The Globe and Mail Brenda Bouw Published May 12, 2021
The federal government is proposing a tax on the sale or lease of new luxury cars and personal aircraft that cost more than $100,000, and personal-use boats that cost more than $250,000. The tax would be calculated at the lesser of 20 per cent of the value above the thresholds or 10 per cent of the full value of the luxury car, boat, or personal aircraft.
Bart Sadowski/iStockPhoto / Getty Images
The Liberal government’s plan to tax expensive cars, yachts, and private aircraft introduced in this year’s federal budget has prompted many wealthy clients to check in with their financial advisors and see if they should consider buying these luxury items before the new charge is expected to take effect on Jan. 1, 2022.
Tricky tax season shaping up as Canadians weigh pandemic benefits and income loss ctvnews.ca - get the latest breaking news, showbiz & celebrity photos, sport news & rumours, viral videos and top stories from ctvnews.ca Daily Mail and Mail on Sunday newspapers.
PREPARING TO FILE Experts say that this year’s tax returns could look very different than what Canadians are used to – and to plan accordingly. “I think for millions of Canadians, this might be the first time that they could actually owe money when they file their tax return,” said Managing Director, Tax and Estate planning at CIBC Private Wealth Management Jamie Golombek, in a telephone interview with CTVNews.ca Wednesday. “People are so used to getting a tax refund and this year could be different because they ve received all these benefits in many cases, haven t paid tax on it.”
Home Economics: Your RRSP contribution may not be a no-brainer this year
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TFSA might be the better tax choice this RRSP season
Your annual RRSP contribution may not be a no-brainer this year due to the pandemic. BNN Bloomberg personal finance columnist Dale Jackson warned that anyone who suffered a job-loss or a layoff during the pandemic may want to consider what effect that might have on the potential tax break afforded by an RRSP. If your income was reduced in 2020, it might make sense to hold off and claim your RRSP contribution in 2021 or another year when your income is higher, Jackson advised. .