Rinald Tax Advisory Inc

Matters of Interest

May 2009

Prescribed Interest Loans

Effective as of April 1st, 2009, Canada Revenue Agency's prescribed interest rate for family income-splitting loans was reduced to 1%. This low rate is available for arrangements that are put in place by June 30, 2009 and provides a terrific opportunity for clients to reduce their family's overall taxes by splitting income with a low income spouse and/or minors.

Home Renovation Tax Credit

To help stimulate our economy and provide incentives for reducing energy consumption, the Canadian government has introduced s a new home renovation tax credit. Please visit the websites below for details:

2009 Canadian Federal Budget Release (February 2009)