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As first-time homeowners or budding investors, we always make the best in our situations to ensure the highest value is placed on our assets - but what about capital gains tax? You should understand how capital gains are taxed and learn to avoid paying more taxes when selling your properties.  What are capital gains? What is the rate in Canada? How to avoid them? What are capital gains? If you are unfamiliar with capital gain, it happens when you sell an asset or investment for more than the price you paid.  For example, if you purchased a property for $50,000 and sold it for 60,000 two years later, you would have a capital gain of $10,000.  On the other hand, when you sell an asset for less than its original purchase price, that's called a capital loss. Capital gains and losses can occur with many types of investments and property, including; stocks bonds shares in mutual funds and exchange-traded funds (ETFs) rental properties cottages business assets Capital gains generally do not apply to some types of personal-use property, such as cars and boats, whose value tends to decrease over time. If you have recently moved to Canada, capital gains are taxable here, and the value of a capital gain is treated as income earned during the tax year in which it was realised.   What is the rate in Canada? Did you know a third of Canadians mistakenly believe that the entire capital gain is taxed at 50%? In reality, only 50% of capital is taxable, and the rate depends on where you fall within the federal and provincial income tax brackets in the year you report the gain. The higher your total annual income, the more tax you can expect to owe on a capital gain -  which will be added to your taxable income.  Suppose you make a $50,000 profit this year. When you file your taxes next year, you must report half of that, which is $25,000, as income. If your tax rate is 33%, you'll owe $8,250 in taxes on this additional income, leaving you with $41,750. If your tax rate is 26%, you'll owe $6,500 and keep $43,500.   How to avoid or minimise capital gains There's no way out of paying taxes, and you could face an interest penalty for failing to pay your taxes or missing a tax deadline. Tax evasion is illegal in Canada, but you have the right to seek paying the least amount of tax possible within the law. It's no different with capital gains. Here are some ways to legally reduce the capital gains tax you owe in Canada.    Understand how capital gains are calculated. Knowing which expenses to account for in calculating a capital gain can help reduce the amount, saving you from paying more taxes than necessary.  For example, renovations, transfer taxes and legal fees can be deducted from the proceeds of disposition on the sale of a property to reduce the capital gain on real estate.  Hold your investments in a registered account. One of the easiest ways to avoid paying taxes on capital gains is to hold your investments in a registered account, such as a registered retirement savings plan (RRSP), tax-free savings account (TFSA), first home savings account (FHSA) or written education savings plan (RESP).  Claim a capital loss from other investments. You don't pay any tax on capital losses; they can help offset the taxes you would otherwise spend on capital gains until the balance of capital gains for the year is reduced to zero.  Claim the principal residence exemption. Residential properties are considered an "asset" and are therefore subject to capital gains tax. There is one big exception to this rule. It's called the principal residence exemption. A home that has served as your principal residence is exempt from capital gains tax as long as it meets the following criteria:   You own the home either alone or jointly with another person You have designated the property as your principal residence with the CRA. You, your spouse, your common-law partner or your kids inhabited the home each year for which the exemption is claimed.   Canadians, ready to claim your capital gain? Remember, the amount you end up paying in tax will depend on how much your asset has grown in value and your other sources of income.  And between tax-sheltered investment accounts, the principal residence exemption and the rules around capital losses, there are many legitimate ways to ensure you don't pay more tax than necessary in any given year.

A recent report by the Responsible Investment Association says “responsible investing is entrenched in Canada,” with $3-trillion in assets under management. Factoring in environmental, social and governance (ESG) performance and goals has become a fundamental tool in the decision making of Canadian investors. What forces will shape responsible investing in 2024? 1. Green Bonds for Growth Fixed-income instruments that support renewable energy or affordable housing have long appealed to responsible investors. But access and pricing have proved challenging for many. Investors have plenty of choice here, too, from exchange-traded funds to mutual funds.   2. Embrace Sustainable Investing ESG and sustainable funds offering exposure to broad, diversified indices are abundant. These funds will hold lower-volatility stocks, which will be less negatively affected by high inflation, rising interest rates and declining economic conditions. Investors already have many choices in this space.   3. Fission is on a Mission Renewable energy sources such as wind and solar are likely to fall short of filling the energy options - to be created by phasing out fossil fuels. Uranium is likely going to fill some of that gap because it’s relatively clean from a climate change perspective with North American producers have seen renewed interest. With mines some of the largest, richest deposits in the world, is likely to see increasing demand from the western world.   4. More Screening for Fossil Fuels Although the energy industry has rebounded, the growth of funds that are free of fossil fuels is unlikely to abate in 2024. Among newer entrants are CIBC’s Sustainable Funds series, which includes its Sustainable Canadian Equity Fund (CSCE-NE), where it screens out oil and gas companies while limiting exposure to other holdings in the portfolio.   5. Coming Clean on Greenwashing Greenwashing came to the forefront in 2022 as leading investors labelled ESG as window dressing to attract capital. At the same time, regulators are also looking more closely at greenwashing - will be a positive for responsible investing. Companies looking for responsbile investing can no longer good enough to make claims; they need to back them up. Increasingly, investors are going to demand to see that data to make sure asset managers are not engaging in greenwashing. Looking for resposible investing? Look no further than IQI Canada! Chat with us for your next big step towards green investment. [hubspot type=form portal=5699703 id=2380afe3-ad4c-4cfa-9abf-d3947e377bf2]

