Beginning July 1, 2025, the federal government is lowering the lowest personal income tax rate from 15% to 14%. This new Middle Class Tax Cut is designed to provide relief to millions of Canadians, including families and individuals across Alberta. While the change may seem small, it can add up over time and is worth understanding.
While the Middle Class Tax Cut will provide some immediate relief, it is most effective when paired with thoughtful tax planning. If you’d like to explore how these changes affect your family, the Fulcrum Group team is here to help.
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At our firm, we don’t just help you file taxes or manage your books—we help you protect your financial future. One of the most overlooked, yet critically important, parts of that future is estate planning.
Whether you’re a business owner, a parent, or entering retirement, having a will, naming a capable executor, and maintaining a comprehensive asset list are key to ensuring your legacy is handled the way you intend.
A will isn’t just for the ultra-wealthy—it’s for anyone who wants to control how their assets are distributed. Without one, your estate may be handled through a lengthy probate process, often dictated by state law, not your personal wishes.
As your accountants, we often have deep insight into your financial life—insight that can help inform or complement your legal estate plan.
An executor is legally responsible for carrying out your will. But without proper documentation and guidance, even the most responsible executor can run into major issues.
Our role: We can work with you to prepare organized financial records and tax documentation so that your executor isn’t left piecing together your estate in a crisis.
Your executor can’t manage what they can’t find. That’s why we recommend all clients create and periodically update a detailed asset list, which can be securely stored and shared with your executor or attorney.
We suggest including:
💡 Pro Tip: Store this list with your will or estate plan documents—and consider giving your accountant a copy for recordkeeping and tax planning purposes.
Estate planning is one of the most important steps you can take to protect your family, your assets, and your legacy. While many Albertans think of estate planning as simply “writing a will,” the process involves much more—including tax planning, property transfers, and making sure your wishes are carried out effectively.
In an earlier post, we explored the importance of choosing the right executor—a decision that can make or break the administration of your estate. In this article, we’ll go a step further and look at some broader estate planning considerations specific to Alberta.
Alberta has some unique laws and tax implications that make planning ahead critical. Without a clear plan:
As we’ve discussed in our earlier post, your executor carries heavy responsibility. You may also want to name an alternate executor in case your first choice is unable or unwilling to act. In blended families or business-owner situations, this choice becomes even more critical.
At death, Canada’s tax system assumes you’ve sold all your assets at fair market value. The tax term is a ‘Deemed Disposition’. This can create a large taxable gain. Strategies like estate freezes, trusts, charitable gifts, and life insurance can help reduce that burden.
Many of our clients in Grande Prairie and across Alberta own family farms or closely held corporations. Transitioning these assets can be complex. Planning ahead ensures you can take advantage of the Lifetime Capital Gains Exemption (current $1.25m for qualified small business shares and $1.25m for farm/fishing property) or the new intergenerational transfer rules.. Both strategies can provide significant tax relief with appropriate planning.
Jointly owned property and registered accounts (RRSPs, RRIFs, TFSAs) often pass outside the estate. This can simplify matters but may also create unintended consequences if not coordinated with your will. This area is often overlooked.
Estate planning isn’t only about what happens after death. In Alberta, an Enduring Power of Attorney (for financial matters) and a Personal Directive (for health and personal care) ensure decisions are made by someone you trust if you become incapacitated.
At Fulcrum Group, we help Albertans create estate plans that are tax-efficient and tailored to their unique situations.
Ready to get started? Reach out today for a conversation about your estate planning options.
📞 Call us at (780) 532-4641
The Canada Revenue Agency (CRA) has introduced significant changes to the rules for eligible deductions from short-term rental income, effective for tax years after 2023. These changes primarily affect non-compliant short-term rentals and aim to ensure proper regulation and taxation of this growing sector (source: https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2025/changes-rules-eligible-deductions-short-term-rental-income.html).
Effective January 1, 2024, expense deductions for short-term rentals (as defined below) will be denied if the property is deemed non-compliant.
According to the CRA, a short-term rental is defined as a residential property that is rented or offered for rent for a period of less than 90 consecutive days. This definition applies to various types of residential properties, including houses, apartments, condominium units, cottages, mobile homes, trailers, and houseboats located in Canada (source: https://www.cpacanada.ca/business-and-accounting-resources/taxation/blog/2024/february/non-compliant-short-term-rentals).
It’s important to note that some municipalities may have their own specific definitions for short-term rentals:
Generally, rentals that are leased to a single tenant for 31 consecutive days or more are not considered short-term rentals. The CRA’s definition of less than 90 consecutive days is the primary federal standard for tax purposes, but local regulations may impose additional requirements or restrictions on short-term rental operations.
The following tax rules surrounding short-term rentals are effective January 1, 2024:
These new rules apply to individuals, corporations, and trusts operating short-term rental properties. Property owners are advised to familiarize themselves with these regulations to avoid potential tax implications and penalties for non-compliance.
