Author Archives: Tax Partners

Principal Residence When you dispose of a property that has been your principal residence for X amount of years, you will need to report the disposition to the CRA when you file your income tax. The good news is that the Government of Canada allows the taxpayer to be exempt from paying any capital gains […]

The simple definition of a real estate assignment is that contractual rights to a piece of property are assigned from one party to another. This means that before the legal ownership of a property is transferred, the buyer would purchase the rights from the seller and builder. The tax implications are whether to claim the […]

Withholding Tax – Non-Resident When we talk about withholding tax for non-tax residents of Canada, the general tax rate is 25% of the gross amount received. This means that passive sources of income, such as rent, royalties and dividends under the Canadian Income Tax Act are taxable. This means that the Canadian resident who is […]

In order to qualify as a non-profit organization, the following must be met: Not a charity Organized for the purpose of civic improvement, social welfare, pleasure, or recreation Operates for the purpose of civic improvement, social welfare, pleasure, or recreation No income is available to members, shareholders, or proprietors. Both non-profit organizations and charities share […]

The CRA provides rebates to taxpayers who build, purchase a new home, do substantial renovations, or have made a major addition. This can be for themselves or letting a relative live there. The stipulation is that the house must have a fair market value of $450,000 or less for this rebate to be available to […]

Effective September 1, 2022, Canada has implemented a luxury tax on luxury cars, boats, and aircrafts under the Select Luxury Items Tax Act (SLITA). The SLITA has been implemented to target those who can afford to buy luxury good. The SLITA will introduce a luxury tax on the sale and import of certain cars, boats, […]

We know that Input Tax Credits (ITCs) are a sum of the GST/HST collected. It allows for the taxpayer to recover some of the GST/HST they paid for on business expenses. In order to collect ITCs a taxpayer must be registered for a GST/HST account with the CRA. For any ITC claims over $150 the […]

Many businesses who use regular GST/HST reporting can opt to use the simplified method as long as they meet the following criteria: Annual revenue from taxable property and service is no more than $1 million Your total taxable supplies are no more than $1 million for the year Your taxable purchases are $4 million or […]

When a taxpayer is self-employed or has a corporation, they incur the additional expense of GST/HST, which is payable to suppliers, subcontractors, and other various expenses. To ensure that the consumer is charged the GST/HST, the Excise Tax Act, which levies GST/HST, says that GST/HST expenses can be credited or refunded. This is called Input […]

In December of 2022, the CRA’s auditors confirmed that they will be keeping a close eye on social media influencers such as YouTube, Instagram as well as online gaming streamers. They want to make sure that all income from endorsements is being reported on their personal tax returns. The CRA says that they will focus […]