Here are a few choice items from the 2015 budget you may want to keep up your sleeve for planning conversations with key clients:
- The 15% flow-through share credit has been extended for an additional year. (Read: Charitable giving, flow-through shares strategies)
- For RDSP holders, a qualifying family member (i.e., a beneficiary’s parent, spouse or common-law partner) can become the plan holder for an adult who lacks the capacity to enter into a contract. This was an exception made until end of 2016, and it’s been extended until the end of 2018. Carol Bezaire, vice-president of tax and estate planning at Mackenzie Investments, had been hoping the budget would extend the definition of plan holder to include siblings and group home trustees. (Read: More tax support for clients with disabilities)
- Farm and fishing businesses now have a $1-million lifetime capital gains exemption, which is higher than the general lifetime capital gains exemption of $813,600. Bezaire says if a business owner already used up her $813,600 lifetime capital gains exemption and now has a fishing or farm corporation to sell, she can access the remaining $186,400 exemption to shelter any gains.