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personal-tax-accountant-bomcas · 3 months

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Top Personal Tax Accountant Edmonton - BOMCAS Services Explained

The following article delves into the variety of services offered by BOMCAS, including specialized assistance for personal tax filing, corporate taxation, bookkeeping, payroll, GST/HST, estate and trust tax planning, and tax consultation. This roadmap is designed to provide potential and existing clients with insights into how BOMCAS stands apart from other accounting firms in Edmonton, framing their expertise within the context of tangible benefits such as streamlined tax filing processes, error reduction, and strategic planning for tax efficiency. Through client testimonials and an exploration of service offerings, this article aims to illustrate why BOMCAS is considered among the top Edmonton Accounting Firms, offering unmatched expertise in the realm of tax accounting services.

Comprehensive Personal Tax Services

Navigating the intricacies of personal tax in Canada can be a complex endeavor, especially for those unfamiliar with the system. BOMCAS, a premier Edmonton Personal Tax Accountant, excels in simplifying this process for its clients, ensuring compliance and maximization of returns.

Understanding Personal Tax

The Canadian tax system operates on a progressive scale, meaning the more you earn, the higher the tax rate you will pay. This system combines both federal and provincial tax rates to calculate the total tax liability. Key components of the system include:

Tax Year and Filing Deadlines: The tax year in Canada runs from January 1 to December 31, with personal income tax returns due by April 30 of the following year. For self-employed individuals, the deadline extends to June 15, although any taxes owed must still be paid by April 30.

Deductions and Credits: A variety of deductions and credits are available that can significantly reduce the amount of tax owed. These include childcare expenses, medical expenses, tuition fees, and contributions to Registered Retirement Savings Plans (RRSPs).

Filing Options: Taxpayers have the choice to file their tax returns electronically through the CRA’s online services or via paper mail. Electronic filing is recommended for its efficiency and quicker processing times.

Step-by-step Tax Filing Process

For those preparing to file their taxes, whether new to the workforce or seasoned earners, understanding the step-by-step process can demystify the experience and ensure all necessary steps are followed:

Gather Documentation: Collect all relevant financial documents. This includes T4 slips from employers, receipts for eligible deductions and credits, and any other pertinent financial records.

Choose Filing Method: Decide whether to file electronically or on paper. Electronic filing using CRA-approved software can expedite the process and typically results in faster refunds.

Understand Taxable Income: It’s crucial to identify all sources of income, as well as understand what deductions and credits you are eligible to claim. This will influence the final amount of tax payable.

Submit the Tax Return: Once all information is compiled and the tax return is completed, submit it to the CRA by the designated deadline. If using electronic filing, responses from the CRA are typically quicker.

Store Records: Keep all tax-related documents for at least six years from the date of filing. This is important in case the CRA requests further information or in the event of an audit.

By leveraging the expertise of BOMCAS, individuals can navigate the tax season with confidence, ensuring all aspects of their tax filing are handled professionally and efficiently. This personalized approach not only simplifies the process but also optimizes financial outcomes, making BOMCAS a top choice for personal tax services in Edmonton.

Corporate Tax Services

Corporate Tax Preparation Service

Corporate tax preparation involves a detailed understanding of both federal and provincial tax laws to ensure compliance and optimize financial outcomes. In Alberta, all incorporated businesses with a permanent establishment are required to pay income tax on the portion of their taxable income allocated to the province. This includes various deductions and credits that can be claimed differently at provincial and federal levels.

The process includes the submission of the Alberta corporate income tax return (AT1), which can be filed electronically using certified software. This method not only provides immediate receipt confirmation but also ensures faster processing and convenience. For corporations with gross revenue exceeding $1 million, net filing of the AT1 is mandatory.

Compliance and Regulation Expertise

Navigating the complexities of corporate tax requires expertise in various compliance and regulatory requirements. The Alberta Corporate Tax Act outlines the specifics of calculating corporate income tax, which includes provisions for the Alberta small business deduction and other incentives like the Innovation Employment Grant (IEG). Starting from January 1, 2021, qualified corporations can claim the IEG, which is equal to 8% of eligible expenditures for scientific research and experimental development carried out in Alberta.

Moreover, compliance extends to ensuring all filings are done accurately and on time. For instance, corporations are required to file an AT1 if they had a permanent establishment in Alberta at any time during the taxation year. Tax preparers must net file all AT1s, ensuring adherence to regulations and avoiding penalties.

By leveraging the expertise of a knowledgeable tax partner like BOMCAS, corporations can navigate these regulations efficiently, ensuring compliance while optimizing their financial strategies. This not only aids in maintaining good standing with tax authorities but also supports strategic financial planning and growth.

Bookkeeping Services

Detailed Bookkeeping Solutions

BOMCAS delivers detailed bookkeeping solutions that cater to the specific needs of businesses in Edmonton. Their services are designed to provide clear and transparent financial visibility, crucial for the success of any growing business. By utilizing powerful cloud bookkeeping software, BOMCAS ensures highly accurate monthly financial statements. The team of experts at BOMCAS handles all financial documentation from balance sheets and cash flow statements to income statements, providing businesses with a comprehensive view of their performance throughout the year.

The process at BOMCAS involves taking receipts, invoices, and day-to-day transactions and converting them into actionable financial information. This meticulous approach allows businesses to make informed decisions based on accurate financial data. Additionally, BOMCAS offers services such as forecasting, budgeting, financing preparations, and covenant monitoring to help businesses navigate the changing landscape and build a sustainable future.

Year-end Financial Reporting

As the fiscal year draws to a close, BOMCAS provides exceptional year-end financial reporting services to ensure businesses are well-prepared for tax season and future financial planning. They offer a variety of year-end services including the preparation of year-end financial statements, both monthly and quarterly, for management reporting. This not only helps in keeping the financials in check but also aids in strategic decision-making.

The year-end services extend to performing periodical analysis of financial statements to identify key trends and variances. BOMCAS's expertise allows them to offer advice on overhead distribution and break-even points, which are crucial for financial optimization. Additionally, their services include internal-control reviews, financial analyses, cash-flow budgeting, and ratio analysis, all tailored to enhance the financial health of the business.

