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CPP Credit Splitting After Separation

The Canada Pension Plan permits eligible former spouses and common-law partners to divide CPP pension credits earned during their relationship following a divorce or separation. The adjustment is permanent and may increase future CPP entitlement for one individual while reducing benefits for the other, making timing and eligibility an important part of post-separation financial planning.

Eligibility Framework

Credit splitting generally applies after a divorce, annulment or eligible separation. However, credits cannot be divided for periods:

• Before either individual turned 18

• After either individual turned 70

• During periods when a CPP or QPP retirement pension was already being received

• During periods covered by CPP or QPP disability benefits

• Where combined annual pensionable earnings did not exceed twice the Year's Basic Exemption (YBE)

Source- CRA

Marketing Lessons from Rory Sutherland

Some of the world's strongest brands compete less on product superiority and more on behavioral psychology. In a recent discussion, Rory Sutherland highlighted how companies such as Apple, American Express and Domino's create disproportionate value by shaping customer perception rather than simply improving functionality.

Recurring themes included:

• Reverse benchmarking to identify overlooked opportunities.

• Using everyday frustrations as innovation signals.

• Applying direct-response marketing principles to improve conversion and customer acquisition.

Looking Beyond Your Mortgage

For many Canadians, a mortgage represents more than a repayment obligation. As home equity grows, it can become a strategic financial asset capable of supporting broader wealth-building objectives when used appropriately.

Beyond Debt Reduction

While accelerated mortgage repayment remains a common priority, some homeowners evaluate whether existing equity can be deployed more efficiently. Depending on individual circumstances, strategies such as the Smith Manoeuvre may allow investment borrowing while potentially converting interest into a tax-deductible expense when implemented correctly.

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Tax Court Clarifies Paragraph 60(o) Deduction Rules

2026 TCC 141 | Kruivitsky v. The King

A recent Tax Court of Canada decision confirms that paragraph 60(o)(i) does not permit taxpayers to deduct legal fees incurred in disputing another person's tax assessment, even where the expenses are paid voluntarily and the parties share a close family relationship. The Court emphasized that the deduction is intended to apply to the taxpayer whose assessment is under dispute.

Legislative Analysis

The Court rejected a purely textual interpretation of paragraph 60(o)(i), concluding that the provision must be read alongside paragraph 56(1)(l). Together, these provisions are intended to ensure that deductible tax dispute expenses and any related court-awarded costs remain aligned within the same taxpayer's income reporting framework.

Source: Tax Court of Canada

Multigenerational Home Renovation Tax Credit

In Tax Mechanic’s latest TikTok video, Fraser explains how families may claim a refundable credit of 14.5% on up to $50,000 of eligible renovation costs, providing a maximum benefit of $7,250.

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Building a basement suite, garden suite, or laneway house for a parent or another eligible family member? Before you start, make sure your... See more

The credit applies when creating a new, self-contained secondary unit for a senior or an adult eligible for the Disability Tax Credit.

AI Strategy, Automation & Intelligent Systems

Businesses do not need more software. They need better systems. At Tax Mechanic, we help companies use artificial intelligence to reduce manual work, improve accuracy, and make faster, better decisions. Our approach is practical, focused, and built around real business outcomes.

Strong AI depends on strong data. That is why we also help structure, organize, and connect your data so every system performs reliably and delivers measurable value.

The businesses gaining an edge are not the ones talking most about AI. They are the ones applying it with precision.

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Ready to build smarter systems and improve efficiency? Connect with our team today: https://taxmechanic.ca

Don’t Let Tax Season Cost You Year-Round

That pit in your stomach is trying to tell you something: Waiting until spring is costing you peace of mind.

When tax season feels like a crisis, it’s usually because the right financial information isn’t organized ahead of time. Deductions, education expenses, and important documents all become a last-minute scramble.

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BELAY’s experienced tax prep professionals help you stay organized year-round, so tax season becomes simpler, less stressful, and actually manageable.

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Don’t spend another spring stressing over paperwork. Get help now and leave the pit in your stomach behind for good.

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