WOULD YOU LIKE SOME TAX-FREE INCOME? There are several kinds of income and benefits that are not subject to tax under the Income Tax Act. To the extent you can get any of these, you won’t need to pay tax on the income, or, in many cases, even report it. Here are some of the […]
THE FEDERAL GOVERNMENT’S HOUSING PLAN The Liberal government’s Budget of April 16, 2024 (budget.canada.ca) has committed billions of dollars to support building new housing, recognizing that the shortage of housing in Canada has become a serious crisis, and hoping to get almost 4 million new homes built over the next 7 years. Some of the measures proposed […]
When the federal government this week tabled a notice of ways and means motion providing technical details of planned changes to the capital gains inclusion rate, the news was more about what wouldn’t be included in future legislation than what would. Despite feedback from a diverse group ranging from economists to organizations representing Canada’s physicians—that […]
THE TAX COST OF LEAVING (OR LOSING) YOUR JOB What happens for tax purposes if you leave your job — voluntarily or by being terminated — and your employer pays you money? Typically, you might receive one or both of the following kinds of payments: An extension of your salary during a period while […]
For the first time in nearly two years, the Canada Revenue Agency prescribed rate will not rise, instead decreasing to 5 per cent from 6 per cent for the third quarter of 2024 (July 1st, 2024 to September 30th, 2024. The prescribed rate crested at 6 per cent earlier this year, after lingering at record […]
TAX CONSIDERATIONS FOR EXECUTORS Being asked to be the Executor of someone’s estate is a significant responsibility, often coming at a very sad time if that person is a family member. The responsibility is not something which should be taken on lightly. The estate administration process can sometimes take years to complete. There are […]
Some taxpayers who were required to file a trust return for 2023 may have been surprised to discover that they’d been assessed a late-filing penalty of $100 by the Canada Revenue Agency for the on-time filing of the Schedule 15 (Beneficial Ownership Information of a Trust) form that accompanied their 2023 T3 Income Tax and […]
In an abrupt change of policy, the Canada Revenue agency has announced that it will exempt bare trusts from filing a T3 Income Tax and Information Return, including Schedule 15 (Beneficial Ownership Information of a Trust), for the 2023 tax year. The CRA still reserves the right to request these filings directly in specific circumstances. […]
DEADLINE PENDING! MUST YOU FILE A TRUST RETURN? We have written before about the new trust reporting rules that were enacted by Parliament in December 2022, and which first apply for the 2023 tax year. The first reporting under these rules is required by April 2, 2024. (The deadline is 90 days after year-end. Because this year is […]
The Canada Revenue Agency prescribed rate will remain at 6 per cent for the second quarter of 2024 (which extends from April 1st, 2024 to June 30th, 2024). The prescribed rate last reached 6 per cent in the second quarter of 2001; it hovered at only 1 per cent during the COVID-19 pandemic. The current […]
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