Allan J Gold

Gold’s Legal Minute*GLM*

By Allan Gold, lawyer Montreal and elder law attorney

Vol. 15, #6 –December 31, 2024

OPENING

The digit “5” has been placed atop One Times Square. You know what that means – New Year’s is fast approaching. I’m looking back at 2024. In Canada, there have been changes and additions to laws and programs impacting the elderly. I’m also looking ahead at 2025: taxes, pensions, rules. As a lawyer Montreal and elder law attorney, I’ve compiled a scorecard of positive developments for seniors. (N.B. This list is not exhaustive. Each item is inscribed generally. Please do your research and refer to the actual governmental provisions.)

2024 ADVANCE$ √

Coming off 2024, there have been legislative pluses from the perspective of seniors, such in the form of new and/or improved programs, protection instituted by the federal or Quebec government.

√ Canadian Dental Care Plan (CDCP)

Dental care hasn’t been affordable for seniors and other Canadians. In December 2023, individuals 87 plus received mailings. In May 2024, Canadian residents 70 plus became eligible. In June 2024, coverage was extended to people with disabilities and children under 18. A thumbnail summary is as follows.

Original Eligibility Requirements

To qualify for the CDCP, you must meet all 4 of these requirements:

• You don’t have access to dental insurance.
• You & your spouse/common-law-partner (if applicable) must have filed tax returns in Canada
• Your adjusted family net income is less than $90,000.
• You’re a Canadian resident for tax purposes.

Services Covered

CDCP will help pay a portion of the cost for a wide range of oral health care:

• Diagnostic and preventive services
• Basic services
• Major services
• Anesthesia or sedation services
• Orthodontic services
• Etc.

Update – Since Nov. 1, 2024, services were expanded to include partial dentures, crowns, higher levels of sedation, etc.

Terms & Conditions

• You can still apply for the CDCP while having dental coverage through a provincial, territorial or federal government social program, If you qualify, your u need to ready to coverage will be coordinated between the plans.
• Services beyond frequency limits will require preapproval.
• The CDCP fees may not be the same as what providers charge. Should services cost more than what the CDCP will reimburse, you need to be ready to pay the fees over an above. 1

√ Quebec Housing – Société d’habitation du Québec (SHQ)

There are now provisions as per the Civil Code.which more strictly regulate landlord’s repossession of a dwelling and/or eviction of a senior tenant. This amounts to new legal protection for the elderly. I’m referring to Bill 65, titled, “An Act to limit lessors’ right of eviction and to enhance the protection of senior lessees” (Statutes of Québec: 2024, chapitre 23). The date of assent was June 6, 2024. On that date, these new legislative provisions came into force A thumbnail summary is as follows.

Eligibility

These new provisions apply if the tenant or their spouse meets certain conditions, notably he/she:

• Is 70 years of age or older
• Has been the occupant of the dwelling for at least 10 years
• Has income equal to or less than the maximum income allowing them to be eligible for low-rent housing

Exceptions

However, there are exceptions, if and when,

• Lessor is himself/herself aged 70 or over and wishes to repossess the dwelling to live there
• Lessor is an owner-occupant aged 70 or over and wishes to house, in the same building as him/her, a beneficiary aged under 70

√ Quebec Tax Credit – Family Allowance

In Quebec, there’s a refundable tax credit/allowance to families. This Family Allowance has three main components: A basic amount for child support, Supplement for Handicapped Children” (SHC) and Supplement for Handicapped Children Requiring Exceptional Care (SHCREC). On March 12, 2024, Quebec’s Finance Minister Eric Girard did introduce the 2024 budget. Eligibility/assessment criteria for the SHC was revised in line with medical advancements. Eligibility for the SHCREC was increased to cover certain severely disabled children under the age of two.

I’m including the Family Allowance because grandparents are raising young kids. “Among census families, almost 1 in 10 children aged 0 to 14 years (9%), or more than half a million children (553,855), lived with at least one grandparent in 2021”2 And some have a ‘special needs’ child. Of course, caring for a child with special needs can be a demanding task for an elderly person. And every little bit helps.

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“Whatever good things we build end up building us.” —Jim Rohn 3

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√ Quebec Tax Credit – Information Technology

Many entrepreneurs operate and even start businesses later in life. Some are in the information technology (IT) sector. On March 12, 2024, the budget also addressed tax credits for the development of an e-business. A thumbnail summary is as follows.

