Tax Considerations For Executors
Being asked to be the Executor of someone’s estate is a significant responsibility, often coming at a very sad time if that person is a family member. The responsibility is not something which should be taken on lightly. The estate administration process can sometimes take years to complete. There are a multitude of practical tasks […]
Deducting Interest Expense
Under the Income Tax Act, interest expense can be deducted from business income or property income if certain conditions are satisfied: There have been many decisions from the Courts on interest deductibility, on a wide range of fact situations. For example, even if the property acquired goes down in value, the interest deduction can continue: […]
10-Year Limitation Period on Tax Collection
What happens if you have an old debt owing to the CRA? Is there a deadline after which the CRA can no longer collect it from you? The answer is yes — but the rule in question is very restrictive. Under section 222 of the Income Tax Act, the CRA has 10 years to take […]
Taxation of Cryptocurrency
The volatility of cryptocurrency is well-known. Holding assets such as Bitcoin can result in huge gains in value over a relatively short duration. It can also result in huge losses.
As the holding of cryptocurrency is becoming more common, thoughts have turned to how such assets are treated from a tax perspective.
TFSA Lifetime Limit
The Tax Free Savings Account (TFSA) rules allow you to invest a substantial amount of money in a TFSA. All interest, dividends and capital gains earned in the account are tax-free.
Benefits of Establishing a Family Trust
Estate planning is an important consideration for all individuals, irrespective of their level of wealth. Poor planning, or no planning, can result in an excessive proportion of your estate being lost when you die, in the form of either probate fees or taxes, or both. Luckily, there is a wealth of information available in relation […]
Claiming Your Capital Gains Exemption on The Sale of Shares
The Lifetime Capital Gains Exemption (LCGE) is an incredibly valuable tax exemption. Every individual is entitled to this exemption and it currently (for 2023) can exempt a gain of up to $971,190 (the amount is indexed to inflation each year). In Ontario for example, the tax savings from the LCGE can be worth up to […]
Beware of Employer / Contractor Status
Do you hire individuals to perform tasks for your business? Do you have domestic helpers such as nannies or caregivers? Ensure that you understand the nature of the relationship and that you report the payments appropriately. This is a topic that arises fairly regularly in the courts – has an individual been hired as an […]
Assets Outside Of Canada? Check If You Need To Report
If you have assets located outside of Canada, make sure to check whether you are required to declare these, as the deadline for 2023 is the same as that for your tax return. Penalties can be very significant if you are required to declare these and you don’t. The basic rule is that Canadian residents […]
Simplified Installments if You Have the Cash
If you are required to pay the CRA personal or corporate installments for income tax or GST/HST purposes, here is a useful tip that can simplify your payments. It is only worth considering if you have ample cash available and no concerns about running short of cash. Personal Income tax installments are payable quarterly. Corporate […]