Moreover, BOMCAS goes beyond traditional bookkeeping by providing group consolidated financial statements and specialized reports preparation. These services are invaluable for businesses that require precise and detailed financial information for banks or potential investors. By offering comprehensive insights and strategic advice, BOMCAS ensures that businesses not only meet their compliance requirements but also excel in their financial operations.

Payroll Services

Comprehensive Payroll Services

BOMCAS offers a tailored approach to payroll services, catering specifically to the diverse needs of businesses across various industries. Their expertise extends to handling complex payroll requirements for large corporations in sectors like Energy, Pipeline, and Utilities, as well as providing personalized services to locally owned small businesses [5]. This versatility ensures that each client receives solutions perfectly aligned with their operational demands.

Employer of Record services by BOMCAS streamline the payroll process significantly. Businesses can offload the administrative burden of employment responsibilities, such as managing payroll taxes and ensuring compliance with labor laws, thus freeing up valuable resources to focus on core business activities [5]. This comprehensive service model simplifies client operations and enhances efficiency.

Efficient Payroll Administration

BOMCAS excels in Managed Payroll services, offering reliable support for businesses needing temporary or long-term payroll management solutions. Whether filling in for an absent payroll administrator or taking over the payroll duties entirely, BOMCAS ensures accuracy and timeliness in employee payments, which is crucial for maintaining morale and operational harmony.

A key component of their service is the Payroll Compliance Review, which evaluates a company's payroll processes to identify and eliminate inefficiencies. By streamlining operations and removing redundant procedures, businesses can achieve cost savings and improved productivity, ensuring that their payroll operations contribute positively to their overall success.

Moreover, BOMCAS stays updated with the latest payroll regulations and legislative changes in Canada. This proactive approach not only ensures compliance but also minimizes audit risks, providing peace of mind for business owners concerned about adhering to complex payroll laws.

By leveraging BOMCAS's payroll services, companies can focus more on strategic growth and less on administrative tasks, knowing that their payroll needs are managed effectively and compliantly. This support is integral for businesses aiming to thrive in competitive markets and maintain a satisfied workforce.

GST/HST Services

GST/HST Reporting

BOMCAS provides comprehensive services for the reporting and remittance of Goods and Services Tax (GST) and Harmonized Sales Tax (HST), ensuring compliance with current regulations. For GST/HST registrants, starting in 2024, electronic filing of returns is mandatory, except for charities and certain financial institutions. Failure to comply with this requirement may result in penalties, although these can be waived under specific conditions. Additionally, as of June 17, 2024, individuals with a Social Insurance Number starting with 9 can utilize the Business Registration Online service to obtain a business number and GST/HST account instantly, streamlining the registration process.

Businesses must also determine the appropriate rate to charge, manage receipts and invoices effectively, and learn the procedures for tax collection and remittance. Understanding these elements is crucial for maintaining compliance and optimizing financial strategies. BOMCAS guides clients through these processes, offering expert advice on calculating net tax, completing and filing returns, and understanding all available rebates, including those for housing and errors in GST/HST charges.

Maximizing GST/HST Credits

Maximizing GST/HST credits is pivotal for individuals and families, especially those with low to modest incomes. BOMCAS assists clients in navigating the complexities of these credits, which are designed to offset the GST or HST paid on purchases through tax-free quarterly payments. Eligibility for these credits is determined by net income or family net income, with income thresholds adjusted annually by the Canada Revenue Agency (CRA).

BOMCAS educates clients on the factors that affect the credit amount, such as income, marital status, and number of children. The firm provides assistance in using CRA tools and calculators to estimate the maximum annual payment one might receive, taking into account any additional provincial credits like the Ontario Sales Tax Credit. Clients are also advised on the benefits of opting for direct deposit to receive these credits, ensuring faster and more secure transactions.

Furthermore, BOMCAS emphasizes the importance of staying informed about eligibility for GST/HST credits, especially if there are changes in income or family circumstances. Regular updates from the CRA are crucial for ensuring that clients do not miss out on potential benefits. For families with children, understanding how child benefits interact with GST/HST credits is also vital for comprehensive financial planning.

By leveraging BOMCAS's expertise in GST/HST services, clients can effectively manage their tax obligations and maximize their financial benefits, ensuring a smoother and more beneficial interaction with Canada's tax system.

Estate and Trust Tax Services

Estate Planning

Estate planning is essential for ensuring that one's financial wishes are honored and that loved ones are provided for in an organized and legally sound manner. BOMCAS excels in assisting clients with the creation of comprehensive estate plans, which include Wills, Personal Directives, and Powers of Attorney. These documents are crucial for specifying how one's assets should be handled and who should make decisions in case of incapacity.

A Will is fundamental in estate planning, directing the distribution of assets and the guardianship of minors. It appoints an executor who will manage the estate and ensure that the decedent's wishes are executed. Personal Directives are equally important, designating an agent to make personal and healthcare decisions if the individual becomes unable to do so themselves. This directive activates only upon the determined loss of mental capacity. Additionally, a Power of Attorney allows appointed individuals to manage financial affairs, addressing needs that range from real estate to tax matters.

Estate planning is not just for the wealthy; it's a crucial step for anyone looking to secure their financial legacy and reduce the burden on family members. BOMCAS provides expert guidance through this process, ensuring clarity and peace of mind for clients as they make these important decisions.

Trust Management and Taxation

Trusts offer a flexible way to manage and transfer assets, providing potential tax advantages and ensuring that wealth is distributed according to the settlor's wishes. BOMCAS offers specialized services in managing various types of trusts, including living trusts and family trusts, which can be funded with diverse assets such as cash, real estate, investments, and personal property.

The strategic use of trusts can significantly reduce the tax burden on an estate. For instance, income splitting allows income to be distributed to beneficiaries in lower tax brackets, effectively lowering the overall tax liability. Moreover, trusts can utilize exemptions and deductions such as the capital gains exemption, which can be particularly beneficial for assets like small business corporation shares.

