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 […]
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 […]
In the 2023 Fall Economic Statement tabled yesterday, the federal government was keen to boast about maintaining its ‘fiscal anchor’—the budget guardrails that seek to limit spending and deficits. Yet its recent policy commitments suggest otherwise. With debt-servicing costs skyrocketing, the fiscal picture is anything but pleasant. While the 2023 Fall Economic Statement is light […]
“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 […]
SHOULD YOU FILE YOUR INCOME TAX RETURN IF YOU CAN’T PAY? Suppose you are (or your corporation is) ready to file your income tax return, or a GST/HST return, by the filing deadline (which might be, say, April 30 or June 15). But you don’t have enough money to pay the balance. Should you file anyway? We […]
PROPOSED LUXURY TAX ON EXPENSIVE CARS, BOATS AND PLANES The Liberal government is planning to introduce a new Luxury Tax, to take effect on January 1, 2022. It will apply to: new cars, SUVs and pick-up trucks costing over $100,000 boats costing over $250,000 certain aircraft costing over $100,000 The tax will be 20% of the […]
TRANSFERRING SHARES TO AN RRSP Should you transfer shares that you already own to your RRSP? The prospect can be attractive. The shares you transfer are considered a contribution to your RRSP. If you have unused RRSP contribution room, you can thus get a substantial tax deduction for shares that you already own. If […]
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