Here are 61 questions we hear a lot, from RRSPs and the OAS clawback to trust accounts, clinic GST and Vancouver property filings. Each one has a short answer and a note on what the federal budget of November 5, 2026 proposes.
Retirement and seniors (10) Individuals and families (10) Self-employed and business owners (10) Doctors, dentists and clinics (10) Law firms and non-profits (11) Property and Vancouver (10)
Retirement and seniors
Money questions for people who are retired or getting close. Short answers first, then what the federal budget says (if anything).
Should I put money in my RRSP or my TFSA?
The RRSP gives you a deduction now and you pay tax when the money comes out. The TFSA has no deduction, but growth and withdrawals are tax-free. A rule of thumb: if you expect a lower tax rate in retirement than today, the RRSP often wins. If your income is low now, or you may get income-tested benefits like the Guaranteed Income Supplement, the TFSA tends to be better. Plenty of people use both. The 2026 limits are $33,810 for the RRSP (or 18% of last year's earned income if that's less) and $7,000 for the TFSA, plus any unused room. The 2026 RRSP deadline is March 1, 2027.
How does the OAS clawback work, and can I avoid it?
The OAS recovery tax is 15% of your net income above a yearly threshold, and it can never be more than the OAS you received. It's worked out on your income alone, not your spouse's. The threshold changes every year, so check Canada.ca for the current number. Ways to bring net income down include RRSP deductions, splitting eligible pension income with a spouse, and holding more of your growth investments in a TFSA. Deferring OAS (up to age 70) raises the monthly amount too. Try our free OAS clawback calculator to see where you land.
When should I start CPP and OAS?
CPP goes down 0.6% for every month you start before 65 (up to 36%) and up 0.7% for every month after 65 (up to 42% at 70). OAS goes up 0.6% for every month you wait past 65, up to 36% at 70. Waiting pays off most if you expect a long life and can cover the gap from savings. Starting early can make sense if health is a worry or you have no other income. If you get GIS, waiting on OAS costs you GIS for those months. Our CPP and OAS timing calculator runs the numbers.
Do I still have to convert my RRSP to a RRIF at 71?
Today, yes. By the end of the year you turn 71 you need to convert your RRSP to a RRIF or an annuity, or cash it out. After that you take a minimum withdrawal each year, and it counts as taxable income.
What happens to my RRSP or pension when I die?
An RRSP or RRIF can generally roll over tax-deferred to a surviving spouse or common-law partner, either as the named beneficiary or through the will. With no spouse, the full value is generally taxed on the final return. The CPP survivor's pension is its own thing: it depends on the deceased's contributions and your age, and it's combined with your own CPP under a cap. Check your beneficiary designations, because they override your will.
Is there anything in the new federal budget for retirees?
Not much, honestly. We didn't find any change to OAS, GIS or CPP amounts. What might matter: the RRSP for life idea, a one-time Groceries and Essentials Benefit supplement in early 2027 (income-tested, up to $223 per adult), the Canada Caregiver Credit becoming refundable from 2027 (up to $1,260) if you care for a relative, and a $2 billion home energy retrofit program with a heat pump rebate. Details for the last one are still to come.
Can I split my pension income with my spouse?
Often, yes. If you receive eligible pension income (for example RRIF payments after 65, a life annuity, or a registered pension plan), you and your spouse or partner can usually agree to move up to half of it onto the other person's return. It's a form you both sign with your returns. It can lower your combined tax, and it can help bring your own income down below the OAS clawback line.
Is the Guaranteed Income Supplement taxable?
No. GIS is for lower-income OAS recipients and isn't taxable income. It also doesn't count as income for the OAS recovery tax. You apply once and renew by filing your taxes every year, so file even when your income is small. Missing a return is the most common reason people lose GIS.
How much do I have to take out of my RRIF each year?
There's a minimum, set as a percentage of the RRIF's value at the start of the year. The percentage rises with your age, and the CRA publishes the table. You can always take more than the minimum, but anything above it usually has tax withheld at source. Your financial institution will tell you the minimum each year.
Do I need to file a return in retirement if my income is low?
Usually it's worth it. Filing is how you keep benefits like GIS and credits like the GST/HST credit and the BC renter's credit coming. It's also how a spouse's benefits get worked out. If you owe tax or got a slip you're missing, you may be required to file anyway.
More on this: OAS clawback calculator · CPP and OAS timing · TFSA vs RRSP · Budget 2026 for individuals and families
Individuals and families
Everyday tax questions for households in BC, from filing dates to credits and benefits.
