Tag Archives: CANADIAN ACCOUNTING & TAX BLOGS

Introduction Life-insurance premiums can sometimes be deducted as business expenses, but these deductions are subject to strict rules under the Income Tax Act. Misunderstanding these rules can lead to denied claims, audits, or penalties.  Here’s an updated guide to help you understand when and how life-insurance premiums may qualify as a business deduction. Introduction: Business […]

Introduction The Clergy Residence Deduction (CRD) allows qualifying members of the clergy to reduce their taxable income by offsetting housing-related expenses or benefits. Governed by paragraph 8(1)(c) of the Income Tax Act, this deduction is an essential tax relief mechanism for eligible clergy members, provided they meet strict criteria based on their status and function. […]

Introduction – Income Tax & The Home Office The concept of working from home has undergone significant transformation since the COVID-19 pandemic began. Many Canadians who previously worked in offices continue to work remotely, either full-time or in hybrid arrangements. This shift has brought renewed attention to the tax implications of home office expenses. The […]

Introduction – Shareholder Loans & Subsection 15(2) of the Income Tax Act Shareholders often derive financial benefits from their corporation through salaries, dividends, or shareholder loans. Shareholder loans are a common business practice that allows shareholders to access funds from their corporation, providing flexibility and incentivizing investment.  However, the Income Tax Act contains complex provisions […]

Introduction Spousal and child support payments often carry significant tax implications for both the payer and recipient. These payments may affect income tax calculations, where spousal support payments could be deductible by the payer and taxable for the recipient. On the other hand, child support payments follow a different set of rules. This article explains […]

Introduction Separation often involves physical distancing between former partners, but the situation becomes complex when separated couples continue to live under the same roof. While family law may consider such couples as separated based on intent and certain behaviors, the Canada Revenue Agency (CRA) has stricter criteria for recognizing separation for tax purposes. This article […]

Introduction The Canada Child Benefit (CCB) is a tax-free monthly payment administered by the Canada Revenue Agency (CRA) to support eligible families with children under the age of 18. It aims to help with the costs of raising children and includes additional components such as the Child Disability Benefit (CDB) and other federal, provincial, and […]

Introduction Employers often design creative compensation structures to improve tax efficiency, reward employee performance, and boost retention. While these arrangements may be advantageous, they are subject to strict rules under Canada’s Income Tax Act (ITA). A key constraint is the Salary Deferral Arrangement (SDA) rule, which affects the timing of when employees include compensation in […]

Introduction A taxable benefit arises when a taxpayer receives a measurable economic advantage or benefit that must be included in their income. Taxable benefits can extend beyond the taxpayer to their non-arm’s length parties, such as spouses or children, and are typically provided by an employer or corporation. Taxable benefits are governed under specific provisions […]

Introduction The taxation of capital gains is a fundamental aspect of Canada’s tax system. When taxpayers dispose of capital property such as real estate, corporate shares, or partnership interests, they typically must report any realized capital gains in their income for the year of disposition. However, subsection 40(1) of the Income Tax Act (ITA) allows […]