January 2025

Things you need to know:

• A tax document checklist will be available online in mid-March, which is another reason to sign up for online access. Register by visiting www.metricfinancial.com

• Public Service Pension Plan (PSPP) change effective January 2025. “If you marry for the first time, remarry, or begin a common-law relationship after retirement, you may be able to apply to provide your new spouse with a monthly pension in the event that you pass away first. Time limits and conditions apply. Please contact the Member Services Centre to discuss your situation.” (https://www.pspp.ca/page/your-spouse-or-partner)

• Bare Trusts tax reporting requirements have been delayed for another year (https://ised-isde.canada.ca/site/office-superintendent-bankruptcy/en/licensed-insolvency-trustees/cra-announcement-bare-trusts-2024-tax-year)

• Increase in capital gains inclusion rate from 50% to 66.6% after June 24, 2024, for businesses and trust, and for individuals with capital gains over $250K (https://www.canada.ca/en/department-finance/news/2024/06/fair-and-predictable-capital-gains-taxation.html). CRA has already said it plans to administer the changes as though it is law. However, with Parliament now in prorogation and a potential election this Spring, there is uncertainty on how to proceed. Hopefully, we will have some clarity before tax season in April. However, I always recommend speaking with an accountant when dealing with complicated tax issues.

Things we wish we didn’t need to know:

Trump took office earlier this week and started his Presidency with hundreds of executive orders and a myriad of threats. I have highlighted some of the more significant ones below

(https://apnews.com/article/what-has-trump-done-trump-executive-orders-f061fbe7f08c08d81509a6af20ef8fc0).

• Immigration

  • Trump designated it as an “invasion across the southern border of the US”, which triggers executive powers to use the military for border enforcement. This begins the move from targeted enforcement of illegal immigrants to the mass deportation of illegal immigrants.

  • End of birthright citizenship - A Trump order asserts that a child born in the US is not a citizen if 1) the mother does not have legal immigration status or is in the country legally but only temporarily and 2) the father is not a US citizen or lawful permanent resident

    
    

• Diversity & Civil Rights

  • The US government will only recognize two genders – male & female when it comes to government documents and programs.

    
    

• Climate and Energy

  • Remove the US from the Paris Climate Deal

  • Declared a national energy emergency, which, according to Trump, "allows you to do whatever you’ve got to do to get ahead of that problem"(https://www.reuters.com/world/us/trump-will-declare-national-energy-emergency-incoming-administration-official-2025-01-20/). This means significant deregulation of environmental policy—drill, baby, drill.

    
    

• Government Structure

  • Appoint Elon Musk as head of government efficiency

  • Freeze all federal government hiring and require all federal employees return full-time to in-person work

    
    

• Healthcare

  • Withdraw from the World Health Organization (WHO)

  • Repealed Biden’s directives on Medicaid and the Affordable Care Act

    
    

• Nationalism

  • Renaming The Gulf of Mexico - The Gulf of America and changing Mt Denali back to Mt Mckinley

    
    

• Crime

  • Looking into the reversal of Biden’s Death Row pardons

  • Commuting and giving full pardons to everyone involved in the January 6th attack on the Capitol

    
    

• International Trade

  • Tariffs -clearly getting the most attention as they impact the Canadian economy. Trump is threatening a 25% tariff as early as February 1st (or maybe April 1st according to Danielle Smith)

  • Plans to potentially takeover Greenland and threatening to make Canada the 51st state (at least he united all of Canada against this)

  • Reinstated TikTok just in time to let his new bestie, Musk, increase his fortune by buying it.

Canada’s Political Situation

Unfortunately, as the new US President causes chaos down south, Canada is also in a

precarious political situation. Trudeau finally resigned and we now wait to see who the new

leader of the Liberal Party of Canada will be. We are also likely to have an election shortly after that leader is named. It should be an interesting few months. The market seems unconcerned at this time and keeps going up so right now we are staying the course. We will of course be keeping a very close eye on things and let you know if that changes.

This information has been prepared by Shannon Straathof who is an Investment Advisor for IA Private Wealth® and does not necessarily reflect the opinion of IA Private Wealth. The information contained in this newsletter comes from sources we believe reliable, but we cannot guarantee its accuracy or reliability. The opinions expressed are based on an analysis and interpretation dating from the date of publication and are subject to change without notice. Furthermore, they do not constitute an offer or solicitation to buy or sell any of the securities mentioned. The information contained herein may not apply to all types of investors. The Investment Advisor can open accounts only in the provinces in which they are registered. IA Private Wealth® is a member of the Canadian Investor Protection Fund and the Canadian Investment Regulatory Organization.