Living trusts, in particular, provide several benefits. They can bypass probate, leading to faster and potentially less costly transfers upon death. They also allow for controlled distribution of assets, which can be crucial for planning the inheritance of minors or managing the care of disabled family members. BOMCAS guides clients through the complexities of trust creation and management, ensuring that all legal and tax-related aspects are handled proficiently.

By leveraging the expertise of BOMCAS in estate and trust tax services, clients can effectively plan for the future, safeguarding their assets and ensuring their wishes are respected, all while optimizing financial outcomes and compliance with tax laws.

Tax Planning and Consultation

Tax Saving Strategies

Tax planning is a critical service offered by BOMCAS, focusing on minimizing tax liability and maximizing financial savings for clients. The approach involves analyzing various financial scenarios and options to create an optimal strategy tailored to individual needs. BOMCAS excels in employing strategies such as the use of trusts, charitable contributions, and gifting which significantly reduce the taxable income of estates.

For businesses, especially small enterprises, navigating tax obligations can unveil opportunities for enhanced profitability. BOMCAS provides specialized tax planning services that help businesses understand and implement effective tax strategies. This includes advice on deductions and credits that lower tax brackets and overall tax bills, which are crucial for maintaining a healthy bottom line.

Financial Planning

At BOMCAS, financial planning is integrated with tax planning to ensure that all aspects of a client's financial life are aligned with their tax strategy. This holistic approach not only focuses on immediate tax savings but also on long-term financial health. Services include retirement planning, where BOMCAS advises on optimizing returns and minimizing tax liabilities through vehicles like RRSPs and TFSAs.

For individuals and families, BOMCAS helps in maximizing GST/HST credits, which can be a significant benefit for those with lower to modest incomes. The firm ensures clients are well-informed about their eligibility and the potential financial benefits, helping them make informed decisions about their tax situations [7].

BOMCAS is recognized as a leading Edmonton Personal Tax Accountant, providing comprehensive tax and financial planning services that cater to a diverse range of needs, from individual tax filing to complex corporate financial strategies.

Client Testimonials

"Don't just take our word for it; here's what some of our clients had to say about your top Canadian Accountant," begins the testimonial section, highlighting the voices of satisfied clients who have experienced the exceptional services offered by BOMCAS.

Client Experiences

One client shared, "Thanks to the Company in Solving a Difficult Problem!" This statement reflects the problem-solving capabilities of BOMCAS, where complex financial issues are addressed with expertise [14]. Another testimonial emphasizes the breadth of services provided: "Bomcas Edmonton Accounting and Tax Services have done my Personal Tax for the past years. Their Personal Income Tax Accountant are well qualify and experience. For my Corporation they have also done my corporate Tax and bookkeeping. I believe they are one of the Best Accounting and Tax Services in Edmonton Alberta. I would recommend anyone or any corporation to get their Bookkeeping done her and their Personal Income Tax Preparation and Filing and Corporation Taxes done here. They provide all the accounting and tax services your will need in Edmonton. I would say they are a full service accounting firm with professionals that understand Canadian tax laws. I said this because they work in my best interest to get the maximum refund possible. Also i have have get a few audits and they were able to completed all these for me with no problems. All year round I was able to get service and updates ets. The Best Income Tax Services in Edmonton Alberta Canada they are Bomcas Accounting and Tax Services. See you soon".

Real-life Success Stories

At BOMCAS, the team prides itself on providing exceptional accounting and tax services to individuals and businesses in Edmonton and the surrounding areas. The dedicated team of professional accountants is committed to helping clients achieve financial success through personalized and comprehensive financial solutions. One client's reflection encapsulates this commitment: "Here's what our clients have to say about their experiences with BOMCAS". This highlights the real-life success stories emerging from their partnership with BOMCAS, where tailored financial strategies lead to tangible benefits and enhanced financial security for clients.

These testimonials and stories not only underline the proficiency and client-centered approach of BOMCAS but also reinforce their status as a top Edmonton Personal Tax Accountant, dedicated to serving the community with integrity and expertise.

Conclusion

Throughout this comprehensive exploration of BOMCAS's plethora of services, it's evident that their expertise in the realms of personal and corporate taxation, bookkeeping, payroll, GST/HST, and estate and trust tax planning places them at the pinnacle of tax accounting in Edmonton. The detailed walkthrough from personal tax systems to intricate corporate financial management strategies underscores the pivotal role BOMCAS plays in demystifying and navigating the complexities of tax legislation, thereby ensuring compliance and financial optimization for their broad client base.

In encapsulating the virtues and services provided by BOMCAS, it becomes clear why they are esteemed as a leading choice for individuals and businesses alike, seeking to secure their financial integrity and foster growth through informed decisions. BOMCAS is Edmonton Personal Tax Accountant that stands ready to assist with unparalleled professionalism and dedication, reinforcing their commitment to financial excellence and client satisfaction. As we conclude this deep dive into their offerings, the imperative for potential and existing clients to leverage such expertise becomes ever more discernible, inviting them to step into a partnership defined by integrity, innovation, and unsurpassed service quality.

FAQs

1. What distinguishes a tax specialist from a tax accountant? A tax specialist, also known as a tax expert or advisor, primarily focuses on interpreting tax laws and optimizing a company's tax responsibilities. Their role involves strategic tax planning and handling tax disputes, which goes beyond the routine tasks typically associated with tax accountants.

2. How much can top tax accountants earn? The earnings of top tax accountants can vary widely based on factors such as location, experience, and the size of the firm they work for. Specific salary figures are not provided here.

3. Which firm is considered the best for tax accounting services? As of 2025, the best accounting firms for tax services include:

PwC (PricewaterhouseCoopers) LLP, with a score of 8.628.

Deloitte, with a score of 8.471.

Other notable firms ranked include KPMG LLP and several others, each scored and ranked based on their performance and reputation in the field.

4. What is the maximum salary a tax accountant can earn? In India, the salary for a tax accountant can range from ₹ 1.2 Lakhs to ₹ 11.5 Lakhs per year, with an average annual salary of approximately ₹ 5.5 Lakhs. These figures are based on the latest salary data collected from tax accountants.