When are my taxes due this year?
For the 2026 tax year, most people file and pay by April 30, 2027. If you or your spouse or partner are self-employed, you have until June 15 to file, but any tax you owe is still due April 30. The RRSP deadline for 2026 is March 1, 2027. Start by gathering your slips, your RRSP and FHSA receipts and your last Notice of Assessment. Our tax season checklist walks through it.
Did BC raise my income tax in 2026?
The lowest BC rate went from 5.06% to 5.60%, but the basic credits grew with it, and the BC tax reduction credit rose to a maximum of $690. The Province says the average taxpayer pays about $76 more and more than 40% come out ahead. The biggest bump, $201, lands on people earning over $140,000 with no other credits. Ottawa also cut its lowest federal rate by one point, so most BC taxpayers pay less combined. From 2027 to 2030 BC is freezing its brackets and credit amounts.
How does the BC Family Benefit work?
It's worked out from your filed tax return, so both spouses or partners need to file every year, even with little or no income. Report any change in family status to the CRA. A new children and youth disability supplement of up to $6,000 a year per eligible child is planned from July 1, 2027, tied to the federal disability tax credit.
What help is there for renters in BC?
The BC renter's tax credit is income-tested relief of up to $400 a year, claimed on your tax return. Separately, BC Housing's Rental Assistance Program gives a monthly top-up to working families (income cap $60,000), and SAFER does the same for senior renters (income cap $40,000). Caps and amounts change, so check BC Housing for this year's rules.
What should I do before December 31 to save tax?
Start in November, not April. Common year-end moves: donations, childcare and medical payments, RESP and FHSA contributions, TFSA withdrawals (the room comes back January 1) and selling a losing investment to offset gains (watch the 30-day superficial loss rule). Ask your broker for the last trade date that settles in 2026, probably December 30. The 2026 limits are RRSP $33,810, TFSA $7,000 and FHSA $8,000. See our year-end tax planning guide for the full list.
Should I open an RESP for my kid?
Usually it's worth a look. The government adds a 20% grant on up to $2,500 of contributions a year, to a lifetime maximum of $7,200 per child, and the lifetime contribution limit is $50,000 per child. BC also pays a $1,200 grant for children aged 6 to 8 in an eligible plan. Growth is taxed when the student takes it out, usually at a low rate.
What's the FHSA and who should use it?
The First Home Savings Account is for first-time buyers. Contributions are tax-deductible like an RRSP, and withdrawals to buy a qualifying first home are tax-free like a TFSA. The yearly limit is $8,000, and unused room can carry forward within a cap. It's worth a look if you plan to buy within the next several years.
I look after a parent or relative. Are there any credits for that?
Yes, a few. The Canada Caregiver Credit is for someone who cares for an infirm relative such as a parent, grandparent, sibling or adult child. Medical expenses you pay for them can often be claimed too. If the person has a severe and prolonged impairment, the disability tax credit may apply. Keep your receipts and ask about it at tax time.
What is the disability tax credit, and why does everyone say to apply?
It's a federal credit for people with a severe and prolonged impairment, and you have to be approved by the CRA, with a form certified by a medical practitioner. The credit itself helps, but approval also unlocks other things: the RDSP, and BC's new child disability supplement, among others. Even people who don't owe tax often apply for the doors it opens.
Is there a groceries benefit coming?
Not yet. The regular Canada Groceries and Essentials Benefit is paid through the tax system based on your return, so filing on time is how you get it.
More on this: Tax season checklist · Year-end tax planning · BC income tax in 2026 · BC Family Benefit and child care · Renter credits
Self-employed and business owners
Questions we hear from owners, contractors and people with a side business.
Should I buy equipment before year-end for the tax write-off?
Normally equipment gets written off slowly over several years at set rates (capital cost allowance), so timing mostly changes when your first deduction starts. Buy it because the business needs it, and keep the invoice and the date it was ready for use. Chat with your accountant before a large purchase, since what qualifies depends on the asset.
Do I have to pay tax instalments?
Generally if the CRA asks you to, usually when your net tax owing is over $3,000 this year and in one of the last two years. Quarterly payments are due March 15, June 15, September 15 and December 15. Late payments add interest, so set reminders. If your income bounces around, ask a CPA about the different instalment options.
When do I have to register for GST/HST?
A small supplier doesn't have to register until its worldwide taxable revenue goes over $30,000 across four consecutive calendar quarters. After that you register and start charging GST. You can also register earlier by choice to claim input tax credits on business costs. BC PST is separate, with its own registration rules for sellers.
