We are often asked by our clients how they should treat the carrying costs of vacant or undeveloped land for tax purposes. We are hopeful this blog will assist people to understand the appropriate treatment. Background Owners of vacant land incur carrying costs associated with ownership. Examples of such costs include property taxes, general maintenance…

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Canada’s Deputy Prime Minister and Finance Minister, Chrystia Freeland, delivered the 2023 Federal budget in the House of Commons on March 28, 2023. The budget calls for a deficit of $43 billion for 2022-23 and slightly lower deficits for each of 2023-24 and 2024-25. Business and Tax Highlights of the Budget include: Tax-Free First Home…

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If you have an employee that is valuable to your company, you may want to give them a gift for a special occasion, such as their birthday or the birth of a child. But at what point does it become taxable to them? Cash gifts All cash gifts to employees are taxable no matter the…

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The BC Government recently announced that effective January 1, 2022, employees covered by the Employment Standards Act are entitled to receive 5 paid sick days per employment year. This is in addition to the 3 unpaid sick days which were previously available. What employees are eligible? Any employee who has been employed for 90 consecutive…

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Baker’s Law : Bad Clients Drive Out Good Clients Over the years, Pinnacle has developed a client ranking system. This system has proven invaluable in sustaining and enhancing our business culture. We hope we can help others by sharing a key piece of this system – client resonance. What is “Client Resonance”? Client resonance is…

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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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