TAAG Quarterly - Fall 2024 Edition

October 8, 2024

Welcome to the first edition of the TAAG Quarterly, a longtime idea of Andrew Abraham, CEO of TAAG. Its purpose is to keep our clients abreast of the important issues that affect their lives and livelihoods.

This edition features TAAG’s four divisions - Accounting, Law, Family Office, and Marketing + Design. They present issues that they frequently encounter or which may be important in the future. Not surprisingly, some issues overlap. In fact, that is why TAAG has adopted a multi-disciplinary model for professional services.

In each edition, we will conduct a poll on an important subject that will be posted on our LinkedIn page. This edition’s question is:

What will be the most important issues for Canadians in the next federal election?

We welcome your thoughts on this initial edition of TAAG Quarterly and what you might like to see in future editions.

 Ian Sadinsky

Editor, TAAG Quarterly

ACCOUNTING

Who is interested in interest rates?

There was a time when interest rates were a topic for only bankers, economists, and accountants.  The interest rate policies of the Bank of Canada or the U.S. Fed were usually buried deep in the financial pages. But now, Bank of Canada changes in interest rates are often the top item in the news.

What’s changed? There’s no question that financial information has become much more accessible to business owners and ordinary consumers. More people have made the connection that the changes in central bank interest rates actually affect them personally. The prices of big-ticket items like cars and large appliances are directly related to interest rates. So too are consumer products, whether groceries or gasoline. And the biggest purchases of all – a home or a cottage or an investment property - are particularly sensitive to the prevailing interest rates. Just ask any homeowner who has a variable rate mortgage plan and you will understand why there is so much more interest in interest rates.

At TAAG Accounting, this focus on interest rates spills over into the work we do. A lot of our clients, whether business owners or individuals, have become extremely price sensitive. When interest rates are going up, as they have in the last couple of years, it is not only what they are spending on that matters; it is also important to take into account what things cost.

One of the most important costs both business owners and individuals face are taxes. Our accounting work is now much more driven by the tax implications of certain decisions. That is why having both TAAG Law and TAAG Family Office divisions under the same umbrella gives us a leg up on other accounting firms. We can see more of the bigger picture beyond expenditures and revenues, profits and losses.

The Bank of Canada has cut interest rates three times in the last couple of months, faster and more often than any other G7 country. How will this affect your business and your personal situation?

For more information on interest rates and their impact on your individual situation, contact TAAG Accounting at reception@taag.ca.

TAAG LAW

A Law Firm Like No Other

Most readers of this initial TAAG Quarterly know that TAAG provides a wide range of professional services, including Accounting, Family Office and Wealth Management, and Marketing + Design. But did you know that we also added TAAG Law to provide legal advice and support to entrepreneurs and small business owners such as yourself?

So, what is TAAG Law?

Unlike the typical business law firm, TAAG Law prioritizes serving you, the business owner, directly, and tailoring its advice based on your long-term objectives. Businesses and assets are bought and sold; you are the only constant at the table over the decades.

Whereas other law firms are generally transactional, looking to maximize profit from every interaction, TAAG Law prioritizes the long-term relationship, striving to earn your trust and best safeguard the wealth and success that you are building.

This is why TAAG Law practices what it calls “entrepreneur law”.

We anticipate the needs of entrepreneurs for both their businesses and their personal lives.

TAAG Law provides a mix of legal services tailored to our clients’ overall needs. That encompasses corporate, commercial, intellectual property, employment, real estate and dispute settlement. But it also includes wills and estates, family trusts, and other more personal areas of the law that business owners often have to worry about.

By working under the same framework as the other TAAG professional services, we can save our clients time and money. Meetings happen in hours, not months; questions are answered in minutes or hours, not days. And TAAG Law offers flat rate pricing for most key services – no surprises when you get your bill.

TAAG Law is flexible, nimble, and responsive. And we are accessible seven days a week. As entrepreneurs, your legal issues don’t take the weekend off – so why should we?