References

Accounting Firm Canada | BOMCAS

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bomcasltd · 3 months

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BOMCAS - Edmonton Personal Tax Accountant

Navigating the complex world of personal and corporate taxation requires expert guidance to ensure compliance and optimize financial outcomes. BOMCAS, a leading Personal Tax Accountant Edmonton, specializes in delivering comprehensive tax solutions tailored to meet the unique needs of individuals and businesses alike. With a deep understanding of tax laws and regulations, BOMCAS stands at the forefront of tax accounting services, helping clients navigate the complexities of filing returns, claiming deductions, and planning for the future. The importance of selecting a proficient tax partner cannot be overstated, as it directly impacts financial health and compliance.

Comprehensive Personal Tax Services

Understanding Personal Tax

Step-by-step Tax Filing Process

Gather Documentation: Collect all relevant financial documents. This includes T4 slips from employers, receipts for eligible deductions and credits, and any other pertinent financial records [1].

Choose Filing Method: Decide whether to file electronically or on paper. Electronic filing using CRA-approved software can expedite the process and typically results in faster refunds [1].

Store Records: Keep all tax-related documents for at least six years from the date of filing. This is important in case the CRA requests further information or in the event of an audit [1].

Corporate Tax Services

Corporate Tax Preparation Service

The process includes the submission of the Alberta corporate income tax return (AT1), which can be filed electronically using certified software. This method not only provides immediate receipt confirmation but also ensures faster processing and convenience [2]. For corporations with gross revenue exceeding $1 million, net filing of the AT1 is mandatory [2].

Compliance and Regulation Expertise

Bookkeeping Services

Detailed Bookkeeping Solutions

Year-end Financial Reporting

Payroll Services

Comprehensive Payroll Services

Efficient Payroll Administration

GST/HST Services

GST/HST Reporting

BOMCAS provides comprehensive services for the reporting and remittance of Goods and Services Tax (GST) and Harmonized Sales Tax (HST), ensuring compliance with current regulations. For GST/HST registrants, starting in 2024, electronic filing of returns is mandatory, except for charities and certain financial institutions. Failure to comply with this requirement may result in penalties, although these can be waived under specific conditions [6]. Additionally, as of June 17, 2024, individuals with a Social Insurance Number starting with 9 can utilize the Business Registration Online service to obtain a business number and GST/HST account instantly, streamlining the registration process [6].

Businesses must also determine the appropriate rate to charge, manage receipts and invoices effectively, and learn the procedures for tax collection and remittance [6]. Understanding these elements is crucial for maintaining compliance and optimizing financial strategies. BOMCAS guides clients through these processes, offering expert advice on calculating net tax, completing and filing returns, and understanding all available rebates, including those for housing and errors in GST/HST charges [6].

Maximizing GST/HST Credits

BOMCAS educates clients on the factors that affect the credit amount, such as income, marital status, and number of children. The firm provides assistance in using CRA tools and calculators to estimate the maximum annual payment one might receive, taking into account any additional provincial credits like the Ontario Sales Tax Credit [7]. Clients are also advised on the benefits of opting for direct deposit to receive these credits, ensuring faster and more secure transactions [7].

Estate and Trust Tax Services

Estate Planning

A Will is fundamental in estate planning, directing the distribution of assets and the guardianship of minors. It appoints an executor who will manage the estate and ensure that the decedent's wishes are executed [8]. Personal Directives are equally important, designating an agent to make personal and healthcare decisions if the individual becomes unable to do so themselves. This directive activates only upon the determined loss of mental capacity [8]. Additionally, a Power of Attorney allows appointed individuals to manage financial affairs, addressing needs that range from real estate to tax matters [8].

Trust Management and Taxation

Tax Planning and Consultation

Tax Saving Strategies

Tax planning is a critical service offered by BOMCAS, focusing on minimizing tax liability and maximizing financial savings for clients. The approach involves analyzing various financial scenarios and options to create an optimal strategy tailored to individual needs [12]. BOMCAS excels in employing strategies such as the use of trusts, charitable contributions, and gifting which significantly reduce the taxable income of estates [12].

Financial Planning

Client Testimonials

Client Experiences

Real-life Success Stories

At BOMCAS, the team prides itself on providing exceptional accounting and tax services to individuals and businesses in Edmonton and the surrounding areas. The dedicated team of professional accountants is committed to helping clients achieve financial success through personalized and comprehensive financial solutions. One client's reflection encapsulates this commitment: "Here's what our clients have to say about their experiences with BOMCAS" [15]. This highlights the real-life success stories emerging from their partnership with BOMCAS, where tailored financial strategies lead to tangible benefits and enhanced financial security for clients.

Conclusion

FAQs

3. Which firm is considered the best for tax accounting services? As of 2025, the best accounting firms for tax services include:

PwC (PricewaterhouseCoopers) LLP, with a score of 8.628.

Deloitte, with a score of 8.471.

Other notable firms ranked include KPMG LLP and several others, each scored and ranked based on their performance and reputation in the field.

References

Accounting Firm Canada | BOMCAS

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rkillen01 · 5 months

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How a Richmond Hill Bankruptcy Advisor Can Aid in Your Debt Relief

An insolvency advisor in Richmond Hill can help you comprehend how the bankruptcy procedure works to help you get financial obligation relief. An accredited insolvency trustee, or LIT (previously called a personal bankruptcy trustee), can be this kind of consultant.

A LIT can give insightful, timely and practical suggestions and orient you in the right direction as you deal with life-changing choices in a precarious financial circumstance.

Comprehending How Insolvency Functions

Bankruptcy in Canada is a legal proceeding handled in federal courts, following guidelines according to the Personal bankruptcy and Insolvency Act.

When an individual can no longer repay arrears, declaring personal bankruptcy can provide a fresh monetary start. It does this by disposing of unsecured debts, such as charge card financial obligations and medical expenses, while offering the debtor instant protection from financial institution actions like harassing collection calls and legal risks, while at the same time permitting some procedure of payment to the creditors utilizing the individual's possessions to repay a portion of the outstanding debt.

