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Your 2023 Tax Return – Tax Reporting Information

Your 2023 Tax Return – Tax Reporting Information

RRSP contribution deadline for 2023 is Thursday, February 29th, 2024.

Have you made an RRSP Contribution for 2023?
  • Your contribution room is limited to 18% of income earned in 2022, with a maximum contribution of $30,780 less any pension adjustments. Your 2023 limit can be found on your 2022 Notice of Assessment.
  • Convenient RRSP loans are available through our affiliation with National Bank.
Have you made a TFSA Contribution for 2024?
  • 2024 TFSA contribution limit is $7,000 bringing the total contribution room to $95,000*.
*Your contribution room accumulates each year in which you are 18 years of age or older and a resident of Canada, even if you do not file an income tax return or open a TFSA.
  • To verify your TFSA contribution limits, please contact Canada Revenue Agency website http://www.cra-arc.gc.ca/myaccount/ or CRA directly @ 1-800-267-6999. NBF cannot be held liable for any over contribution penalties.
Income Trust or Limited Partnership Units
  • Tax slips are not mailed until late March.  Companies can file amendments. We suggest you wait until mid-April to file your personal tax return.
  • 100% Return on Capital is recorded on the T3 and listed on the Summary of Trust Income Report.
  • Reminder: If you have invested in (flow-through) Limited Partnership Units, please remember to use the tax credits applicable in future years.  This is located on the final T5013 issued for any LPU.  Keep copies to use these credits on your future tax returns.
  • Rob suggests that clients participating in flow-through limited partnerships or options have an accountant complete their tax return. If you do not have an accountant, please feel free to contact our office for a referral.
The average U$ currency rate for 2023 is 1.3497(applicable if you are reporting U$ capital gain/loss). Source: Bank of Canada – Financial Markets Department Allowable capital losses can be applied against any capital gains for the previous 3 years (2020, 2021, 2022) or carried forward indefinitely.
  • For clients who have taxable accounts, we will be mailing out a Capital Gain/Loss Report by Feb 15, 2024.
Please keep these reports with the rest of your tax slips to give to your accountant. Foreign Property Report
  • Foreign Property Reports will be mailed out by Feb 15, 2024, to clients with taxable accounts that contain foreign property greater than $100,000. Please keep these reports with the rest of your tax slips to give to your accountant.
  • On-line Services – if you would like to view your NBF accounts on-line, please contact me for access.
  • You can now receive your monthly statements, trade confirmations and tax slips on-line too!
Your personal tax return must be filed prior to mid-night of April 30th, 2024 (post-marked or received by CRA by April 30th ,2024) This Is When Your Tax Slips Will Be Available This table lists the various Canadian slips and forms that may be needed to prepare your income tax return.  Since these documents reflect the transactions and income recorded during the year, some may not apply to your situation.  Before completing your tax return, please ensure that you have received all your tax slips to avoid having to file an amended return. Please feel free to contact me if you have any questions or require any further information.  I will be happy to be of any further assistance to you. Maureen Peters Wealth Associate T:  250.953.8415 | F:  250.953.8470 Toll Free:  1.800.799.1175 Email [email protected] Website www.rhunterwealth.ca R Hunter Wealth Management Group National Bank Financial Suite 700- 737 Yates Street Victoria, BC   V8W 1L6 National Bank Financial is an indirect wholly-owned subsidiary of National Bank of Canada. The National Bank of Canada is a public company listed on the Toronto Stock Exchange (NA: TSX). The particulars contained herein were obtained from sources we believe to be reliable, but are not guaranteed by us and may be incomplete. The opinions expressed are based upon our analysis and interpretation of these particulars and are not to be construed as a solicitation or offer to buy or sell the securities mentioned herein. The opinions expressed herein do not necessarily reflect those of National Bank Financial. The securities or sectors mentioned herein are not suitable for all types of investors. Please consult your investment advisor to verify whether the securities or sectors suit your investor’s profile as well as to obtain complete information, including the main risk factors, regarding those securities or sectors. Please consult your tax advisor regarding your particular situation.  National Bank Financial is not a tax advisor and clients should seek professional advice on tax-related matters.  Please note that comments included on this website are not intended to be a definitive analysis of tax law. The comments contained herein are general in nature and professional advice regarding an individual’s particular tax position should be obtained in respect of any person’s specific circumstances.
Feb update

LIRAs and LIFs: Definitions and Strategies

We all know that life doesn’t always go according to plan. You may end up changing jobs, getting divorced or receiving an inheritance from your spouse. If one of these events occurs, you might have to open a locked-in retirement account (LIRA) or life income fund (LIF). If you find yourself in this situation, here’s what you need to know.
 

