Please see the first part of the article in our previous post. A few basics to help people who think they may be part of a bare trust: It’s the trustee who must file the T3. This is the person who administers a joint bank or investment account – someone managing an account for a …
The inept launch of new tax-filing rules by the Canada Revenue Agency started with good intentions. The CRA wants to reduce tax evasion and money laundering. As part of this effort, it’s asking taxpayers this year, for the first time, to provide information on a variety of assets where one person is a beneficiary and …
Please see the first part in our previous post. STEP 1: Does a bare trust arrangement exist? To determine if a bare trust arrangement exists, the following question should be asked: Is the person on title or holding the asset the true beneficial owner? For example, do they get the benefits of the asset (such …
NEW AND EXPANDED TRUST REPORTING: It’s Here! (part 2) Read More »
Please find parts 1-4 of the article in our previous posts. 8) If you provide services to a small number of clients through a corporation (that would otherwise be considered your employer), CRA could classify the business as a personal services business. There are significant negative tax implications of such a classification. Consider discussing risk …
Please find parts 1-3 of the article in our previous posts. 4) Individuals who wish to contribute to the CPP or an RRSP may require a salary to generate earned income. RRSP contribution room increases by 18% of the previous year’s earned income up to a yearly prescribed maximum ($30,780 for 2023; $31,560 for 2024). …
Please, see the first part of the article here and the second part of the article here Home buyers’ plan (HBP) In a May 15, 2023 French Technical Interpretation, CRA was asked whether an individual could withdraw $8,000 under the HBP and contribute the funds to a tax-free FHSA, knowing they would purchase a qualifying …
First Home Savings Account (FHSA): A New Investment Tool (part 3) Read More »
Please read the beginning of the article here The maximum participation period for an FHSA ends at the earliest of: 15 years after opening an FHSA; the end of the year following the year of the individual’s 70th birthday; and the end of the year following the year when the individual first makes a qualifying …
First Home Savings Account (FHSA): A New Investment Tool (part 2) Read More »
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 »
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 multigenerational home renovation tax credit is a refundable tax credit applicable to the costs of constructing a secondary suite for an eligible person (generally a relative either age 65 or over, or eligible for the disability tax credit) to live with a qualifying relation. The tax credit is available on up to $50,000 of eligible expenditures incurred after 2022 at a rate …
Multigenerational Home Renovation Tax Credit: More Housing Support (part 1) Read More »