Joe Liu

@AravindSitham Isn’t $250k the relevant value for family trusts? Not $50k?

A small amount like 10K still requires a tax return for the child and you are only saving 1% * $10,000 = $100. Why bother? TLDR If it's a small amount - an ITF isn't worth the headache. If it's large enough to save real taxes - set up a formal trust.

In Trust For Accounts (aka informal trusts) are overhyped when it comes to the tax savings in my opinion. Yes tax savings matter BUT once you factor in that you HAVE to give the money to your child at the age of 18 - the small tax savings don't seem worth it. Let's dive in 👇🧵

@MJonMoney Do you hold any ETFs/mutual funds in your non-registered portfolios? If so, how do you know about the taxable distributions that will come after November? There always seem to be some in late December. Thanks for sharing your detailed plan! Very helpful.

New: How I manage my RRSP in retirement michaeljamesonmoney.com/2026/03/how-i-…

@adamchapman What does being fired by Mawer look like? Do they redeem all of your mutual funds and hand you the cash as well as the accumulated capital gains? A slap in the face and a kick in your butt on the way out?

Mawer recently announced that they are firing every client with less than $1 million. Anyone over a million knows precisely what happens if their portfolio shrinks.

Last week, I shared why I fire absentee clients. Many firms will let "their bottom 10%" go, but it's usually based on revenue, not attendance. For Retirees, the difference is HUGE. 👇

@MJonMoney Something is going on with X going on a week or so for me too. Also can only look at a very limited number of previous posts.

Had to stop using X on my phone, because I get a completely different feed of crap I don't want. Even on my laptop I can't just get chronological posts from people I follow.

@adamchapman This is such an inspiring story! Thanks for sharing!

While many retirees are fixated on leaving money behind, they rob themselves and their children of the gifts money can buy when it's received sooner rather than later. Rather than leave money to your children, leave them the moments to remember you by.

One of our retired clients unknowingly bought themselves another grandchild. In the middle of Covid, John and Terry did something daring—they gave each one of their four children $100,000.

It’s something going on with X? I can only see posts that have been posted within the last day for people that I’m following. Older posts are no longer visible.

@CanadaTaxGuy @AravindSitham Aren’t those US terms so maybe some US tax knowledge is required!

@AravindSitham Taking a second look at this. It says qualifying and non qualifying dividends. Presumably they mean eligible/non-eligible?

The new exam people have to take to become a licensed investment advisor is 🔥 Here's just one small component of this exam. The number of currently licensed people who know these tax topics well to nail an exam? <20% is my bet.

@AaronHectorCFP This is a really great reminder! I suspect that the majority of first year post secondary students and their parents should be thinking about another RESP withdraw at this time. Thanks Aaron!

It’s probably been 13 weeks since your child first started their post secondary program (13 weeks ago was Sept 4). If this was their first year you may have been restricted on how much you could withdraw from your RESP as an EAP payment. Now that 13 weeks have passed, you can take more out. Remember that they can have up to $16k of taxable income without paying income tax…. Plan your educational withdrawals accordingly.

@AaronHectorCFP If they do change the PRE, I hope that they won’t start taxing on gains since the purchase. Can you imagine suddenly being expected to have records for a property bought some 60 years ago?! Gains since new legislation would make more sense. But that might be expecting too much!

If you ever think you might own a 2nd property, or if you ever think the Cdn tax rules for the principal residence exemption will ever be modified…. Track your adjusted cost base (that includes renovation expenses) on your primary residence. It may be helpful in the future.

@AravindSitham I’d like to add: thinking of retiring? -planning OAS/CPP -decumulating/spending

I hope you liked what you read! 1. Follow me @AravindSitham for more intersecting thoughts on planning, tax, personal finance, & life 2. RT the tweet below to share this thread with your audience

A series of life events that you SHOULD be thinking about talking to your financial planner about. Believe me when I say - there are a lot of moments that a good planner will have money saving/money planning strategies for that you are missing out on. Let's dive in 👇

@MJonMoney Greatly simplifying the tax code would have far reaching consequences. Reducing the cost of compliance/enforcement and increasing the confidence in the taxation system by Canadians are two important points that I can think of.

People have lots of ideas for ways the government can reduces taxes. Some of them make no sense. michaeljamesonmoney.com/2010/04/propos…

@AaronHectorCFP Much like TFSAs, I think that most people would be better served by using them as investment instead of savings accounts

The First Home Savings Account (FHSA) should be called the Savings Account For Those Who Haven't Lived in a Home They or Their Spouse Has Owned In The Current or Past 4 Years.