What is a LIRA for?

“A LIRA (locked-in retirement account) is a bit like a cocoon,” explains Mélanie Beauvais, an advisor at National Bank Private Banking 1859’s Expertise Centre. It’s used to put aside money until retirement.

With a few exceptions, you can’t withdraw money from your LIRA before you retire. It’s not really possible to add more either.

Do you need a LIRA?

You can’t get a LIRA unless you have a specific reason for doing so. You can open one if one of the following life events occurs:

  1. You move jobs and decide to transfer your money from your former employer’s pension plan to a LIRA.
  2. You receive money from your former spouse’s employer pension plan, during the division of assets when you divorce, for example.

Good to know

In all cases, the money must come from a pension plan, and the employer must be under provincial jurisdiction. If the pension plan is under federal jurisdiction, the appropriate vehicle is not a LIRA, but rather a locked-in RRSP.

There are some differences between the locked-in vehicles in each province and the locked-in RRSP. For example, the funds left from a pension plan under federal jurisdiction when your spouse dies are still locked in a locked-in RRSP or LIF. Although, in some provinces, the funds left from a pension plan under provincial jurisdiction will no longer be locked in for the surviving spouse. The main differences affect the accessibility and the withdrawal of the funds.

How do you withdraw money from a LIRA?

When you retire, there are three ways to withdraw money from LIRA.

One option is to turn the LIRA into a life income fund (LIF).

With a LIF, you can choose the frequency of withdrawals that suits you while respecting the minimum annual withdrawal. The money is tax-sheltered until it is withdrawn. It works like a RRIF (registered retirement income fund) but has less flexibility, because of the following characteristics:

  1. There’s an upper limit to the amount you can withdraw from your LIF each year, and it varies depending on the account balance and your age, as well as a factor determined by the government. It’s impossible to predict with complete accuracy what your maximum withdrawal will be from one year to the next.
  2. There is also a minimum annual withdrawal, which changes depending on your This mandatory minimum is calculated using the same method as the annual minimum withdrawal for a RRIF.
  3. In the event of death, funds from a LIF are paid to the surviving spouse first.

The second option: a life annuity

You don’t have to turn your LIRA into a LIF. You could also opt for a life annuity. Like a LIF, its objective is to provide a regular income for the rest of your life.

However, there are some major differences between these two investment vehicles.

“A LIF gives you the option of choosing the types of investments you want,” explains Mélanie Beauvais. “LIFs are also more flexible in terms of the amount you can withdraw.”

Once a life annuity is established, the amount is fixed and guaranteed for life and will not change regardless of fluctuations in the stock market or interest rates.

The third option

You can also choose both of the above, by turning part of your LIRA into a LIF and part into life annuities.

No matter which option you choose, you must turn your LIRA or locked-in RRSP into a LIF or life annuity no later than December 31 of the year in which you turn 71 years old.

Can you withdraw money from your LIRA before you retire?

Yes, but only in very specific situations.

For example, if you have a serious illness that reduces your life expectancy, or if your income is very low. But in all cases, you will need to convert the LIRA into a LIF before accessing the money.

Remember that the rules vary between provinces.

Regardless of your situation, it’s always best to meet with your advisor if you have a LIRA or plan to retire in the next few years. Because everyone’s situation is unique, we’re here to answer your questions.

 


Published on March 9, 2021 by National Bank

Any reproduction, in whole or in part, is strictly prohibited without the prior written consent of National Bank of Canada.

The articles and information on this website are protected by the copyright laws in effect in Canada or other countries, as applicable. The copyrights on the articles and information belong to the National Bank of Canada or other persons. Any reproduction, redistribution, electronic communication, including indirectly via a hyperlink, in whole or in part, of these articles and information and any other use thereof that is not explicitly authorized is prohibited without the prior written consent of the copyright owner.

The contents of this website must not be interpreted, considered or used as if it were financial, legal, fiscal, or other advice. National Bank and its partners in contents will not be liable for any damages that you may incur from such use.