Credit Rate:

The tax credit is equal to 30% (24% refundable and 6% non-refundable) of the eligible salaries paid by the corporation to eligible employees. The eligible salary refers to employment income generally calculated pursuant to the Québec Taxation Act. An employee must hold a full-time job and devote at least 75% of his or her time to carrying out, supervising or directly supporting work relating to the execution of an eligible activity. The salary annual limit is $83,333.

Eligibility

A corporation claiming the tax credit for the development of e-business must:

• Not be exempt from tax, a Crown corporation or a subsidiary controlled by such a corporation.
• Have an establishment in Québec where it carries on a business whose activities are part of the information technology sector.
• Obtain an Investissement Québec certificate for the taxation year, confirming that its activities are eligible for the tax credit. This qualification certificate must be secured every year.

Eligible Activities

Some areas are:

• IT consulting services relating to technology, systems development, or e-business processes and solutions.
• Development and integration as well as maintenance and evolution of information systems; technology infrastructure.
• Design and development of e-commerce solutions allowing for monetary transactions .
• Development of security and identification services.

Terms & Conditions

Your corporation must show:

* That at least 75% of its activities are in the IT sector1 and that at least 50% of these activities are covered by NAICS codes 541514, 541515, 513211, 513212 and, under certain conditions, 561320 and 561330, for the taxation year covered by the eligibility certificate application or for the prior taxation year;

* That at least 75% of its activities covered by NAICS codes 541514, 541515, 513211, 513212, 561320 and 561330 include services ultimately provided to persons with whom it is at arm’s length or services relating to applications developed by the corporation that are used exclusively outside Québec;

* That activities in the IT sector mean activities covered by codes 334110, 334220, 334410, 417310, 449212, 513211, 513212, 51821, 541514, 541515 and, under certain conditions, 561320 and 561330 of the North American Industry Classification System (NAICS) 2022 version 1.0.

* That it has maintained, at all times, for a given taxation year, a minimum of six eligible full-time employees; however, specific rules apply to transfers of activities and business start-ups in Québec. 4

2025 PRO$PECT$

Bad News First – Better News Next

You know, most people want bad news first, followed by a positive outcome. This is because people prefer sequences of events which improve rather than deteriorate. I don’t have to remind you, (but I will anyway) that food prices could jump by up to 5% in 2025. As to reasons, here are a few: supply chain disruptions, climate change; weaker Canadian dollar; interest rates, energy costs, and geopolitical risk. These factors will continue to contribute to higher prices. Indeed in 2025, a family of four could pay $800+- (approx. $66 monthly) more for food. 5

To the good side, the Canadian inflation rate for year was at 1.9% (November of 2024), easing from the 2% in the previous month and undershooting market expectations of 2%. The result was in line with the Bank of Canada’s baseline scenario that CPI inflation is due to remain close to the 2% threshold for the foreseeable future.

Furthermore, in 2024, the highest mortgage rates in Canada were reached at the end of the year, with the 30-year fixed-rate mortgage averaging 6.85%. But on Dec. 11, 2024, the Bank of Canada (BoC) cut its lending rate by 50 basis points, bringing it down from 3.75% to 3.25%. It’s noteworthy that the BoC Policy Rate decreased by 175 basis points (-1 basis point is equal to 0.01%) in 2024. At this junction, many predict that interest rates will continue to decrease gradually in the new year. Early predictions suggest that rates may decrease to 2.50%.

Canada Old Age Security (OAS)

In 2025, the Old Age Security (OAS) will increase by1.6%.

Canada Pension Plan (CPP)

There are CPP enhancements as at Jan. 1, 2025. Please be informed:

• That the 2025 maximum CPP contribution will be $4,034.10 for each of the employee and employer portions.
• That self-employed CPP contribution rate will remain at 11.9 % and the maximum contribution will increase to $8,068.20. The indexing rate for public service pension plan benefits is 2.7%.

• That the maximum limit of earnings protected by the CPP will increase by 14% between 2024 and 2025. The CPP enhancement will increase the maximum CPP retirement pension by more than 50% for those who make enhanced contributions for 40 years.
• That the Year’s Additional Maximum Pensionable Earnings (YAMPE) will be approximately 14% higher in 2025 and every year after. This amount is used to determine second additional Canada Pension Plan contributions (CPP2).