In theory, it's a win-win agreement for everyone involved; the bankrupt individual gets relief from crippling debt and creditors get a reasonable share of the settlement for what they are owed.

When you total the number of bankruptcy duties and requirements, you get your discharge. The discharge from personal bankruptcy is what removes all debts declared in the bankruptcy filing.

Debts In Personal Bankruptcy

Personal bankruptcy can get rid of most unsecured debts, including:

credit card financial obligations,

medical bills,

lines of credit,

unsecured bank loans,

tax debts,

payday advance,

unpaid utility bills, such as electrical and telephone bills.

Safe financial obligations such as home mortgages and auto loans that are guaranteed with an asset or security can not be incurred in bankruptcy.

These financial obligations receive unique treatment in insolvency:

Trainee loans that are less than 7 years old (if trainee loans are between 5 and 7 years old, the trustee might appeal and make a challenge application to have them consisted of).

Kid assistance payments.

Spousal support/ spousal support payments.

The court ordered fines and restitution payments.

Debts acquired from deceitful activities.

Richmond Hill Insolvency Exemptions

When you're faced with overwhelming debt and simply do not have a method to repay your creditors, the primary step is to talk with a certified insolvency trustee. A LIT will examine your monetary scenario and help you decide if filing for insolvency is the very best service for your financial issues.

Determining and assessing your finances will include an evaluation of:

Your earnings and budget, because you will be required to make a month-to-month payment into your personal bankruptcy based upon government limitations embedded in the Bankruptcy and Insolvency Act. If your earnings are above the limit, you are required to pay for surplus income.

Your possessions may be utilized to repay the outstanding debt.

Though your assets might be sold and used for repayment of debts, insolvency laws in Canada enable exemptions based on where you live.

If you declare personal bankruptcy in Richmond Hill, you can keep:

Individual clothing for you and your dependents.

Family furnishings and home appliances.

Equipment/tools that you use to earn money are worth as much as $14,405.

All RRSP, RRIF, and SPSP savings, other than contributions made in the last 12 months before bankruptcy filing.

Automobile, truck, or any motor vehicle worth up to $7,117.

Your home, if the equity does not exceed $10,783.

If your home has an equity value over the exemption limit, your LIT can help you make plans with your lenders to buy back the asset by paying off the amount that exceeds the limit.

Your LIT can also explore other financial obligation relief alternatives to keep you home while still dealing with your debt. Insolvency options can consist of a debt management plan or a customer proposal.

How Do You Submit Personal Bankruptcy?

A licensed insolvency trustee will do all the paperwork and filing for you. After your initial consultation, when you have actually examined all your choices and decided that bankruptcy is the best option, you will need to provide more personal details to complete all of the needed documents. Your trustee will also assist in the process of preparing a proposition or official strategy for your creditors.

When all the documents are signed, the trustee will send all the paperwork to the workplace of the Superintendent of Personal Bankruptcy (OSB) and send a bankruptcy notice to all your financial institutions. At this moment, you are considered lawfully insolvent and this can not be reversed without a court order.

Upon submitting the insolvency, the automated stay of proceedings immediately works. This prevents creditors from continuing any collection actions against you. This stress eliminating feature "stays" or stops annoying phone calls, wage garnishments, freezing your bank accounts, and taking legal action against you.

If financial institutions continue to bug you, the automated stay gives you the legal protection to sue them and take them to court.

As a legally insolvent individual, you are required to carry out several insolvency tasks. These duties consist of:.

make your monthly payments.

attend 2 counseling sessions.

Report your earnings and costs regularly to your trustee,. offer essential tax details.

attend a creditors' meeting or evaluation, if needed.

If a financial institution's meeting or examination with the Official Receiver is called during the insolvency process, you will get a notice and will be required to take care of and respond to numerous questions under oath about your financial affairs.

Your trustee will meet with you before the meeting or evaluation to go through a number of questions you are likely to be asked, and help you prepare for the assessment.

An automated insolvency discharge will apply after 9 months for a first-time bankrupt. A creditor, your trustee, or the Superintendent of Personal Bankruptcy can oppose your discharge if you have not completed any bankruptcy requirements.

Your personal bankruptcy can also take longer than nine months if you have surplus income. If you have effectively completed your bankruptcy responsibilities, your discharge will not be challenged, and you can begin a new life with a fresh monetary start.

If you are thinking about eliminating unmanageable debt, speaking to an insolvency advisor in Richmond Hill can help put things in perspective. A licensed insolvency trustee is the best consultant you can talk to, as they are the only debt professionals accredited by the federal government to deal with these legal procedures.

They can help you understand how insolvency will affect you and your family and guide you through options that can likewise handle your debt problems.

#bankruptcy advisor richmond hill #richard killen trustee #business #bankruptcy services brampton #credit counselling brampton

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sudlifeexpart · 6 months

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Understanding Retirement Policy: A Comprehensive Guide to Pension Plans

As individuals journey through their careers, one inevitable milestone looms on the horizon: retirement. Planning for retirement involves careful consideration of various financial aspects, with a pivotal component being the pension plan. In this guide, we delve into the intricacies of retirement policy, focusing specifically on pension plans and their significance in securing a stable financial future.

What is a Pension Plan?

A pension plan is a retirement savings

strategy established by an employer to provide financial support to employees once they retire. It serves as a form of income replacement, ensuring retirees have a steady stream of funds to sustain their lifestyle after exiting the workforce.

How Do Pension Plans Work?

Pension plans operate on a simple premise: employees contribute a portion of their earnings into the plan during their working years, and upon retirement, they receive regular payments from the accumulated funds. These contributions are often matched or supplemented by the employer, further bolstering the retirement fund.

There are two primary types of pension plans:

1.Defined Benefit Plans: In this type of plan, the employer guarantees a specific payout amount to employees upon retirement, usually based on factors such as salary history and years of service. The employer bears the investment risk and is responsible for ensuring that there are sufficient funds to meet the promised payouts.