@AaronHectorCFP @Elizabe60816911 It’s odd that investing a joint account makes it “their money”. Attribution rules makes it only the income of the inheritor for tax purposes.

If the inheritor keeps the money in an account in their own name (not a joint account) then that would typically be protected from a division of assets calculation if they later were to separate from their spouse later on. Contrast that to taking the inheritance and investing it in a joint account, or buying a family home, or paying off a mortgage... all of those actions would be comingling and would then subject the inheritance to division of property if they were to later separate from their spouse.

Reminder that if you receive an inheritance, you should understand the differences between co-mingling that inheritance with your spouse vs. keeping it separate. There's no right or wrong here, but you really should understand the differences as you make choices about what to do.

@AravindSitham Trying to make this a tax deduction? lol

Taking off to Vegas tomorrow!!!! Anyone in fintwit circles who happens to be there this weekend?

@AravindSitham @CompoundQuest Another counter point: Pension income credit amount. When was the last time that changed? It’s actually worth less with the lowest tax rate decrease.

@CompoundQuest Love it and love the counter points. Thanks for sharing!

A few things that inflation "positively" impacts: - Canada Child Benefit (and some other government benefits) - Tax Brackets - OAS/CPP payment increases - Inflation Linked Pensions Anything else?

@camp_wealth @AravindSitham Others have already pointed out the difference between earning/working and gifting. With regard to investing, you may be risking the $100 (equities) or giving up the immediate use (fixed). In any case, there is a cost.

You have $1,000. I'm going to give you an additional $100 but I will withhold $37 for myself. Would you say no to me giving you $63? If no, then you shouldn't say no to making more money because of taxes. You still come out ahead.

@AravindSitham That flexibility makes it very easy to sabotage long term goals for quick, short term indulgences!

2) TFSA's are better when you contribute at a lower marginal tax rate (MTR) and withdraw at a higher MTR. 3) If you have the same MTR now & at withdrawal the TFSA will usually be better for flexibility and room being added back the next year.

RRSP vs TFSA debates in 3 statements 1) RRSP's are better when you contribute at a higher marginal tax rate (MTR) and withdraw at a lower MTR.

@AaronHectorCFP Thanks for the straight forward template! Are you using your crystal ball to foresee an upcoming need?

Sample election letter for an Albertan: ⸻ [Your Name] [Your Address] [City, Province, Postal Code] [Social Insurance Number] [Phone Number] [Email Address] Date: [Insert date] To: Canada Revenue Agency Winnipeg Tax Centre Post Office Box 14001, Station Main Winnipeg MB R3C 3M3 Canada Subject: Election under Section 50(1) of the Income Tax Act Dear Sir/Madam, I am writing to elect, pursuant to subsection 50(1) of the Income Tax Act, to deem the following property to have been disposed of at the end of the taxation year [insert year] for proceeds of disposition equal to nil, and to have reacquired it immediately thereafter at a cost of nil. The details of the property are as follows: •Security Name: [e.g., XYZ Corporation common shares] •Number of Shares or Units: [Insert number] •Adjusted Cost Base (ACB): [Insert amount] •Date Acquired: [Insert date] •Exchange or Account Held In: [Insert institution name and account number if applicable] •Reason for Worthlessness: [e.g., The corporation is insolvent and/or has been delisted from all public exchanges. I have no reasonable expectation of any recovery.] This election is being filed within the prescribed time limits and in accordance with the Income Tax Act requirements. Please find enclosed supporting documentation to substantiate this election, including statements or evidence of the property’s lack of value. Should you require any additional information or documentation, please do not hesitate to contact me. Sincerely, [Your Signature] [Your Printed Name]

Remember - if you have worthless shares inside your non-registered account that cannot be sold, you can claim a capital loss by making a section 50(1) election. Report the loss on Schedule 3 like you would if you sold them for zero dollars. Then make the election by writing a letter to CRA and sending that to your tax service office by the due date for your tax return.

@AaronHectorCFP @Caesar828726 Don’t forget about the time value of money! A smallish refund soon might make more sense than a little bit bigger refund many years down the road.

@Caesar828726 Yep no issues. Carry them forward as long as you want until it makes sense to claim.

You might know that you can carry forward your 2024 FHSA tax deduction to a future year if you believe it will be worth more to you in the future, but you might wonder… how (exactly) do I do that? 👇

Wow! Just saw that @Benjamlnwfelix_ is following me! Gotta say that he produces some great personal finance content! Well researched, with real sources! Not just spouting subjective opinions