Canada – Income Taxes

For 2025, whilst using the 2.7% rate, all five federal income tax brackets have been indexed. The 2025 Taxable Income and corresponding rates are hereinafter enumerated:

• Zero to $57,375 of income: 15%;
• Above $57,375 to $114,750: 20.5%
• Above $114,750 to $177,882: 26%
• Above $177,882 to $253,414: 29%
• Above that: 33%

Several noteworthy tax provisions are as follows:

• 2025 Federal basic personal amount (BPA) will be $16,129. That means an individual can earn in 2025 up to this amount, before paying any Federal income tax. However, there’s an income test. For higher-income earners, the enhancement to the BPA is gradually reduced, on a straight-line basis.
• Tax-free savings account (TFSA) limit will remain at $7,000 for 2025.
• Registered Retirement Savings Plan (RRSP) dollar limit for 2025 will be $32,490, up from $31,560 in 2024.
• OAS – the repayment threshold is set at $93,454 for 2025. 6

Update – Charitable Donations

For 2024 tax returns, the federal government has extended the donation deadline. Taxpayers will now be able to claim charitable donations made before Feb. 28, 2025.

Update – Capital Gains Tax

As of June 25, 2024, there was an augmentation with regard to capital gains. More precisely, the capital gain inclusion rate (CGIR) was increased from 50% to 66.67% for corporations and trusts. So was the CGIR for individuals with capital gains exceeding $250,000. (N.B. For capital gains less than $250,000, individuals can still access the 50% CGIR.) However, there was confusion about these changes while awaiting  formal passage through Parliament. Since June 25th, the general consensus was to act on the assumption the changes would become law before the end of 2024. Re certain real estate transactions, Quebec notaries were apparently withholding sums on account of the new CGIR. While it seems these changes haven’t ultimately passed, tax detail adjustments are typically reintroduced. (N.B. A capital gain is subject to tax only when an appreciable asset is sold. )

Quebec Pension Plan (QPP)

As regards the Québec Pension Plan (QPP), Gouvernement du Québec is making significant changes.

• As of Jan. 1, 2025, seniors with disabilities will no longer see their retirement pension decrease once they turn 65.
• As of Jan. 1, 2025, several pensions will increase by 2.6%. The increase will apply to retirement, disability, surviving spouse, disabled contributor’s child, and orphan’s pensions.

In addition, Gouvernement du Québec is making changes to its pension plan regulations. .Also starting Jan. 1, 2025, the province will allow those aged 55 or older to withdraw up to the entire value of their provincially regulated life income fund (LIF). As a lawyer Montreal and elder law attorney, I believe the removal of a maximum gives greater flexibility to the individual. 7

Quebec – Income Taxes

There were no changes to the corporate or personal tax rates in the province’s 2024 budget. On Nov. 26, 2024, the Gouvernement du Québec announced it will index its tax system. In 2025, the indexing rate will be 2.85%, Such will be higher than that applied by the federal government and other other indexing provinces except Alberta and Nova Scotia. 8

The 2025 taxable income and corresponding rates are as follows:

• $51,780 or less: 14%
• More than $51,780 but not more than $103,545: 9%
• More than $103,545 but not more than $126,000: 24%
• More than $126,000: 25.75%

The 2025 Quebec basic personal amount (BPA) is $18,571. That means an individual can earn in 2025 up to this amount, before paying any Quebec income tax.

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Be of good cheer, my friend – things will get better.” — Unknown

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Automobile-Related Rules

These apply to Canadian business people, Quebec car-buyers and Montreal area motorists, some of whom are seniors. Please be informed 

• That as of Jan. 1, 2025, there will be a change to the federal Auto Income Tax Deduction Limit/Expense Benefit  - such as follows:  

• • Ceiling for capital cost allowances (CCA) for Class 10.1 passenger vehicles will be increased from $37,000 to $38,000, before tax, in respect of vehicles (new and used) acquired on or after Jan. 1, 2025.
  • Deductible leasing costs will be increased from $1,050 to $1,100 per month, before tax, for new leases entered into on or after Jan. 1, 2025. 9

• That Gouvernement du Québec will suspend subsidies for the purchase of electric vehicles between Feb. 1, 2025 and April 1, 2025. This is due to the popularity of the ‘Roulez vert’ program and its current lack of funds. Financial assistance for the purchase of residential electric charging stations will also be interrupted.

• That as per the announcement by the Montreal metropolitan community (CMM), the vehicle registration rate will increase May 2025 from $59 to $150. The reason is the need to fund public transportation.

