The Canada Revenue Agency was recently asked whether the cost of capital improvements made to a real property that is held by an inter vivos trust is included in the adjusted cost base (ACB) of the property and in the ACB of the capital interest of the beneficiaries that have borne the cost of the improvements…..
With 2016 being a leap year there is an extra day in February which means there is further action required for those responsible for filing trust income tax and information returns…..
Leap Year and the Tax Filing Deadline Continue Reading »
Canada Revenue Agency, Estate Administration, Executors, Liability, Tax IssuesIn many cases, amounts of trust income are allocated to the beneficiaries of the trust but the corresponding amounts are not actually paid. Instead, the trustees ensure that the amounts are due to the beneficiaries and such amounts are legally enforceable against the trust property…..
Income amount payable to a beneficiary Continue Reading »
Canada Revenue Agency, Estate Planning, Executors, Tax IssuesThe Canada Revenue Agency was recently asked if income or capital from a proposed spousal trust that was to be used to pay life insurance premiums on a spouse’s life would disqualify the trust from ever being a spousal trust eligible for rollover of property upon creation of the trust.
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Spousal trust and life insurance Continue Reading »
Canada Revenue Agency, Estate Administration, Estate Planning, Executors, Insurance, Spouse, TrusteeThe new Canadian tax rules concerning charitable donations of graduated rate estates restrict those donations to gifts of properties acquired by an estate as a result of the death of an individual or of properties substituted for those properties.
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Charitable Donations by Graduated Rate Estates – Substituted Property Continue Reading »
Canada Revenue Agency, Charitable Giving, Estate Planning, Executors, Property, Tax Issues, WillsCanadian taxpayers are accustomed to receiving a notice of assessment after filing a tax return. In the federal context, a Notice of Assessment, is a statement from the Canada Revenue Agency notifying the taxpayer of among other items the amount of tax they owe, if any, the amount of tax already paid, if any, and tax credits received.
What if that return was a U. S. estate tax return to report an interest in U. S. situs property?….
U. S. Estate Tax Closing Letter Continue Reading »
Canada Revenue Agency, Estate Administration, Estate Planning, Trustee, United States