To apply for transitional relief for your short-term rental property, you don’t need to submit a specific application. Instead, you need to ensure your property is compliant with all applicable provincial or municipal registration, licensing, and permit requirements by December 31, 2024. Here are the steps to take:
If you meet all compliance requirements by December 31, 2024, your short-term rental will be deemed compliant for the entire 2024 tax year, allowing you to deduct eligible expenses for the full year. This transitional relief applies to individuals, corporations, and partnerships for the 2024 tax year only.
Remember, while no formal application is required, it’s crucial to act promptly to ensure compliance before the deadline. Consulting with a tax professional can help you navigate this process effectively.
The recent changes to eligible deductions for short-term rental properties in Alberta represent a significant shift in the taxation landscape for property owners. The denial of expense deductions for non-compliant rentals introduces the potential for substantially increased tax liabilities and can directly impact the profitability of these rental properties.
While the transitional relief period in 2024 offers a window of opportunity for owners to achieve compliance and retain full deductions, the onus is now firmly on property owners to ensure they meet all local regulations and maintain thorough records.
If you have any questions regarding these changes and how they can impact your corporate or personal tax returns, please contact our office.
After months of uncertainty, Canada’s Department of Finance announced on January 31, 2025, that the date for increasing the capital gains inclusion rate will be deferred from June 25, 2024, to January 1, 2026. (source: https://www.canada.ca/en/revenue-agency/news/newsroom/tax-tips/tax-tips-2025/update-cra-administration-proposed-capital-gains-taxation-changes.html)
Under the most recent proposal:
However, until (and unless) this proposal is passed into law, the currently enacted rate of one-half continues to apply to all capital gains. Below is a concise overview of the key points, including related measures and administrative guidance from the Canada Revenue Agency (CRA).
In light of the government’s deferral, the CRA has confirmed that it has reverted to administering the currently enacted one-half inclusion rate for all capital gains realized before January 1, 2026. This means:
Despite the deferral of the capital gains inclusion rate increase, the proposed increase in the Lifetime Capital Gains Exemption (LCGE) to $1.25 million remains scheduled for June 25, 2024. This enhancement applies to:
The CRA has confirmed that it will continue to administer the proposed LCGE increase on dispositions occurring on or after June 25, 2024. Additionally, indexation of the LCGE is set to resume in 2026.
Another measure included in the government’s 2024 budget announcement—the Canadian Entrepreneurs’ Incentive—will proceed on its original timeline and come into effect starting in the 2025 tax year. Details on this new incentive are still emerging, but it is designed to encourage and reward entrepreneurs who invest in and grow Canadian businesses.
The shifting timelines and ongoing legislative process regarding Canada’s capital gains inclusion rate have created additional complexity for taxpayers and advisors alike. While the date for increasing the rate to two-thirds has been pushed to January 1, 2026, there is no guarantee that the proposal will ultimately become law—or remain in its current form.
For now, all capital gains realized before January 1, 2026, will be subject to the one-half inclusion rate, and the CRA has extended penalty and interest relief for certain late filers. The increase to the Lifetime Capital Gains Exemption (effective June 25, 2024) and the Canadian Entrepreneurs’ Incentive (effective for the 2025 tax year) are both expected to proceed as planned.
If you have any questions regarding these developments, or would like assistance navigating your tax obligations, please contact our office.
The Department of Finance and the Canada Revenue Agency (CRA) have announced that bare trusts will be exempt from filing T3 tax returns including Schedule 15 for 2024, unless the CRA makes a direct request for the filing.
This is welcome news, though some uncertainty remains regarding the specific filing exemptions that will apply in the future.
In August 2024, the Canadian government released draft legislation proposing updates to bare trust reporting rules. These changes aim to reduce the number of bare trusts required to file compared to the original legislation. Notably, the draft legislation proposes an expansion of exemptions. Here’s a comparison of the current legislation and the proposed changes:
| Proposed Changes – 2025 | Current Legislation |
| Under the proposed rules, certain arrangements will be labelled “deemed trusts.” This means if one person (the “trustee”) holds property entirely for someone else’s benefit, that arrangement may be treated as a trust for tax purposes.
Once it’s a deemed trust, it generally must file a T3 return and Schedule 15, unless it fits under a specific exemption in the legislation. |
Under current legislation, there is no explicit statutory definition of a bare trust in the Income Tax Act. However, the Canada Revenue Agency (CRA) generally considers a bare trust to exist when:
|
| Exempt if the fair market value (“FMV”) of all assets is $50,000 or less | Exempt if holding less than $50,000 in cash, government debt obligations, and listed securities. |
Exempt if all the following criteria are met:
|
No comparative |
| Exempt if all legal owners of real property are related individuals and the property can be designated as the principal residence of at least one owner.
i.e.: Parents have co-signed their adult children’s mortgage for financing purposes. |
No comparative |
(*FMV: Fair Market Value)
These proposed changes could provide significant relief for certain common arrangements as no T3 Return and Schedule 15 would have to be filed, including:
Below are new scenarios in which a trust would not have to file Schedule 15, and in some cases, would not need to file a T3 return:
While the 2024 filing exemptions offer some breathing room, many trusts active in 2025 will still have filing obligations due by March 31, 2026. This deadline will approach quickly, so it’s crucial to stay informed and prepared.
