Canada Revenue Agency

Total 280 Posts

Bill C-208: The saga continues…

• • 0 Comments

On June 29, 2021, the Private Member’s Bill C-208, regarding the transfer of small businesses and family farm or fishing corporations (the Bill), received Royal Assent. The Bill limits the application of section 84.1 on inter-generational business sales. Avoiding section 84.1 allows the vendor to receive capital gains treatment on a non-arm’s length disposition of shares and potentially use the lifetime capital gains exemption (LCGE) to shelter any gain from tax. On….

Bill C-208: The saga continues… Continue Reading »

Canada Revenue Agency, Tax Issues

The medical expense tax credit: COVID-19 tests and vaccines

• • 0 Comments

With the requirements for COVID-19 tests for entry into Canada and vaccines, the Canada Revenue Agency (CRA) was asked to comment on the availability of the medical expense tax credit (METC). Medical expenses which are eligible for the METC are limited to those described in our tax rules. If a particular expenditure is not described as an eligible medical expense, or if the conditions under which the expenditure would qualify….

The medical expense tax credit: COVID-19 tests and vaccines Continue Reading »

Canada Revenue Agency, Costs, Elder Care, Executors, Geriatric Care Management, Healthcare, Tax Issues, United States

Tax on principal residence? How to plan for a change of use

• • 0 Comments

No, the government did not eliminate or claw back the principal residence exemption in the 2021 Budget, as had been speculated. Yet, there is a circumstance in which a taxpayer could face an unexpected tax burden in respect of a principal residence: when there is a change in use of a property. AS an executor, the expectation of a tax-free receipt on the sale of what was the deceased’s home may….

Tax on principal residence? How to plan for a change of use Continue Reading »

Canada Revenue Agency, Estate Planning, Executors, Property, Tax Issues

Some Ins and Outs of RRSPs & RRIFs Transfers on Death

• • 1 Comment

Generally the RRSP or RRIF of a deceased can be transferred by specific bequest under the terms of the deceased’s will to a qualifying survivor tax-free. A qualifying survivor would be the deceased annuitant spouse or common-law partner or a financially dependent child or grandchild. When payments from a deceased annuitant’s RRSP are paid to the annuitant’s estate and a qualifying survivor is a beneficiary of  the estate, the deceased….

Some Ins and Outs of RRSPs & RRIFs Transfers on Death Continue Reading »

Canada Revenue Agency, Estate Administration, Estate Planning, Executors, Investments, Property, RRSP, Tax Issues, Uncategorized, Wills

Business purpose, source of income, and sham gets a thorough review

• • 0 Comments

In a recent court case (Paletta Estate v. The Queen) the estate successfully appealed that it was entitled to $55 million in losses in the 2000 to 2006 taxation years generated through forward foreign exchange trading. The estate purchased straddled forward foreign exchange contracts – one long and one short. The taxpayer closed the loss leg of the straddle before the end of the year (realizing a loss in the….

Business purpose, source of income, and sham gets a thorough review Continue Reading »

Canada Revenue Agency, Tax Issues

Inconsistency in CRA policy for dividends paid to a deceased beneficiary

• • 0 Comments

A recent article discussed taxation anomalies that occur due to timing differences between when a trust receives a dividend and subsequently pays and allocates a dividend to a beneficiary. CRA view 2016-0647621E5 provides that when a trust receives a dividend in the year and subsequently pays and allocates the dividend to a beneficiary in the same year, the allocation of the dividend for tax purposes occurs on December 31 of the year because….

Inconsistency in CRA policy for dividends paid to a deceased beneficiary Continue Reading »

Canada Revenue Agency, Estate Administration, Estate Planning, Executors, Tax Issues
Scroll to Top