Top Court OKs manoeuvre that makes mortgages tax-deductible
The Supreme Court of Canada gave a seal of approval Thursday to a commonly used manoeuvre that effectively makes mortgages tax-deductible, ruling the technique is legal and "unimpeachable" under federal income-tax laws.
But the decision was nonetheless a defeat for Earl and Jordanna Lipson of Toronto, who the court concluded went too far in their mortgage scheme by adding an extra twist that was an abuse of the Income Tax Act.
Divorce lawyers and the courts are seeing a surge – expected to become a "flood" – of requests from men seeking to slash their support payments to their ex-wives and children, citing job losses or drastic drops in bonuses, salaries and stocks.
At the same time, many couples who had hoped to move on with their lives are finding themselves in a hellish kind of legal and emotional limbo – unable to sell their homes and cash out.
Canada`s unemployment rate climbed to 6.6 per cent last month from 6.3 per cent in November as 34,400 more jobs fell victim to the deepening recession.
The evaporation of 70,700 full-time positions in December fuelled the net employment loss, which was higher than economists had expected. It was only partly offset by the addition of 36,200 part-time positions, which tend to offer workers fewer benefits and security.
If anyone knows the value of investing in the services of a home inspector, it`s Julie Fournier.
In 2006, Fournier fell head over heels for a new townhouse in Orleans, just east of Ottawa.
But after hearing rumblings about poorly drained land and unstable foundations in the east-end community, she paid $500 to have her dream home examined by a professional.
Barack Obama will make his first foreign trip as president of the United States to Canada--restoring a long-standing tradition abandoned eight years ago by George W. Bush.
Officials in Prime Minister Stephen Harper`s office confirmed Obama has accepted an offer to visit Canada "soon" after his Jan. 20 inauguration as America`s 44th president.
It`s an economic conundrum: Too many jobs for too few workers in one area and too many workers for too few jobs in another.
A warning this week that a shortage of skilled workers could hold up government stimulus infrastructure projects was followed by new jobless figures showing big losses in the construction sector.
More than one in four Canadian businesses have indicated they will cut staff in 2009 as sales growth stalls, investment contracts and credit becomes harder to obtain, the Bank of Canada`s Winter Business Outlook Survey shows.
Economists said the central bank`s survey of 100 firms -- taken between Nov. 14 and Dec. 12 and released yesterday -- gives credence to fears the recession would be more painful than initially thought.
Canada`s big banks are sitting on plump capital cushions, waiting for healthy assets of distressed foreigners to fall into their laps.
In what could herald a series of deals, Bank of Montreal is paying $375 million for the Canadian life insurance business of American International Group Inc.
He`s a full-time student, an emergency medical technician and he`s looking for his first house.
But Calgary resident Ryan Coslovich doesn`t have much free time between work, school and his social life, making the home search an arduous task. "For myself, a first-time buyer, there are many challenges and the biggest one is actually having the time," he says.
The Canadian housing market continued its decline in the last month of 2008, according to figures released Thursday by the Canadian Real Estate Association.
The group said the average price of listed homes sold through registered agents in December was $281,110, down 11 per cent from $315,880 a year earlier.
Canadians pulled more money out of mutual funds than they put in last month, capping a disastrous year for the fund industry and putting a dark cloud over projections for the coming RRSP season.
Investors redeemed $13.7 billion worth of mutual funds in December and bought $12.9 billion, leaving the industry in net redemptions of $792 million for the month, according to figures released yesterday by the Investment Fund Institute of Canada.
While many of her friends feel "trapped" and afraid to leave their current jobs for fear they won`t find another, Mary Forbes is looking at rosy employment prospects.
That`s because Forbes, like more young Canadians facing an unfriendly job market, are choosing narrowly focused community college programs, while other students who would normally be graduating in the spring plan to return to university, causing a spike in grad school applications.
Upon taking office next Tuesday, President-elect Barack Obama plans to launch a massive effort to rebuild America`s infrastructure.
It will include money for energy, roads, bridges, schools, the information superhighway and electronic medical records.
While the package is in the formative stages, estimates range from $300 billion US to $1 trillion US. This amount of money is going to dwarf the amounts spent on some of the biggest events in U.S. history (adjusted for inflation).
Most Canadians are tightening their belts to deal with the recession but are confident they will weather the storm without having to dip into their retirement savings, according to survey results released Friday by a major financial firm.
However, most are also navigating their way through the downturn without any financial plan, suggesting they may be in "denial," BMO Financial Group said in releasing the results of the December survey.
OTTAWA -- The Canada Revenue Agency is so inconsistent about the way it grants breaks to delinquent taxpayers there`s a risk people will go "shopping" to various tax offices for the best deal, a new audit suggests.
The agency has failed to communicate rules to field offices, says the audit, and doesn`t adequately monitor the way its employees dole out relief to taxpayers who face interest charges and penalties on unpaid taxes.
Bank of Canada to chop interest rates again, but will lenders follow?
OTTAWA - The Bank of Canada is all but certain to again take an axe to interest rates Tuesday, but as economic woes deepen and money markets tighten - despite aggressive central bank action globally - a sense of the very real limits of monetary policy is emerging.
Canada`s central bank has already sliced 1.5 percentage points from its so-called trendsetting rate since October - three points in the last 13 months - but the economy continues to slide, and arguably, credit for companies and consumers is as tight as it has ever been.
The real estate industry wants the federal government to bolster the housing market, as it bids goodbye to a bleak 2008 and braces for an even tougher year ahead.
The Canadian Real Estate Association (CREA), a trade organization representing real estate agents, is asking the government to broaden the Home Buyer`s Plan, which allows some home buyers to withdraw RRSP funds for their purchases.
Recession-wary consumers can probably expect a further cut in interest rates and news of another drop in the inflation rate this coming week, but with both at or heading toward record lows, there`s not much room for further relief on either front.
And that leaves it to the government to finally step in do its part, which it is promising to do with billions of dollars in spending increases and tax cuts in its Jan. 27 budget the following week.
Chris McNeil says Canada`s banks are making it tough for working folks to dig themselves out of debt.
The 34-year-old administrative assistant finds it "troubling" banks only cut their prime rates to 3.5 per cent from 4 per cent last month, even as the Bank of Canada slashed its trend-setting rate by 75 basis points to 1.5 per cent. And he worries banks may hold back again today if the central does the expected and cuts the overnight rate by another 50 points.
