5 BULLET FRIDAYS - Tax Mechanic News, Tips & Strategies

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CRA’s Debt Collection Push Is Moving Online

More Canadians with tax debt can now resolve balances without speaking to a collections officer.

A Self-Serve Collections Model Is Taking Shape

The Canada Revenue Agency is expanding its digital approach to debt collection through its Manage balance service in My Account. Taxpayers with personal income tax or COVID-19 benefit debts of $1,000 or more can make payments, set up payment arrangements, request callbacks, or connect with collections officers online.

The move reflects a broader effort to reduce friction in the collections process while encouraging taxpayers to address outstanding balances before interest and penalties accumulate.

Adoption Is Already Significant

Since launching in October 2025, the service has generated more than $1.1 billion in payments and payment arrangements. The CRA says nearly 6 million taxpayers with debts exceeding $1,000 have been presented with the option.

Ignoring Tax Debt Still Carries Consequences

While the CRA emphasizes payment flexibility and relief options, the agency also reminded taxpayers that unresolved debts can trigger collection actions. Tax refunds, benefits, and credits may be applied against outstanding balances, and legal collection measures remain available when taxpayers do not engage.

Recent updates also allow users to view assigned collections officer contact information directly within My Account, making it easier to communicate before enforcement action escalates.

Source: CRA News Release

How Goldman Sachs’ Former CEO Invests His Own Wealth

Lloyd Blankfein's approach favors discipline over complexity.

What Matters Most

In a conversation with My First Million, former Goldman Sachs CEO Lloyd Blankfein offered a rare look into how he manages his personal wealth. His philosophy is less about finding the next big trade and more about avoiding costly mistakes.

Lessons From the Top

Blankfein highlighted a common trait among poor traders: overconfidence. He contrasted that with Warren Buffett's reputation for simplicity, patience, and trust-based dealmaking. He also emphasized that anxiety, when managed correctly, can sharpen decision-making rather than hinder it.

• Avoid emotional and impulsive investing

• Focus on long-term discipline over short-term gains

• Treat risk management as a competitive advantage

Cottage Financing Can Make or Break the Purchase

The right property can still fall apart if the financing does not fit.

Start Before You Shop

Financing a cottage or recreational property is not the same as financing a primary home. Lenders may look closely at access, seasonal use, rental potential, property type, and down payment requirements before approving a mortgage.

Why Similar Cottages Get Different Answers

Two cottages with similar purchase prices can receive very different lending decisions because the property details matter.

Get Clear Before You Commit

Before falling in love with a cottage or entering a competitive offer, review your financing options. Knowing what is possible early can help avoid surprises and put you in a stronger position when the right property comes along.

Get Started

If you’re a medical professional thinking about buying, explore what may be possible based on your future income, not just today’s numbers.

Download the app:
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✨ Contact Genelle Today

CRA Complaints Rise Despite Service Improvement Push

Taxpayer frustrations are shifting from filing season problems to processing delays.

Complaints Keep Climbing

Complaints to the Office of the Taxpayers’ Ombudsperson rose 27% to 3,558 in 2025-26, up from 2,796 the previous year. The increase came despite the federal government's 100-day plan to improve CRA service through expanded call centre staffing and new digital tools.

Ombudsperson François Boileau said the initiative improved transparency and addressed some short-term issues, but deeper service problems remain unresolved.

Processing Delays Are Driving Frustration

A major source of complaints involves delays in processing income tax return adjustments. In complex cases, taxpayers waited up to 50 weeks, more than double the CRA's published 20-week service standard.

The Transparency Gap

The report argues that taxpayers receive little guidance when files exceed expected timelines. Unlike other federal departments, the CRA provides limited visibility into case progress, leaving many Canadians seeking answers through call centres and complaint channels.

Boileau has launched a formal investigation and is urging the CRA to expand automated processing and modernize file-tracking tools.

Source- Globe and Mail

Fraser Simpson Highlights a Tax Rule Most Collectors Miss

Selling collectibles at a loss may still create future tax savings.

Why the Loss Matters

In a recent TikTok video, Fraser Simpson explained how losses on certain collectibles can still have tax value. Artwork, jewelry, coins, stamps, rare books, and manuscripts may qualify as Listed Personal Property (LPP) under Canadian tax rules.

@taxmechanic

One advantage of LPP that rarely gets discussed: the loss doesn't have to help you this year. If you sell artwork, coins, stamps, or other... See more

The Catch

LPP losses only offset gains from other LPP assets. A $3,000 loss on a painting could reduce a future $5,000 gain on rare coins, leaving only a $2,000 taxable gain. These losses can be carried back 3 years or forward 7 years, making documentation critical. Keep purchase records, sale documents, appraisals, and receipts if you want the loss to count.