If you’re a Canadian business owner, there may come a time when you need to move assets into a corporation—whether you’re incorporating your sole proprietorship, setting up a holding company, or reorganizing your existing business for tax or estate planning purposes. The challenge? Such transfers can trigger significant immediate taxes on any gains built up […]
Are tips taxable in Canada? Yes — the Canada Revenue Agency (CRA) considers all tips and gratuities as taxable income. Whether you’re a server, bartender, hairstylist, taxi driver, or work in another service-based role, understanding how tips are taxed is essential for staying compliant and avoiding penalties while increasing your financial benefits, such as higher […]
As the Canadian government continues to strengthen its tax reporting regulations, new requirements have been implemented for trusts which are now in effect for the year ended December 31, 2023. These changes aim to enhance transparency and ensure compliance with tax obligations. It is essential for individuals and entities involved in trust arrangements to understand […]
Tax season can be a stressful time for many individuals and business owners. Filing your tax return accurately is crucial to avoid penalties and maximize your tax savings. However, mistakes can happen, and it's important to know how to fix a mistake on your tax return. In this article, we will walk you through the […]
In the complex world of taxes, mistakes can happen. Whether it's a simple oversight or a deliberate omission, the consequences of inaccurate tax filings can be daunting. However, the Canada Revenue Agency (CRA) offers a solution through its Voluntary Disclosure Program. This program allows taxpayers to correct their past tax errors without facing criminal prosecution […]
In recent years, there has been a significant increase in the number of Canadians working from home. With the rise of remote work and self-employment, many Canadians are utilizing their homes as their primary place of business. This shift in the work landscape has led to an increased interest in the tax implications of having […]
The alternative minimum tax (AMT) is a tax system that ensures high-income individuals pay a minimum amount of tax, especially those who benefit from certain tax incentives and deductions that reduce the tax they owe to very low levels. The Canadian federal government has proposed significant alternative minimum tax changes in the 2023 Federal Budget. […]
When it comes to your taxes, your marital status plays a crucial role in determining the benefits and credits you may be eligible for. It's essential to inform the Canada Revenue Agency (CRA) when you have a marital status change. Whether you're getting married, living common-law, separated, divorced, or widowed, updating your marital status ensures […]
The Canada Revenue Agency (CRA) is responsible for ensuring that individuals and businesses in Canada comply with tax laws. While most taxpayers strive to file accurate and honest tax returns, there are certain triggers that may increase the likelihood of being selected for a CRA audit. A tax audit can be a time-consuming and stressful […]
Moving can be an exciting and challenging experience, and it often comes with a price tag. However, did you know that in certain circumstances, you may be able to deduct your moving expenses on your tax return? In this article, we will answer the question that many clients have - Are moving expenses tax deductible […]
Investing in rental properties can be a lucrative venture, providing a steady stream of income and potential long-term wealth. A common question that often arises with clients is how best to structure their real estate investments. Though there are a few different structures available to hold your real estate investment, but for the purposes of […]
Are you unsure whether you should classify someone as an employee or a contractor? The Canada Revenue Agency (CRA) has specific guidelines that determine the distinction between the two. Understanding these guidelines is crucial for businesses to ensure compliance and avoid potential penalties. In this article, we will delve into the differences between an employee […]
Renting out properties can be a lucrative venture, but it also comes with tax implications that every landlord should be aware of. Understanding how tax on rental income works in Canada is crucial for both new and experienced landlords. In this comprehensive guide, we will delve into the various aspects of tax on rental income, […]
As the sharing economy continues to thrive, many Canadians are turning to platforms like Airbnb to earn extra income by renting out their properties. However, with this additional income comes the responsibility of understanding and complying with the tax obligations as an Airbnb host. In this comprehensive guide, we will explore the ins and outs […]
Capital gains tax is a crucial aspect of the Canadian tax system that every individual and business owner needs to understand. In Canada, the capital gains tax is levied on the realized gain or profit you make from selling your investments. The tax rate varies depending on your income level and the type of investment […]
The 2023 tax season will bring some changes that taxpayers need to be aware of to make sure they are compliant with their filing obligations. You can file your 2022 tax return starting on February 20, 2023. The deadline for most Canadians to file their 2022 income tax and benefit returns is April 30, 2023 […]
Ensuring housing affordability has become a critical issue of concern for Federal, Provincial and Municipal governments in Canada. In an effort to address this issue, the City of Toronto implemented a new Toronto Vacant Home Tax. Under this new tax, Toronto homeowners with vacant properties will have to pay an additional Vacant Home Tax on […]
While it is important to take care of tax planning throughout the year, a strategic approach at the end of the year can help you make sure that you’re making the most of your tax situation and taking advantage of any year-end tax planning opportunities available before the December 31st deadline. As we enter the […]
As part of the 2021 Federal Budget, the Government of Canada proposed the introduction of a new luxury tax in Canada on the sale of certain new luxury cars, aircraft, and boats. On September 1, 2022, the Select Luxury Items Tax Act (the Luxury Tax Act), a part of Bill C-19, came into force. What is the Luxury […]
The move to another country always entails some degree of complexity. You need a plan before you even start thinking about moving, and one major component is tax planning—especially if you expect your relocation will be permanent. This article will provide an overview of the most relevant emigration tax issues for the average individual taxpayer. […]