2.Defined Contribution Plans: Unlike defined benefit plans, defined contribution plans specify the contribution amount made by both the employee and the employer. Common examples include 401(k) plans in the United States and Registered Retirement Savings Plans (RRSPs) in Canada. The eventual payout depends on the performance of the investments made with the contributions.

The Importance of Pension Plans in Retirement Planning

Pension plans play a crucial role in retirement planning for several reasons:

1. Income Security: Pension plans provide a reliable source of income during retirement, reducing the risk of financial instability in old age.

2. Tax Benefits: Contributions to pension plans often come with tax advantages, such as tax deferrals on investment gains or deductions on taxable income.

3. Employer Contributions: Many employers match a portion of their employees' contributions to pension plans, effectively increasing the amount of retirement savings without additional cost to the employee.

4. Long-Term Financial Planning: By participating in a pension plan, individuals commit to long-term financial discipline, ensuring they have adequate savings to support their retirement lifestyle.

Conclusion:

Understanding retirement policy, particularly pension plans, is essential for anyone embarking on their journey towards retirement. By actively participating in pension schemes and making informed decisions about contribution levels and investment options, individuals can build a solid financial foundation for their post-work years.

As you navigate your retirement planning journey, remember that the decisions you make today will shape your financial future tomorrow. Take advantage of pension plans offered by your employer, seek guidance from financial advisors if needed, and make prudent choices to secure a comfortable retirement.

Click here to explore more retirement planning tips and resources to help you achieve your financial goals.

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canadianlic · 10 months

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https://www.canadianlic.com/blog/what-is-rrsp-reasons-to-make-rrsp-investments/

The Registered Retirement Savings Plan (RRSP) is an essential financial tool for Canadians looking to secure their future. Designed to promote savings for retirement, the RRSP stands out as one of Canada's most beneficial tax-deferred savings vehicles. Contributions to an RRSP are tax-deductible, reducing your taxable income in the year they are made, and the income earned within the RRSP is tax-free until withdrawn, usually at retirement.

This plan is particularly advantageous because it assumes that individuals will be in a lower tax bracket upon retirement than during their working years. Therefore, when the funds are withdrawn during retirement, they are taxed at a lower rate. The Registered Retirement Savings Plan Canada also offers flexibility in terms of investment options, including stocks, bonds, mutual funds, and GICs, allowing individuals to tailor their investments according to their risk tolerance and financial goals.

Moreover, the RRSP is not just about retirement. It can be leveraged for other life goals through programs like the Home Buyers' Plan (HBP) and the Lifelong Learning Plan (LLP), which allow you to withdraw funds for buying your first home or for education purposes, respectively, under specific conditions.

For Canadians, contributing to an RRSP is a wise decision for long-term financial security, offering both immediate tax benefits and sustained growth potential for a comfortable retirement. It's a crucial part of any comprehensive financial plan, underscoring the importance of saving and investing smartly for the future.

#finance #insurance #savings #investment #insurance broker #term life insurance #retirement #rrsp

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lawyerserving456 · 1 year

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Spousal Support

It’s unlikely that a common-law couple that decides to separate will take care of spousal support, but it is possible, depending on other elements. The ruling is distinctive, as an end result, couples who have been dwelling collectively for two years are entitled to a 50/50 split of shared debts and belongings, excluding any pre-relationship property or inheritances. “There are no authorized perks in terms of the legislation,” said Robert Teitelbaum, a Quebec lawyer specializing in family law. Legally, common-law relationships fall under spouse support after divorce provincial jurisdiction, and so what constitutes such a relationship and the way it is considered legally differ greatly from province to province. Compensatory Support: If one spouse made sacrifices resulting in economic disadvantage, the court usually decides to have the disadvantaged spouse achieve compensation from the other party. Think of a spouse who raises youngsters or foregoes education to allow the other spouse to become qualified or pursue a career.

If a couple can do this, then the spousal support negotiations can occur smoothly while achieving a resolution that works for each event. Being concerned in a contentious legal battle, where scare tactics and threats are flying back and forth doesn’t accomplish anything optimistic for both parties. It can also be very important that each party be motivated to work and generate income. The only how to support grieving spouse method this is probably going to happen is if each party feels they have input into the construction of spousal support. This signifies that a spouse who is receiving regular spousal support must report the payments as income, and the spouse who is paying it can deduct it from the highest of his or her income in the same way that RRSP contributions may be deducted.

Justice MacLeod refused the applicant’s request to not acknowledge the Egyptian divorce. That didn’t apply in this case as an end result of the parties residing in Canada immediately earlier spouse support canada than the divorce proceedings. Therefore, Justice MacLeod needed to apply the frequent law rules to determine if the divorce was to be acknowledged.

Predicting the amount of spousal support is tougher than predicting baby support. Below are summarized instances that have been necessary to the event of how much is spouse support under the regulation concerning the cost and calculation of spousal support in Canada. Facebook

If certainly one of you gets a pay raise or pay to minimize, the courtroom can backdate the payment change. This means the change begins spouse support ontario from the date of the pay increase or pay minimization. If the FRO is unable to implement the funds using one of many aforementioned

The first consideration in answering whether or not you are entitled to spousal support is whether you and your spouse entered right into a prenuptial or marriage contract that sets out what you agreed to with respect to spousal support. If there is a marriage agreement that offers spousal support, it’s going to apply (though it could be possible to contest its application; see right does spouse’s income affect disability benefits canada here for my earlier dialogue of purposes to vary spousal support agreements). How long and how much spousal support must be paid depends on many components, including whether there may be child support being paid, the length of the relationship, and the difference between the incomes of the spouses.

In Ontario, there remains a unique set of legal rights, obligations, and entitlements to these in a common regulation relationship versus those who are married. This consists spouse support of standing to make a spousal support claim in opposition to your former spouse following the breakdown of your relationship. The U.S.A. has changed its spousal support legal guidelines as they relate to taxes.

Generally, under the Divorce Act, spousal support is handled as a “corollary relief proceeding”. An Ontario courtroom solely has jurisdiction to hear to and determine such a proceeding if the court docket cpp disability and spousal support has granted a divorce to both of the previous spouses. This means that a Canadian divorce is required in order to seek spousal support in Canada under the Divorce Act.