Some examples will illustrate what we actually do. With the recent increases to the capital gains rate (see more about this in the Family Office section of this edition of the TAAG Quarterly), we are getting a lot of questions about how clients can better structure their existing business holdings or potential future acquisitions to minimize current and exit taxes.

With general economic uncertainty and increasing government intervention through regulation, many more new and existing clients are reaching out to us about wills and family trusts so they can plan better for the future, making sure they can care for their loved ones.

For expert advice on these issues and others that affect you and/or your business, contact TAAG Law or call 613-234-6006 and ask for Andrej Litvinjenko, TAAG Law’s founder and Managing Director.

FAMILY OFFICE

Countering New Capital Gains Rules

The 2024 Federal Budget contains new rules for capital gains which affect both individuals and business owners. For individuals, the rate has increased from one-half to two-thirds for capital gains over $250,000 annually; for companies, the higher rate applies to all capital gains.

To counter these increases, TAAG Family Office suggests several strategies which deserve consideration.

For individuals

  • Carefully select your principal residence under the Principal Residence Exemption, where applicable;
  • Time the disposition of assets to stay under the $250,000 annual limit;
  • Sell underperforming investments to capture offsetting capital losses;
  • Maximize investments in registered accounts (RRSP, TFSA, FHSA, RESP) allowing assets to grow tax-free or tax-deferred;
  • Use income-splitting with family members who are in lower tax brackets;
  • Use strategic charitable giving, eliminating capital gains and creating a charitable donation tax credit;

For Business Owners

  • Maximize the Lifetime Capital Gains Exemption for small-business owners, farmers and fishers which has been increased to $1.25 million;
  • Utilize the Canadian Entrepreneurs’ Incentive which reduces the rate to 33.3 % for up to $2 million in capital gains over the lifetime of qualifying assets.
  • Defer the recognition of capital gains by reinvesting in certain types of small business shares.

To arrange for a consultation, please contact our financial advisors at familyoffice@taag.ca

MARKETING + DESIGN

Is it Time for a Virtual Chief Marketing Officer?

We hear continually from businesses, large and small, that they want to increase revenues by boosting their market visibility. The problem? They cannot afford the luxury of a full-time marketing executive.

Enter the Virtual Chief Marketing Officer (VCMO)

TAAG Marketing + Design offers a VCMO Package that can be tailored to any size of business. We consult with you to understand your business objectives, analyze your particular market environment and current positioning, and recommend innovative marketing strategies and tactics.

But we don’t just recommend- we also do much of the work, including the heavy lifting.

Our VCMO Package is tailored to your business needs and priorities and can include some or all of the following services:

  • Digital Marketing, Search Engine Optimization (SEO) and Paid Ads
  • Web Development and Management
  • Content and Messaging
  • Branding and Design
  • Traditional Marketing
  • Marketing Audit and Strategy

Your VCMO Package will also include a dedicated project portal and regular reporting meetings to review analytics and adjust tactics. You can use as few as five hours a month, ensuring you don’t pay for downtime with your in-house marketing team. Alternatively, we also offer a variety of à la carte solutions.

To explore how a TAAG VCMO Package could work for you, contact Melanie Williams, Director of Marketing + Design at mwilliams@taag.ca.

THE TAAG QUARTERLY QUESTION

What will be the most important issues for Canadians in the next federal election? (you may select as many as you wish).

  • The Economy
  • Interest Rates
  • Housing
  • Labour Supply
  • The Environment
  • Other (please specify)

 Please click below to send us your response.

We hope you enjoyed this edition of the TAAG Quarterly. If you would like to send any feedback or comments regarding this issue or future ones, contact Ian Sadinsky at ian@taag.ca.

We hope you enjoyed this edition of the TAAG Quarterly. If you would like to send any feedback or comments regarding this issue or future ones, contact Ian Sadinsky at ian@taag.ca.

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