Posts

residential property flipping

November tax news: Property flipping, rules around investment income in a corporation–and more

RESIDENTIAL PROPERTY FLIPPING If you buy a home or condo, and then sell it soon after you get title — certainly if it’s within 18 months or so — the CRA will usually consider that you have “flipped” the property, and that any gain is fully taxed as business profit, not half-taxed as a capital […]

yacht tax in Canada

December tax news: Luxury tax updates, calculating entertainment expenses—and more

PROPOSED LUXURY TAX ON EXPENSIVE CARS, BOATS AND PLANES The Liberal government is planning to introduce a new Luxury Tax, to take effect on January 1, 2022. It will apply to: new cars, SUVs and pick-up trucks costing over $100,000 boats costing over $250,000 certain aircraft costing over $100,000 The tax will be 20% of the […]

September tax news: Share transfers to an RRSP, charitable donation receipt rules–and more

TRANSFERRING SHARES TO AN RRSP   Should you transfer shares that you already own to your RRSP? The prospect can be attractive. The shares you transfer are considered a contribution to your RRSP. If you have unused RRSP contribution room, you can thus get a substantial tax deduction for shares that you already own. If […]

Canada Revenue Agency

COVID-19 UPDATE: Filing deadline extensions announced for corporations, trusts

UPDATE: On the heels of the federal government’s announcement this week of penalty deferrals for late T1 filings—which came in addition to a previous extension of the 2019 tax filing deadline to June 1, 2020, all to help Canadians impacted by COVID-19—Ottawa is also granting filing deadline extensions for certain corporations and trusts. Corporations that […]

Carbon Tax

What does the federal carbon tax really mean for your business?

The first week of the federal election campaign, most pundits griped, was a notably dull affair. At least until Time magazine published ‘brown face’ photos of Prime Minister Justin Trudeau. That’s when the horserace to elect our next government got interesting. Whether the PM survives the scandal remains to be seen. But when the dust […]

Why business owners should think twice before shredding old tax records

There are a few questions that chartered accountants get asked all the time. They include (but are in no way limited to): What’s the key to growing a successful business? What’s the most tax-efficient way to draw profits from a corporation? Should I lease or buy my company car? What’s the minimum amount of time […]

Bogus CRA calls have entrepreneurs on edge

A recent spate of fraudulent calls has given some entrepreneurs reason to review their over-the-phone dealings with Canada Revenue Agency (CRA). Just yesterday, for example, a KRP client received a threatening call purportedly from CRA’s tax fraud investigation division. The telephone number provided by the individual was a legitimate-looking number with an Ottawa area code. […]