The hidden 1985 tax loophole the CRA hopes you’ll never discover… In 1985, Parliament quietly passed a clause buried deep inside the Income Tax Act. Almost nobody noticed. But decades later, it’s become one of the smartest ways for Canadians to pass money to their family completely tax-free. Here’s how it works: Most people save through RRSPs. When they die, the entire balance is added to their final tax return… which is often taxed around 50% depending on the amount. That means a $1 million RRS

The 1985 tax loop hole that the CRA hopes you don’t find out about. Everyone talks about RRSP’s but few people are talking about a clause that was passed in 1985 that could allow you to pass money to your family tax-free. In Canada we don’t have a “death tax” like in some other countries, but our estate is often taxed before that money can be passed down. So if you have a large sum in your RRSP, that entire amount gets added to your final tax return when you pass away… … which could mean it’s ta