Tag Archives: CANADIAN ACCOUNTING & TAX BLOGS

Introduction Separation often involves physical distancing between former partners, but the situation becomes complex when separated couples continue to live under the same roof. While family law may consider such couples as separated based on intent and certain behaviors, the Canada Revenue Agency (CRA) has stricter criteria for recognizing separation for tax purposes. This article […]

Introduction The Canada Child Benefit (CCB) is a tax-free monthly payment administered by the Canada Revenue Agency (CRA) to support eligible families with children under the age of 18. It aims to help with the costs of raising children and includes additional components such as the Child Disability Benefit (CDB) and other federal, provincial, and […]

Introduction Employers often design creative compensation structures to improve tax efficiency, reward employee performance, and boost retention. While these arrangements may be advantageous, they are subject to strict rules under Canada’s Income Tax Act (ITA). A key constraint is the Salary Deferral Arrangement (SDA) rule, which affects the timing of when employees include compensation in […]

Introduction A taxable benefit arises when a taxpayer receives a measurable economic advantage or benefit that must be included in their income. Taxable benefits can extend beyond the taxpayer to their non-arm’s length parties, such as spouses or children, and are typically provided by an employer or corporation. Taxable benefits are governed under specific provisions […]

Introduction The taxation of capital gains is a fundamental aspect of Canada’s tax system. When taxpayers dispose of capital property such as real estate, corporate shares, or partnership interests, they typically must report any realized capital gains in their income for the year of disposition. However, subsection 40(1) of the Income Tax Act (ITA) allows […]

Introduction In Canada, there is no direct gift tax, meaning that giving or receiving a gift does not immediately trigger tax liability in most cases. However, certain gifts can have tax implications depending on the nature of the gift, the relationship between the giver and recipient, and the type of property transferred.  This article explores […]

Introduction Canada’s tax system offers significant incentives for small business owners through the Lifetime Capital Gains Exemption (LCGE). This exemption provides substantial tax savings by reducing or eliminating the taxable portion of capital gains on the sale of Qualified Small Business Corporation (QSBC) shares. As of 2023, the LCGE allows individuals to exempt up to […]

Introduction The ability for Ontario real estate agents to incorporate under the Trust in Real Estate Services Act, 2020 (TRESA) has opened new opportunities for tax planning, retirement savings, and operational flexibility. By forming a Personal Real Estate Corporation (PREC), real estate professionals can access the benefits of incorporation while adhering to unique regulatory requirements. […]

Introduction The shift to remote work, accelerated by the COVID-19 pandemic, has transformed how Canadians manage their workspaces. Many employees now work from home, leading to increased interest in claiming home office expenses. To accommodate these changes, the Canada Revenue Agency (CRA) introduced simplified methods and clarified the requirements for deducting these expenses. This guide […]

Introduction Succession, estate, and tax planning play a crucial role in preserving wealth and ensuring a smooth transfer of assets across generations. In Ontario, effective planning can significantly reduce tax liabilities upon death while safeguarding the interests of your beneficiaries.  This guide explores key aspects of succession and estate planning, including taxation, methods for deferring […]