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Immediate Capital Asset Write-Off: Budget 2021

The 2021 Federal Budget proposed to allow immediate expensing of certain property acquired by a Canadian-controlled private corporation (CCPC) on or after April 19, 2021 (Budget Day) and before 2024. Up to $1.5 million per taxation year is available (shared among associated CCPCs, and prorated for short taxation years), with no carry-forward of excess capacity. Property eligible for this immediate write-off is quite broad. It includes all depreciable capital property, other than certain assets with…

Post published:May 14, 2021
Post category:Business – Taxes Corporate Taxes Tax Planning

House Flipping

Property Flipping: Income or Capital?

In an August 14, 2019 Tax Court of Canada case, at issue was whether the sales of four properties in B.C. were on account of income (fully taxable) or capital (half taxable), and whether they were eligible for the principal residence exemption (potentially tax-free) as claimed by the taxpayer, a real estate agent. Essentially, the Court was trying to determine if the properties were purchased with the intent to re-sell for a profit, or for…

Post published:November 19, 2019
Post category:Business – Taxes Corporate Taxes Individual – Taxes Personal Taxes Special Interest Tax Planning

Workers Compensation: Replacement Payouts by Employer

In a March 29, 2019 Tax Court of Canada case, the taxpayer had been injured on the job and was held eligible for workers’ compensation (WC) payments by the relevant provincial authority. However, in accordance with the collective agreement setting out his terms of employment, he was paid 100% of his salary by his employer and, therefore, did not receive payments from the provincial WC authority. He argued that the maximum provincial WC should be…

Post published:November 4, 2019
Post category:Business – Taxes Corporate Taxes Special Interest

Reimbursement For Work Clothing: Taxable

In an April 17, 2019 Technical Interpretation, CRA was asked whether clothing reimbursements paid to maintenance employees were taxable benefits. Employees were not required to wear specific uniforms and were reimbursed based on receipts, to an annual maximum. CRA referred to Guide T4130 Taxable Benefits and Allowances, which states that clothing is generally a personal expense, except where either of the following applies: the employee is required to wear a distinctive uniform while carrying out…

Post published:September 12, 2019
Post category:Business – Taxes Contractor Corporate Taxes Educational Taxes Individual – Taxes Personal Taxes Professionals Special Interest Tax Planning

Special Work Site Allowance: Home Base Needed

In a January 29, 2019 Technical Interpretation, CRA discussed the criteria for tax-exempt allowances for board and lodging received for periods an employee was working at a special work site. To be a special work site, the following criteria must be met: the work performed at the location must have been of a temporary nature;the employee must have maintained a self-contained domestic establishment (SCDE) elsewhere which was used as their principal place of residence;the SCDE…

Post published:August 30, 2019
Post category:Business – Taxes Corporate Taxes Individual – Taxes Tax Planning

Accelerated Depreciation: Federal Economic Update Changes

When the Federal Government released its Fall Economic Update on November 21, 2018 it primarily focused on changes to the first year of depreciation on most capital assets.

Post published:April 8, 2019
Post category:Business – Taxes Contractor Corporate Taxes

Canada Pension Plan (CPP) Changes: Costs and Benefits are Increasing

The CPP is beening enhanced. This means that both employees and employers are required to contribute more, but, retirement, survivor, and disability pensions will also increase.

Post published:April 1, 2019
Post category:Business – Taxes Corporate Taxes Individual – Taxes

Commentary on the 2019 Federal Budget

On March 19, 2019 the Honourable Bill Morneau, Minister of Finance, presented the 2019 Federal Budget, Investing in the Middle Class, to the House of Commons. No changes were made to personal or corporate tax rates, nor to the inclusion rate on taxable capital gains.

Post published:March 21, 2019
Post category:Business – Taxes Corporate Taxes Individual – Taxes Personal Taxes Special Interest Tax Planning

Did you buy or sell a house?

CRA highlights relevant tax compliance and planning information if you bought or sold a home.

Post published:March 4, 2019
Post category:Corporate Taxes Individual – Taxes Personal Taxes Tax Planning

Director’s Liability: Helping Out Family

Being a director of a corporation comes with many responsibilities. Failing to exercise due diligence in ensuring source deductions (such as EI, CPP, and income tax) are properly withheld from wages and remitted to CRA may result in a director’s personal liability for the corporation’s outstanding amount. A June 12, 2018 Tax Court of Canada case examined whether an individual who set up a corporation (along with a bank account) for his brother to operate…

Post published:October 29, 2018
Post category:Business – Taxes Charities Corporate Taxes Individual – Taxes Personal Taxes Special Interest

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