October Tax Tidbits
Canada Post Strike & Reform
Mail delays are impacting cheques, refunds, and deadline-sensitive notices now. Switch to direct deposit/e-payments immediately, turn on digital statements/CRA e-notices, and use tracked courier only when originals are required.
2025 Year-end Tax Readiness
- RRSP: Contribute by first 60 days of 2026 for 2025; ensure 2025 salary creates RRSP room.
- FHSA/TFSA: FHSA + TFSA top-ups by Dec 31 (FHSA needed for 2025 deduction).
- RESP/RDSP: Contribute by Dec 31 to capture CESG/CLB and RDSP Grant/Bond.
- Tax-loss Selling: Realize losses before year-end; mind T+1 settlement. • Charitable Gifts: Donate (ideally securities in-kind) by Dec 31.
- Installments: Make the Dec 15 payment to avoid interest.
- Owner-Managers: Decide salary vs dividend; pay bonuses by Dec 31 for a 2025 deduction.
- CCA/Expenses: Place assets in use by Dec 31; prepay eligible costs where permitted.
Income gap at Record High – Younger Canadians under Pressure
Wages aren’t keeping pace with housing, debt, and essentials, widening the gap—especially for under-40s. The focus now is to build an emergency buffer, automate savings (TFSA/FHSA/RRSP), and trim high-interest debt. Employers and parents can help by offering matched savings, targeted rent support, or thoughtful gifting strategies to close part of the gap.
U.S. Shutdown Spillovers
A federal shutdown can pause U.S. data releases and some admin services, stoking market volatility and USD/CAD swings; federal procurement and partner payments may also face delays. For Canadians, stress-test cash flow, hedge USD exposure, and confirm delivery/PO timelines with U.S. customers and suppliers. Investors should expect choppy risk sentiment—keep dry powder, review defensives/hedges (cash, short T-bills, gold), and avoid knee-jerk moves.
Modern Portfolios – Gold or Crypto?
With rate-cut odds wobbling, investors are nudging into alternatives: gold is steady on safe-haven demand while crypto rebounds on ETF adoption—though with sharper swings. The roles differ—gold hedges macro shocks; crypto is a higher-beta liquidity bet—so most portfolios should treat them as satellites, size modestly (around 0–5% each), rebalance on a schedule, and track adjusted cost base for tax. Watch central-bank guidance, ETF flows, and volatility spikes.
The information provided is for educational/entertainment purposes only. Actual information may vary, please consult our office for further details. Got a question? Feel free to reach us at helpdesk@assentt.com.