This article is provided by National Bank, its subsidiaries and group entities for information purposes only, and creates no legal or contractual obligation for National Bank, its subsidiaries and group entities. The details of this service offering and the conditions herein are subject to change.

The hyperlinks in this article may redirect to external websites not administered by National Bank. The Bank cannot be held liable for the content of external websites or any damages caused by their use.

Views expressed in this article are those of the person being interviewed. They do not necessarily reflect the opinions of National Bank or its subsidiaries. For financial or business advice, please consult your National Bank advisor, financial planner or an industry professional

(e.g., accountant, tax specialist or lawyer).

 

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TFSA vs RRSP: How do you choose? Or do you?

As we reflect on the past few years, we are reminded of how important it is to set money aside for savings -not just solely for retirement but for any unexpected reasons. So when it comes to savings, the question of which is better – a TFSA or an RRSP, is something that bears discussing. 

TFSA vs RRSP:

How do you choose? Or do you?

The answer is: there is no one answer for everyone. They both have their advantages, but depending on your situation, one might be better than the other. The RRSP offers greater tax benefits under the right circumstances but the fact that you have to pay income taxes when you take out money from it makes it less flexible. The TFSA may not provide as many tax benefits as the RRSP, but since taking money out of it has no tax consequences, it’s much more flexible.

Regardless of whether you choose the RRSP or TFSA (or make use of both!), one of the best things you can do is invest consistently.

So how do you choose? Take a look at our comparison chart to help understand the differences and then discuss with us how we can ensure you maximize your investment savings.

 

TFSA

RRSP

Purpose

Any type of savings (short or long term) and emergency fund

Retirement savings

Flexibility

Open account as soon as you turn 18 (19 in B.C.)

Does not require earned income Withdrawn anytime for anything

No minimum age to open but requires employment income

If withdrawn, tax will need to be paid, unless it’s being used for First Time Home purchase or Lifelong Learning Plan

Investment Options

Cash, qualified securities, fixed income, mutual funds, etc.

Cash, qualified securities, fixed income, mutual funds, etc.

Tax Rules

Tax-sheltered growth on investments

Tax already paid on the money you contribute, which may be an advantage if your tax rate is higher when you withdraw the money

Tax-sheltered growth on investments

Defer taxes until you retire, which may be an advantage if your tax rate is lower at retirement

Contributions

Annual Maximum – varies year to year. Max $6,500 for 2023

Lifetime Maximum Contribution cannot exceed

$88,000 as of 2023.1

18% of pervious year’s earned income up to

$30,780 for 2023 (whichever is lower)

Tax Deduction

No

Yes, during the year you make the contribution or carry it forward

Withdrawal Rules

Withdraw any amount at any time without paying tax

When you cash out, it’s tax free

Can only replace the amount of the withdrawal in the same year if you have available room

Withdraw any amount at any time subject to income tax

When you cash out, you have to pay income tax

Expiration

None

Must be converted to RIF by Dec. 31 of the year you turn 71 (no further contributions allowed)

RRSP vs. TFSA?

TFSAs and RRSPs are both excellent options for long-term investing, and both offer tax advantages, but determining the best one depends on what you’re investing for. Ideally, you should spread out your savings and contribute to both.

Questions to consider:

Do you think your income will change significantly over the short, medium and long term?

Do you expect to make a major purchase in the next 5 years?

Is one of these better if you are married or have kids?

Our Best Tip:

If an RRSP is right for you, consider maximizing your RRSP contributions to get a large tax refund and put that refund into your TFSA. That way, you have more money working for you and you’ll have a mix of long-term retirement funds (RRSP) and flexible funds (TFSA).

One last reminder:

If you go the RRSP route, don’t spend your refund, and if you go the TFSA route, don’t spend your TFSA.

Whatever route you go, keep on saving.

Contact information

R Hunter Wealth Management Group

700 – 737 Yates Street Victoria, BC V8W 1L6

maureen.peters@nbc.ca         Tel.: 250-953-8415

 

National Bank Financial is an indirect wholly-owned subsidiary of National Bank of Canada. The National Bank of Canada is a public company listed on the Toronto Stock Exchange (NA: TSX).

This information was prepared by Rob Hunter, a Senior Wealth Advisor with National Bank Financial. The particulars contained herein were obtained from sources that we believe reliable but are not guaranteed by us and may be incomplete.

