Here are the most important TAX videos to watch after this one! 👇 Do this BEFORE Dec 31 - th-cam.com/video/Cwy5ls8JqY4/w-d-xo.html CPP Changes in Canada - th-cam.com/video/rICT8RpVKS8/w-d-xo.html Capital Gains Tax Increase - th-cam.com/video/qq8YndVACV4/w-d-xo.html TFSA vs RRSP vs FHSA vs RESP - th-cam.com/video/11y_oV3jOU4/w-d-xo.html Year-End Tax Tips - th-cam.com/video/xLXup5L-S2Q/w-d-xo.html Pay Stub Explained - th-cam.com/video/uFg3tDxmqiE/w-d-xo.html
I have to say. I really liked how summarized, organized and simple your content is. I'm happy TH-cam finally suggested me a good source of information about tax and finance in Canada. Thank you for that. I'll be consuming / studying your content for sure!
I actually colour-code all my videos! So all of my TAX videos have silver thumbnails, I suggest going through all of my Canadian Tax videos in this playlist =) th-cam.com/play/PLj8bU3AuW2qEA_ik7NOAIkBY02nt7KAPj.html
That's why I love your videos - very informative, no BS, no asking people to like and subscribe...... The truth is if your content is great, I would like and subscribe without you having to ask me. Your contents speak for themselves. I can't believe how many youtubers out there still don't get this simple concept. Keep up the good work!
Thank you for those kind words, I appreciate that! 🙏 I've been on TH-cam for about 6 years now and many years ago, yes I did ask people to like, comment and subscribe. But at this point, it's like you said: if people find value in my video, they'll subscribe. If not, that's their call
This is the first time I saw a person this good in explaining complicated things like taxes. You are great, I love the simplicity and clarity in your video! Liked and subscribed :)
That's what I try to do! I know taxes aren't super fun but they are SO important to understand! I try to break it down to basics and cut out the fluff! 😊
Welcome to my channel! I suggest you go through my playlists, I make the thumbnails all colour-coded! All of my SILVER videos are Tax video! Here is my Tax Playlist in the proper order =) th-cam.com/play/PLj8bU3AuW2qEA_ik7NOAIkBY02nt7KAPj.html
Another great video, thanks! But, I'd say that there are 2 things missing: 1) I think that EI still deserves mentioning 2) If I recall correctly, despite being deducted from your paycheck, the CPP contributions are deducted from your gross income. Therefore, it should not affect the yearly net income, although it makes an impact on your paychecks.
I go into EI in my paystub videos, since it isn't really a tax. But since you asked, yes the max EI went up by $20 bucks this year so barely worth a mention =)
It doesn't really disappear. If you are going through any CRA issues, believe me, it will reappear on their books faster than a thief stealing from a major retailer. At the end of the day, in this technologically advanced era, EVERYTHING is visible, except one asset: that is, physical bullion that happens to be well-hidden in your home. Other than that, there is no other asset that is not visible to the CRA. And, before someone incorrectly chimes in, bitcoin is not hidden.
Man i love your vidz, im not rich but knowing how to manage what little i have and the heads for whats to come and advice on what can be done is godsent. ❤
Thank you for the kind words! I'm not in the same boat, I never really had a big salary throughout my career but I knew that if I work this hard for my money, I NEVER want to throw it away in unnecessary taxes and fees!
1:40 I think you do need to be at least a PR holder to build room. When I moved here, that's what advisors would tell me, and I can't find it right now, but I'm pretty sure I used a contribution room calculator from the CRA where the result stated that you need to have your PR.
Nope! You don't need to be a PR! You just need to be a taxable resident of Canada. That just means that you now live here and you stay in Canada for the majority of the year (more than 6 months)
I can promise you this. Many of the student coops who worked for me at my old job were here on student visas (not PRs) and all of them were able to open a TFSA =)
@@CanadianTShirt I see, thank you! I thought it might be difficult because the SIN changes after you get your PR, but I guess it's still all linked to the same person in the CRA files
Thanks for the video! I was wondering if you could make a video on overpaying into your RRSP and how to fix that? It's hard to find resources on that online haha
Basically you are being penalized 1% every month! So 12% a year! Although there is a "grace amount" of $2000 where you aren't penalized, since mistakes do happen!
I grew up as a gamer through the 90s so these PC games and Sega and Nintendo games mean so much to me! Watch my BOOKSHELF TOUR video to see all the awesome vintage games behind me =) th-cam.com/video/hgCxbdcRRqw/w-d-xo.html
Should include that there are requirements to meet the Lifetime Capital Gains Exemption (LTGE) on the sale of qualified shares of Canadian Controlled Private Corporations (CCPC). LTGE only applies to the sale of *shares* at Fair Market Value, and does not apply to CPCC's assets. Business owners should be aware that a 2-year plan is usually required, especially if passive assets are held inside the CCPC or if there are multiple owners. Great video thank you!
I’m hoping you answer. I earn, pay income tax. The interest I earn is so little I hang on to what little extra cash I have. Why would I put it into an RRSP or TFSH ? Won’t I just pay tax again when I take the money out? Tax on tax and then taxed. I only earned it once! Also self employed so I pay both sides of the CPP. That rule (employer portion) has prevented hiring any help whatsoever. Wish I could now I’m older.
@@CanadianTShirt You think a corporation just "eats it" and settles for less?? Businesses set targets for healthy net profits. When taxes are raised or lowered you will never see it "directly." Businesses will simply cut elsewhere and those cuts trickle through the system. Maybe 8 employees doing the job instead of 10, maybe not reinvesting as much and modernizing machinery or equipment, maybe reducing bonuses or scaling back company perks.
There's a lot to unpack there but they are two entirely separate things! Taxes are there to pay for the government: military, schools, police, hospitals etc. The CPP is NOT a tax... that money doesn't go to the government at all!
Now the reason why CPP contributions are going up is that they decided to increase the CPP income when we retire. If we want to receive more when we retire, we need to contribute more when we're working. I hope that helps clear it up!
But this is important! You do NOT get RRSP room right away when you move here! You will only get that contribution room NEXT YEAR, since your room will be 18% of the previous year's income! I cover this important point in my RRSP MISTAKES video here =) th-cam.com/video/I8k95_R_L_Q/w-d-xo.html
Would be nice to mention that for FHSA if you open before end of the year you have 16k of room next year BUT if you are not able to put enough money in your account you can not carry the 2024 8k to 2026. Or maybe I m missing something ?
It's not like the TFSA where you can sit on it for years and all the room is building in the background. With the FHSA, they want you to contribute every year. That's why only $8K is carried forward each year
Ok thanks. So let’s say I open today (8k) then next year I m only able to put 4k. It means I would have 8k transferred to 2025 but I m gonna lose the 4k I was not able to save ?
Hi Adrian, thanks so much for these videos. Wondering if you could do a video regarding formal trust accounts with a balance of 50,000. With the new tax rules around formal trusts, it's very confusing and not sure what the best options are..... but definietly want to self invest this for my children who are 5, 7 and 8yrs old. Thank you!