√ Canada Housing

The ban on foreign ownership of Canadian housing, which is currently set to expire on Jan. 1, 2025, will be extended to Jan. 1, 2027. The ultimate idea is to house more Canadians. – inclusive of the elderly. 10

√Two-Month ‘Tax Holiday’

The so-called ‘Tax Holiday’ continues through to Feb. 15, 2024. Until then, Canadians won’t have to pay GST/HST on prepared foods, snacks, restaurant meals, takeout or delivery, alcoholic beverages and children’s clothing.

√ Canada – $250 Rebate to “Hardworking Canadians”

On Nov. 21, 2024, Prime Minister announced that Canadians working in 2023 and earning up to $150,000 will receive a $250 check starting early spring 2025. For seniors still in the workforce, they shall get a bonus. On Nov, 25, 2024, NDP leader Singh called on Ottawa to extend the $250 rebate to cover seniors, vulnerable Canadians. But apparently, Justin Trudeau didn’t commit to expanding the rebate.

CONCLUSION

As you can see from my 2024 mini ‘year in review,’ there have been several adjustments and additions to governmental programs, taxes, pensions, rules, etc. As a lawyer Montreal and elder law attorney, I believe many of these moves will prove to be beneficial for older people. Canadians/Quebecers will have a toothy grin not grimace. And for Québécois and Québécoises, a great number of seniors are more firmly ensconced in their homes. And in some ways, taxes will not bite as much. While the government is doing more, it’s still not enough for elderly people in need.

It is said “Don’t count your chickens before they hatch.” In other words, you shouldn’t make plans that depend on something good happening before you know it has. But for me and other seniors, 2025 is looking good! I may not be a spring chicken, but I’m going to count MY CHICKENS on January 1^st 2025!” Happy New Year – all the best!

Allan Gold, lawyer Montreal and elder law attorney

! Call to action: To every attorney in the field, I say, “Write a post/article. Let’s help seniors & their families become better informed about elder law Canada! And by the way, please send it along. I’d love to read it.”

NOTICE – CAUTION –DISCLAIMER. The material provided herein is of a general nature, strictly for informational purposes. The interpretation and analysis is not to be misapplied to a personal situation with a particular set of facts. Under no circumstances, are the herein suggestions and tips, intended to bring a reader to the point of acting or not acting, but instead, the hope is that they are to be a cause for pause and reflection. It is specifically declared that this content is not to be a replacement of, or a substitution for, legal or any other appropriate advice. To the contrary, for more information on these presents, related subjects or any other questions, it is the express recommendation of the author that everyone seek out and consult a qualified professional or competent adviser.

 

1. https://www.canada.ca/en/health-canada/news/2023/12/the-canadian-dental-care-plan.html https://www.canada.ca/en/services/benefits/dental/dental-care-plan/coverage.html https://www.canada.ca/en/services/benefits/dental/dental-care-plan.html?utm_campaign=hc-sc-canadian-dental-care-plan-24-25&utm_source=ggl&utm_medium=sem&utm_content=ad-text-en&adv=611850&utm_term=federal+government+dental+plan+for+seniors&gad_source=1&  gclid=CjwKCAiAmrS7BhBJEiwAei59i1QK0HlEW6Nwea8I27QXGDSksjVq3CoMbVaeYbS5wIM8xTfEzJ61qxoC43QQAvD_BwE&gclsrc=aw.ds
2. ttps://www.statcan.gc.ca/o1/en/plus/4458-grandparents-day-numbers)
3. https://www.azquotes.com › quotes › topics › good-things
4. https://www.revenuquebec.ca/en/online-services/forms-and-publications/current-details/co-1029-8-36-da-t/
5. https://www.cbc.ca › news › business › food-prices-202.
6. https://financialpost.com/personal-finance/taxes/2025-cra-tax-brackets-cpp-rrsp-tfsa
7. https://www.rrq.gouv.qc.ca/en/retraite/rrq/calcul_rente/Pages/modifications-rrq.aspx
8. https://cdn-contenu.quebec.ca › min › parametres
9. https://www.canada.ca/en/department-finance/news/2024/12/government-announces-the-2025-automobile-deduction-limits-and-expense-benefit-rates-for-businesses.html
10. https://www.canada.ca/en/department-finance/news/2024/02/government-announces-two-year-extension-to-ban-on-foreign-ownership-of-canadian-housing.html

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