The opinions expressed are based on our analysis and interpretation of these particulars and are not to be construed as solicitation or offer to buy or sell the securities mentioned herein. National Bank Financial may act as financial advisor, fiscal agent or underwriter for certain of the companies mentioned herein and may receive remuneration for its services. Rob Hunter, National Bank Financial and/or its officers, directors, representatives, and associates may have a position in the securities mentioned herein and may make purchases and / or sales of these securities from time to time in the open market or otherwise.

The opinions expressed herein do not necessarily reflect those of National Bank Financial. Several of the securities mentioned in this article may not be followed by National Bank Financial’s Research department.

The securities mentioned (inclusive of option strategies) in this article are not necessarily suitable to all types of investors.  Please consult your investment advisor to discuss investment risks. All prices and rates are subject to change without notice. Stocks typically fluctuate in value. Stock values can go to zero.

Selling calls against stock (Covered Writing): Shares may need to be sold at the strike price of the option at any time prior to expiration. If the calls are assigned, further opportunity for appreciation in the underlying security above the strike price is foregone.

Risk/Reward of the strategy = Strike price minus the purchase price of the underlying plus the premium received from the sale of the call. The maximum loss is the same as holding a long position less the premium received.

The investment advice given only applies to residents of the provinces of British Columbia, Alberta, Manitoba, Saskatchewan, Ontario and Quebec.

National Bank Financial is a member of the Canadian Investor Protection Fund.


 

RRSP Registered Retirement Saving Plan documents on table.

Have you made an RRSP Contribution for 2022?

The cut‑off date for making your 2022 RRSP contribution is March 1, 2023. 

 
Why is it important to contribute? An RRSP can increase your retirement savings in two ways:

›  Contributions are tax deductible and thus lower the amount of tax you would otherwise have to pay, and

› The investment returns in your RRSP are not taxed until you withdraw the funds. This tax deferral results in greater compounding as your funds accumulate more rapidly than they would in a non‑registered account.

Your deduction limit For 20221

Your deductible 2022 RRSP contribution is limited to the lesser of 18% of your earned income for 2021 up to a maximum of $29,210 plus any unused RRSP deduction room from previous years. The amount will increase to a maximum of $30,780 for your 2023 RRSP contribution.

Start thinking about your 2023 RRSP contributions

To take the greatest advantage of your tax deferral opportunities, it would be more beneficial to make your RRSP contributions at the start of or throughout 2023 rather than waiting until the first 60 days of 2024. This allows you to take maximum advantage of income tax sheltering on your investments.

Next steps for your RRSP

Please contact us at your earliest convenience so that we can ensure your 2022 RRSP contribution has been made in advance of the March 1, 2023 deadline. At that time, or at a future date, we can also discuss the optimal approach for your 2023 RRSP contributions and the strategies that will benefit your overall investment plan

Useful links:

Important dates for RRSP, RDSP, HBP and LLP  https://www.canada.ca/en/revenue‑agency/services/   tax/individuals/topics/rrsps‑related‑plans/important‑ dates‑rrsp‑rrif‑rdsp.html

Where can you find your RRSP deduction limit?  https://www.canada.ca/en/revenue‑agency/services/   tax/individuals/topics/rrsps‑related‑plans/  contributing‑a‑rrsp‑prpp/where‑you‑find‑your‑rrsp‑ prpp‑deduction‑limit.html

Contact information

R Hunter Wealth Management Group

700 – 737 Yates Street Victoria, BC V8W 1L6 Phone – 250.953.8415

Email [email protected]

National Bank Financial – Wealth Management (NBFWM) is a division of National Bank Financial Inc. (NBF), as well as a trademark owned by National Bank of Canada (NBC) that is used under licence by NBF. NBF is a member of the Investment Industry Regulatory Organization of Canada (IIROC) and the Canadian Investor Protection Fund (CIPF), and is a wholly owned subsidiary of NBC, a public company listed on the Toronto Stock Exchange (TSX: NA).

NBF is not a tax advisor and clients should seek professional advice on tax-related matters, including their personal situation. Please note that comments included in this publication are for information purposes only and are not intended to provide legal, tax or accounting advice. The particulars contained herein were obtained from sources we believe to be reliable, but are not guaranteed by us and may be incomplete.