Generally speaking, these are very specific options tailor made to your situation so it's best to speak to a tax accountant to get the best option for you and your family! =)
@CanadianTShirt thank you, apparently it has to be a formal one which has been a nightmare to set up and get going. But after 5mths we've got it going. But now I'm confused if we take out the money for the kids is it taxed regardless or can we "avoid" taxes if 🤞 we are making dividends and the funds are increasing....but we use some for their tuitions/health/hobbies etc?
That's the beauty of the FHSA! As long as you are using that money to buy your first home (that you will live in, not a rental) you can withdraw that money tax-free! So the $40K you put in, plus the profits, you get to keep it all! And remember, you've also earned thousands of dollars in tax refunds over those years!
I know that canadian household debt is ridiculously high, but I sincerely hope nobody making over 81k is feeling like their CPP contributions are the thing taking bread off the table---for many, it will be the only thing keeping bread on the table when they retire!
I hear you there! Yes it can definitely be frustrating seeing that CPP money come off our paycheques but yes, we will be receiving that money when we retire, as early as 60 =)
And as I said many times before, you should NOT rely on the CPP. It's not there to fund your entire retirement, it's just there to help to ensure that everyone in Canada will have at least SOMETHING in retirement =)
@@CanadianTShirt honestly, while I'm definitely in the camp of "max out your work pension, RRSP contributions, and build up some long-term funds in the TFSA," the value of a maxed out CPP + OAS is more than enough to live a comfortably low/middle class lifestyle in my city, especially if you liquidate your property. Policy favours the old more than the bold on that front. I'd prefer to not wait until I'm 70 to start retirement, though!
Hmmm I wouldn't say that CPP and OAS are more than enough.... for many seniors, it's enough to get by assuming they have no debt and specifically, no mortgage on their home!
My parents for example are retired and they both collect CPP and OAS. Thankfully they paid off their mortgage years ago but even then, they still need to pull from their TFSA and RRSP to afford groceries and such. But don't get me wrong, CPP is a great benefit, just don't rely exclusively on it! It's a shame that you see so many angry comments claiming that CPP is a "scam" and we shouldn't look after our own.... but I guess, welcome to 2025 🤷♂️
Hi Adrian, excellent video as always. Can you make a video on Passive investing in Corporations and optimal way to grow the retain earnings in corporation
Also missed that you can only have $16,000 of available contribution room available in the FHSA so if you don't invest in the first two years, the third year you won't get another 8k for the 24k it just stay at 16k.
You can only carry forward up to $8K of unused room so the most you can ever have at any given time is $16K. This is to encourage you to invest consistently thus giving you the best value for a down payment
Question for you, I opened an FHSA account for my daughter at TD and did not deposit any money in the account. The individual who opened the account told us that after 2 years of not depositing money the accumulated amount does not continue to increase. His point was say year 3 it would remain at 16K not 24K. Have you heard of this?
I have an entire playlist of step by step walkthroughs on how to buy stocks and everything else with Questrade! =) th-cam.com/play/PLj8bU3AuW2qEIaIoR89ZHl9enwMJzz9De.html
Check out this video here showing a comparison between Wealthsimple and Questrade when it comes to buying US stocks, very important since those fees can make a HUGE difference! 😊 th-cam.com/video/Nadm0mcHE_Y/w-d-xo.html
the tax bracket is based on taxable income...there are 3 income strem in taxation. total income (gross income), net income and taxable income...it's clearer if you mentioned it's taxable income. also the OAS clawback in 2024 if ur net income exceed 90977 not 177000.. Anyway, thanks for sharing the video n info..
Yes for the tax brackets, we are talking about taxable income (combining employment income, net business income, rental income etc) The point of this video is to give a 10 minute overview of the tax changes. If you want a more detailed introduction to how taxed work, watch my TAXES EXPLAINED video here =) th-cam.com/video/GShKBkv2xY8/w-d-xo.html
I love your videos but I'm concerned about something you said about the TSFA. Well it is true that anybody as a resident can invest in a TSFA, I think you have to be careful with tax treaties if I'm not mistaken. For example if you're a US citizen living in Canada on a permanent residency and you invest in a TSFA, I don't believe it's considered a tax-free shelter in the United States. Therefore any gains made during the year will not be taxable in Canada but I believe they are in the United States. This is not the case for an RRSP since it is recognized in the tax treaty. If you have any insight on this how this might be wrong please let me know. Thanks again for the great video
It gets very tricky when it comes to leaving Canada and moving to another country. But bottom line, if you are a taxable resident of Canada, meaning you are living here more than 6 months of the year, then you can use the TFSA. But you should always consult with an immigration lawyer for your specific circumstances =)
I already have a 30 minute, step by step Tax Filing tutorial so check that out! It's timeless, even years later! =) th-cam.com/video/4RxkNa2VjtU/w-d-xo.html
Hi Adrian, can you do a video on the Canadian tax credit for Canadian dividends? I believe it's the first $50K earned dividend from Canadian publicly traded companies.
I love how the response from the government to rising real estate prices because of their incompetence with immigration (incompetence in general actually), is to allow people to destroy their retirement plan... What a bunch of tools. Thanks for the video
Well it's an impossible problem to solve. Half the country owns homes, so the government can't "force" prices to drop since those people would lose value through no fault of their own. Let alone screw up their retirement plans
So I feel that programs like the FHSA and HBP will benefit those who are looking to buy homes (and need help the most) without screwing over those who already own homes. It feels like a decent, balanced step in the right direction
@@oldveeh here we go. Blame immigration again. Last I checked, most new immigrants aren't buying up all the housing market to screw Canadians long term
@@CanadianTShirt it's a problem they created. Now, impossible to solve, not really. Solving it would mean decreasing the price yes. And the gouvernement can do it, they need to pass law to increase the supply. Yes people would loose value, but as long as you keep your home and live in it it's not a real loos. And this is were the problem is, lots of people have multiple properties and are using them as asset. These people would be the really unhappy ones if price goes down because they will directly loose money on their investments. These are the same people who contributed to the rising price of home, to say it's not their fault, it's questionable. I agree that this move to allow people to get more from their RRSP to afford the downpayment is a compromise, but in my opinion the only thing to do is increase the housing supply period. You should not use your retirement money for anything else than that. Especially now with the price of everything going to the roof. The loos of compounding interest this money could have made over is not worth it.
Question for first time home buyers- if you withdrawl the tax free $60,000 from RRSP, is that money also interest free with regards to the 15 year repayment? Thanks for the great video!
Here's the thing, since you already claimed that RRSP tax deduction years ago when you initially contributed to your RRSP, you won't get to claim that tax deduction again on that $4000 repayment. I will cover this important point in my upcoming video =)
Thank you very much! Are you sure FHSA stacks by opening acc. date and not as TFSA by just being in Canada? If so, than I`ll probably will have to talk to CRA for over contributing...
For example, I didn't open the FHSA in 2023, I waited until 2024 (to avoid any potential issues with my rental property I bought 5 years ago) So I was only allowed to put in $8K this year. That was my limit
@@haidak Sadly ya... I would give CRA a call and see what they suggest... At this point, you're only a month away until 2025, at that point you will be back to maxed out (no longer over) but you will get penalized for the excess amount this year...
