A July 19, 2024 Court of Quebec case considered whether the sale of a house in 2016 was on account of capital or income. The taxpayer had purchased the property during a temporary marital separation but later reconciled and sold the property within six months at a profit. The property was sold before the federal… Read more »

There are several reasons an individual might convert part of their home into a rental property. However, this action can have significant income tax implications, including potentially limiting access to the principal residence exemption, which can be easily overlooked. Two June 27, 2024 Technical Interpretations analyzed the tax implications of creating secondary suites. The suites… Read more »

A September 6, 2024 Tax Court of Canada case reviewed whether a taxpayer’s employment by a corporation owned by her brother was insurable. The taxpayer performed various office duties for the corporation. As the taxpayer was related to the corporation, she was non-arm’s length to the employer. A non-arm’s length employee is engaged in insurable… Read more »

In the Spring of 2025, CRA will change the default method of correspondence for most businesses to online only. This means that most businesses will receive their notices of assessment, letters, forms, statements and other documents from CRA through My Business Account rather than by traditional mail. Notifications that new mail is available online will… Read more »

For the December 14, 2024 to February 15, 2025 period, certain items normally subject to GST/HST should not have GST/HST applied at the point of sale. Businesses selling these goods can still claim input tax credits for the GST/HST they paid on inputs acquired to supply the good, as they are zero-rated. The types of… Read more »

The capital gains inclusion rate has been proposed to increase from 50% to 2/3, effective June 25, 2024, for corporations and most trusts as well as for the portion of capital gains realized in the year that exceeds $250,000 for individuals, graduated rate estates and qualified disability trusts. While the proposals to increase the capital… Read more »

Some quick points to consider… – The limit on the deduction for non-taxable allowances paid by an employer to an employee using a personal vehicle for business purposes will increase in 2025 by 2 cents to 72 cents per km for the first 5,000 km driven and to 66 cents for each additional km (higher… Read more »

Reasonable motor vehicle allowances received by employees in the course of employment duties are non-taxable. An allowance is not reasonable (and therefore taxable) if any of the following are met: – the allowance is not based solely on the number of kilometres driven for employment purposes; – the employee is reimbursed in whole or part… Read more »

Higher personal income levels are taxed at higher personal rates, while lower levels are taxed at lower rates. Therefore, individuals may want to, where possible, adjust income out of high-income years and into low-income years. This is particularly useful if the taxpayer is expecting a large fluctuation in income due to, for example, an impending:… Read more »

December 31, 2024 is fast approaching… see below for a list of tax planning considerations. Please contact us for further details or to discuss whether these may apply to your tax situation. NEW! As of June 25, 2024, 2/3s of capital gains in excess of $250,000 per year are proposed to be Capital gains of… Read more »