split pension income provides an opportunity for couples to reduce their overall family tax bill by taking advantage of a spouse’s or common law partner’s lower marginal tax rate where retirement incomes are disproportionate.

The CRA’s Foreign Reporting Requirements

Since Canada represents only a small portion of the world’s capitalization, it may make sense to include some foreign investments in your portfolio. However, it is important to understand Canadian and other foreign tax implications of owning investments outside of Canada.

Canadian Snowbirds and U.S. Income Tax

Although Canadian snowbirds reside in the U.S. for only a part of the year, there is the potential of being considered a U.S. resident and, in turn, having to pay U.S. income tax on the same basis as a permanent U.S. resident. This article outlines how the U.S. government determines whether you are a resident for income tax purposes; namely, it covers the criteria for meeting the Substantial Presence Test, Closer Connection Exception and the Canada U.S. Income Tax Treaty Tie-Breaker Rules.

Managing Your Wealth

Registered Asset Preservation Plan

Are you aware that up to 50% of your registered assets could be taxed upon death?

BMO Wealth Institute Report

Make better investment choices by understanding and reducing bias. BMO Wealth Management provides insights and strategies around wealth planning and financial decisions to better prepare you for a confident financial future.

Wealth Themes

Wealth Themes is a monthly compilation of timely articles and tools from our experts and other BMO Financial Group partners.

Research

Rates Scenario

Fixed Income and Foreign Exchange Strategy. Outlines the firm’s short and medium-term interest rate and foreign exchange rate forecasts.

Economic and Market Updates

This Too Shall Pass

Update and perspective on the current markets (June 2022)

Portfolio Strategy

Strategic commentary and an overview of financial markets.

Global Equity Weekly

A look at what happened in the equity markets over the past week and an update on the earnings reports.

The Goods

A Monthly Commodity Watch-Tracks BMO Capital Market's Commodity Price Index and provides commentary and forecasts.

Eligible Dividend Income

This report provides an overview on the taxation of eligible dividends, in light of recent changes.

Education and Knowledge