Will You Still Need Dental Insurance?

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With the expansion of the Canadian Dental Care Plan (CDCP) in 2025, is Health and Dental insurance still relevant? We certainly think so.  First, let’s clear up the misconceptions about coverage and eligibility.

Misconceptions, explained

While the idea of universal health and dental coverage might sound attractive, the rules should be clarified.  Here are five important misconceptions about the CDCP.

Misconception #1: All Canadians qualify for CDCP

Reality: 

Adults 65 and over, children under 18, and adults with a disability tax credit certificate for 2025 are eligible. This eligibility is also open to people aged 18 to 64.To qualify for CDCP, your adjusted family income must be less than $90,000 in 2024. 

This includes your income plus your spouse’s income, minus any income from universal childcare benefits (UCCB) or a registered disability savings plan (RDSP), plus any repaid amounts. For example, if you work full-time and earn $80,000 a year and your spouse earns $10,100 from a part-time job, you wouldn’t be eligible.

Additionally, you must:

•Be a Canadian resident and have filed an income tax return in the previous year.

•Not have dental coverage through your employer, your spouse’s employer, or a pension benefit. Opting out of these benefits does not make you eligible for CDCP.

•Not have independent dental coverage from an insurance company.

Misconception #2: All dental professionals participate in CDCP

Reality: Participation in CDCP is entirely voluntary. The plan is available to dental professionals who can either sign up for the CDCP or submit claims on a claim-by-claim basis. Not all dentists participate in the CDCP, so you should consider checking with theirs to ensure they can access the benefits.

Misconception #3: All dental services are covered

Reality: The CDCP covers many dental services, but not everything. Some services require preauthorization, and some have frequency limits.

Misconception #4: Enrollment is automatic

Reality: You must apply annually and meet the eligibility requirements each year. Approval can take up to three months, so it’s important to plan. Applications can be submitted online or by phone.

Misconception #5: The CDCP covers 100% of costs

Reality: The CDCP may not cover the full cost of your treatment. Clients may incur additional charges if the established CDCP dental fees are less than the actual fees charged by their provider.

If you already have a plan

Some insurance companies are offering option to transition to a more basic plan if they are considering canceling their existing health coverage as a result of the CDCP program. This alternative provides a seamless and affordable solution for those wanting to maintain their health benefits during this change.

The final thought

The CDCP is designed to support individuals and families who don’t have existing dental coverage. It may not cover the full range of dental services you  would like to have. In addition, not all dental service providers participate in the plan, which may limit your choice of provider.

To get a quote, please contact us or book a time with us directly.

WHO DOES IT APPLY TO?

The proposed BC home flipping tax applies to income you realize from the sale of properties in British Columbia if you have owned them for less than 2 years.

The BC home flipping tax will apply to income from B.C. properties sold on or after January 1, 2025. Income from property purchased before the tax’s effective date may be subject to the new tax if sold on or after January 1, 2025 if the property is sold within 2 years, unless an exemption applies.

As previously announced in British Columbia’s Homes For People plan, the intention of the tax is to discourage the short-term holding of property for profit.

NOTE:
Some things remain unclear regarding this policy:
- It is still subject to legislative approval
- Doesn't define when the "purchase" is for presales. Ex: Is it at the time of writing the contract or when the title is transferred to the buyer? My gut feeling is that it'll be based on the time of writing the contract. If that's the case then buying a presale in Jan 2024, you'll still be able to assign by Feb 2026. So choosing projects with longer than a 2 year completion timeline is a minimum under such consideration. 

Details on how the tax and the exemptions can be found in the link below:
Click here

*Information provided here is a re-post of our Realty well-being partner Michael Lee.  For more real estate tips, please subscribe to his newsletter directly.  Insurance Kit and those associated with the information on this website are not professional accountants, unless specified otherwise. Please always seek the advice of a professional accountant prior to making any tax related decisions.  

In order to cool down overheated housing markets in certain cities, various governments have added new taxes to homes that are not occupied, rented out or fully utilized.  Many think that these measures only affect those who own investment properties, or are foreign buyers.  This misunderstanding could mean a hefty fine for some who own only their primary residence as well.

Vacant properties are those that have been unoccupied for more than six months during the tax year (Jan 1 – Dec 31). Most importantly, failure to make a property status declaration will result in a property being deemed vacant and therefore subject to the Empty Homes Tax.  Even if the property is your primary residence, you still have to declare it.   We hate to be the bearer of the bad news: unfortunately, your declaration period has passed for 2022.   

For Vancouver homeowners, properties deemed or declared empty in 2022 will be subject to a tax of 3%; for in 2023, it will increase to 5%.    Late and unpaid Empty/Vacant Homes Taxes are subject to the same penalties for non-payment as property taxes, including:

• A late payment penalty of 5%
• Daily interest on arrears
• The tax sale process

Moreover, the BC provincial government also has a Speculation and Vacancy Tax (SVT), for which the requirement for declaration will start in 2024.  Areas being subjected to this new tax include:   

Capital Regional District (CRD)

Metro Vancouver Regional District

City of Abbotsford

District of Mission

City of Chilliwack

City of Kelowna

City of West Kelowna

City of Nanaimo

District of Lantzville

For Toronto homeowners, the tax rate is 1%; there is also a later declaration or false declaration penalty of $250 to $10,000.   Interest on any overdue Vacant Home Tax is 1.25 per cent on the first day of default and each month thereafter, until the amount owed is paid.

It does not stop there: Starting last year in 2022, the Federal government's Underused Home Tax (UHT) was added at an annual 1% tax on the ownership of vacant or underused housing in Canada. 

The good new is that there is an "excluded owners" category that most Canadians fall into: citizens, permanent residents, listed corporations, REITs and charities, who own primary residences or a vacation home located in an eligible area etc. do not have to file a UHT return. 

What if I own the properties through a trust, a private corporation or a partnership? 

Even if you owe no taxes under these structures, you still must file a UHT return.  The penalties for filing after the April 30 deadline (May 1, 2023, for the 2022 tax year) are much stiffer than the municipal governments': Minimum $5,000 for individuals, and $10,000 for corporations, for each residential property.  The penalties would be higher with no cap on the maximum! 

The most commonly seen small-business corporations are "numbered companies" owned by multiple property owners, and the many farms in Canada that are held in corporate or partnership structures.  For example, each farm that has a house on it will have to file the UHT return or they could potentially owe a $10,000 penalty.  There are many other exceptions and stipulations that one should consult their accountant for more details.

Insurance Kit could help with tax-saving strategies through insurance products.  To understand how insurance products could help your tax-planning in this regard, contact us now!

Related links:

Federal government's Underused Housing Tax (UHT)

BC government's Speculation and Vacancy Tax (SVT)

City of Vancouver's Empty Home Tax (EHT)

City of Toronto's Vacant Home Tax (VHT)

*Information provided here is based on Investment Executive's February article.  Insurance Kit and those associated with the information on this website are not professional accountants, unless specified otherwise. Please always seek the advice of a professional accountant prior to making any tax related decisions.