I haven't bought TD in a few months. I am continuing to hold and I'm DRIP'ing every quarter. For now, I'm taking on a wait-and-see approach, until we know all the details with the US asset cap!
Oh there is no special tax rate for retirees! Retirees will have the exact same tax brackets! Just that generally speaking, retirees have lower income than working Canadians so they will usually be in the bottom 2 brackets!
Just stumbled on your videos! I love how you simplify everything making it so easy to understand! Just subscribed :) Would be amazing if you had a video on taxes about crypto earnings and how to reduce taxes when cashing out crypto!
When it comes to crypto, if you are actually mining it, that is business income. But the vast majority of people are just buying and selling it, so it is taxed the same as stocks, capital gains!
So you will be taxed 50% on the PROFIT when you sell your crypto. As mentioned in this video, if you have capital gains above $250K in a year, then that tax inclusion gets increased. Watch my CAPITAL GAINS TAX video for the full breakdown with examples =) th-cam.com/video/qq8YndVACV4/w-d-xo.html
There's going to be more deliberation but we have to prepare for it. To be honest, I don't think the opposition is actually fighting for it. They've been dragging their feet on this issue for almost a year now
@@CanadianTShirt The opposition has been fighting it because the conservatives have been using the filibuster to prevent the liberals from introducing new tax bills. When an opportunity came to do so with the fall economic statement, the liberals self-imploded with the PM removing the financing minister which lead to her resignation. There has been no deliberation in the house because the capital gains increase has not been introduced as a bill, which means it is not in effect as of today. I think it's crucial for you to point out to your viewers that the increase has not taken effect yet, but if it does, it will have retroactive effect to dispositions made after June 24, 2024. However, given that the NDP has explicitly withdrawn their support for the liberal government (notwithstanding they've said this before), there's a good chance this won't happen under the current government, as both the conservatives and the bloc will also vote against the liberals.
Wow! we get a whole 7K in our TFSA!? Awesome! before 2015, we were allowed to put in 10K. That's a loss of 50K in tax savings that were taken away over 10 years. So glad 2025 is around the corner.
I don't want to get into politics but having $10K contribution was a one-time gimmick before an election. There's no way they would sustain $10K of room every year
Besides which, increasing the annual limit to $10K every year would only benefit the wealthiest Canadians. Since the majority of Canadians cannot max out their TFSA every year
Don't get me wrong, I would love to have more TFSA room but we gotta be reasonable and focus on policies that affect ALL Canadians, not just the wealthiest
Does it make sense to open a FHSA if I don't want to buy a house? I know that I can eventually transfer the money to the RRSP, but this will take contribution room out of the RRSP. So if you don't wanna buy a house, the FHSA is just an extension of the RRSP, and eventually they can be merged together. Does that make sense?
Oh you absolutely should and here's why! First of all, in 15 years you might change your mind and the FHSA is by far, the best bang for your buck. But if you are 100% certain that you'll never buy a home, still open to an FHSA! You get ALL the benefits of the RRSP and you can eventually transfer that money into your RRSP without taking away your available room!
So in the absolute worst case, the FHSA is a gift of an extra $40,000 worth of RRSP room! I cover this important point in my FHSA EXPLAINED video here =) th-cam.com/video/l-vFR14I12k/w-d-xo.html
@@CanadianTShirt oooh, I thought that if I transferred the FHSA to the RRSP it would take away contribution room from the RRSP. So the FHSA is adding contribution room in a sense
Nope! There's no limit on the capital loss tax credit! But there are certain rules like the superficial loss rule! I cover this in detail in my Year End Tax tips video here =) th-cam.com/video/xLXup5L-S2Q/w-d-xo.html
I was waiting for this one haha, thank you Adrian! Quick question - I suppose that this is a case by case basis but if the increase in tax brackets coupled with contributions to the RRSP and FHSA results in a significant deduction amount - we can still just choose to deduct a part of these contributions (to make sure that you are within the 15% let's say and then carry forward the rest for a future return right? Like maybe when you are on a higher income? I definitely remember you mentioning something about this in your past videos but I just wanted to clarify if it would still make sense. Thank you! :)
Absolutely! With both the FHSA and the RRSP, you do NOT need to claim that tax deduction right away! In many cases, if you expect your income to grow next year, you can carry forward that deduction!
In certain situations, this can save you thousands in extra tax refunds! I cover this in detail in my RRSP Video all about carrying forward deductions! =) th-cam.com/video/Wm2nOmqOqCQ/w-d-xo.html
My advice would be, don't wait too long.... It's not worth sitting on that tax return for 5 years, waiting for a salary boost. After 5 years, you would have missed out on so much investment returns. But waiting a year or two can definitely make sense! =)
That's not my area of expertise. I don't want to accidentally give you wrong info, I suggest you speak to an accountant specializing in US emigration =)
These tax changes for 2025 you mentioned will only take affect in 2026 tax filing right not applicable to 2024 filing in the upcoming year on say the capital gains on rental property and entrepreneurs right?
All of these changes come into effect on January 1, 2025. So in a few weeks! You will see these tax changes on your paycheque throughout the 2025 year!
The way the contribution change is communicated is ambiguous. You say it as if we get an extra $7000, which is techically true in total but I initially interpreted it as we get an extra $7000 on top of what the previous year's contribution limit already was. In reality, there is no change to the yearly limit though...?
Just follow the numbers I include in the table, that tells you what you need to know. But to be clear, EVERYONE in Canada gains an extra $7000 worth of room in January
I thought you moved from one tax bracket to another? You seem to be saying you pay tax on the first bracket, then the rate of the next bracket for the additional earnings above and beyond the first one?
No no, the tax rates only apply to the money inside that bracket! So EVERYONE, whether you make minimum wage or a billionaire, we all pay the same taxes on that first $57K of income, that first tax bracket!
Definitely watch my HOW TAXES WORK in CANADA video for an in-depth explanation with examples. This is so important to understand! I hope yo find it helpful! =) th-cam.com/video/GShKBkv2xY8/w-d-xo.html
@@CanadianTShirt Exactly! I could have sworn I heard in some other vid that was the case though and you leave one bracket behind to move into the next one. Thanks for clarifying! I'm originally from the UK and taxes in Canada are so confusing!