Does my business pay the BC Employer Health Tax?
Employers with BC pay of $1 million or less are exempt (that jumped from $500,000 on January 1, 2024). Between $1 million and $1.5 million the tax phases in. Above $1.5 million it's 1.95% of total BC remuneration, with no exemption. Associated employers share one exemption, and the return is due March 31 of the following year. It's a different tax from Vancouver's Empty Homes Tax, even though both are called EHT.
Do I need to file a T1135 for foreign property?
If the cost of your specified foreign property (not counting personal-use property) was over $100,000 at any point in the year, a T1135 is due with your return. That includes foreign shares held in a Canadian brokerage account, rental property abroad and foreign bank accounts. Late penalties are steep, so file when in doubt.
Did the budget change small business tax rates?
No. The federal small business limit stays at $500,000, with the 9% small business rate and the 15% general rate unchanged for 2026. There are no changes to personal or corporate income tax rates, and personal brackets keep being indexed to inflation.
Can I deduct a home office?
If you're self-employed, you can generally deduct a share of home costs like heat, electricity, insurance and rent or mortgage interest, based on the share of your home used for work. The space usually needs to be your main place of business, or used regularly to meet clients. The home office deduction can't create or increase a business loss. Keep a simple floor-plan calculation and your bills.
Should I pay myself salary or dividends from my corporation?
It depends. Salary is deductible to the company, builds RRSP room and CPP, but has payroll costs. Dividends have no payroll costs and use already-taxed profits, but create no RRSP room. Many owners mix the two. Your personal needs, other income and the company's profit all matter, so it's a good question for your CPA each year.
What if I file late or miss a payroll remittance?
Both cost money, and it adds up. Late payroll remittances carry a penalty from 3% up to 10% of the amount, depending on how late, plus interest. Late filing penalties and interest apply to returns too. If you've missed something, fix it quickly and ask about voluntary disclosure for older issues. Telling the CRA first is usually cheaper than being found.
I disagree with a CRA assessment. How long do I have to object?
For most people the window to file a notice of objection is 90 days from the date on the notice of assessment. Individuals often get longer, up to one year from the filing deadline. If you're past the window you can ask for an extension, but it isn't guaranteed. Don't sit on a notice you disagree with.
More on this: Budget 2026 for business owners · BC Employer Health Tax · Business accounting · Important tax dates
Doctors, dentists and clinics
Questions from practice owners and associates about GST, payroll, professional corporations and the budget.
Is my clinic GST-exempt, and can I claim input tax credits?
Consultative, diagnostic and treatment services from practitioners like physicians and dentists are generally GST-exempt, so there's usually nothing to collect. Cosmetic services, like teeth whitening, are generally taxable unless medically required. On costs used for exempt services you generally can't claim input tax credits, so the GST you pay on rent, equipment and supplies is a business cost. A clinic that also makes taxable supplies can claim credits only to the extent costs relate to the taxable side. For dentists, fiscal years starting on or after January 1, 2025 follow the actual use of each cost, with no credit when 90% or more is used for exempt activities (GST/HST Notice 339). Our GST guide for BC health practitioners goes deeper.
I have an IPP through my professional corporation. Is it still worth it?
An Individual Pension Plan can allow bigger deductible contributions than an RRSP for older, higher earners, but it comes with actuarial fees, minimum funding rules and less flexibility. Whether it's worth it depends on your age, income and other savings. It's a good idea to get an actuary's view and a CPA's view together before you start or keep one.
Does the new capital gains exemption apply to my practice?
The Canada Growth Incentive is a proposed exemption of up to $15 million per person, per business, for qualifying new shares issued on or after Budget Day and before 2037. The shares have to be in a Canadian-controlled private corporation with assets of $100 million or less when issued, and held at least 36 months.
Can my clinic write off new medical equipment right away?
Today equipment is written off at set capital cost allowance rates over several years, and some classes have first-year boosts. A purchase made for the clinic and ready for use can start the deduction, but the class and the rate matter. Check with your accountant before a big purchase.
What medical expenses can patients claim?
You can claim eligible medical expenses for any 12 months ending in the tax year, for yourself, your spouse or partner and certain dependants. The credit only applies to the amount above a threshold. Keep receipts, plus a prescription or practitioner certification where it's needed. If you or a family member may qualify for the disability tax credit, it's worth applying.
Should I incorporate as a professional corporation?
