We all had to adapt to a new reality this year. We came together to face these difficult times both personally and professionally. We did everything in our power to maintain our service model and optimize your finances during a challenging market environment. We thank you for your patience, cooperation, and ongoing support.

With good news on the horizon thanks to a new vaccine, we are looking forward to 2021 being a year of renewal and opportunity.

In our final blog entry of 2020, we provide you with an “everything update”, a list of recent headlines in the areas of financial aid, investments, and taxation.

Please note that due to the holidays, our office will be closed on December 25 and January 1. Our team will have reduced service between December 21 and January 3, processing only urgent requests (contributions, withdrawals) during this time. We will be back to full service on Monday, January 4 to begin the new year together.

Anthony, Sandrine, Frank, & JoAnne

Financial Aid

Online application for the BC Recovery Benefit begins on December 18

Investments

From Myles Zyblock, setting the stage for 2021

Worried about investing near all time-highs?  All-time highs are not unusual

BlackRock’s current positioning: Upgrade U.S. equities

Brexit: What you need to know about the UK leaving the EU

How does Gold fit in a portfolio?

The Canada Pension Plan Investment boards commits $200M to a renewal energy projects

Taxes

It’s official: CRA allows simplified home office deduction process (max $400 deduction):

Year-end tax tips

Pandemic spending has budget watchers once again fretting about capital gains tax hikes

New York Property taxes will increase 5% next year

ICBC to drop rates by 15%

Retirement / Registered Accounts

The 2021 TFSA limit will remain $6,000

CPP premium increase to cover program enhancements will continue in 2021

Deferring CPP payments is the surest way to secure lifelong income (two articles on this topic)
Article 1
Article 2

COVID-19

Health care worker becomes first person to receive vaccine in B.C.

All Canadians who want a shot will be vaccinated by September 2021, public health agency says

Province confirms 1,215 British Columbians vaccinated so far

Canada expected to receive 168,000 doses of Moderna vaccine by month’s end, Trudeau says

The post The Everything Update appeared first on Smof Investment Manager, LLC.

BC Recovery Benefit

Yesterday, the BC Government issued a release to clarify details surrounding the BC Recovery Benefit. Beginning December 18, 2020, British Columbians will be able to apply for the BC Recovery Benefit. Eligibility criteria are as follows:

• Families with total incomes under $125,000 will qualify for a $1,000 tax-free, one-time benefit. Families earning up to $175,000 will qualify for a reduced benefit amount
  • Single-parent families also qualify under these income-tested amounts
• Single people with incomes under $62,500 will qualify for a $500 tax-free, one-time benefit. Single people earning up to $87,500 will qualify for a reduced benefit amount

Additionally, British Columbians receiving income assistance or disability assistance, and low-income seniors receiving the senior’s supplement will receive an additional recovery benefit of $150 per month from January 2021 through March 2021.

Eligibility Criteria

To be eligible to receive the one-time, tax-free BC Recovery Benefit, people must:

• be a resident of B.C. on Dec. 18, 2020;
• be at least 19 years old on Dec. 18, 2020;
• have filed a 2019 income tax return;
• have their 2019 income tax notice of assessment, and if applicable, their spouse’s 2019 income tax notice of assessment;
• have their social insurance number;
• have their direct deposit information; and
• have their B.C. driver’s licence.

How to Apply

Once you’ve determined you are eligible to receive the benefit, you can apply via the following routes:

• starting Dec. 18, visiting: gov.bc.ca/recoverybenefit
• starting Dec. 21, agents will be available by phone to assist people who need help applying, including those who do not have internet access.
• starting Dec. 21, phone-based support will be available at 1 833 882-0020 toll-free within North America, Monday to Friday, from 7:30 a.m. to 5 p.m. (Pacific time)

The government also plans to introduce a modified application process in early-2021. The modifications will be aimed to make it easier for persons on disability or income assistance who do not have banking services or tax filing issues to apply and receive benefits as soon as possible.

Here is the link to the BC Government link to the BC Recovery Benefit page.

Canada Emergency Business Account (CEBA) Expansion

As of December 4, 2020, eligible businesses facing financial difficulty due to COVID are now eligible to access an additional CEBA loan of up to $20,000. Half of this additional loan, up to $10,000, is forgivable if the loan is repaid by December 31, 2022.

The additional $20,000 loan is in addition to the original CEBA $40,000 loan.

In total, eligible businesses could receive up to $60,000 in CEBA loans with only $40,000 repayable (if repaid by December 31, 2022).

The CEBA application deadline was also extended to March 21, 2021. The original application deadline was December 31, 2020.

How to Apply

If you applied for the original CEBA $40,000 loan, you can apply through the same financial institution for the additional $20,000.

Even if you have not previously applied for the CEBA, as long as you are eligible, you can apply for up to the full $60,000 loan amount. To do so, apply at the financial institution where you have your business bank account.

Sources: Canada.ca, Government of British Columbia

This information is provided for general information purposes only. It does not constitute professional advice. Please contact a professional about your specific needs before taking any action.

The post Financial Aid Update: BC Recovery Benefit and CEBA appeared first on Smof Investment Manager, LLC.