I have 20 minute videos going into this in detail, I can't cover it in a comment. But they are an interesting REIT that also runs an operating business too =)
Hey man. On 1 house both my parents are primary resident but my name is on the title. So 3 owner of the house 1. On house 2 both me and my brother are the primary resident but my parents are in the title but not their primary home, so 4 owner in house 2. When it comes to selling both property, how do we get taxed on them? I appreciate the reply. Thanks
You have quite a complicated situation so you'll have to speak to your real estate lawyer for those details. Also I'm assuming that you aren't selling both properties at the same time? The more you space them out, the easier it will be
Here are the most important TAX videos to watch after this one! 👇
Do this BEFORE Dec 31 - th-cam.com/video/Cwy5ls8JqY4/w-d-xo.html
CPP Changes in Canada - th-cam.com/video/rICT8RpVKS8/w-d-xo.html
Capital Gains Tax Increase - th-cam.com/video/qq8YndVACV4/w-d-xo.html
TFSA vs RRSP vs FHSA vs RESP - th-cam.com/video/11y_oV3jOU4/w-d-xo.html
Year-End Tax Tips - th-cam.com/video/xLXup5L-S2Q/w-d-xo.html
Pay Stub Explained - th-cam.com/video/uFg3tDxmqiE/w-d-xo.html
Go through my Canadian TAX Guide to learn it all! 🇨🇦
th-cam.com/play/PLj8bU3AuW2qEA_ik7NOAIkBY02nt7KAPj.html
It is quite an achievement for you to get me interested in taxes. Congratulations. 😆
I know it's not the most exciting topic but it is SO important to learn! You can't win the game if you don't know the rules! 😁
So if I’m going to retire at 50 year old can I apply for cpp?
No, the earliest you can receive CPP is 60!
I have to say. I really liked how summarized, organized and simple your content is.
I'm happy TH-cam finally suggested me a good source of information about tax and finance in Canada.
Thank you for that. I'll be consuming / studying your content for sure!
Thank you for those kind words! I'm glad you found me and welcome to the channel! 🙏
I actually colour-code all my videos! So all of my TAX videos have silver thumbnails, I suggest going through all of my Canadian Tax videos in this playlist =)
th-cam.com/play/PLj8bU3AuW2qEA_ik7NOAIkBY02nt7KAPj.html
That's why I love your videos - very informative, no BS, no asking people to like and subscribe...... The truth is if your content is great, I would like and subscribe without you having to ask me. Your contents speak for themselves. I can't believe how many youtubers out there still don't get this simple concept. Keep up the good work!
Thank you for those kind words, I appreciate that! 🙏 I've been on TH-cam for about 6 years now and many years ago, yes I did ask people to like, comment and subscribe. But at this point, it's like you said: if people find value in my video, they'll subscribe. If not, that's their call
All I can do is try to provide the most value I can in these videos and cut out all the fluff. I hate the idea of wasting anyone's time 😊
Excellent, as always. No BS, just a nice clear breakdown.
Thank you! That's what I try to do!
I hate the thought of wasting my viewers' time! 😊
This is the first time I saw a person this good in explaining complicated things like taxes. You are great, I love the simplicity and clarity in your video! Liked and subscribed :)
That's what I try to do! I know taxes aren't super fun but they are SO important to understand! I try to break it down to basics and cut out the fluff! 😊
Welcome to my channel! I suggest you go through my playlists, I make the thumbnails all colour-coded! All of my SILVER videos are Tax video! Here is my Tax Playlist in the proper order =)
th-cam.com/play/PLj8bU3AuW2qEA_ik7NOAIkBY02nt7KAPj.html
You are the best bud... all facts, no political nonsense
Love your videos
Thank you for saying that! That's what I try to do! Let's be constructive and stick to facts and numbers 😊
Another great video, thanks!
But, I'd say that there are 2 things missing:
1) I think that EI still deserves mentioning
2) If I recall correctly, despite being deducted from your paycheck, the CPP contributions are deducted from your gross income. Therefore, it should not affect the yearly net income, although it makes an impact on your paychecks.
I go into EI in my paystub videos, since it isn't really a tax. But since you asked, yes the max EI went up by $20 bucks this year so barely worth a mention =)
$20 for the entire year! Not each paycheque lol
No way this could be more simplified. You explained it so well and the clarity is crystal clear! Thank you.
@@marumarukira that's what I try to do! Thank you! 🙏
Hope 2025 will be a good year for our country. We desperately need a change.
We can only control the world around us. So do the best for you and your family, that's all we can really control =)
@@CanadianTShirtEncourage people to vote. If you need change it begins with voting for the right party
Couldn't agree more! The way I see it, if you don't vote, you don't really get to complain. That's when your voice actually matters
@@kaala-paani 💯 correct! Canada deserve better.
Vote for the policy that will help you and your family most. Just make sure that they earn your vote! =)
I look forward to this video every year.
Much appreciated for the info.
@@Kertothemit and I look forward to making it every year! 😊
@@Kertothemit thanks for sticking with me! 🙏
Think of it this way: The moment you put your money in a TFSA (legally), it disappears from government meddling and taxation - forever.
I like the way you put it!
But that is an incredibly powerful benefit! Make the most of it! =)
Amazing
Wrong it's already taxed when you get it wtf are you talking about dummy
It doesn't really disappear. If you are going through any CRA issues, believe me, it will reappear on their books faster than a thief stealing from a major retailer.
At the end of the day, in this technologically advanced era, EVERYTHING is visible, except one asset: that is, physical bullion that happens to be well-hidden in your home.
Other than that, there is no other asset that is not visible to the CRA. And, before someone incorrectly chimes in, bitcoin is not hidden.
I’ve learned so much from your videos over the year, thanks for sharing! 📝
I'm so happy to hear that! Thanks for watching my videos! 😁
I know a lot about TFSA but I'll admit I didn't quite know about the age/moving to Canada thing! Good to know! Thanks
A lot of new Canadians aren't aware of these rules! I'm glad I was able to help! =)
Watching your tax video is my new routine at the end of each year!
I love it! It's funny, I've been on TH-cam long enough that I've already developed annual traditions! 😆
And at the end of the year, make sure you watch this video as a refresh! Do These Things BEFORE Dec 31! 😊
th-cam.com/video/Cwy5ls8JqY4/w-d-xo.html
There is a cache in HBP repayment. It’s a temporary policy. You get 5 years only if your withdrawal is between January 1, 2022, and December 31, 2025.
Yes exactly, but I can totally see them extending this again before 2026. One way or another, I will make that update when we approach 2026 =)
You explain Canadian Tax much better than any other TH-camr. Thank you very much.
Thank you so much for those kind words! I try to cut through the confusion and break it down for everyday Canadians! 😊
So succinct and efficient. Thanks man!
@@MFTW that's what I try to do! Thank you! 🙂
Top shelf as always, my man. Your videos should be required viewing by all Canadians.
Thank you so much for those kind words! I really do appreciate that! 🙏
Man i love your vidz, im not rich but knowing how to manage what little i have and the heads for whats to come and advice on what can be done is godsent. ❤
Thank you for the kind words! I'm not in the same boat, I never really had a big salary throughout my career but I knew that if I work this hard for my money, I NEVER want to throw it away in unnecessary taxes and fees!
That's why it is SO important to learn how taxes work. You can't win the game if you don't know the rules! 😊
Thanks, u demonstrate a very details from masive to basic income and tax. I can image it all better.
I'm happy to hear that! That's what I try to do! 😊
You are doing such a great deed by explaining these to the point. Its super helpful for someone like me. Really appreciate your work on all platforms
Thank you for those kind words! I'm so glad that you have found my lessons valuable! 🙌
Thank you for explaining the complicated tax system !
