Prepare in Advance for Next Year’s Tax Filing
Phew! Tax season is over! You have hopefully just filed your 2017 personal income tax returns. Was it a satisfying experience for you? Do you feel a sense of accomplishment or dismay? For many, the April 30th deadline seems to arrive way too soon. If this is the case with you, starting the process much earlier would seem to be the answer.
The process should include proper record keeping, taking advantage of the tax saving methods available to you, and, perhaps, finally getting a professional to complete and file your return on your behalf. The problem with handing your taxes alone is that often people don’t know what they don’t know. This results in paying more in taxes than was necessary. The cost of a professional completing your taxes potentially could be offset by the savings that might be gained.
Even if you earned little to no income, filing your return is a good idea and could prove to be advantageous. This is because there are a number of federal and provincial government programs that you might be eligible for if your declared income is below a certain threshold. You can refer to the Government of Canada website for the child and family benefits that might be available to you. Read more 
Cardinal Update – May 2018
FEDERAL BUDGET 2018 – TAXING PASSIVE INCOME – The federal government released a consultation paper last summer targeting tax planning strategies using private corporations. This proposal was met with strong criticism from the business community and resulted in some awkward town hall meetings for Finance Minister Bill Morneau. Five months after the close of the consultation period, we are being presented with a federal budget far less dramatic than originally feared. But there are still some material changes that we need to understand. One of the more impactful changes involves passive income earned within a Canadian Controlled Private Corporation (CCPC). Passive income is earned on corporate investments separate from active business operations.
Click here to read more: Cardinal Update – May 2018
DM Monthly Report – May 2018
MANAGING RISK THROUGH INTERIM POSITION MANAGEMENT – In June of 2013, we first purchased shares in IAC/Interactive Corp., a company that owns more than 150 media and internet brands and which had established a long history of creating shareholder value through the management of its assets. Our investment thesis at the time said that the company would provide our portfolios with exposure to two of the fastest growing online business segments:
Search – IAC’s “Ask.com” is a niche offering, providing search functionality based on natural language questioning; it’s the world’s fourth most popular search engine.
On-line personals – IAC was (and is) the global leader in online dating, both through its flagship “Match.com” and other brands at the top of the space.
Click here to read more: DM-Monthly-Report-May-18
Provisus Monthly Insight – May 2018
CLOSING THE GAP – Dividend paying stocks have been very popular with investors in recent years due to weak returns in the bond market. That picture appears to be shifting in Canada for the first time in almost a decade. As the Bank of Canada has slowly tightened monetary policy, bond yields have naturally risen, yet still remain well below the levels seen before the financial crisis. As bond yields rise, investors may cut their exposure to equities. Historically bull markets tend to end once interest rates have risen too much, too fast. The current long-lasting uptrend is beginning to show signs of entering the euphoria stage. If dividend yields drop below bond yields it could be another indication that the high-flying stock market is headed for a correction.
Click here to read more: Monthly Insight – May 2018 – Closing the Gap
