Total 280 Posts
The Canada Revenue Agency (CRA) recently provided its view on the due date of a trust information and income tax return (T3) in the year a trust is wound up. Where a trust is wound up by distributing all of its property to its beneficiaries, does the T3 have to be filed within 90 days of the date of wind up date or within 90 days of the calendar year-end? Depending….
Trust Return Due Date on Wind-up Continue Reading »
Canada Revenue Agency, Executors, Tax IssuesDue to my conservative nature and my belief that something that looks too good to be true often is, I have been always nervous about people participating in what appear to be very aggressive charitable donation shelters and people who promote them, particularly shelters which appear to catch the attention of the Canada Revenue Agency (“CRA”) from inception. Recently, I read about a case about a taxpayer who participated in….
Donation Shelters: A Tale of Financial Misadventure Continue Reading »
Canada Revenue Agency, Estate Planning, In the News, Philanthropy/Charitable Giving, Tax Issues, UncategorizedThe Canada Revenue Agency (CRA) answered several questions regarding a scenario in which a trust claims a capital gains reserve. When a trust claims a capital gains reserve, and the amount of the reserve is included in income in the subsequent year and flows through the trust to a beneficiary, does the gain retain all of its attributes? The reserve amount which the trust claims is included in calculating its capital….
Trust Claiming a Capital Gain Reserve Continue Reading »
Canada Revenue Agency, Estate Planning, Executors, Tax Issues
Estate trustees be warned: you may be held personally liable for failure to pay the estate’s taxes and/or the tax arrears of the deceased. When estate trustees are advised of this fact by their lawyers, pains are taken to soften the blow. CRA tends to be more blunt. Following the death of a taxpayer, CRA may write directly to the estate trustee setting out the amount of arrears owing and….
CRA Keeps A-Knockin’ (and Can Come In) Continue Reading »
Canada Revenue Agency, Estate Administration, Executors, Liability, Tax IssuesI am in the middle of a very difficult Canada Revenue Agency audit of a taxpayer’s claim for the principal residence exemption. It now appears the property in question, built by my client some 25 years ago may not qualify for the full exemption due to the fact that the taxpayer may have held other properties, which he also built, in the intervening periods which may or not have been….
PLANNING AND ESTATE PLANNING FOR THE DISPOSITION OF REAL ESTATE Continue Reading »
Canada Revenue Agency, Costs, Cottage, Estate Administration, Estate Planning, Investments, Property, Real Estate, Tax Issues, UncategorizedAll to often it is the elderly and disadvantaged who are taken advantage of in fraudulent investment schemes. The Canada Revenue Agency recently released some general information that applies to taxpayers who participated in what reasonably appeared to be a legitimate investment for income tax purposes. Generally speaking, an amount paid to a taxpayer that is a return on investment, such as interest, must be included in the taxpayer’s income….
Tax implications of losses incurred in a fraudulent investment scheme Continue Reading »
Canada Revenue Agency, Executors, Tax Issues