The tax-free FHSA was introduced in 2023 to help first-time home buyers save up to $40,000 for a home purchase. Individuals eligible to open an FHSA must be at least 18 years of age and resident in Canada. The individual must also have notlived in a home that they or their spouse owned jointly or …
First Home Savings Account (FHSA): A New Investment Tool (part 1) Read More »
A June 7, 2023 CryptoTaxLawyer.com article (Binance Bids Canada Bye-Bye! Canadian Tax Implications for Cryptocurrency Investors and Traders) reminded Canadians about the importance of maintaining an offline record of transactions as exchanges, such as Binance, shut down in Canada. On May 12, 2023, Binance announced that Canadian users will be required to close any open …
Cryptocurrency Exchange Cessation: Recordkeeping Read More »
You can find the first part of the article here In a second March 6, 2023 Technical Interpretation, CRA was asked whether the construction of a separate, detached housing unit on the same parcel of land as a principal housing unit, such as a carriage house or laneway house, would be eligible. CRA noted that a qualifying renovation must enable the qualifying individual to reside …
Multigenerational Home Renovation Tax Credit: More Housing Support (part 2) Read More »
The DTC is a non-refundable tax credit that provides tax relief for individuals (or those that support those individuals) who have a severe and prolonged impairment in physical or mental functions. To access the DTC, eligible individuals must apply for it by completing Form T2201, Disability Tax Certificate. Recently, CRA updated their services so that …
Disability Tax Credit (DTC): Electronic Applications (part 1) Read More »
In a March 30, 2023 Tax Court of Canada case, the taxpayer was assessed for failing to withhold taxes on rent paid on Canadian real estate to a non-resident. Penalties and interest were also assessed. The information known to the taxpayer was limited to an Italian telephone number on the lease document (with a Canadian number), …
Paying Rent to Non-Residents: Withholdings Required (part 1) Read More »
Please see the first part of the article here If the charity’s disbursement to the municipality was not a qualifying disbursement, the charity could have its status revoked. A qualifying disbursement includes a gift to a qualified donee. A qualified donee includes a municipality in Canada that is registered by the Minister. It is a …
Gifts Directed to Other Donees: Loss of Charitable Status (part 2) Read More »
In some situations, a registered charity may be asked to receive donations on behalf of another organization or cause. While this may seem like a good way to generate funds and reward donors with charitable contribution receipts, it can have serious implications for the charity. A February 1, 2023 Technical Interpretation considered a charity that …
Gifts Directed to Other Donees: Loss of Charitable Status (part 1) Read More »
Please read the first part of the article here Employee ownership trusts (EOTs) – Rules were proposed to better facilitate employees buying their employer through a trust. Proposed to be effective in 2024, these rules would provide business owners with an additional exit strategy, where for example, a third-party buyer or transition to a family …
Budget 2023: Top Five Items for Owner-Managers (part 2) Read More »
Budget 2023 (A Made-in-Canada Plan: Strong Middle Class, Affordable Economy, Healthy Future) was introduced in the House of Commons on March 28, 2023. The top five changes that may impact individuals and owner-managed businesses are as follows: Dental plan – The Canadian Dental Care Plan would be introduced to provide coverage for all uninsured Canadians …
Budget 2023: Top Five Items for Owner-Managers (part 1) Read More »
Please see the beginning of the article in our previous posts. Multiple returns to file. One return must be filed for each of the properties owned by the person, potentially resulting in multiple filings by a person. Likewise, if multiple persons are on title for a single property, each has their own filing obligation. Private …
Underused Housing Tax (UHT): Increased Disclosures and Taxes (part 3) Read More »