That's what I try to do! I'm glad I was able to help! =)
Such a great video, man. Keep doing your thing. 😎👌🏼
Thanks man! I appreciate that! 😊
You explained everything so well. Nice work. 👍
Thank you so much! That's what I try to do! 😊
1:40 I think you do need to be at least a PR holder to build room. When I moved here, that's what advisors would tell me, and I can't find it right now, but I'm pretty sure I used a contribution room calculator from the CRA where the result stated that you need to have your PR.
Nope! You don't need to be a PR! You just need to be a taxable resident of Canada. That just means that you now live here and you stay in Canada for the majority of the year (more than 6 months)
I can promise you this. Many of the student coops who worked for me at my old job were here on student visas (not PRs) and all of them were able to open a TFSA =)
@@CanadianTShirt I see, thank you! I thought it might be difficult because the SIN changes after you get your PR, but I guess it's still all linked to the same person in the CRA files
Exactly! Don't worry, they will still be able to track those changes =)
As always your videos are great value, straight to the point and packed with really useful information. Thank you!
Thank you! That's what I try to do! 😁
Just came to give a thumbs up, say thanks, and be on my merry way to await the next video!😊
Thank you so much! I hope you found it helpful! =)
If you keep making them, I'll keep watching them 👍
haha that's the plan! 😁
Thanks for sticking with me! 🙏
Another amazing tax update video, year after year. Well done Adrian!
Thank you Jess! I appreciate that! 🙏
Thanks for the tax update!!
You got it! I hope you found it helpful! =)
Indeed, one of the best Canadian you tuber!
Thank you so much for that support! I really do appreciate it! 🙏
You are the best. Thank you for this info
@@Violetcupkace I'm happy to help! 😊
alway learn a little something from you videos thank you
Thank you so much! That's what I LOVE to hear! =)
Thanks fam...
Looking forward to a Moo Moo update
I've got a bunch more brokerage reviews and comparison videos! Stay tuned! =)
Thanks for the video! I was wondering if you could make a video on overpaying into your RRSP and how to fix that? It's hard to find resources on that online haha
I cover that a bit in my RRSP MISTAKES video here =)
th-cam.com/video/I8k95_R_L_Q/w-d-xo.html
Basically you are being penalized 1% every month! So 12% a year! Although there is a "grace amount" of $2000 where you aren't penalized, since mistakes do happen!
But call CRA right away, let them know and they will advise you. Normally you will want to withdraw that excess amount ASAP but see what they say =)
@@CanadianTShirt thank you!!!!
Best of luck! =)
Crisp and to the point. Immensely appreciate this post. Thanks!
Thank you! That's what I try to do! 😊
Thanks Adrian. This is very helpful.
I'm happy to hear that! Thank you! =)
I liked the cartridges in the background. Recently, I renewed my Game Boy Color with a new IPS screen, and it looks gorgeous. I'm playing it again.
I grew up as a gamer through the 90s so these PC games and Sega and Nintendo games mean so much to me! Watch my BOOKSHELF TOUR video to see all the awesome vintage games behind me =)
th-cam.com/video/hgCxbdcRRqw/w-d-xo.html
Thanks man! Keep up the good work! 👍
You bet! I'm happy to help! =)
Helpful as always. Thank you, Adrian!
That's what I'm here for! Glad you found it valuable! 😊
It is a tradition to watch your Tax lookahead videos now at end of year haha
I love that! I've been on TH-cam long enough that now we have annual traditions! 😁
Thank you for sticking with me over the years! 🙏
Awesome video, you just earned yourself a new subscriber! :)
@@nd9yj thank you! Welcome to the channel! 🙂
Should include that there are requirements to meet the Lifetime Capital Gains Exemption (LTGE) on the sale of qualified shares of Canadian Controlled Private Corporations (CCPC). LTGE only applies to the sale of *shares* at Fair Market Value, and does not apply to CPCC's assets. Business owners should be aware that a 2-year plan is usually required, especially if passive assets are held inside the CCPC or if there are multiple owners. Great video thank you!
Great Scott! Thanks Adrian!
Thanks buddy! I always look forward to your references! 😎
I gotta wear the shirt again!
Good video. Really clear 👍
Thank you! I'm glad you found it helpful! 🙂
Increasing taxes for corporations ultimately gets passed down to consumers so indirectly it does affect us
That's an argument I've heard my entire life... Funny how when they cut corporate tax rates though... those savings never trickle down to us 😅
@@CanadianTShirt 100% agree! Thank you for your year end videos like always!
My pleasure! Thanks for watching! =)
I’m hoping you answer. I earn, pay income tax. The interest I earn is so little I hang on to what little extra cash I have. Why would I put it into an RRSP or TFSH ? Won’t I just pay tax again when I take the money out? Tax on tax and then taxed. I only earned it once! Also self employed so I pay both sides of the CPP. That rule (employer portion) has prevented hiring any help whatsoever. Wish I could now I’m older.
@@CanadianTShirt You think a corporation just "eats it" and settles for less?? Businesses set targets for healthy net profits. When taxes are raised or lowered you will never see it "directly." Businesses will simply cut elsewhere and those cuts trickle through the system. Maybe 8 employees doing the job instead of 10, maybe not reinvesting as much and modernizing machinery or equipment, maybe reducing bonuses or scaling back company perks.
As always, thank you for the videos
Thank you! I'm glad you are finding them valuable! 😊
Stellar video as always 🇨🇦👕
Thank you so much! 🙏
What is the point of increasing tax brackets when they take that back by increasing other things like CPP
There's a lot to unpack there but they are two entirely separate things! Taxes are there to pay for the government: military, schools, police, hospitals etc. The CPP is NOT a tax... that money doesn't go to the government at all!
The money for CPP goes into a big investment fund and the profits from that get paid out to all the retirees (60+) who receive those CPP payments
Now the reason why CPP contributions are going up is that they decided to increase the CPP income when we retire. If we want to receive more when we retire, we need to contribute more when we're working. I hope that helps clear it up!
Thank you Adrian!
You're welcome! I hope you find it helpful! 😁
Thanks for another helpful video! As a non-citizen, can I use the RRSP as well as TFSA?
Yes with the RRSP you don't have to be a citizen! You just have to be a taxable resident, living in Canada!
But this is important! You do NOT get RRSP room right away when you move here! You will only get that contribution room NEXT YEAR, since your room will be 18% of the previous year's income! I cover this important point in my RRSP MISTAKES video here =)
th-cam.com/video/I8k95_R_L_Q/w-d-xo.html
Would be nice to mention that for FHSA if you open before end of the year you have 16k of room next year BUT if you are not able to put enough money in your account you can not carry the 2024 8k to 2026. Or maybe I m missing something ?
Your unused room will be carried forward, up to $8000 a year! So essentially, you can never have more than $16K worth of room in a given year =)
It's not like the TFSA where you can sit on it for years and all the room is building in the background. With the FHSA, they want you to contribute every year. That's why only $8K is carried forward each year
Ok thanks. So let’s say I open today (8k) then next year I m only able to put 4k. It means I would have 8k transferred to 2025 but I m gonna lose the 4k I was not able to save ?
