^Blog Talking Taxes With Brendan Blair

A closer look at how ‘organization’ puts more money in your pocket.

At Three60 Wealth, we are experts in financial planning for relationship-driven business families. We believe a key to success is making sure everyone is on the right page to achieve your version of success. 

To that end, we act as a conduit for information between you, your professional advisor, and our network of specialists. We have sat down with one of those specialists – Brendan Blair, Partner at LNS Chartered Professional Accountants – to further discuss the theme of ‘being organized’ at tax time.

So, what does being-organized look like?

“I find clients get the best results when they’re engaged with us on whatever the deliverable is. They’ll be able to have a conversation about what they did during the year as it relates to their taxes,” says Brendan. 

“For example, if you received income from multiple sources in 2021, it’s important to collect that information in advance. That could be income from a GIC, a mutual fund or stock dividends. Just having the client being dialed into that helps a lot in terms of them getting the information to us.”

If that income information is not known before filing – for example, a missing T3 slip – it can lead to multiple tax amendments, which take time and cost money.

A simple “pre-flight” checklist can often shine some light on these blind spots. LNS uses one that includes common questions about rental properties, business income, RRSP statements, list of dependents, moving costs and more.

What does disorganized look like?

“Clients who provide an envelope of receipts, rather than a summary,” says Brendan. “That leaves the accountant guessing what the expense was for. If a quick summary is provided on a spreadsheet for example, the tax preparer is in reviewer mode rather than preparer mode, and it is more likely that errors/opportunities will be discovered.”

Brendan notes many clients provide all the slips that they receive but miss on obtaining a realized gain or loss report, or foreign property report, from their investment broker. “We will always ask for these, but it slows down the process.”

To put more money in your pocket this tax season, he also recommends you stay on top of all available tax credits, including:

• Tuition transfers
• Optimizing pension income splitting with a spouse
• Ensure claims made for childcare, medical, and donations, etc.

Brendan also suggests identifying potential planning opportunities, or risk areas – for example, converting principal residence into a rental, or ensuring appropriate deductions claimed on sale of properties.

“Sometimes, in the rush to get tax returns completed, individuals will miss things like childcare, or claiming a spouse’s/child’s tuition, which can result in thousands of lost dollars. It’s not rocket science, but some of the claims are easy to miss,” says Brendan.

Business owners should also avoid treating the business as a personal asset (ie., a personal bank account). This can lead to harsh implications come tax time.

“Instead, be organized in how you’re paying yourself. Set a salary and pay source deductions on it throughout the year,” says Brendan. “If there’s money available, pay it out as a bonus or dividend.”

His last piece of advice is to be accountable.

“You are ultimately responsible for whatever is submitted,” he says. “Take an active role in understanding your personal tax situation and what’s being submitted on your behalf, so you’re not taken off-guard.”

Tax Organization is best done throughout the year. At Three60, we meet regularly with our client families to stay on top of planning opportunities as they come up and to prepare for opportunities months before tax time comes along. If you are missing that kind of personalized service and peace of mind for your family and business, contact our office online or at (403) 640-4414 to schedule an introduction meeting. 

We at Three60 Wealth, are experts in financial planning for relationship-driven business families. In our experience, we see many business families losing money on missed planning opportunities and on additional taxes that otherwise could have been avoided. So, we have developed the Three60 Wealth Plan to better understand the goals of you, your family, and your business, and then apply our knowledge to put more money back into your pocket. Our relationship-driven financial planning process helps business families REALIZE THEIR LEGACY.