Derek de Gannes

The Canada Revenue Agency recently wrote about a whether a late-filed election to retain the principal residence status will be accepted. When the use of a property that is a principal residence is changed from being owner-occupied to a rental property the CRA considers the owner to have sold and reacquired the property. This action may trigger a taxable event which may be covered by the principal residence exemption. More….

A recent Canada Revenue Agency technical interpretation sheds light on the treatment of the deceased’s unexercised stock options and tax relief in the event the value of the stock has declined since the date of death. Our tax rules provide that where an employee has died and the employee owned unexercised stock options prior to their death, the deceased is considered to have received an employment benefit in the year….

The Canada Revenue Agency was asked in a technical interpretation whether changes may be made to a loss application after the end of the normal reassessment period where a nil assessment was issued. The Agency’s response gives hope to executor’s with an interest in making adjustments to the prior year tax filings of a deceased person. In general terms, the Income Tax Act provides that the Minister may not reassess….

The Canada Revenue Agency (CRA) was asked to consider a situation where a testamentary trust (the trust) disposed of qualified small business corporation shares (QSBCS) in 2013 during its taxation year ending on January 31, 2014. The trust allocated the taxable capital gain to its beneficiary. The CRA was asked to confirm when the net taxable capital gain would be considered a taxable capital gain a taxable capital gain resulting….

It’s not unusual for parents during their lifetime to lend money to children. In many cases, the loans do not bear interest and have no set repayment terms. Sometimes those kids even move away and when that happens the loan receivable by the parent becomes a foreign asset that may be subject to the foreign reporting rules and disclosures of Form T1135 – or do they? For purposes of the….