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What happens to your Bitcoin when you die? Digital assets complicating estate planning process

Bitcoin, other forms of cryptocurrency, and even travel reward points are becoming valuable to those that invested in it. The problem is, when someone dies, it creates a situation that can be confusing as to what happens to the money. If you have any digital investments, particularly password-protected ones, you need to appoint an electronic estate trustee. Make sure that someone is available to access your password-protected accounts, especially those like Bitcoin, that can be lost to heirs if no one has the passwords.

Trump tax reform leads U.S. entrepreneurs in Canada to consider giving up American citizenship

Trump’s ground-breaking tax overhaul may be considered good news for companies operating and doing business in the U.S., but the consequences are also being felt by Americans living abroad. For instance, U.S. business owners, currently residing in Canada, are responding by looking into relinquishing all legal ties with their home country as a result of several new taxes they may face under the plan. Lawyers, working in Canada, in the field of citizenship, are reporting an upswing of interest in revoking US citizenship among U.S. business owners living and running privately held companies in Canada.

Here’s What You Can Claim On Your Income Tax

Tax time is coming, and if you’re adding to your income with a side hustle, then remember it may count as income too. The Canada Revenue Agency (CRA) wants to know about it all. This means you need to report all income (even if you received it in cash) in the construction, food and services or retail industries. There are exceptions, like flipping a house that is considered your primary residence, but if you’re doing it with multiple locations at one time, then your capital gains may be 100 percent taxable. Income earned in a self-employed capacity (including Uber, Airbnb, Etsy professionals) won’t go on your T4 but rather needs to be reported on Form T2125 Statement of Business or Professional Activities. Remember you can claim any reasonable expenses that you made to earn that income. The best advice is to keep a proper record of your income and back up any expenses with receipts.

4 Money Habits That Separate Building Wealth From Just Making a Living

Wealth is created not just by getting a well-paying job, but also by developing some small, healthy money habits. Using these habits can help you achieve financial success and independence, and set you apart from those who are struggling financially. Here’s a breakdown of some important money habits that people should to develop to help you not just make a living, but build wealth.

Key Takeaways:

Create multiple streams of income, which can include passive income from rental properties, stock dividends or interest from a high-yield bank account, so you’ll always have something to fall back on during lean times.
Live on less than you make, and use a formula like the 70/30 rule as a blueprint for how much to spend, save, invest and donate.
Grow wealth not just in your bank accounts, but in your whole community. Truly wealthy people, the ones who impact society and change our world views, understand that the more you give, the more those good feelings and vibes come back to you.

“The wealthy invest in themselves. They know the key to making their money work for them consistently over the long haul is creating an investment plan to create wealth. The plan should include regular payments into a mutual fund, a trading account and retirement accounts.”

‘Fear and uncertainty’: Out-of-province homebuyers could rush to sell if B.C. slaps speculation tax

Sales of vacation properties in British Columbia have stalled due to fear that buyers will be hit with a proposed speculation tax. This could also cause current property owners to try to sell their properties. About 15,000 properties can be affected by this tax, meant to curb the out-of-control B.C. real estate market. The aim of the proposed tax is to make housing more affordable in Vancouver; however, experts believe it will hurt the province’s economy.

Budget 2018: Top takeaways for small businesses

When it comes to the 2018 budget, here are some top takeaways for small businesses in Canada. First, we now have passive investment income clarity. The new changes will result in less business income (above $50,000 a year) being eligible for the 9 percent small business tax rate. Second, the government plans to support innovation with $2.6-billion allocated for “incremental support” over five years. In addition, the government wants to help remove barriers to access to capital for women and will allocate $1.4 billion in new financing available to women-led businesses. Technology sector startups can also benefit from a $85.3-million investment in a new intellectual-property strategy to help provide better access to legal advice on IP, creation of a patent marketplace and creation of “patent collective.”

Liberals’ Tax Changes Aimed At The Rich Will Hit Some Families Earning Less Than $100K: PBO

According to an analysis of new Canadian tax laws, approximately 900 families with an income of less than $100,000 annually will pay higher taxes because of specific income-sharing rules pertaining to small business owners. One federal watchdog claims that this will cost 900 households about $2,200 per year more in taxes. Ottawa officials insist that this initiative targets wealthy individuals who unfairly use their corporations to reduce their overall tax burden. But Jean-Denis Frechette, Parliamentary Budget Officer, claims up to 33,000 families may pay higher taxes due to this new rule, generating in the neighborhood of $400 million in federal tax revenues.

Why the federal budget’s passive income changes have many breathing sigh of relief

Small-business owners, incorporated doctors, lawyers and other professionals will be relieved after the announced passive income changes in the 2018 federal budget. The government listened after receiving heavy criticism from their original plan, and they decided to take a brand-new approach. The new plan is much simpler. They’re still targeting the “tax deferral advantage” and removing some of the tax deferrals through the new passive investment income proposals. In the new plan, the government has set the “business limit” to the first $500,000 of active business income (ABI), which will be taxed at the small business deduction tax rate (SBD rate) as opposed to the higher corporate tax rate on ABI.

Married? Common-Law? It’s complicated? Find out what happens to your taxes

The state of your relationship can impact your taxes. And if you change your status, it should be communicated to Canada Revenue Agency (CRA). CRA will need to know if you get married, consider yourself common-law partners or separate. Common-law regulations differ from official marriages and involve the time spent living together or sharing children. Marriages are easier to document as are legal separations, but regardless of status, both parties still need to file separately in Canada.

Key Takeaways:

A marriage typically increases the benefits and credits that you can claim on a tax return.
Married couples can claim their status as soon as it’s official through a civil or religious ceremony. Other couples are required be in a relationship for 12 consecutive months and live together before they’re eligible for common-law status for tax purposes. The exception is couples with children together, who are considered common-law the moment they start living together.
You can keep the CRA informed by downloading and mailing them the RC65 marital status change form.

“Whether you’re single, common-law or married, it’s good to know how your relationship will affect your taxes. Keep the CRA up to date to make sure you’re accessing all of the credits and benefits you’re eligible for.”

A key tax-splitting interest rate is about to double

As of April 1st, those that split investment income with a family member using a prescribed rate loan will be facing an interest rate of 2 percent, in contrast to the current 1 percent rate. If you set up the loan before March 31st, you can continue to take advantage of the lower interest rate. This is particularly useful in the case of children who use the money for education, because often in these cases, there might not be any interest.