You never lose contribution room! You will always be able to reach the $40K lifetime limit! But you can only carry forward $8K to a future year
So in your case, you put in $4K in 2025. So in 2026 you would have $12K room ($8K + $4K)
Love the content and really appreciate the video. Thank you!
Thank you so much! I'm glad you found it helpful! =)
Hi Adrian, thanks so much for these videos. Wondering if you could do a video regarding formal trust accounts with a balance of 50,000. With the new tax rules around formal trusts, it's very confusing and not sure what the best options are..... but definietly want to self invest this for my children who are 5, 7 and 8yrs old. Thank you!
I can certainly make a video about informal trusts, the rules can get confusing especially with the recent changes!
Generally speaking, these are very specific options tailor made to your situation so it's best to speak to a tax accountant to get the best option for you and your family! =)
But I can always help with general knowledge & common questions 😊
@CanadianTShirt thank you, apparently it has to be a formal one which has been a nightmare to set up and get going. But after 5mths we've got it going. But now I'm confused if we take out the money for the kids is it taxed regardless or can we "avoid" taxes if 🤞 we are making dividends and the funds are increasing....but we use some for their tuitions/health/hobbies etc?
You're a good man ✌🏾
Thank you for those kind words! I do what I can to help 😊
@4:35 how is fhsa tax free when withdrawn ?
That's the beauty of the FHSA! As long as you are using that money to buy your first home (that you will live in, not a rental) you can withdraw that money tax-free! So the $40K you put in, plus the profits, you get to keep it all! And remember, you've also earned thousands of dollars in tax refunds over those years!
I break this all down with examples in my FHSA EXPLAINED video here =)
th-cam.com/video/l-vFR14I12k/w-d-xo.html
@@CanadianTShirt does it mean I can collect my money after 15 years Tax Free if not spent on a down payment ?
I know that canadian household debt is ridiculously high, but I sincerely hope nobody making over 81k is feeling like their CPP contributions are the thing taking bread off the table---for many, it will be the only thing keeping bread on the table when they retire!
I hear you there! Yes it can definitely be frustrating seeing that CPP money come off our paycheques but yes, we will be receiving that money when we retire, as early as 60 =)
And as I said many times before, you should NOT rely on the CPP. It's not there to fund your entire retirement, it's just there to help to ensure that everyone in Canada will have at least SOMETHING in retirement =)
@@CanadianTShirt honestly, while I'm definitely in the camp of "max out your work pension, RRSP contributions, and build up some long-term funds in the TFSA," the value of a maxed out CPP + OAS is more than enough to live a comfortably low/middle class lifestyle in my city, especially if you liquidate your property. Policy favours the old more than the bold on that front. I'd prefer to not wait until I'm 70 to start retirement, though!
Hmmm I wouldn't say that CPP and OAS are more than enough.... for many seniors, it's enough to get by assuming they have no debt and specifically, no mortgage on their home!
My parents for example are retired and they both collect CPP and OAS. Thankfully they paid off their mortgage years ago but even then, they still need to pull from their TFSA and RRSP to afford groceries and such. But don't get me wrong, CPP is a great benefit, just don't rely exclusively on it! It's a shame that you see so many angry comments claiming that CPP is a "scam" and we shouldn't look after our own.... but I guess, welcome to 2025 🤷♂️
Hi Adrian, excellent video as always. Can you make a video on Passive investing in Corporations and optimal way to grow the retain earnings in corporation
You bet! There is a TON to talk about when it comes to investing in a corporation.... the rules become much more complicated!
Also missed that you can only have $16,000 of available contribution room available in the FHSA so if you don't invest in the first two years, the third year you won't get another 8k for the 24k it just stay at 16k.
Yup! I cover that point in-depth in my FHSA Explained videos! =)
You can only carry forward up to $8K of unused room so the most you can ever have at any given time is $16K. This is to encourage you to invest consistently thus giving you the best value for a down payment
The best thing to do with the FHSA is put in the max of $8K every year so that you can max it out entirely in 5 years
Question for you, I opened an FHSA account for my daughter at TD and did not deposit any money in the account. The individual who opened the account told us that after 2 years of not depositing money the accumulated amount does not continue to increase. His point was say year 3 it would remain at 16K not 24K. Have you heard of this?
I think you duplicated the question, I answered it above =)
Long story short, the max room you can have in your FHSA at any time is $16K. You can only carry forward $8K of unused room in a year
Thank you, Adrian!!
You're welcome! I'm glad you found it helpful! =)
Could you please do a short tutorial of wealthsimple and questrade plzz.I am new to investing and i dont understand limit,market value etc
I have an entire playlist of step by step walkthroughs on how to buy stocks and everything else with Questrade! =)
th-cam.com/play/PLj8bU3AuW2qEIaIoR89ZHl9enwMJzz9De.html
Check out this video here showing a comparison between Wealthsimple and Questrade when it comes to buying US stocks, very important since those fees can make a HUGE difference! 😊
th-cam.com/video/Nadm0mcHE_Y/w-d-xo.html
the tax bracket is based on taxable income...there are 3 income strem in taxation. total income (gross income), net income and taxable income...it's clearer if you mentioned it's taxable income. also the OAS clawback in 2024 if ur net income exceed 90977 not 177000.. Anyway, thanks for sharing the video n info..
I didn't mention OAS clawback at all in this video. I was talking about the BPA clawback (Basic Personal Amount)
But yes Old Age Security is clawed back when your income reaches that threshold as you said
Yes for the tax brackets, we are talking about taxable income (combining employment income, net business income, rental income etc) The point of this video is to give a 10 minute overview of the tax changes. If you want a more detailed introduction to how taxed work, watch my TAXES EXPLAINED video here =)
th-cam.com/video/GShKBkv2xY8/w-d-xo.html
Adrian you’re prob the only person I know who I trust to answer this. Is the US ETF JEPQ taxed as level 1 in a tfsa or a level 2?
Cheers
I love your videos but I'm concerned about something you said about the TSFA. Well it is true that anybody as a resident can invest in a TSFA, I think you have to be careful with tax treaties if I'm not mistaken. For example if you're a US citizen living in Canada on a permanent residency and you invest in a TSFA, I don't believe it's considered a tax-free shelter in the United States. Therefore any gains made during the year will not be taxable in Canada but I believe they are in the United States. This is not the case for an RRSP since it is recognized in the tax treaty. If you have any insight on this how this might be wrong please let me know. Thanks again for the great video
There are always different rules if you have different tax residency status and each country has it's own tax treaties!
It gets very tricky when it comes to leaving Canada and moving to another country. But bottom line, if you are a taxable resident of Canada, meaning you are living here more than 6 months of the year, then you can use the TFSA. But you should always consult with an immigration lawyer for your specific circumstances =)
great vid again brother
Thanks buddy! I'm glad you found it helpful! =)
Thanks for another great video. Will you show us you will file 2024 taxes (especially with a rental property). Have an amazing day 😊
I already have a 30 minute, step by step Tax Filing tutorial so check that out! It's timeless, even years later! =)
th-cam.com/video/4RxkNa2VjtU/w-d-xo.html
Now for rental properties, there are some extra steps so I hope I can make a video on that before tax season! =)
Great video!