Many doctors and dentists do, if their college allows it, mainly to defer some tax by leaving profit in the corporation and to have more flexibility on how income is paid out. It doesn't protect you from professional liability, and it adds annual costs like corporate returns and financial statements. Whether it makes sense depends on how much you'd leave in the company. Talk to a CPA before you do, and check your college's rules.
Can I pay my spouse dividends from my professional corporation?
It's complicated. Dividends paid to a family member can be hit by the "tax on split income" (TOSI) at the top rate unless an exception applies, such as the family member actively working in the business a meaningful amount. If an exception doesn't clearly apply, don't assume it works. Get advice first.
Associates pay the clinic for space and services. Is GST charged on that?
This is a gray area the CRA looks at closely. When income is shared between practitioners and a clinic, it can be unclear whether payments are for exempt health care services or for taxable rent and management services. The contracts and how the money actually flows matter. It's worth having the agreements reviewed before the CRA asks.
Is BC PST being charged on accountants' fees right now?
Not right now. BC paused PST on accounting services, including tax return preparation, on September 18, 2026. That can change, so check the BC government's PST pages for the current status.
What can a dentist or physician deduct on their tax return?
Generally, reasonable costs of earning the income: staff pay, supplies, lab fees, equipment (written off over time), rent, professional dues, liability insurance, continuing education and the business share of vehicle costs. Personal costs don't qualify, and some things like meals and entertainment are partly limited. Keep receipts and a mileage log, and if you're an associate paying the clinic, deduct your share.
More on this: Budget 2026 for healthcare · GST for health practitioners · Healthcare accounting · BC Employer Health Tax
Law firms and non-profits
For BC lawyers and for the societies and charities we work with.
How often do I have to reconcile my firm's trust accounts?
Under the Law Society of BC rules, you keep the required trust records and reconcile every trust account each month. Pay fees from trust only against a delivered invoice, and report any shortage over $2,500 to the Law Society immediately. Keep each month's reconciliation with its backup, because the accountant's report and any Law Society review will ask for them. Our trust accounting guide walks through it.
When can I move my fees out of trust?
Only against a delivered invoice (a bill to the client) and the client's funds being in trust for that purpose. Moving money before the bill goes out is a common reason for trust problems. Keep the invoice and the transfer record together.
We found a trust shortage. What now?
Don't wait. Under the Law Society rules, a shortage over $2,500 has to be reported to the Law Society immediately. Find the cause (a bookkeeping slip, a bank error, a missing deposit), replace the money from the firm's own funds, and document everything. Call your accountant, and the Law Society if you aren't sure what to do.
When is the Law Society trust report due, and who does it?
Every BC law firm files an annual Trust Report within three months of the end of its reporting period. A self report is done by the lawyer, but the Law Society can require an accountant's report completed by a CPA. Late filing has consequences, so put the date in your calendar when the period closes and gather the reconciliations early.
What does Budget 2026 mean for law firms?
Mostly the equipment and software write-off: the proposed Productivity Mega Deduction is meant to cover office technology and software, so computers and practice management systems bought on or after September 15, 2026 could be written off right away. It doesn't help with the new capital gains exemption, which excludes the professional practice of a lawyer. IPPs held through a professional corporation face tighter rules from January 1, 2028. Trust accounting isn't changed.
Does a law firm charge GST on its fees?
Yes. Legal services are generally taxable for GST. Once your taxable revenue goes over the small supplier threshold ($30,000 across four consecutive quarters) you register and charge it. You can claim input tax credits on firm costs, which isn't the case for exempt services like many health care ones. Trust money isn't revenue until it's earned and billed.
Can a law corporation use the small business tax rate?
Generally yes, if it's a Canadian-controlled private corporation earning active business income, up to the small business limit. Professional corporations don't have a special penalty rate. Remember the limit is shared with any associated corporations.
Does our society or charity need an audit, or is a review enough?
It depends on your bylaws, your funding agreements and any legal requirement for your type of organization. Many funders and members are fine with a review engagement, which gives less assurance than an audit, while larger or grant-funded organizations are sometimes required to have an audit. Check your bylaws and each grant agreement first, then ask a CPA what level meets them.
What's the difference between an audit, a review and a compilation?
They're levels of assurance. An audit gives the highest level (reasonable assurance) and involves testing and outside confirmations. A review gives a lower level (limited assurance) based mainly on inquiry and analysis. A compilation gives no assurance: the accountant helps put the statements together, but doesn't check them. Banks, funders and regulators say which one they'll accept.
How should we show restricted grants in our financial statements?