Follow us for updates as the situation evolves.
The Alberta Child and Family Benefit (ACFB) is a tax-free financial program that supports low- and middle-income families with children under 18 years old.
The ACFB combines a base component and a working component to offer families additional financial assistance.
For July 2024 to June 2025, the payments include:
Payments are issued quarterly in August, November, February, and May.
To apply for the Alberta Child and Family Benefit (ACFB), simply file your tax return annually. The benefit is automatically calculated by the Canada Revenue Agency (CRA) based on your income and family details. Ensure your marital status, address, and banking information are up-to-date to avoid delays. No separate application is required; eligibility is determined when you meet the income thresholds as an Alberta resident.
The Alberta Child and Family Benefit (ACFB) offers targeted financial support to help reduce child poverty and promote stability. By providing tax-free payments tailored to income and family size, the ACFB empowers Alberta families to better manage expenses and invest in their children’s futures.
Whether you’re navigating rising costs or planning for the next stage of family growth, the ACFB can make a meaningful difference in creating a more secure and balanced life. Filing your tax return on time ensures you can access this valuable support.
https://www.alberta.ca/alberta-child-and-family-benefit#jumplinks-5
https://www.canada.ca/en/revenue-agency/services/child-family-benefits/provincial-territorial-programs/province-alberta.html
Child care is a crucial aspect of family life and significantly impacts parents’ ability to work, study, and engage in their communities. In Alberta, both federal and provincial governments provide childcare subsidies to alleviate financial burdens and support families. This blog post aims to clarify the details of these subsidies, their eligibility criteria, and how they benefit families across the province.
The Government of Canada has enhanced support for families through the introduction of the Affordability Grant in 2022. The aim for this grant is to reduce fees by an average of 50%, up to $500 per month for full time care, significantly offsetting the costs of licensed child care.
In addition to federal support, Alberta has its own childcare subsidy program aimed at making licensed childcare more affordable for families. The Alberta Child Care Subsidy (ACCS) is designed to assist families with the costs associated with child care, particularly for those who require care for children aged 0 to 12.
To qualify for the ACCS, families must meet specific criteria, including:
Families interested in applying for the Alberta Child Care Subsidy can do so through the province’s website. The application process is straightforward, requiring families to provide details about their income, the number of children needing care, and the chosen child care provider.
The combined efforts of federal and provincial subsidies significantly reduce the financial burden of child care, allowing families to invest more in their children’s development and education. These programs not only support working parents but also contribute to the overall economy by enabling more individuals to participate in the workforce.
Federal and provincial child care subsidies in Alberta play a vital role in supporting families. By making child care more affordable and accessible, these programs foster an environment where children can thrive, and parents can pursue their professional and personal goals without undue financial stress.
For families navigating the complexities of child care costs, understanding and leveraging these subsidies is essential. As policies continue to evolve, staying informed about available resources will ensure that families can maximize their benefits and secure quality care for their children.
For more information, visit the Government of Alberta’s website or the Canada Revenue Agency’s site for details on how to apply for these vital programs.
Note: The information and content provided to you may include contributions from ChatGPT, an AI language model. It has been reviewed to ensure accuracy and relevance.
Forensic accounting uses accounting, auditing, and investigative skills to examine the finances of a business or individual. Forensic accountants analyze financial information that could be used as legal evidence and often testify in court as a key witness. They must also be able to identify fraud with minimal details, identify the scheme, and use procedures to prove if it exists. The most common industries forensic accountants work in are insurance, financial institutions, and law enforcement agencies.
Some of the responsibilities that fall under the forensic accountant include:
The path to becoming a forensic accountant is similar to a traditional accountant. It is still required to complete a bachelor’s degree in accounting. Once that is complete, the candidate must also complete the Chartered Professional Accountant (CPA) program to become designated. Once designated, accountants can complete the Certified in Financial Forensics (CFF) credential. After the CFF credential is completed, they can pursue careers in this field.
Both careers require the same education and CPA designation but the duties performed vary.
Traditional accounting analyzes routine transactions, prepares financial information as well as ensures the correct accounting standards and follows regulations. Careers in accounting normally fall within organizations which normally include, audit, tax, financial planning and budgeting.
Forensic accounting takes the financial information to identify and uncover any potential fraud then uses procedures to prove whether or not fraud does exist. Skills that are required to perform these careers include attention to detail, strong investigative skills as well as integrity.
While the underlying education is the same as becoming a CPA, the major difference between a forensic accountant and a traditional accountant is that they have to conduct investigations to uncover information, identify anything unusual, track and recover fraudulent activities and report their findings in a way that anyone can understand.
https://www.accounting.com/careers/forensic-accountant/
https://www.investopedia.com/terms/f/forensicaccounting.asp
https://financialcrimeacademy.org/forensic-accountant-responsibilities/
https://integrityforensic.com/forensic-accounting-vs-traditional-accounting-whats-the-difference/
