Watch the full video on CHCH.

The Accounting Place and Croft Financial Group are working together to bring clients what they describe as the ‘future of financial services’.

By bringing in advisors from both groups, they plan to offer a fully integrated, family office experience, from financial, tax, insurance and estate planning through to the required investment accounts and portfolio management needed to put the plan into action.

For more information on this and how you might benefit, viewers can register on either website to be kept up to date with developments as they continue to roll-out ‘the future of financial services’.

The post The future of financial services first appeared on The Accounting Place.

Capital Gains receive preferential treatment under the Canadian Tax System.  This is primarily because investments carry a certain amount of risk but at the same time, stimulate economic growth within Canada.

A PRIMER

In general, a capital gain is the difference between an assets cost base and the proceeds of disposition when the asset is sold.  The difference represents the capital gain or loss and becomes the profit or income from the asset.  In most cases, a capital gain is not recognized as income until the asset is sold allowing for the deferral of tax until there is cash from the sale to pay the income taxes.

TERMINOLOGY

• Proceeds of Disposition is the amount received on the sale of the asset. 
  
• Outlays and Expenses from the disposition of the asset are the expenses incurred to sell the asset.  For example, a real estate transaction would include Realtor commissions and Lawyer fees.
  
• Cost Base is the amount original paid to acquire the asset.
  
• Adjusted Cost Base is the Cost Base plus expenses incurred to improve the asset.  Using the real estate example, this could include adding a garage or replacing the roof or furnace.

Capital Gains are taxed based on the “Inclusion Rate” in effect at the time of sale or realization of the disposition of the asset.  Since 1972 when Capital Gains taxes came into effect, the Inclusion Rate has varied:

HOW THIS WORKS

Let’s say you own a home that you rented to a third party.  You purchased it on July 1^st, 2000, for $125,000 plus legal fees of $1,500.  Since then, you have collected the rent but also spent $25,000 to improve the property.  Your Adjusted Cost Base is $151,500. 
($125k + 1.5k + $25k = $151,500)

You decide that it’s time to retire and sell the property for $500,000 and incur expenses of $15,000 real estate commissions and $3,000 in legal fees.  Your Proceeds of Disposition are $500,000 and your Outlays and Expenses are $18,000.

The Capital Gain becomes $366,500.  The date of closing becomes the sale date.  If the sale closed on June 24, 2024, your Capital Gain Inclusion would be $183,250 ($366,500 * 50% = $183,250) which would be taxed at your Marginal Tax Rate.

JUNE 25, 2024, CHANGE

Effective June 25, 2024, legislative changes have been put in place that changes the Inclusion Rate to 66.67% on Capital Gains more than $250,000 per calendar year.  Therefore, a sale on June 25, 2024, results in a double calculation.

The Taxable Amount of the Capital Gain in 2024 will be $202,705.50 ($125.k + $77.705k) and taxed at the Marginal Tax Rate of the individual.

Structuring Matters

Real Wealth Management involves the structuring of sources of income, types of income and in some cases when and how the income will be taxed.  Contact us to see how we can help you.

The post Capital Gains Changes for 2024 first appeared on The Accounting Place.

The Accounting Place announces today that it has been acquired by the Toronto-based investment management firm R N Croft Financial Services.

The Accounting Place has provided expertise in corporate and personal tax preparation and planning for more than 23 years. (Financial details of the acquisition were not disclosed.)

“We’ve been working with Croft clients and their portfolio managers with great success for years,” says Alan Rowell, Founder of The Accounting Place. “We’re excited to be officially part of the group, contributing our tax expertise to their holistic strategy, ensuring that clients have access to the best in tax planning and preparation as an integral part of their wealth management strategy.”

About RN Croft Financial Group

R N Croft Financial Group Inc. (CFG) is a licensed discretionary portfolio management and investment fund management company serving investors and investment professionals across Canada since 1993. CFG’s portfolio managers, financial planners, tax, and insurance specialists work together to help achieve the specific goals of their clients. Investors and advisor partners benefit from an integrated wealth management approach, which includes investment, tax, estate, and insurance planning as part of a complete wealth management process.

“Today’s announcement enables R N Croft Financial Group to adapt to a growing trend in the financial service industry, where convenience and comprehensive service are key differentiators,” states Jason Ayres, Chief Executive Officer of Croft Financial Group. “Clients are increasingly seeking a more personalized and integrated approach to their financial services and CFG is now able to deliver. By bringing these services under one roof, CFG can now provide a seamless experience that aligns investment decisions with tax, insurance, financial and estate planning offerings for our clients. “

“At the end of the day, what matters most to clients is how much of their wealth remains in their pocket,” concludes Rowell. “We will continue to serve all our clients with the same dedication and diligence while helping Croft enhance their integrated wealth management offering.”

Contact:

Jason Ayres, Chief Executive Officer, Croft Financial Group, 905-695-2320,  jayres@croftgroup.com;

Alan Rowell, 905-664-1010, ARowell@TheAccountingPlace.ca

The post The Accounting Place acquired by Toronto-based investment management firm first appeared on The Accounting Place.

How it Works

1. The Accounting Place will, on request from you, initiate a secure file transfer link (which will be forwarded to you by e-mail) and allows you to upload documentation and files directly to secure servers and attach them to your specific file.
2. The system will be password protected and uses Canadian based servers.
3. The documentation will be automatically deleted from the transfer servers after 5 days and the link will terminate.  Longer time periods for automatic deactivation may apply in certain circumstances.
4. You will be able to upload ALL your documentation at once, removing the need for multiple transmissions.

Formats

Personal Income Tax Information needs to be submitted in a PDF format.  If you received your slips and information electronically, in all likelihood it’s already a PDF format and ready to send to us.  If your information slips are paper, (not electronically received) there are two options for you to convert them to a PDF format.

1. If you have, or have access to a scanner, the documents may be scanned to a PDF format using the scanner.  Note that this method includes medical expenses and any other type of tax information.  They will then be ready to send to us through your personal secure server link to our office.
2. If you need to take a picture of your tax information (including medical etc.) using your cell phone, this can also be completed easily.  Depending on whether your cell phone is an Android phone of an iPhone instructions vary slightly.

• Sending Files to The Accounting Place using an iPhone
• Sending Files to The Accounting Place using an Android Phone and Adobe Scan

Corporate, Business or Non-Personal Tax Related Documents such as Excel workbooks, Word documents etc., can also be securely transmitted using this system and multiple files can be uploaded in a single session.  However photographs or pictures are problematic and will not work well requiring the need to be converted to a PDF format.

The post Sending Documents Electronically to The Accounting Place first appeared on The Accounting Place.

Watch the segment by clicking here.

The post Alan Rowell on CHCH Morning Live discussing first-time tax filings first appeared on The Accounting Place.

• Best Accountant – Allison Loureiro
• Best Accountant – Bob Brake
• Best Accountant – Shawn Rowell
• Best Accounting Firm – The Accounting Place
• Best Tax Preparation – The Accounting Place

The voting website is www.readerschoice.hamiltonnews.com and voting will open Thursday, Feb 23rd and runs until noon on Sunday March 5th.

Thank you to everyone who nominated us!

The post The Accounting Place has been nominated in the 11th Annual Hamilton Community News Readers’ Choice Awards! first appeared on The Accounting Place.