Tax Issues

Total 358 Posts

Principal residence – deceased vs. estate

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The over-heating of the housing market that started in 2021 is starting to slowly cool off as a result of rising interest rates. This cooling of the over-heated housing market has given rise to a potential scenario that was originally addressed by the Canada Revenue Agency (CRA) in a technical interpretation issued in January of 2009[1]. The potential scenario exists when a decedent is deemed to have disposed of their….

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Estate Administration, Real Estate, Tax Issues

A family trust and its beneficiaries – think twice before including your niece or nephew

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Discretionary family trusts used to be a staple in most private company corporate structures. The income splitting benefits were obvious, and professionals were more than happy to implement a family trust in almost any corporate structure. The popularity of using family trusts eventually led to complacency from some professionals in understanding the detailed tax rules that applied to implementing those trusts. In the earlier years of drafting trust documents, professionals….

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Canada Revenue Agency, Tax Issues, Trusts

Crypto assets – Canadian or foreign – it matters!

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Crypto assets are intangible digital assets that exist on a decentralized network through distributed ledger technology (DLT) – such as blockchain. A distributed ledger is a type of database that stores electronic records shared and replicated across many locations in numerous countries and maintained by a peer-to-peer world-wide decentralized network. Therefore, the crypto asset is not exclusively situated in any particular country making it difficult for the taxpayer and professionals….

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Estate Administration, Tax Issues

Valuation for Estate Planning – Some Hard Lessons

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In a recent case in Tax Court, Lauria v HMQ 2021 TCC 66, the taxpayers, both officers and directors of a company held shares in the company as a result of employee share option agreements granted to them.  In early 2006, the company founders decided to pursue an initial public offering (“IPO”) of the company and hired an underwriter for that purpose. Apparently upon the advice of the company’s chief….

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Canada Revenue Agency, Courts, Estate Planning, Investments, Limitation periods, Tax Issues, Trusts, valuation

OAS Planning

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The Old Age Security (“OAS”) pension is a monthly payment you can get if you are 65 years of age or older. In many cases, Service Canada will automatically enroll you in the year prior to your 65th birthday. To the occasional surprise of some folks, the receipt of OAS is subject to a claw back if “adjusted” income exceeds a certain threshold ( approximately $78,800 for 2021 income year)….

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Canada Revenue Agency, Estate Planning, Investments, Loans, Tax Issues, Trusts, Uncategorized

Beneficial ownership reporting – don’t rush to wind-up the trust

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Proposed trust reporting rules I have read a number of articles published throughout 2021 stating that the new proposed trust reporting rules are coming.  Under the proposed new trust reporting rules, express trusts are required to report the beneficial ownership information to Canada Revenue Agency (CRA) and unless the Department of Finance changes the effective date for trusts that have a taxation year ending after December 30th, 2021, then the….

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Canada Revenue Agency, Estate Administration, Tax Issues, Trusts, Uncategorized
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