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kingkone · 1 year

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TFSA vs. RRSP

Do you wonder what is the best way to save – in a RRSP or TFSA?

What makes the most sense from a Financial Tax Planning BC perspective? What about easy access to the funds if you need to cover an unexpected cash requirement?

When you deposit funds in your RRSP you are able to deduct the amount from your taxable income. You save money on your income tax bill that year, based on your top marginal income tax rate (MTR). Marginal tax rates can range from 20% to 50%, depending on your province of residence. When you take funds out of your RRSP you pay income tax at your marginal tax rate for the year of the withdrawal.

RRSP contributions use up RRSP contribution room. When you take money out of your RRSP you do not create more room.

How does this compare to a TFSA?

After tax dollars are contributed to a TFSA. Funds invested grow tax free. Funds withdrawn are not taxable, and create more room for further TFSA deposits.

What about types of investments in each?

Basically, you can invest in the same types of investments in either a RRSP or TFSA. For example you could have savings accounts, guaranteed investments, stocks, bonds or pooled or mutual funds. The type of investments that qualify for RRSPs are the same as those that you can invest in with your TFSA.

What is the bottom line?

If we presume both are long term investments that you expect you won’t need to access in the medium term, then to the extent your marginal income tax rate is currently over 30% and you expect your marginal tax rate to be lower when you make your withdrawals, it makes sense to use a RRSP.

If you are at the 30% marginal tax rate it doesn’t make a lot of difference if you use a TFSA or RRSP, as long as you expect your top tax rate not to exceed 30%.

If your MTR is greater than 30%, it makes sense to use a RRSP.

If your MTR is 30% or lower, use the TFSA.

Other considerations?

Do you have an emergency fund? Or a line of credit you can access for emergencies?

Are you relying on your investment account for unforeseen expenses? If so, consider the TFSA.

Are you sure you won’t need to access the account until much later when you have less income and a lower tax rate? Then, use a RRSP.

Article Source :- https://lornaeastmanfinancial.com/tfsa-vs-rrsp/

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enrichedacademy · 1 year

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How to Measure Your Money Management Skills

There are plenty of methods and techniques you can use to improve your financial standing, but we sometimes overlook the obvious – what's the best way to measure your results?

When you were 19 you could just look at your bank balance, but as you grow older and your finances get more complicated, it doesn't paint the entire picture. If you really want to keep on top of your progress, here are some of the most relevant metrics.

Net Worth

Add up the value of all your significant assets (real estate, cars, cash, stocks, bonds, TFSA, RRSP,) and subtract all your outstanding debts (mortgages, credit cards, LOC, car loans, etc.) and whatever is left over is your net worth. It can be negative or positive, it will definitely fluctuate (how much more is your house worth this year than last?), but it will always be the gold standard for measuring your financial standing. If you are serious about getting an overall measurement of how you’re budgeting, saving, investing and other financial initiatives are working, you should be calculating your net worth on a regular basis.

Monthly Spend

You need to know where your money goes every month before you can focus on how to start saving money. Some expenses are regular (loan/mortgage payments, some utilities, RRSP or TFSA contributions), and can be easily monitored almost to the penny, while others fluctuate depending on the season or your social calendar (food, clothing, entertainment, travel).

The key is to track all your expenses for several months and land on a monthly average spend you can use as a benchmark going forward. You can always dive into your expense tracking details to find specific areas to cut back but keep your focus on the bigger picture of average monthly spend.

High-interest Debt Reduction

Some debt is inevitable and while you may be tempted to attack a low-interest mortgage, it isn’t mission critical if you are disciplined and saving and investing that extra cash. On the other hand, any higher-cost debts (over 5%) like credit cards, LOCs, vehicle loans, student loans, etc. need to be dealt with ASAP.

Fortunately, of all the ways to measure your financial progress, none is more satisfying or inspirational than tracking the month-to-month demise of a long-standing, interest-sucking debt like a credit card balance.

Beyond the stress relief and emotional boost, it also makes a huge impact from a financial perspective. That money previously wasted on interest is now going to steadily flow back into your pocket and can be used to attack another hi-interest loan – or to save and invest!

Credit Score

While you may not agree that your credit score is an accurate picture of your money management ability or financial situation, it is an objective, frequently used 3rd party yardstick that is based on real world data. It is also quite responsive to change, although it may take a few months to catch up due to the lag in collecting data.

If you are responsible (or irresponsible!) with your use of credit, you will very likely see a corresponding change in your score. Also keep in mind that your credit score is key to capitalizing on many opportunities, not just lower interest rates on loans. You should check your score a couple of times each year.

Advisor Fees

Many people are blissfully unaware of how much the fees (like a 2% MER on the mutual funds in a TFSA or RRSP) on their investments are costing them every year, and how these fees are compounding over time to rob thousands from your retirement fund. You should be investigating all the fees (built into funds and any additional fees paid to your advisor or bank) and keeping your total under 1% annually.

There are some very low-cost DIY investing options that are well below 1%, but they may require more time and knowledge than you have. Find a solution that works for you, but always keep a close eye on the cost of your investments.

Reliably and accurately assessing your progress is a must if you are serious about improving your financial situation and want to sustain that improvement over the long-term. Make sure you have some benchmarks and metrics in place to help you focus on goals and keep you motivated.

#tfsa #moneymanagement #saving money

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npw22 · 1 year

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Benefits of Contributing to a Registered Retirement Savings Plan (RRSP)

Saving for retirement is one of the most important financial goals you will ever have. One way to save for retirement is by contributing to a Registered Retirement Savings Plan (RRSP). In this blog, we will discuss the benefits of contributing to an RRSP, how an RRSP works, how to contribute to an RRSP, and what is RRSP deduction limit.

Benefits of Contributing to an RRSP

There are many benefits to contributing to an RRSP, including tax savings and long-term growth potential. When you contribute to an RRSP, you can deduct the amount of your contribution from your taxable income, which can reduce the amount of taxes you owe. Additionally, your contributions grow tax-free until you withdraw them at retirement, which can help your savings grow faster.

