The JMRD Wealth Management Taxation Issue 2015‏

JMRD Wealth Management – Taxation Issue 2015


We’re approaching that time of year again – Tax Season!  This can a busy time of year as we rush to get our tax slips in order to ensure that we file our returns before the deadline.  We wanted to make your lives a little easier by providing a few helpful tips and by highlighting a few key dates that you need to know about for the 2014 tax season.

Good news!  NBF Tax slips are now available online!

Through our Online Documents Service, you can now elect to receive your 2014 tax slips electronically, as soon as they are issued! Enjoy easy, secure access to all of your account documents – trade confirmations, prospectuses, portfolio statements and tax slips – in one place!

How to adjust your delivery preferences:

Sign into our Online Services website by clicking on the “Client Access” button and select the Accounts tab, then the Electronic Documents option. It’s that simple!

Haven’t signed up for Online Services yet?

1. Go to

2. Click on the “Client Access” button

3. Click on the “Sign up for Online Services” link at the top of the page

4. Follow the instructions and submit

More on Tax Slips

  • Electronic T5 tax slips will be available through Online Services as of February 20, 2015. A paper copy will also be mailed to you before March 1st, 2015.
  • Electronic T3 tax slips will also be available through Online Services as of March 19, 2015. A paper copy will also be mailed to you before March 31st, 2015.
  • Realized gain/loss reports will be sent to you in February.
  • T4RIF tax slips will be available through online services as of January 31, 2015.  A paper copy will also be mailed to you before March 1st, 2015.

If you have any questions regarding the on-line procedure, please call Faith Hatt at 519-439-6219.

 Please take note of the following:

  •   The 2014 RRSP contribution limit is $24.270.  You have until March 2nd, 2015 to make your contribution to deduct the amount on your 2014 tax return.
  • If you are ahead of the game and want to make your maximum contribution for the 2015 taxation year, the 2015 contribution limit is $24,930.
  • The 2015 TFSA contribution limit is $5,500 and you can contribute anytime up to December 31, 2015.  Note that if you have not maxed out your TFSA in previous years, you are able to carry forward any unused room
  •  Other tax notes:
  • If you hold foreign property with a cost base greater than $100,000, you must file the foreign income verification statement (CRA Form T1135).  As of June 2014, new rules apply to disclosure of this information.
  •  If you are  U.S. Person for tax purposes, understand your IRS reporting requirements.  U.S. Persons (even those who are resident in Canada0 have tax reporting requirements in the U.S.  For example, U.S. persons are required to report any holidngs in Passive Foreign Investment Companies (PFICs), which includes mutual funds and exchange traded funds.
  •  New tax measures:
  • Family Tax Cut – Income Splitting  –  In the October 2014 Federal Tax Update a new non-refundable tax credit of up to $2,000 was introduced for eligible couples with children under the age of 18.  The new credit will be effective for the 2014 and subsequent tax years
  • Child Care Expenses and the Universal Child Care Benefit – effective 2015 there will be an increase in the Child Care deduction by $1,000.  The Universal Child Care Benefit (UCCB) will also increase to $160/month for children under the age of six, and $100 per month for those ages six to sixteen.  As a result of the UCCB changes, the Child Amount Tax Credit is being repealed in 2015.

“Update on New Probate Filing Rules for Ontario Executors”.

Effective January 1, 2015, new probate filing rules took effect for Ontario estates. This information is important for clients who are, or will be, executors of Ontario estates.

What is probate?

Probate is a process that authorizes an executor to distribute assets of a deceased’s estate. Where required, provincial governments grant this authority by issuing a probate certificate known in Ontario as a “Certificate of Appointment of Estate Trustee With (or Without) a Will”. The Ontario government charges a fee for the certificate based on the value of the deceased’s estate.

Why were changes required?

Prior to January 1, 2015, when determining the value of an estate for probate purposes, detailed information regarding estate assets was not required when applying for a probate certificate. Executor(s) could provide a single amount representing the value of the deceased’s estate which, as long as the executor provided a sworn affidavit confirming the amount, was generally accepted for probate purposes. There was no requirement to provide supporting documentation to back up the asset value reported. Consequently, it was believed that asset values were being conservatively estimated, and in some cases, significantly underestimated.

In the 2011 Ontario budget, the Ontario government indicated that they would tighten probate filing rules to enhance compliance.

What has changed and when do the changes take effect?

Effective January 1, 2015, executors who apply for a Certificate of Appointment of Estate Trustee With (or Without) a Will will be required to file an “Estate Information Return” with the Ministry of Finance within 90 calendar days after the probate certificate is issued. That is, once the executor applies for and receives a Certificate of Appointment of Estate Trustee, the executor must submit a detailed Estate Information Return within 90 calendar days to provide details of how the estate’s value was determined. Failure to do so can result in a fine and/or imprisonment.

Tax Articles of Interest

 Here are a few tax-related articles that might be helpful for you or someone you know.  If you have any questions on any of the ideas or strategies, please give us a call!

  • OAS Clawback: Strategies when your income in retirement exceeds the OAS Clawback threshold of $71,592

 OAS Clawback

  • Charitable Donation of Securities : Taking advantage of the tax benefit of donating securities instead of cash

Charitable Donation of Securities

  •  Spousal Loans: When one spouse holds more assets and claims higher income, a spousal loan can offer significant benefits for income splitting

Spousal Loans


 The above information is for information purposes only.  As always, we recommend you discuss these strategies with your professional investment, tax and legal advisors prior to implementation to ensure they fit with your overall wealth plan.

By | 2015-01-29T16:22:35+00:00 January 29th, 2015|JMRD Updates|0 Comments

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