Section 160 of the Income Tax Act in Canada is a tool for tax collection which impedes taxpayers attempting to hide assets from the tax collector by transferring them to related corporations, friends, or relatives. There is a wide variety of transactions, such as those involving cryptocurrency and NFTs, so if you receive anything like […]
Author Archives: Tax Partners
28
Dec
Dec
Income tax audits can be daunting and costly for taxpayers. Anyone running a company, especially a cash-based one, might not realize the Canada Revenue Agency, or CRA, has various methods it can use to reassess taxpayers. Also, not all methods depend on examining the company’s records and books. If the CRA believes that a taxpayer’s […]
28
Dec
Dec
The Excise Tax Act offers the Canada Revenue Agency (CRA) and its tax collectors’ broad authority to recover tax obligations. Many taxpayers are surprised when their bank accounts are blocked, possessions confiscated, or paychecks garnished. However, there are precise and time-based constraints where the CRA can legally recover GST/HST tax obligation. Unlike most tax debts, […]
28
Dec
Dec
Section 85 rollover allows a Canadian taxpayer to transfer eligible property, deferring the tax to a taxable Canadian corporation. This means a taxpayer can defer part or all of the tax consequences that typically arise on the transfer, depending on objectives. Section 85 rollover applies to the following situations (and more): Estate planning Sole proprietors […]
03
Jan
Jan
Taxpayers being audited by the Canada Revenue Agency (“CRA“) are not likely to describe the experience as pleasant. After all, the CRA’s main goal during an audit is to uncover errors with the taxpayer’s filings, which would result in the taxpayer owing money. This type of scrutiny, despite being a normal part of a country’s […]
03
Jan
Jan
The Canada Revenue Agency (CRA) recently released comprehensive information on a new simplified process for deducting home office expenses for 2020 and 2021. For millions of Canadians, this is the first year in which they are eligible to deduct certain expenses related to working from home on their taxes. It will also be the first […]
02
Oct
Oct
Ontario real estate professionals can now incorporate, thanks to the passing of Bill 145 this past March and legislation passing on October 1, 2020. First—and likely most important—is to understand the tax benefits of incorporation. Of course, once you withdraw funds from a PREC, that money is subject to your personal tax rate. Fortunately, with […]
02
Oct
Oct
Being a realtor in Ontario means many things. You are selling in one of the most fast-paced and lucrative realty markets in North America! You are selling in an economic climate that has exceeded any predictions and is growing. As is the case with many of your colleagues, you are inundated with data, paper, and […]
25
Jul
Jul
The death of a family member or a close friend, can be a difficult time. Our office is committed to making it as easy as possibly for you during this trying time by providing estate planning prior to death and setting out some tax tips for tax return filing on death. Does an income tax […]
25
Jul
Jul
A taxpayer who sells his or her “principle residence”, which is defined in the ITA, becomes liable for paying tax on the capital gains. However, the Income Tax Act (“ITA”) allows the taxpayer to claim an exemption, thereby avoiding the payment of tax on the sale of the “principle residence”. “Principle residence” generally includes: A […]