How Does an RRSP Work?

An RRSP is an investment account that allows you to save for retirement by contributing pre-tax dollars. The money you contribute to an RRSP is tax-deductible, meaning that you can reduce your taxable income by the amount of your contribution. Your contributions grow tax-free until you withdraw them at retirement, at which point they are taxed as income.

Contributing to an RRSP

Contributing to an RRSP is easy. You can contribute up to 18% of your previous year's income, up to a maximum of $27,830 in 2022. Your RR

SP deduction limit is the maximum amount you can contribute to your RRSP and deduct from your taxable income for a given year. It's important to note that if you contribute more than your RRSP deduction limit, you will be subject to a tax penalty of 1% per month on the excess amount until it is withdrawn.

Long-Term Growth Potential

Contributing to an RRSP can provide you with long-term growth potential. The money you contribute to an RRSP is invested, and the earnings on those investments grow tax-free until you withdraw them at retirement. This can help your savings grow faster than if you were to save in a non-registered account.

Flexibility

Another benefit of contributing to an RRSP is flexibility. You can use your RRSP savings to help fund your retirement, but you can also use them to fund other financial goals. For example, you can use your RRSP savings to help pay for a down payment on a home or to fund your child's education.

In conclusion, contributing to an RRSP is an excellent way to save for retirement and can provide you with many benefits, including tax savings, long-term growth potential, and flexibility. By understanding how an RRSP works, how to contribute to an RRSP, and what the RRSP deduction limit is, you can make informed decisions about your retirement savings and financial goals.

#rrsp

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college-girl199328 · 1 year

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Canadian real estate might be slow right now, but a large bank thinks the central bank is trying to slow demand, and the result is that the Fed is doing everything it can to create a better plan to explain what the heck Scotiabank is talking about.

The BoC has been trying to lower demand while the Fed has been trying to stimulate it, argues the bank. Canada’s labor shortage is one of the worst predicted since the Fed expanded by 420,000 employees since 2020, roughly equivalent to the population of Halifax, and 51% of job creation, an odd choice for the Fed to stimulate its own hiring program during a tight labor market.

Scotiabank argues the same logic is being applied, stating it wants to bring down home prices but is actively working to drive them higher in a broader public policy sense, which remains confusing,” writes Derek Holt, VP and head of Capital Markets at Scotiabank.

“The BoC is trying to contain inflationary pressures and soften previously raging housing markets while opening the immigration doors into a market with no supply while another tax subsidy to housing starts up on Saturday in the form of the first-time homebuyers tax-free home savings account that allows one to shelter up to $40k tax-free with annual contributions of $8k, which is going to rip after a temporary retrenchment and there go the BoC’s efforts.”

If you’re not fluent in bankster, that might need some unpacking to fully understand what’s happening.

Canada’s immigration policy was one of the most successful and mutually beneficial relationships that have found themselves underemployed and living in inadequate shelters for the shelter-driving demand, which is not a mutually beneficial growth opportunity.

Scotiabank isn’t alone on this one. RBC, Canada’s largest bank, recently echoed this opinion and explained that immigration is the fastest solution to Canada’s demographic challenges, but it takes time; you can’t just ramp up the numbers without a plan and count on warning that ramping up the numbers without a plan for employment and shelter will just cause further inflation and higher shelter costs.

Immigrants are preparing to return home to a country run like a shady factory that exploits workers to meet their basic needs and needs someone to fill the seat.

A shady factory sure can produce profits, though in this case, higher rents are a big win that can translate to higher home prices when interest rates fall.

The tax subsidy mentioned by Holt is also another artificial demand-side pressure case you need a refresher on: the First-Time Homebuyers Tax-Free Home Savings Program starts a registered account like your RRSP, RESP, or TFSA that allows tax benefits for putting away more money for housing.

Critics argued it was a problematic solution from the start. It doesn’t replace the existing Home Buyers Plan (HBP), which allows first-time buyers to borrow up to $35,000 from their RRSPs in addition to further incentivizing housing investment.

If you’re from Canada, how many people have told you their home is where they've made minimal investments otherwise because all of the incentives are slanted toward leading Canadians to invest less in productivity and more in non-productive goods that Canada now holds the spot Greece previously did during the Great Recession in the OECD forecast?

The siphoning of tax-based incentives, which played a major role in inflating US home prices in the early 2000s, also played a significant role in the inflating role of the person that holds the asset to capture as much capital as the Federal government is incentivizing you to put more capital into a home, a seller’s role is to capture that additional market work—especially when you’re discussing shelter, which Canada views as a bond you live in.

In addition, there’s the introduction of more leverage into the real estate of an asset, which is not determined by how many people want it but by what someone is willing to pay in Canada, and the role of financing plays a major role in understanding how very mistaken economists were about interest rates.

It’s widely believed that lower interest rates reduce the cost repeated amongst central bankers' costs because cheaper rates mean more goes to principal prices and are strictly influenced by the demand for the dollar.

Looking at 30 years of data, a BoC head found people adjusted their spending when credit interest rates fell, and people just kept spending the same share of income on the asset and continued to adjust their spending, inflating home prices without spending more than 30 BoC finally decided to study what they were doing, and it turned out to be wrong!

Sidenote: If you’re thinking, “But low rates help people buy their first home,” that’s from MIT Sloan and Boston University, who determined that credit supply shocks increase home prices, but the change in ownership is insignificant trombone.

This behavioral principle is likely to apply to the tax added to the diverted am, and they’re likely to continue putting it down to make it easier to put it down, but they’re more likely to be incorporated as a part of the price, which would just adjust to reflect the influx of new capital for the first-time buyer’s purchase; the only real limit is the amount that can be spent on servicing a mortgage.

Holt’s right, the Federal government is very confusing when it comes to a perfect plan to increase home prices that would create new demand, incentivize it, and then increase its leverage would be something like increasing immigration, giving tax breaks for one specific segment of investing, and increasing leverage for just that segment.

Why does that sound like prices can’t rise forever since eventually, they create systemic issues that result in a more permanent climb until it hits that point with reckless policy?

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