The 2019 Federal Budget was released in March, and here are the three parts we think you should be aware of and why:
The new budget will amend the Income Tax Act (ITA) to allow certain registered plans to purchase Advanced Life Deferred Annuities (ALDAs) that will allow Canadians to defer commencement up until age 85 on up to $150,000. This could be very important for some of you. We are looking into the implications and will keep you informed as we find out more.
It also seeks to extend incentives for first-time home buyers to Canadians who have suffered a breakdown in their marriage or common-law relationship. No one wants to think about relationships coming to an end, but this is a very positive change for anyone trying to buy a home for the first time as a single person.
In another change to the ITA, the rules that allow a taxpayer to defer the realization of any accrued capital gain until the gain is realized on a future disposition to owners of multi-unit residential properties (e.g., duplexes, houses with legal basement rental suites, etc.) will be extended.
Here are a couple other changes that you might be interested in:
Obviously, this is just a sliver of what was covered. Hopefully, these highlights give you a quick snapshot of what the budget means to you. If you have any questions, we’re always happy to help.