With last week’s snow fall, the avid skiers on our team are now in their element. Although not all of us are skiers, we are enjoying the bright snow.
In December, Pia and Taryn volunteered for the Rotary Children’s Christmas Celebration. The event helps upwards of 700 inner city kids celebrate the holiday season. Together they wrapped and sorted gifts for the event at the Cathy Wever School in downtown Hamilton. We thank you Taryn & Pia for volunteering for such a great cause.
Market Update
It has been a cool and cloudy earnings season so far this year. Amid economic uncertainties on many fronts, Q4 2022 U.S. corporate earnings are tracking lower thus far.
Regional developments including; Bank of Canada hikes rates yet again; The Fed keeps its eyes on inflation; Resilient EU, struggling UK; Investors believe China’s recovery is gaining traction.
For a full market update, please read this week’s Global Insight.
Financial Health
The RRSP deadline is quickly approaching. March 1st is the final day to contribute to your RRSP for the 2022 tax year. If you would like to make a contribution to your RRSP, please contact us.
As we enter February, it always reminds us that tax time is just around the corner. May 1st 2023 is the last day to file your 2022 taxes without penalty and June 15th 2023 is the last day to file your 2022 tax return without penalty if you are self-employed.
RRSP tax slips and RRIF evaluation letters are now available online. Clients who have not logged into RBC Wealth Management online in 2022 will continue to receive their RRIF/LIF letters by mail. Clients who have signed into RBC Wealth Management in 2022 will receive theirs Online. (message centre)
Other tax slips such as the T4RSP, T4RIF, T5 will be available late February online. This Tax Guide summarizes required tax information, dates and helpful tips to best prepare for the 2022 tax season.
The Tax Free Savings Account (TFSA) is a great way to save for any financial goal. Every year, your TFSA has contribution room limits. Contributions to a TFSA are not deductible for income tax purposes. Any amount contributed as well as any income earned in the account (for example, investment income and capital gains) are generally tax-free, even when it is withdrawn. This year, the Canadian government increased the contribution limit to $6,500. If you have any questions regarding the account or would like to contribute to your TFSA please click here.
Housing Market
As 2023 begins, the CRA is (still) watching real estate investors for non-compliance tax filing. The CRA identified, from April 2015 to March 2022, over $2 billion in additional gross taxes including assessment penalties close to $300 million. Property flipping, the buying and selling of homes, in Canada for a short period of time is not illegal, however the CRA requires income from these transactions to be reported — and reported correctly. A new property flipping rule is now in effect, to ensure that profits from flipping residential real estate are reported properly. The full article can be read here.