Thank you! I'm glad you found it helpful! =)
Hi Adrian, can you do a video on the Canadian tax credit for Canadian dividends? I believe it's the first $50K earned dividend from Canadian publicly traded companies.
Another great update as usual ;-)
Thank you Candace! I'm glad you enjoyed it! 😁
Lots of changes; thanks for the update!
You got it! It's important to prepare to start next year on the right foot! 😁
I am from Quebec and you mention that Quebec doesn't contribute to the CPP so what do I contribute to?
You guys have the QPP, Quebec pension plan. It's very similar to the CPP in terms of the contribution amounts but it is a separate pool of investments
Very informative video. Thanks !
Thank you! I'm glad you found it useful! =)
Subbed, no bs
Thank you! That's what I try to do!
You didn’t talk about the residential property that is rented out partially
You mean if you own a home but rent out the basement for example? I've discussed that in several of my other videos =)
@@CanadianTShirt thank you so much for instant response
I hope you find my videos helpful! 🙂
I love how the response from the government to rising real estate prices because of their incompetence with immigration (incompetence in general actually), is to allow people to destroy their retirement plan... What a bunch of tools.
Thanks for the video
Well it's an impossible problem to solve. Half the country owns homes, so the government can't "force" prices to drop since those people would lose value through no fault of their own. Let alone screw up their retirement plans
So I feel that programs like the FHSA and HBP will benefit those who are looking to buy homes (and need help the most) without screwing over those who already own homes. It feels like a decent, balanced step in the right direction
@@oldveeh here we go. Blame immigration again. Last I checked, most new immigrants aren't buying up all the housing market to screw Canadians long term
@@CanadianTShirt it's a problem they created. Now, impossible to solve, not really. Solving it would mean decreasing the price yes. And the gouvernement can do it, they need to pass law to increase the supply. Yes people would loose value, but as long as you keep your home and live in it it's not a real loos. And this is were the problem is, lots of people have multiple properties and are using them as asset. These people would be the really unhappy ones if price goes down because they will directly loose money on their investments. These are the same people who contributed to the rising price of home, to say it's not their fault, it's questionable.
I agree that this move to allow people to get more from their RRSP to afford the downpayment is a compromise, but in my opinion the only thing to do is increase the housing supply period.
You should not use your retirement money for anything else than that. Especially now with the price of everything going to the roof. The loos of compounding interest this money could have made over is not worth it.
@@CanadianTShirt if someone's retirement plan relies solely on on their house equity always going up, they deserve to lose their home.
for capital gains if you realized 300k in profits, does that mean 67% of the 300k will be taxed? or will 50% of 250k be taxed and then 67% of 50k?
The second one!
Only the amount ABOVE $250K will face that higher inclusion rate. I break this down with examples in my Capital Gains Tax video 🙂
Question for first time home buyers- if you withdrawl the tax free $60,000 from RRSP, is that money also interest free with regards to the 15 year repayment? Thanks for the great video!
Yes exactly! Basically once you start the repayments you will be required to contribute $60K / 15 = $4000 every year into your RRSP
Here's the thing, since you already claimed that RRSP tax deduction years ago when you initially contributed to your RRSP, you won't get to claim that tax deduction again on that $4000 repayment. I will cover this important point in my upcoming video =)
Please post a CRA link for the TFSA additional 7000 lifetime overpayment as I can’t find it 😮
@@Robyn-Hood you will be penalized 1% every month... that's 12% a year!
@@Robyn-Hood i cover this in my TFSA MISTAKES video!
th-cam.com/video/s4cBibLATOU/w-d-xo.htmlsi=OkKq1nv4kXC2QjCc
@@CanadianTShirt I thought you said in this video you can put in an extra 7000 this year
He just meant that in 2025 you can put another $7000 in. Not that you get $7k over and above anything that wasnt already planned. @Robyn-Hood
@@neolithic3 thank you
You are the best!
Aww thank you so much! 😊
Awesome Explanation! I opened an FHSA with Scotiabank. Can I open another one with Wealthsimple? How will the contribution room be affected?
Absolutely! You can open as many FHSA accounts as you want just as long as you don't exceed the TOTAL contribution room!
Your available room will be shared across all FHSA accounts =)
You can have as many as you want, just make sure you don't exceed your contribution limit!
@@AhhhSukeSuke well said!
Thanks for the video, great content
Thank you! I hope you found it helpful! =)
Thank you very much!
Are you sure FHSA stacks by opening acc. date and not as TFSA by just being in Canada? If so, than I`ll probably will have to talk to CRA for over contributing...
I am 100% confident! I wish the FHSA had the same contribution accumulation room as the TFSA but sadly that's not the case...
You only start accumulating FHSA room once you actually open an account! How much have you contributed? And when did you open the account?
For example, I didn't open the FHSA in 2023, I waited until 2024 (to avoid any potential issues with my rental property I bought 5 years ago) So I was only allowed to put in $8K this year. That was my limit
@@CanadianTShirt I`ve opened it this year, but I contributed 16K. I thought since the program started in 2023 - I have 16K. So looks like 8K over
@@haidak Sadly ya... I would give CRA a call and see what they suggest... At this point, you're only a month away until 2025, at that point you will be back to maxed out (no longer over) but you will get penalized for the excess amount this year...
Hi Adrian, How do you feel with TD’s stock? Are you buying or holding?
I haven't bought TD in a few months. I am continuing to hold and I'm DRIP'ing every quarter. For now, I'm taking on a wait-and-see approach, until we know all the details with the US asset cap!
And in the meantime, I'm still building my exposure through several ETFs, especially those finance focused ones like VDY! =)
How about for retired people the tax rate exchange can you make video please about the retirement tax rate
Oh there is no special tax rate for retirees! Retirees will have the exact same tax brackets! Just that generally speaking, retirees have lower income than working Canadians so they will usually be in the bottom 2 brackets!
And there are several tax credits and income programs to help retirees like OAS and GIS etc. I can make a video about those if you are interested! =)
Great video, thank you! New subscriber
@InfernoHeat_ thank you! Welcome to the channel! 🙂
Just stumbled on your videos! I love how you simplify everything making it so easy to understand! Just subscribed :)
Would be amazing if you had a video on taxes about crypto earnings and how to reduce taxes when cashing out crypto!
Thanks for stumbling in and welcome to the channel! 😊
When it comes to crypto, if you are actually mining it, that is business income. But the vast majority of people are just buying and selling it, so it is taxed the same as stocks, capital gains!
So you will be taxed 50% on the PROFIT when you sell your crypto. As mentioned in this video, if you have capital gains above $250K in a year, then that tax inclusion gets increased. Watch my CAPITAL GAINS TAX video for the full breakdown with examples =)
th-cam.com/video/qq8YndVACV4/w-d-xo.html
Thanks so much for the explanation! You rock!
@@hmach888 glad I could help! =)
Has the Taxable Gains inclusion rate passed in the house of commons? I don't think so.
