Tax Planning, Year-End Strategies, and Cross-Border Wealth with Jamie Golombek

Here are three reasons why you should listen to this episode: Learn why now is the time to take advantage of Canada’s current capital gains rate and how it can impact your investment returns. Explore the ins and outs of owning property outside of Canada and how to avoid double taxation and cross-border estate issues. Hear practical year-end tax planning strategies, from charitable giving to tax-loss selling, to help you keep more of your wealth and achieve your financial goals. Resources CIBC's "Smart Advice" Podcast and Website - Website | Apple Podcast | Spotify Visit CIBC for more Smart Advice Jamie Golombek: Website | LinkedIn | X (Twitter) | CIBC Profile Episode Highlights [00:21] Why Tax Planning Matters Taxes shape nearly every financial choice, from investing to passing down property. Without tax planning, policy shifts can create unexpected costs and reduce wealth. Jamie Golombek, Managing Director of Tax and Estate Planning at CIBC, brings over 25 years of experience to the discussion. His insights highlight how smart strategies can preserve assets and support long-term goals. [01:49] What to Expect from Tax Policy Canadians face uncertainty as new government leadership and upcoming budgets could shift tax rules. Jamie outlines the likelihood of higher taxation for top earners and possible adjustments to credits and exemptions. [02:24] Jamie: “No one knows what will happen. We are expecting a fall budget. I mean, the latest information we have from publicly available sources is that the budget will drop in October. We're going to wait and see what will be in that budget.” He explains why tax cuts are unlikely and why rates at the high end can discourage productivity. Keeping a close eye on government priorities is essential for anticipating the next wave of changes.

[05:05] Capital Gains and Investment Strategy The proposed increase in the capital gains inclusion rate was cancelled, creating relief for many investors. Jamie explains that the rate remains at 50%, with both advantages and drawbacks. Investors should use this favorable rate strategically, particularly in non-registered accounts. Real estate and equity holdings can benefit from thoughtful positioning under current rules. [08:44] Jamie: “Take advantage of capital gains; the fact that we have the lowest rate, even lower than the rate on dividend income, which is also favorable because the dividend tax credit. Take advantage of it, both in your portfolios, your non-registered portfolios, as well as if you're doing any real estate investment.” [09:01] Navigating Property Ownership Abroad Owning property outside Canada can expose investors to double taxation, foreign estate taxes, and currency risk. Jamie stresses that Canadians are taxed on worldwide income, so all gains and rental income must be reported. Local tax advice, paired with Canadian expertise, is key to managing obligations across borders. Proper planning can prevent costly errors and preserve long-term property value.

[14:04] Tax Planning for Wealth Transfers Passing down cottages or vacation homes raises both emotional and financial challenges. Jamie highlights the need for family conversations to determine if children actually want the property. Deemed dispositions at death can create large tax bills, requiring liquidity planning. [16:55] Jamie: “Remember, you haven't actually sold it. There is no real money, but there is this sort of deemed disposition concept, and therefore you've got to come up with the cash to pay the tax.” Options such as sinking funds, equalizing assets, or family trusts can help families transition smoothly. [18:13] Keeping Inheritance Fair Balancing fairness between children is a common concern in estate planning. Jamie explains how dividing assets can work but stresses the importance of considering tax consequences. Life insurance is one tool that can equalize estates or cover tax liabilities. Coordinated planning with advisors ensures both fairness and tax efficien