As widely reported, the 2005 Federal Budget presented today, contains modest tax-cuts and other proposals that impact the personal finances of a large number of Canadians:
- The basic personal amount, below which no federal income taxes are paid, will be increased to $10,000 in 2009 ($8,012 in 2004). The spousal amount will increase to $8,500 ($6,803 in 2004). The changes are in addition to automatic inflation-adjustments.
- The RRSP contribution limits are increased to $22,000 in 2010 (from $16,500 in 2005). If current rules still apply and earned income of $122,200 is needed to achieve the maximum limit, this measure will benefit only a small fraction of Canadians.
- The foreign property rule, which places limits on foreign investments in tax-deferred accounts, is being eliminated effective immediately.
- Deposit insurance coverage is increased to $100,000.
- A small boost to Guaranteed Income Supplement paid to low-income seniors.
Bookmark: del.icio.us Digg StumbleUpon
0 responses so far ↓
There are no comments yet...Kick things off by filling out the form below.
Leave a Comment