There's going to be more deliberation but we have to prepare for it. To be honest, I don't think the opposition is actually fighting for it. They've been dragging their feet on this issue for almost a year now
@@CanadianTShirt The opposition has been fighting it because the conservatives have been using the filibuster to prevent the liberals from introducing new tax bills. When an opportunity came to do so with the fall economic statement, the liberals self-imploded with the PM removing the financing minister which lead to her resignation. There has been no deliberation in the house because the capital gains increase has not been introduced as a bill, which means it is not in effect as of today.
I think it's crucial for you to point out to your viewers that the increase has not taken effect yet, but if it does, it will have retroactive effect to dispositions made after June 24, 2024. However, given that the NDP has explicitly withdrawn their support for the liberal government (notwithstanding they've said this before), there's a good chance this won't happen under the current government, as both the conservatives and the bloc will also vote against the liberals.
hey dude, is rei-un and sru-un still worth buying at the moment?
I am still DRIP'ing them every single month! =)
REITs have been hit hard since 2022 when interest rates shot up but I am expecting a nice recover as interest rates come down =)
Hello, if you open a home buyers account and keep it for 5 years, adding 8,000 a year, but you don’t buy a home, how does it get treated?
Wow! we get a whole 7K in our TFSA!? Awesome! before 2015, we were allowed to put in 10K. That's a loss of 50K in tax savings that were taken away over 10 years. So glad 2025 is around the corner.
I don't want to get into politics but having $10K contribution was a one-time gimmick before an election. There's no way they would sustain $10K of room every year
Besides which, increasing the annual limit to $10K every year would only benefit the wealthiest Canadians. Since the majority of Canadians cannot max out their TFSA every year
Don't get me wrong, I would love to have more TFSA room but we gotta be reasonable and focus on policies that affect ALL Canadians, not just the wealthiest
Does it make sense to open a FHSA if I don't want to buy a house?
I know that I can eventually transfer the money to the RRSP, but this will take contribution room out of the RRSP.
So if you don't wanna buy a house, the FHSA is just an extension of the RRSP, and eventually they can be merged together. Does that make sense?
Oh you absolutely should and here's why! First of all, in 15 years you might change your mind and the FHSA is by far, the best bang for your buck. But if you are 100% certain that you'll never buy a home, still open to an FHSA! You get ALL the benefits of the RRSP and you can eventually transfer that money into your RRSP without taking away your available room!
So in the absolute worst case, the FHSA is a gift of an extra $40,000 worth of RRSP room! I cover this important point in my FHSA EXPLAINED video here =)
th-cam.com/video/l-vFR14I12k/w-d-xo.html
@@CanadianTShirt oooh, I thought that if I transferred the FHSA to the RRSP it would take away contribution room from the RRSP. So the FHSA is adding contribution room in a sense
You got it! =)
is there a capital loss limit in Canada? is 3k the max limit for capital loss claim?
Nope! There's no limit on the capital loss tax credit! But there are certain rules like the superficial loss rule! I cover this in detail in my Year End Tax tips video here =)
th-cam.com/video/xLXup5L-S2Q/w-d-xo.html
I was waiting for this one haha, thank you Adrian! Quick question - I suppose that this is a case by case basis but if the increase in tax brackets coupled with contributions to the RRSP and FHSA results in a significant deduction amount - we can still just choose to deduct a part of these contributions (to make sure that you are within the 15% let's say and then carry forward the rest for a future return right? Like maybe when you are on a higher income? I definitely remember you mentioning something about this in your past videos but I just wanted to clarify if it would still make sense. Thank you! :)
Absolutely! With both the FHSA and the RRSP, you do NOT need to claim that tax deduction right away! In many cases, if you expect your income to grow next year, you can carry forward that deduction!
In certain situations, this can save you thousands in extra tax refunds! I cover this in detail in my RRSP Video all about carrying forward deductions! =)
th-cam.com/video/Wm2nOmqOqCQ/w-d-xo.html
My advice would be, don't wait too long.... It's not worth sitting on that tax return for 5 years, waiting for a salary boost. After 5 years, you would have missed out on so much investment returns. But waiting a year or two can definitely make sense! =)
@@CanadianTShirt awesome, thank you for your guidance! :)
@@sachininakandala1662 happy to help!
Do you do cross border planning for someone moving to the U.S. under an L1a? I wanted a second opinion to what the company accountant said
That's not my area of expertise. I don't want to accidentally give you wrong info, I suggest you speak to an accountant specializing in US emigration =)
These tax changes for 2025 you mentioned will only take affect in 2026 tax filing right not applicable to 2024 filing in the upcoming year on say the capital gains on rental property and entrepreneurs right?
All of these changes come into effect on January 1, 2025. So in a few weeks! You will see these tax changes on your paycheque throughout the 2025 year!
But yes when you file your 2025 tax return, it will be in April 2026
The upcoming tax season in April 2025 will be for the current year, 2024. I hope that clears it up! =)
The way the contribution change is communicated is ambiguous. You say it as if we get an extra $7000, which is techically true in total but I initially interpreted it as we get an extra $7000 on top of what the previous year's contribution limit already was.
In reality, there is no change to the yearly limit though...?
Whatever your amount was on Dec 31, 2024, you will increase that by $7000. Plus whatever withdrawals you made in 2024
Just follow the numbers I include in the table, that tells you what you need to know. But to be clear, EVERYONE in Canada gains an extra $7000 worth of room in January
I thought you moved from one tax bracket to another? You seem to be saying you pay tax on the first bracket, then the rate of the next bracket for the additional earnings above and beyond the first one?
No way! That's a common misconception but if that were true, then you would LOSE money if you got a raise that pushed you into the next bracket!
No no, the tax rates only apply to the money inside that bracket! So EVERYONE, whether you make minimum wage or a billionaire, we all pay the same taxes on that first $57K of income, that first tax bracket!
Definitely watch my HOW TAXES WORK in CANADA video for an in-depth explanation with examples. This is so important to understand! I hope yo find it helpful! =)
th-cam.com/video/GShKBkv2xY8/w-d-xo.html
@@CanadianTShirt Exactly! I could have sworn I heard in some other vid that was the case though and you leave one bracket behind to move into the next one. Thanks for clarifying! I'm originally from the UK and taxes in Canada are so confusing!
Tax brackets are the same in principle there though, but here taxes on earnings from investments etc are a maze, that's what I meant.
whats your opinion on the IRM
I've been investing in them for years! They are one of my top performers and one of my biggest holdings right now in my RRSP =)
I talk about them in detail in my Members-Only videos where I break down my RRSP portfolio (and TFSA and FHSA as well)
@@CanadianTShirt do they pay a high dividend. Where does the majority of the profits come from?
I have 20 minute videos going into this in detail, I can't cover it in a comment. But they are an interesting REIT that also runs an operating business too =)
Hey man. On 1 house both my parents are primary resident but my name is on the title. So 3 owner of the house 1. On house 2 both me and my brother are the primary resident but my parents are in the title but not their primary home, so 4 owner in house 2. When it comes to selling both property, how do we get taxed on them? I appreciate the reply. Thanks
You have quite a complicated situation so you'll have to speak to your real estate lawyer for those details. Also I'm assuming that you aren't selling both properties at the same time? The more you space them out, the easier it will be