ANNUAL NEWSLETTER: HOLIDAY 1999
This newsletter is my first communication with you in the year 2000. I am pleased to report that with the computer hardware and software replacements I have carried out, I have had no year 2K glitches.
As many of you already know, my web site, found at www.dyment.com, continues to provide information and an easy way for you to submit Will and Powers of Attorney instructions as well as obtain Divorce and Real Estate information. In addition to updated and further information, I will be posting this letter, some past letters and all future news letters to my web site.
For your real estate transactions, with my certification as a TitlePlus Specialist, I can provide even more efficient service.
Through my experience with computers which dates back well over a decade and my involvement with the Web for the past five years, I have been able to assist my clients to bring their E-commerce ideas to fruition and profitability. You can check out www.ebond.ca as an example of one of my clients.
I would like to remind my business clients of the following truths: Undercapitalization costs time and eventually the business. Agreements which are not in place with your key personnel, your shareholders and partners, your independent contractors and with your bankers, may find you in litigation fighting to keep your business going. Insurance, Wills and Powers of Attorney that are overlooked for your key people could throw your business into turmoil should a key person pass away.
Taxation affects us all and the following has come across my desk in the past year. The Canada Pension Plan now allows spouses to share their pensions by assigning a portion to the other spouse to be taxed at his or her level. If you are an Ontario Resident and returning to Canada from a trip out of the Country, you now have to pay GST and PST on all purchases in excess of your exemption. Finally, Revenue Canada has ruled that you can deduct the legal costs incurred to enforce a preexisting right to child support. Legal costs incurred to establish a right to child support remains nondeductible.
Taxes on the death of a loved one become more crippling and complicated as the years go by making appropriate estate planning a crucial part of the services I provide. Your parents may be paying tax on their interest income annually so there will not be much of a tax bill on death but the entire value of all RRSP=s, RRIF=s and Annuities must be taken into income on the date of death return. This means that there could be a large tax liability that must be paid on behalf of the deceased by April 30th of the following year, or within six months of the deceased=s death, whichever is later. Although the deceased=s principal residence may be exempt from capital gains tax, certainly any other real property owned on death, including property in Florida, for example, is subject to capital gains tax. Recapture may also be payable on rental properties owned on death.
For those of you who spend time over the winter or own property in the United States, watch out. If you spent more than 31 days in the United States last year, then their Tax Department could consider you to be a US resident for tax purposes. To confirm that you are still a resident of Canada and should be exempted from US taxes, you must file a Form 8840.
To you and your loved ones, I wish you my sincerest wishes for a happy and healthy New Year.
ANNUAL NEWSLETTER: HOLIDAY 1999