Under the usual non-profit standards, a restricted grant is generally recognized as revenue as the related expenses are incurred, with the unspent portion shown as deferred revenue. That keeps funders able to see what the money was used for. Track each grant on its own line in your books from day one.
What's the T3010 and when is it due?
The T3010 is the annual information return a registered charity files with the CRA, generally due six months after its fiscal year-end. Late filing can lead to penalties and, in the worst case, loss of charitable status. A BC society also files its own annual report with the BC registry. Confirm the current dates on the official sites.
More on this: Law firm trust accounting · Law Society trust report · Law firm accounting · Non-profit accounting · Budget 2026 for lawyers
Property and Vancouver
Homes, rentals and city-specific costs.
Do I still have to file the Underused Housing Tax?
Not for 2025 or later. Budget 2025 eliminated the federal Underused Housing Tax from the 2025 calendar year, and the legislation received royal assent on March 26, 2026. But the rules still apply to 2022, 2023 and 2024. The 2024 return was due April 30, 2025, and a late or missing return from those years can still lead to penalties, even if the CRA hasn't contacted you. Corporations and trusts that weren't sure whether they were excluded owners should double-check. See our guide.
I own a place in Vancouver. Do I need to file for both the BC Speculation and Vacancy Tax and the Empty Homes Tax?
They're two separate filings with different deadlines. The BC Speculation and Vacancy Tax declaration is due March 31, and Vancouver's Empty Homes Tax declaration is due in early February. A Vancouver owner may need both, and filing one doesn't cover the other. Check each government's site for this year's dates and exemptions.
Does the foreign buyer ban affect me?
The federal ban on foreign purchases of existing homes is in place now. If you're a non-resident, a temporary resident or a corporation under foreign control, check the exceptions before making an offer and talk to a lawyer.
What changed with PST in BC this fall?
From October 1, 2026 BC removed PST exemptions for basic cable TV, residential landline and toll-free phone services, clothing-making supplies like fabric and yarn, and clothing and footwear services like alterations. PST on accounting services, including tax return preparation, was paused on September 18, 2026 and isn't charged right now.
Do I pay tax when I sell my home?
If it was your principal residence for every year you owned it, the gain is generally tax-free, but you still report the sale on your return and designate it as your principal residence. If it wasn't, or you owned a second property, part of the gain can be taxable. Keep records of what you paid, improvements and selling costs. A home sold soon after buying can be treated as business income instead.
What can a landlord deduct from rental income?
Generally, reasonable costs of earning the rent: mortgage interest, property tax, insurance, utilities you pay, repairs and maintenance, property management, advertising and professional fees. Capital improvements, like a new roof, aren't deducted at once; they're added to the property's cost. Mortgage principal isn't deductible. Keep clear records and separate bank accounts if you can.
Is my Vancouver property tax going up in 2026?
The City's 2026 budget holds its own property tax increase at 0%, but utility fees go up: 4.2% overall (water 4.0%, sewer 5.5%, solid waste 1.6%). For a median single-family home the City says the combined municipal tax and utilities rise about 1.7%. Provincial school tax, TransLink and Metro Vancouver are separate and show up on your bill too. The home owner grant and the deferment programs can help eligible owners.
Are Vancouver business licence fees going up?
Most business licence and permit fees are going up 4.5% in 2026, and utility fees go up as above. Council held its property tax increase at 0%, but "other authorities' taxes" collected by the City (like provincial school tax) are separate from that zero. Budget for it in your licence renewals.
Anything new for mortgages in the budget?
A couple of small things. The Bank of Canada would publish better information on insured mortgage rates, and the CRA could provide income verification to lenders to speed up applications. There are also mortgage insurance changes mentioned in the budget, and more details are still coming. Talk to your broker about what applies to you.
Have capital gains tax rates changed?
Not that we've seen. Right now half of a capital gain is included in income, taxed at your normal rate, and the alternative minimum tax can bite on large gains. Selling a property, a business or a big block of shares is when it matters.
More on this: Underused Housing Tax · SVT vs Empty Homes Tax · Budget 2026 and real estate · Vancouver homeowner costs · BC PST changes
Don't see your question? Ask the firm or browse the firm FAQ. The official budget is at budget.canada.ca.
Prepared by HJ Wu & Company Inc. (CPA). General information only, not personal advice. How the guides are written and reviewed.
Talk to HJ Wu & Company Inc.
Phone: 604-636-1862
Email: inquiry@hjwucpa.com
512 - 938 Howe Street, Vancouver