Budget 2018: The picture on passive income

This year, the federal budget once again focuses on the middle class. There’s emphasis on growth, equality and progress through innovation, but not much in the way of major tax changes.

As you update clients on what measures Budget 2018 includes and what they should expect, here are some articles to read and share.

What the new RDTOH rule means for business owners

Business owners received greater clarity from the feds this week on proposed rules for passive investment income. One rule will result in decreased refundable tax on investment income inside corporations—that is, decreased refunds to a corporation’s refundable dividend tax on hand (RDTOH) account.

Post-budget passive income strategies

While tax experts say the new rules are clearer and simpler, there are disadvantages.

Feds to tie passive income threshold to small business deduction

The federal government has made changes to its rules around passive income in private corporations, gradually reducing access to the small business tax rate for those with significant passive investment income.

CRA to increase filing requirements for trusts

There will be increased filing requirements for trusts as part of an effort to counter tax avoidance, with penalties for those who don’t file a T3 return.

Golombek’s thoughts on new passive income rules

The Liberal government’s third federal budget promises more help for the middle class, workplace equality, a boost for tomorrow’s economy and a fair tax system—but the big ticket item is passive income rules.

All about the Liberals’ EI Parental Sharing Benefit

This year’s budget includes a new, “use-it-or-lose-it” leave option for new parents and a modest increase in the value of a rebranded tax benefit for low-income workers.

Highlights from budget 2018

Everything you and your clients need to know about this year’s federal budget.

Morneau defends budget’s scant focus on U.S. tax reforms

Finance Minister Bill Morneau is defending his latest federal budget against complaints that it doesn’t do enough to shield Canada from shorter-term competitiveness threats linked to incoming U.S. tax reforms.

Budgets news for RDSP-eligible clients and their families

The federal budget included welcome news for adults eligible for the Registered Disability Savings Plan (RDSP) but whose contractual capacity may be in question.