Bare Trust: What You Need to Know Under New Trust Reporting Rules
The Government of Canada has introduced new reporting requirements for trusts, as part of its international commitment to the transparency of beneficial ownership information. The new reporting requirements apply to bare trust, Canadian resident trusts that are currently subject to exceptions and non-resident trust.
Principal Residence and Principal Residence Exemption
Principal Residence
Understanding the Enhanced CPP: Key Changes and Impacts in 2024
The Canada Pension Plan (CPP) is a monthly tax benefit designed to provide partial income replacement for retirees. The purpose of the CPP is to help Canadians maintain a certain standard of living after retirement. The income for the CPP comes from contributions made by employers and employees, as well as investment earnings. Both the contribution amounts and benefits of the CPP are adjusted according to the average wage and price levels in Canada.
What’s New in Taxes? Understanding 2024’s Key Tax Changes
The past year has been challenging for Canada in terms of macroeconomics, the business environment for small enterprises, and household financial arrangements. These challenges persist into 2024, and the new year continues to be filled with uncertainties. As usual, let's briefly summarize the tax changes for 2024 to help individuals and businesses make appropriate financial plans.
End-of-Year Tax Planning Guide for Families – 2023 Edition
December is a key period for tax planning, as some tasks must be completed by year-end to optimize refunds or minimize taxes due in 2023.
Realtor Cash-Back Incentive Could be Your Tax Free Money
A question that has been asked many times every year in the past few years is: Should I report the rebate given by the real estate agent for buying a house as income? Can a real estate agent claim the rebate as an expense? Sometimes the buyer receives a T4A from the real estate agent, so how do you handle this question? Here is the official CRA answer you want.
New federal Anti-Flipping Rule in Canada aims to address real estate speculation
On December 15, 2022, Bill C-32 received Royal Assent and became law. Bill C-32, which will take effect on January 1, 2023, includes a new federal Anti-Flipping Rule. The new Anti-Flipping Rule aims to address speculation in real estate transactions. Under the rule, if a property is sold for a profit after being held for less than 365 days, the profit will be treated as Business Income rather than Capital Gain. Business Income is subject to a higher tax rate than Capital Gain, with 100% of the Business Income being included in the current year's taxable income compared to only 50% of the Capital Gain. Additionally, the principal residence exemption will not apply to the sale of a property held for less than 365 days, meaning that even if the property was used as a primary residence before the sale, the appreciation would be treated as Business Income.
Tax Changes and New Rules to Be Aware of in 2023
As we start the new year of 2023, we say goodbye to the epidemic for good but begin a new year full of uncertainty accompanied by high-interest rates and high inflation. To help individuals and businesses plan their finances, it is helpful to review any changes in taxation for the coming year. It is recommended to seek the advice of an accountant or reliable sources for the most current and accurate information.
2023 Automobile Deduction Limits and Expense Benefit Rates for Businesses
On December 16, 2022, The Department of Finance Canada announced the automobile income tax deduction limits and expense benefit rates that will apply in 2023.
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