Investments

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Spousal Rollovers On Death

Generally speaking, where property is directly transferred upon death to the deceased’s spouse or common-law partner or a trust for their benefit, such transfers are automatically transferred at cost amount or tax cost amount pursuant to the provisions of the Income Tax Act and no taxable gains on the transfer are incurred. However, there may good reason to elect out of these provisions to trigger taxable capital gains.

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Estate Administration, Estate Planning, Executors, Investments, Small Business, Trusts

A Nice Gift to Give to your Spouse… a Loan

The Canada Revenue Agency has announced the 2010 third quarter prescribed interest rate used to calculate taxable benefits for employees and shareholders for interest-free and low interest loans would be 1%. With this the lowest historical prescribed rate ever, it is an opportune time for taxpayers to reduce the tax bite through an income-splitting structure using loans…..

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Canada Revenue Agency, Estate Planning, Interest, Investments, Loans
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