2026 Federal Budget Highlights
The DTC is a non-refundable tax credit that can help reduce the amount of income tax you may owe if you have a severe and prolonged impairment in physical or mental functions.
You may be eligible if you have an impairment that:
The DTC can apply to a wide range of circumstances, including certain limitations involving:
Approval is based on the CRA’s eligibility requirements and the effects of the impairment. Being approved for the DTC may provide more than just a reduction in income tax. Depending on your circumstances, DTC eligibility may also help you access other programs and benefits, such as the Child Disability Benefit, Canada Disability Benefit, Registered Disability Savings Plan (RDSP), and other certain provincial or territorial benefits.
Once approved, our firm can assist in completing the adjustments for previous eligible tax returns to include the credit.
Not sure if you or a family member qualifies? Contact us today so we can help you understand the tax side of the DTC and assist in reviewing your situation and supporting documents.
Contact Fulcrum Group for more information – (780) 532-4641
More information can be found on CRA’s website:
https://www.canada.ca/en/revenue-agency/services/tax/individuals/segments/tax-credits-deductions-persons-disabilities/disability-tax-credit/eligible-dtc.html
Mistakes in tax filings are more common than many people realize. Unreported income, missed filings, or reporting errors can accumulate quietly over time until they become a source of real concern. When taxpayers identify an issue before the Canada Revenue Agency (CRA) does, the Voluntary Disclosures Program (VDP) can provide a structured way to correct past non-compliance while limiting penalties and interest.
Effective October 1, 2025, the CRA introduced important changes to the VDP that make the program more accessible and flexible, while still emphasizing the need for complete and well-prepared disclosures.
What Is the Voluntary Disclosures Program?
The VDP allows taxpayers to voluntarily correct inaccurate, incomplete, or unfiled tax information from prior years. When a disclosure is accepted, the CRA may cancel penalties and provide partial interest relief that would otherwise apply. The intent of the program is to encourage taxpayers to come forward before enforcement action is taken.
Relief under the VDP is discretionary, and acceptance depends heavily on how and when the disclosure is made.
What Changed on October 1, 2025?
The CRA replaced the previous General and Limited relief categories with a simplified two-tier framework:
Under the updated program:
The definition of what qualifies as “voluntary” has also been broadened. Certain CRA communications, such as educational or outreach letters, no longer automatically disqualify a taxpayer from accessing the VDP.
The application process itself has been streamlined through a revised Form RC199, with clearer guidance on required information and supporting documentation.
Who Is Eligible?
To be considered under the updated VDP, a disclosure must generally meet the following conditions:
The program applies to individuals, corporations, trusts, payroll accounts, and GST/HST registrants, including more complex matters such as foreign income and trust reporting.
Why You Should Reach Out to Our Office
The VDP is not simply a form-filing exercise, it is a strategic decision that can materially affect the outcome. The way a disclosure is framed, the timing of submission, and the supporting documentation all influence whether relief is granted and to what extent.
Our office assists clients by:
If you are concerned about a past tax issue or want clarity before it escalates, seeking advice early is critical. Proactive action can reduce penalties, limit interest, and provide peace of mind moving forward.
At Fulcrum Group, we’re assisting trucking clients navigate the Canada Revenue Agency’s (CRA) major announcement: the moratorium on T4A penalties for “fees for services” reporting has been lifted, effective for the 2025 tax year. This targets non-compliance in the “Driver Inc.” model, where incorporated drivers’ relationship with their client resembles an employee relationship, but the driver incorporates to reduce payroll taxes and benefits expenses. As your local small accounting firm, we’ll guide you through compliance to avoid penalties.
Risks
Who Is Affected?
This aims to restore fairness and ensure compliance in the industry.
When It Applies and to Whom
The change applies starting with the 2025 tax year (January 1–December 31, 2025) and all future years. No grace period remains. It specifically requires reporting payments made to other trucking corporations for services like hauling or subcontracting.
Backed by Budget 2025’s $77M CRA funding for audits, expect increased scrutiny.
Key Deadlines
Action Steps to Implement Reporting
Fulcrum Group can handle this end-to-end, including gathering the information and filing, for a smooth year-end close.
Staying Compliant in the Future
Follow the link below for more information regarding compliance in the trucking industry:
Contact Fulcrum Group today for a trucking compliance review and ensure your business is prepared for the new T4A requirements.
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.
Resources
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.
