TAX SHELTERS AND RELATED ISSUES – SALIENT POINTS TO KEEP IN MIND Tax Shelters are the stuff of legend. Often times, these instruments are publicized in the media for providing tax evasion strategies to the extraordinarily rich. On the other hand, illegitimate tax shelters’ use of tax law inevitably earn the wrath of the Canada […]
RESIDENTIAL PROPERTY WARNING — HUGE PENALTIES!! Are you involved with a residential property that is not owned directly by a human being who is either a Canadian citizen or a permanent resident of Canada? For example: A cottage is held in a Trust, which the family patriarch set up before his death years ago, so […]
For the fourth consecutive quarter, the Canada Revenue Agency prescribed rate has increased by a percentage point. The rate used to calculate taxable benefits for shareholders and employees from interest-free and low-interest loans is now 5 per cent—up from 4 per cent in the first quarter of the year—for the period ending June 30th, 2023. The […]
There are relatively few businesses that have the pleasure of celebrating a 10-year anniversary, let alone 50. We’re very proud to join that latter club as KRP LLP marks a half-century providing accounting, assurance, tax and consulting services to entrepreneurs across all industries. We’re also very excited to announce our upcoming move to a new […]
TAX-EFFECTIVE PHILANTHROPIC DONATIONS Reaching for your cheque book or credit card to make philanthropic donations is the least tax cost-effective strategy. We’ve identified more than 20 ways to be even more charitable − all of them more tax and cost-effective – encouraging you to look around at your loved ones and consider how you can build […]
“ASSIGNING” A RESIDENTIAL PURCHASE AGREEMENT Purchasers of new homes and condominiums sometimes sell their rights to the property before the closing. This happens frequently with new homes or condos that take years to be built. It may happen because of a change in circumstances, or simply because the buyer wants to profit from an increase […]
RESIDENTIAL PROPERTY FLIPPING If you buy a home or condo, and then sell it soon after you get title — certainly if it’s within 18 months or so — the CRA will usually consider that you have “flipped” the property, and that any gain is fully taxed as business profit, not half-taxed as a capital […]
QUALIFIED DISABILITY TRUSTS A qualified disability trust (“QDT”) is a testamentary trust that can be set up for disabled beneficiaries who are eligible for the disability tax credit. A testamentary trust basically means a trust that is set up under your will, and takes effect after you die. You might consider setting up a QDT […]
STARTING A HOME BUSINESS Are you considering starting a home business? Here are some planning issues, tax rules and tips to keep in mind. Incorporation Many people are not clear on the difference between a business and a corporation, but the difference is extremely important, for both tax purposes and liability purposes. You can carry […]
EMPLOYEE STOCK OPTIONS Many readers are likely aware how these employee stock options work. In general terms, if you are an employee and are granted a stock option from your employer corporation, you have the right (but not an obligation) to exercise the option and acquire shares in your employer’s corporation at an “exercise […]
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