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Overview of New Draft Legislation to Address Income Sprinkling

Lisa Garland on December 15, 2017 in Tax

On December 13, the government unveiled the final version of the new legislation regarding Tax on Split Income (TOSI) rules effective January 1, 2018. Overall, the legislation proposals extend the tax on split income (“TOSI”) to individuals aged 18 and over (specified adult individuals) as they suggested in the July 2017 proposals.  The intention of … Continued

Passive Income in a Corporation

Richard Weber on September 18, 2017 in Tax

What is it? Passive income effectively refers to income earned on funds or investments that are not active business assets. For example, portfolio investments, stocks, bonds, rental properties, real estate investments. Proposed Changes The government is concerned that investing through a corporation creates an opportunity for much more rapid accumulation of wealth than would be … Continued

Income Sprinkling

Richard Weber on September 18, 2017 in Advice for Business Owners

What is it? It is capitalizing on the lower marginal tax rates of family members and diverting corporate income to them. Proposed Changes The Tax reform proposals generally seek to curb using a corporation to split income with family members in a lower tax bracket who do not work in the business.

Investing in Property?

Richard Weber on July 18, 2017 in Tax

House or condo purchases made for the purpose of renovating to increase value and imminently sell for large profits is commonplace. Too often, however, there’s no consideration regarding tax implications. Everyone seems to know someone engaged in speculative real estate transactions to make quick profits, often moving houses as part of the plan. Here’s what’s … Continued

Registered Disability Savings Plan (RDSP)

Michael Kee on October 18, 2016 in Tax

Registered Disability Savings Plans (RDSP) are offered by the Government of Canada for individuals who are receiving the Disability Tax Credit. These tax credits are available to people with ‘severe or prolonged’ mental or physical impairments that markedly impact an individual’s ability to perform basic activities.     The RDSP is a tool to help … Continued

Happy Campers

Lisa Garland on October 11, 2016 in Tax

Whilst many of us have been enjoying the bout of good weather with outdoor activities including camping or the use of campground facilities, the same cannot be said for the owners of such facilities. Private campgrounds across Canada have been under fire recently after CRA decided that certain campgrounds are too small to qualify for … Continued

Tax Implications on U.S. Property Purchases

Mustafa Dossajee on September 26, 2016 in Income Tax Advice

A client (Canadian resident) recently asked whether he was required to complete tax form T1135 for a condo purchased in Florida for CAD$125,000 equivalent.  The simple answer – it depends!  Form T1135 is used for foreign income verification and is to be completed if the cost to the taxpayer of specified foreign property was more … Continued

Family Trusts

Mustafa Dossajee on September 20, 2016 in Advice for Business Owners

Introducing a family trust as part of a corporate structure may offer huge benefits but its merits should be evaluated on a case-by-case basis.

Help! I’m Being Audited by CRA

Mustafa Dossajee on September 8, 2016 in Tax

Receiving the ‘T1 Processing Review’ notice may make you feel like you are being audited but in reality, this is a common practice.

Childhood Treasures - A Heads Up on Capital Gains

Lisa Garland on August 25, 2016 in Income Tax Advice

Remember those trading cards that you had so much fun collecting? It might be time to dig those out of storage. A Wayne Gretzky rookie card was recently sold for a record-breaking $475,000. Before you cash out though, make sure you are aware of the capital gains tax consequences associated with selling your collector items!