12/31/2022
The end of a year and the beginning of another year is a perfect time to reflect on the passing year and to plan for the income year.
Please be aware of the following changes in the taxation system ( for those that are Canadian residents)
* TFSA ( Tax Free Savings Account) annual limit increasing to $6500. First time since 2019
* RRSP ( Registered Retirement Savings Plan) annual limit increasing to $29,210 or 18% of your income . The increase is upto $30780 for high income earners .
* CPP( Canada Pension Plan) contributions increase to $3754.55. For the self employed it is double
* Capital gain exempt increase to $970,000.
* First time home buyer tax credit : $10,000
* Home accessibility tax credit : $20,000
* Canada Dental Benefit: $1300 over 2 years depending on income
* Multigenerational Home Renovation Tax Credit: $7500. This tax credit is for those that credit a secondary suite in their house to accommodate a senior or a disabled relative .
*FHSA ( First Home Savings Accounts) to be launched on April 1,2023. This account would be tax deductible for eligible first time home buyers and alllow a life time contribution of $40000 or annual contribution limit of $8000.
* Tax bracket changes: federal tax only .
-Income upto $53359 to be taxed at 15%
-Income of $53359- $106717 to be taxed at 20.5%
- Income of $106,717 - $165,430 to be taxed at 29%
-Income of $106,717- $235,675 to be taxed at 33%
- income above $235,675 to be taxed at 36% - 37%.
Please bear in mind that it is not how much you make, it is how much you keep.
I can help you convert some of your income to income generating assets and make your money to work for you .
I can help , book a non obligatory free consultation today at 204-880-9796 or at 204-417-1938.
Visit us at www.holisticplanningservices.ca
Happy 2023!
Financial planning, financial coaching and seminars from a fee-only certified financial planner who helps clients align their savings, investments, retirement plans, and educational financing decisions with their core values, or value system, including through socially responsible investing.