1 Conditions, precisions and limitations may apply. Please discuss this with your Wealth Advisor and seek professional advice of tax-related matters applicable to your personal situation

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Tax Related Matters

Your 2022 Tax Return – Tax Reporting Information

RRSP contribution deadline for 2022 is Tuesday, March 1, 2023

 

Have you made an RRSP Contribution for 2022?

  • Your contribution room is limited to 18% of income earned in 2021, with a maximum contribution of $29,210 less any pension adjustments. Your 2022 limit can be found on your 2021 Notice of Assessment.
  • Convenient RRSP loans are available through our affiliation with National Bank.

Have you made a TFSA Contribution for 2023?

  • 2023 TFSA contribution limit is $6,500 bringing the total contribution room to $88,000*.

*Your contribution room accumulates each year in which you are 18 years of age or older and a resident of Canada, even if you don’t file an income tax return or open a TFSA.

  • To verify your TFSA contribution limits, please contact Canada Revenue Agency website http://www.cra-arc.gc.ca/myaccount/ or CRA directly @ 1-800-267-6999. NBF cannot be held liable for any over contribution penalties.

Income Trust or Limited Partnership Units

  • Tax slips are not mailed until late Companies can file amendments. We suggest you wait until mid- April to file your personal tax return.
  • 100% Return on Capital is recorded on the T3 and listed on the Summary of Trust Income
  • Reminder: If you have invested in (flow-through) Limited Partnership Units, please remember to use the tax credits applicable in future This is located on the final T5013 issued for any LPU. Keep copies to use these credits on your future tax returns.
  • Rob suggests that clients participating in flow-through limited partnerships or options have an accountant complete their tax return. If you do not have an accountant, please feel free to contact our office for a

The average U$ currency rate for 2022 is 1.3013 (applicable if you are reporting U$ capital gain/loss). Source: Bank of Canada – Financial Markets Department

Allowable capital losses can be applied against any capital gains for the previous 3 years (2019, 2020, 2021) or carried forward indefinitely.

  • For clients who have taxable accounts, we will be mailing out a Capital Gain/Loss Report by Feb 15,

Please keep these reports with the rest of your tax slips to give to your accountant.

Foreign Property Report

  • Foreign Property Reports will be mailed out by Feb 15, 2023 to clients with taxable accounts that contain foreign property greater than $100,000. Please keep these reports with the rest of your tax slips to give to your accountant.
  • On-line Services – if you would like to view your NBF accounts on-line, please contact me for
  • You can now receive your monthly statements, trade confirmations and tax slips on-line too!

Your personal tax return must be filed prior to mid-night of April 30th, 2023 (post-marked or received by CRA by May 1, 2023)

Summary table of the most common tax slips

This table lists the various Canadian slips and forms that may be needed to prepare your income tax return. Since these documents reflect the transactions and income recorded during the year, some may not apply to your situation. Before completing your tax return, please ensure that you have received all your slips to avoid having to file an amended return.

Please feel free to contact me if you have any questions or require any further information. I will be happy to be of any further assistance to you.

Maureen Peters

Wealth Associate

T: 250.953.8415 | F: 250.953.8470

Toll Free: 1.800.799.1175

Email [email protected]

Website www.rhunterwealth.ca

R Hunter Wealth Management Group National Bank Financial

Suite 700- 737 Yates Street

Victoria, BC V8W 1L6

 

National Bank Financial is an indirect wholly-owned subsidiary of National Bank of Canada. The National Bank of Canada is a public company listed on the Toronto Stock Exchange (NA: TSX). The particulars contained herein were obtained from sources we believe to be reliable, but are not guaranteed by us and may be incomplete. The opinions expressed are based upon our analysis and interpretation of these particulars and are not to be construed as a solicitation or offer to buy or sell the securities mentioned herein. The opinions expressed herein do not necessarily reflect those of National Bank Financial. The securities or sectors mentioned herein are not suitable for all types of investors. Please consult your investment advisor to verify whether the securities or sectors suit your investor’s profile as well as to obtain complete information, including the main risk factors, regarding those securities or sectors.

Please consult your tax advisor regarding your particular situation. National Bank Financial is not a tax advisor and clients should seek professional advice on tax-related matters. Please note that comments included on this website are not intended to be a definitive analysis of tax law. The comments contained herein are general in nature and professional advice regarding an individual’s particular tax position should be obtained in respect of any person’s specific circumstances.

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