5 BULLET FRIDAYS - Tax Mechanic News, Tips & Strategies

Welcome to Tax Mechanic Insights! 📬

💼 Canada Pension Plan (CPP) Retirement Pension

The Canada Pension Plan (CPP) retirement pension is a monthly, taxable benefit designed to replace a portion of your income when you retire. Once approved, you’ll receive it for life.

📌 Key Details at a Glance

⚙️ Why It Matters

• Predictable Income: A reliable stream of retirement income.

• Flexible Start: Begin as early as 60 (with reductions) or delay until 70 (for increased payments).

• Lifetime Benefit: Once you qualify, your CPP pension is guaranteed for life.

📝 What To Do Next

• Check Your Statement: Review your contribution history through your My Service Canada Account (MSCA).

• Apply Online: Simplify the process by submitting your application digitally.

• Sign Up for Direct Deposit: Ensure timely, secure payments.

🔗 Source: Government of Canada – CPP Retirement Pension

🎙️ 7 People Earning $5M–$10M from Unexpected Hobbies

In Episode 742, Sam Parr sits down with Billy Parks, partner at Slow Ventures, to explore how creators are turning niche passions into multi-million-dollar businesses. With small but dedicated audiences, these entrepreneurs are redefining what it means to succeed in the creator economy.

📌 Key Highlights

⚙️ Why It Matters

• The Creator Middle Class: More people are earning significant income without being global superstars.

• Scalable Niches: Even hyper-specific interests can fuel multi-million-dollar ventures.

• Investment Shift: Firms like Slow Ventures are backing creator-led businesses as a serious asset class.

  
  🔗 Source: My First Million Podcast – Episode 742

🏡 Every Market Is a Mortgage Market — Here’s Why You Shouldn’t Wait

No matter the headlines—rising interest rates or high home prices—opportunity always exists in the mortgage market. The key isn’t timing the market perfectly, but rather having a strategy that aligns with your goals.

📌 Key Insights at a Glance

⚙️ Why It Matters

• Leverage Market Shifts: High rates can mean better selection and stronger negotiating positions.

• Strategy Over Timing: Success depends more on smart planning than predicting peaks or valleys.

• Long-Term Benefits: Tools like prepayment options, portability, and rate holds help build sustainable financial outcomes.

📝 What To Do Next

• Explore Your Options: Review whether a rate hold, refinance, or new product fits your needs.

• Think Long-Term: Focus on flexibility and cash flow alignment, not just today’s rate.

• Partner With a Professional: Expert guidance ensures you maximize opportunities in any market.

⚖️ Tax Court of Canada Judgment: Havilland Holdings Ltd. v. The King

On August 29, 2025, the Tax Court of Canada released its decision in Havilland Holdings Ltd. v. The King (2025 TCC 120). The case centered on the treatment of significant partnership losses and the Crown’s attempt to rely on prior trial transcripts following the passing of Justice Hogan, who had presided over the original hearing.

📌 Key Case Details

⚙️ Why It Matters

• Trial Fairness: The Court emphasized the importance of live witness testimony, noting that credibility is best assessed in real time.

• Judicial Discretion: A new trial judge has broad discretion to ensure fairness after reassignment.

• Impact on Tax Litigation: The ruling underscores that efficiency arguments cannot override fundamental fairness in tax proceedings.

📝 What To Do Next

• Legal Counsel: Tax professionals should note this precedent when advising clients on trial strategy and evidence.

• Monitor Outcomes: The new trial on Havilland’s partnership losses will be closely watched for implications on partnership structures and GAAR defenses.

🔗 Source: Tax Court of Canada – 2025 TCC 120

📲 Featured TikTok: CPP vs. OAS in 2025

In our latest TikTok video, going live today at 6:00 PM EST, we break down the key differences between Canada Pension Plan (CPP) and Old Age Security (OAS)—two cornerstones of retirement income.

Here’s a quick preview of what’s inside:

• Funding

  • CPP: A savings plan funded by you and your employer.

  • OAS: No contributions required—funded entirely by the government.

• Eligibility & Contributions

  • CPP: If you earn over $3,500, you contribute. In 2025, contributions max out at $8,068/year, plus a second-tier if income falls between $71K–$81K.

  • OAS: Qualify simply by living in Canada long enough and reaching age 65.

• Monthly Payments (2025)

  • CPP: Up to $1,433/month (average $808).

  • OAS: $735/month at 65, rising to $808 at 75.

• Flexibility & The Catch

  • Both can be delayed for higher payments.

  • But only OAS is subject to a clawback starting at incomes over $90,997.

💡 Takeaway: A smart strategy around when to claim CPP and OAS can significantly boost your retirement income and reduce clawback risks.

👉 Watch the full breakdown today at 6:00 PM EST on our TikTok:
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