Several proposed tax and planning changes could affect Canadians in the coming years. While many of the details are still being finalized, there are several measures worth keeping on your radar. Here are some of the key highlights and important dates:
- Tax filing deadline: Starting with the 2027 tax year, tax returns would be due on May 15 for everyone. This would give individuals a slight extension while shortening the filing timeline for sole proprietors.
- RRSP for life: The government proposes allowing RRSPs to remain RRSPs rather than requiring conversion to a RRIF. Income withdrawals would still need to begin at age 71.
- IPP overfunding limit: If an Individual Pension Plan is funded above 200% of its requirements, the plan would need to withdraw funds to bring the excess below that threshold.
- RDSP: The proposal would allow family members to permanently open and hold an RDSP on behalf of a family member.
- Instalment payment minimum: The proposed minimum would increase from $3,000 to $7,500 starting in January 2028.
- Foreign asset reporting minimum: The proposed reporting threshold would double from $100,000 to $200,000.
- Capital Growth Incentive and Capital Gains Exemption: Business owners who sell a business and reinvest in another active business within a specified period may be able to exempt up to $15 million in capital gains. The details are still developing, and we’ll be watching closely as the rules take shape.
- Foreign buyer ban: The proposal would lift the ban on foreign buyers purchasing new builds, while the ban on purchases of existing homes would remain in place.
These are just some of the measures that may have planning implications for individuals, families, and business owners. As the proposals move forward and additional details become available, we’ll continue to assess what they could mean for our clients and their financial plans.
If you have questions about how any of these changes could affect you, your family, or your business, please reach out to your Connect Wealth advisor.
