On October 3, 2016, the Government announced an administrative change to Canada Revenue Agency’s reporting requirements for the sale of a principal residence. When you sell your principal residence or when you are considered to have sold it, usually you do not have to report the sale on your income tax and benefit return and Read more about Reporting the sale of your principal residence for individuals[…]
Budget 2016 proposes tax amendments that will limit the benefits of certain corporate and partnership structures which currently allow for the small business tax rate to apply to multiple instances of $500,000 of active income. This has historically been accomplished through the use of more complex structures that use a combination of multiple corporations, partnerships Read more about Highlights for Physicians, Residents and Medical Students[…]
Earlier this week, Finance Minister Bill Morneau introduced tax changes that were aimed primarily at foreign investors in Canadian real estate to ensure they abide by our existing tax rules. But the changes also catch many Canadian residents who, in the past, have often inadvertently escaped paying tax on their principal residences. Read More…. Read more about How principal-residence tax changes will affect every Canadian homeowner[…]
Justin Trudeau has vowed to increase taxes on the wealthiest of Canadians – many of whom have achieved their status by building businesses. These business owners could one day find themselves facing a tax-strategy dilemma: Should they leave money in the business, take it as income, or do something completely different? Read more….. Read more about One way to avoid tax – leave money in the business[…]
The lifetime maximum amount you can contribute for a child into an RESP is $50,000. Assuming a rate of return of 5 per cent for 17 years, and that the child starts a post secondary school education at age 18, if you contributed the full $50,000 to the RESP upfront, that amount would have grown Read more about What’s better for an RESP – Lump sum payment, or annual contributions?[…]
Late-filing penalty If you owe tax for 2015 and do not file your return for 2015 on time, CRA will charge you a late-filing penalty. The penalty is 5% of your 2015 balance owing, plus 1% of your balance owing for each full month your return is late, to a maximum of 12 months. http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/ntrst/menu-eng.html Interest Rates on Balance Owing: The interest rate Read more about CRA Late Filing Penalties and Interest on Balance Owing[…]
When you should use a checklist for filing Income Tax Return? Answer: Every year Since tax laws change every year, it is strongly recommended to update yourself with new tax laws to maximize your tax refunds. Even a change in your family status from the previous year requires different tax planning in current year. The Read more about When you should use a checklist for filing Income Tax Return?[…]
This summer when you’re standing around the barbecue with your business-owner neighbours, impress them with your knowledge of tax planning. I can tell you from experience that you’ll bore them to tears with the conversation, but they’ll thank you later when the tax savings start rolling in. Specifically, share with them that holding companies can Read more about How to defer tax by using a Holding company[…]
This attached presentation will give you quick answers to many questions relating to 2015 personal tax return and corporate tax planning. We list major changes to attached presentation, including income tax changes that have been announced but have not become law at this time. Click to view 2015 Tax updates – 2015 Tax Updates – Rajesh Read more about 2015 Tax Updates[…]
Ontario Executors Face New Probate Filing Rules