Do you own a small business corporation in Canada? Do you and your family receive compensation from the corporation and have medical expenses? If the answer to both of these questions is yes, you may want to consider the benefits of a private health services plan (PHSP). Private Health Services Plan A Private Health Services…
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Tax consequences of changing the “use” of your home If you own your home and decide to move out in order to rent it, the CRA considers you to have disposed and reacquired the property, with both transactions occurring at fair market value. This “deemed disposition” triggers a capital gain which is calculated by subtracting…
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Canada’s Deputy Prime Minister and Finance Minister, Chrystia Freeland, delivered the 2021 Federal budget in the House of Commons on April 19, 2021. This is the first budget tabled by the federal government in over two years. Highlights of the Budget include: COVID-19 emergency supports Wage Subsidy and Rent Subsidy Programs The Canada Emergency Wage…
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The BC government has introduced a new incentive program for BC employers. The program offers employers a one-time tax credit, equal to 15% of the increase in remuneration from the base period to the qualifying period. There is no maximum credit amount and it is not affected by any other government support you may have…
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Transactions involving cryptocurrency (“crypto”) have soared in popularity over the last decade. Guidance from taxation authorities has at times been unclear or non-existent. Guidance has also changed somewhat rapidly as crypto users have proliferated and transactions have become more complex. Despite its name, crypto is not actually treated as a currency for tax purposes in…
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During each tax season, your tax preparer will ask you to gather all of your T-Slips in order to report the information on your tax return. But what are all of these slips and how are they different? All T-slips are filed by corporations, partnerships, sole proprietorships, and trusts to report funds that have been…
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If you are an employee who worked from home due to the COVID-19 pandemic, you may be eligible to claim a deduction for home office expenses on your 2020 T1 Personal Income Tax Return. The CRA has introduced a new temporary flat rate method to make claiming the deduction even easier. Temporary Flat Rate Method…
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The Double Taxation Problem When a Canadian resident individual dies and does not have a spouse to whom they can transfer their assets, the deceased taxpayer is deemed to have disposed of their assets at fair market value. This deemed disposition can be a particular problem when a taxpayer dies holding shares of a private…
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If your company, proprietorship, or partnership is involved in the construction industry and makes payments to subcontractors for construction services, you have an obligation to report these payments to the CRA. This is the case even if the transaction is through barter or exchange. Think of these as “T4’s” for your contractors. This reporting is…
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