Introduction: Reducing the Tax Burden Through Planning Taxation on death often motivates individuals and families to engage in succession and estate planning. With proper strategies, it’s possible to manage tax liabilities effectively, ensuring the smooth transfer of assets and the preservation of family wealth. This article explores the key taxation rules and estate planning methods […]
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Introduction: Benefits of CCPC Status A Canadian Controlled Private Corporation (CCPC) enjoys several tax benefits, including the small business deduction, refundable investment tax credits for scientific research and experimental development (SR&ED), the lifetime capital gains exemption, and favorable tax treatment for employee stock options. These benefits make CCPC status highly advantageous for Canadian businesses. To […]
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Introduction – What is a Real Estate Assignment? In the Canadian real estate market, assignments are a popular form of transaction. An assignment refers to the sale of a contractual right to purchase a property before legal ownership of the property is transferred. For example, in the case of pre-construction condominiums, the buyer (the “assignor”) […]
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Introduction – What is the Home Buyer’s Plan? The Home Buyer’s Plan (HBP) is an initiative by the Canadian government aimed at helping first-time homebuyers access funds for a down payment on their first home. Under the HBP, eligible participants can withdraw up to $35,000 from their Registered Retirement Savings Plan (RRSP) on a tax-free […]
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Introduction: Understanding Deduction of Employment-Related Legal Expenses Canadian employees are generally limited in the types of expenses they can deduct to reduce their taxable income. However, specific provisions of the Income Tax Act allow for the deduction of certain legal expenses incurred by employees under particular circumstances. These deductions can provide substantial tax relief, particularly […]
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Introduction: Taxation of Testamentary Trusts A testamentary trust is created upon an individual’s death to manage the distribution of assets to beneficiaries. Under Canadian tax law, all of the deceased’s assets are deemed disposed of and reacquired at fair market value at the time of death. After debts and taxes are settled, the estate distributes […]
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Introduction: The Distinction Between Independent Contractors and Employees In Canada, the distinction between an independent contractor and an employee holds significant tax implications. Independent contractors can access a broader range of tax deductions, while employees are often limited to few or none. However, disputes often arise over this classification, as evidenced in a recent case […]
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Introduction: Navigating Tax Complexities in Family Law While family law predominantly focuses on the division of assets and financial obligations between spouses, the nuances of income tax law often play a critical role in shaping financial outcomes. Tax implications in family disputes, especially those involving spousal and child support, are often misunderstood by both family […]
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Introduction – Employment Expenses as a Condition of Employment While businesses and self-employed individuals enjoy a broad range of deductible expenses, salaried employees in Canada are limited to specific deductions. Employees can only claim expenses that they are contractually obligated to pay to perform their job duties. Examples include musicians required to maintain their own […]
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Introduction Managing rental properties can be rewarding, but it also comes with significant responsibilities, particularly in managing finances and understanding tax obligations. For landlords in Canada, it’s crucial to know which rental expenses can be claimed and how they should be reported. Below is a comprehensive guide to the types of current rental expenses and […]