Budget 2015 quick hits

Here are a few choice items from the 2015 budget you may want to keep up your sleeve for planning conversations with key clients:

• The 15% flow-through share credit has been extended for an additional year. (Read: Charitable giving, flow-through shares strategies)
• For RDSP holders, a qualifying family member (i.e., a beneficiary’s parent, spouse or common-law partner) can become the plan holder for an adult who lacks the capacity to enter into a contract. This was an exception made until end of 2016, and it’s been extended until the end of 2018. Carol Bezaire, vice-president of tax and estate planning at Mackenzie Investments, had been hoping the budget would extend the definition of plan holder to include siblings and group home trustees. (Read: More tax support for clients with disabilities)
• Farm and fishing businesses now have a $1-million lifetime capital gains exemption, which is higher than the general lifetime capital gains exemption of $813,600. Bezaire says if a business owner already used up her $813,600 lifetime capital gains exemption and now has a fishing or farm corporation to sell, she can access the remaining $186,400 exemption to shelter any gains.

Melissa Shin

Melissa is the editorial director of Advisor.ca and leads Newcom Media Inc.’s group of financial publications. She has been with the team since 2011 and been recognized by PMAC and CFA Society Toronto for her reporting. Reach her at mshin@newcom.ca. You may also call or text 416-847-8038 to provide a confidential tip.