Say hello to Threads, the new app by Meta (the parent company of Facebook, Instagram and Whatsapp). With over 70 million sign-ups, the new app is a way to share text and images, shaking up social media.  As digital marketers, you might wonder how it can benefit your brand or business. In this article, we will explore the latest social media app and its potential for the future. 1. What is Threads? 2. Threads' Impact on Digital Marketing 3. Will Threads Become the Next Big Thing? 1. What is Threads? Introduced by Meta as a strategic move in response to the problems with Twitter after Elon Musk took over, Mark Zuckerberg saw an opportunity.   View this post on Instagram   A post shared by Instagram (@instagram) Like Twitter, the app showcased a feed of posts consisting of text, photos, and videos where people can have real-time conversations.  “Obviously, Twitter pioneered the space. And there are a lot of good offerings out there for public conversations.   But just given everything that was going on, we thought there was an opportunity to build something that was open and something that was good for the community.” Adam Mosseri - Head of instagram Plus, it connects with Instagram, making it easier for users to switch over.  But unlike their brethren, messages posted on this new app will have a 500-character limit, but things may change as the app updates.    2. Threads’ Impact on Digital Marketing Digital Marketing The Thread app will challenge Twitter’s short-form blogging, but brands and social media managers will do more than claim their usernames.  They’ll take an active approach and use their full potential. Each brand’s strategy will differ, and we’ll see which sectors and industries benefit the most. Brands should also pay attention to their Instagram performance and following because they affect their initial Threads following. [caption id="attachment_70375" align="aligncenter" width="960"] Phoro Source: Meta[/caption] Content Marketing Threads offer interesting possibilities for content creation. It’s like Twitter, but you can write more and connect servers across different platforms.  Integrating with apps like WordPress makes connecting platforms easier. The concept of blogging might become more popular, giving content creators and businesses more opportunities. SEO The app could become a valuable platform for SEO. Twitter’s recent usage limits have made users look for alternatives, so Threads came at the right time. With more characters available, SEO specialists and digital marketers can share more detailed insights, ideas and connect with experts. Time to bring BIG changes to the SEO landscape. [caption id="attachment_70372" align="alignnone" width="960"] Photo Source: Meta[/caption] Technology and Innovation The competition between Threads and Twitter will drive innovation and bring exciting changes. Having a strong competitor to Twitter will push both platforms to try new things and shape the future of social media.   3. Will Threads Become the Next Big Thing? So let's make room for Threads, this platform will be a powerful new player in social media - offering exciting opportunities for users and brands. The app also works with Instagram with its unique features. As the platform continues to grow, digital marketers need to adapt and explore its benefits. Threads allow for more organized and structured discussions than Twitter, making it easier to follow conversations and maintain context, delving deeper into topics without cluttering their timelines.  Time to embrace the power of Threads, play around with it as an early adapter, and enjoy a new way to connect on social media.

You’ve found the perfect new apartment or rental house. You love the neighbourhood. Your application has been approved. You’re ready to sign on the dotted line, right? Not so fast. How much do you know about your soon-to-be landlord, property manager or property management company? 1. Google them The internet has a way of quickly uncovering all kinds of misdeeds, so start with a simple Google search of your landlord’s name or property management company, as well as the property address. Hell hath no fury like a renter scorned, so you’ll also want to peruse some of the many online apartment and landlord review sites that let tenants anonymously review their apartment complex, landlord or property management company.   2. Search public records There’s a wealth of information about properties and landlords available via your local government agencies, and you can usually check your landlord for free. Consider it your landlord background check! Your county courthouse should have ownership records searchable by address, so you can find the legal name of the person or company that owns the property — it may not be your landlord directly. You can also search for code violations, foreclosure proceedings, evictions and small claims court settlements, all of which should be red flags for renters.   3. Get to know your (future) neighbours If you’re moving into an apartment complex with multiple units, take a few minutes to walk around the grounds out of earshot of the landlord. If you see any tenants out and about, discuss what it’s like to live there. Ask how long they’ve lived there — renewed leases signify a positive landlord-tenant relationship. Get pros and cons, ask how complaints are handled, and determine if they have any gripes on management. If you’re moving into a single-family home, ask the landlord if they’d mind you conversing with the current tenants. If you don’t have access to any other tenants, find a neighbourhood-specific blog or Facebook group to join. Tell people you’re considering moving into the area, and ask if they know anything about the property manager.   4. Be the interviewer Landlords ask you questions when you apply to live on their property, so why shouldn’t you ask them questions too? Ask them how they handle repair requests. Find out if the landlord lives on-site, nearby or in a different state. Ask how the move-in and move-out process goes. Learn more about their process for requesting entry to your unit. They should be able to answer your questions and address your concerns quickly.   5. Go with your gut When in doubt, trust your instincts. If you experience any of the following: The price seems too low for the apartment size, amenities or neighbourhood The lease terms are unclear The landlord is hesitant to answer your questions The landlord tries to rush you through the rental process Think twice — and keep looking. Seeking assistance in your next background check? We can help you! Contact IQI Canada for your next home sweet home! [hubspot type=form portal=5699703 id=2380afe3-ad4c-4cfa-9abf-d3947e377bf2]