Latest

why-american-investors-should-not-hold-foreign-non-u-s-mutual-funds

United States citizens, Green Card holders, and residents (particularly those with Canadian ties) have likely heard the term ‘Passive Foreign Investment Company’ (PFIC) in recent years. For those of you who are unfamiliar with the term, a PFIC is (in the eyes of the IRS) any foreign (non-U.S.) corporation that meets a passive asset or a passive income test. Specifically, a foreign corporation is deemed to be a PFIC if 75% or more of its gross income is from passive sources; or if 50% or more of its assets could be used to produce passive income.

What does this mean for the average investor? Well, it is of particular concern to taxpayers with U.S. reporting obligations such as U.S. citizens living in Canada, U.S. Green Card holders living in Canada, and/or foreign nationals temporarily residing in the United States. Such individuals should be aware of PFICs and their potential tax consequences.

Read more »

Go to our T.E. Wealth Blog


Events

“Fabulous presentation! Speaker was informative and thought-provoking.”

“This difficult subject was presented in an interesting and engaging way.”

“You’ve given me lots of ideas for the future. Please keep these sessions coming!”

These are just some of the many encouraging comments we received from attendees of our September Speaker Series event, Sweet Successions. We’d like to thank our amazing clients for coming out with their families and other guests – you truly made the evening a success. We are so pleased that Ryan Ponsford, our incredible keynote speaker, was able to engage and inspire so many of you on the topic of family succession planning.

If you were unable to attend, you can view Ryan’s presentation on our events page.

Read more »

More about our Events across Canada


Newsletters

Thinking a renovation might be in your future? According to a recent CIBC poll, you certainly wouldn’t be alone. Home renovations are big business in Canada with four out of ten Canadian homeowners reporting that they expect to take on home improvements in 2014, spending on average just under $20,000. Renovations are often rationalized on the basis that they are an investment in your property. But the return on home renovations is not always clear-cut and, depending on what you do, you may not even recover your costs.

Read more »

View our complete Strategies Newsletter


Media & Press

via The Globe & Mail | October 3, 2014

After more than a quarter of century in the military, Bart is growing weary of moving. His wife, Suzanne, has a good job with a pension, their home in small-town Ontario is paid for and their children are not eager to change schools.

So at 42, Bart is wondering whether he can retire in a couple of years and work at a job that would pay him much less than the $91,000 a year he is making now.

Suzanne, who is 45 and earns about $99,000 a year, would continue to work. If they had to move she would leave behind her job and her government pension.

Their near-term goals include helping their children, age six and eight, with their post-secondary education. As well, Suzanne and Bart will both need new vehicles soon.

But their big dream is to take one long, expensive holiday – lasting up to a year – with their children, “definitely before the children finish high school,” Suzanne writes in an e-mail. She’s not sure if she can get the time off work.

While they have some savings, their main source of retirement income will be their defined benefit pension plans. “Are we on track for meeting these goals?” Suzanne asks.

“Will we still be able to meet our goals if Bart retires? Are we crazy to think we could travel the world with our kids and still meet these goals?”

Read more »

More about T.E. Wealth in the Community