Total 360 Posts
Assume Mr. X died in early 2016. Mr. X’s estate appears to meet all of the requirements to be a graduated rate estate (“GRE”), except the 1st return has not been filed as yet to formally designate it a GRE. The estate made a charitable donation in early 2017; at the time of the donation, the estate had not met all the requirements of the GRE definition in the Income….
Caring for our loved ones while satisfying and fulfilling can be expensive both emotionally and financially. Understanding needs, costs and tax relief are all important to saving money. Today’s blog provides some caring highlights from the 2017 Federal Budget. Three current tax credits have been replaced with the proposed Canada Caregiver Credit. This non refundable credit applies to caregivers whether or not they live with their family member, and help….
How This Budget Cares Continue Reading »
Canada Revenue Agency, Caregiving, Dependant Support, Disability, In the News, Tax IssuesAttention turns to the filing of T3 trust income tax and information returns with the end of March in sight. If you are trustee of a new Trust you may wonder if an identification number is required? Like a social insurance number or a business number, the trust identification number serves as way for the Canada Revenue Agency (CRA) to identify the Trust in its assessments, associate payments received and….
Do I need to apply for a trust account number? Continue Reading »
Canada Revenue Agency, Estate Administration, Executors, Tax IssuesAs we head toward another federal budget to be released on March 22, there is much speculation about a change in the capital gain inclusion rate from 50% to 66.67% or 75%. Current Capital Gain Tax As the rules are currently written, only 50% of a capital gain is subject to tax in Canada. For an Ontario resident, the combined Federal and Ontario tax rate applicable to a high rate….
Unrealized Capital Gains: Take Action Now? Continue Reading »
Canada Revenue Agency, Estate Administration, Estate Planning, In the News, Investments, Property, Real Estate, Tax Issues, Trusts, UncategorizedThis issue was recently tested in Court with a “bittersweet” result. Three testamentary trusts were created for 3 children in the late 2000’s. Their mother was an income beneficiary in each trust, and entitled to receive all the net income derived from each trust during her lifetime. A child and his/her children were income and capital beneficiaries of each respective trust and would be paid the net income after their….
Multiple testamentary trusts for tax purposes: Are they always treated as one? Continue Reading »
Canada Revenue Agency, Estate Administration, Investments, Property, Resulting Trust, Tax Issues, Trusts, Uncategorized
Some recent technical interpretations from the Canada Revenue Agency (“CRA”) remind us that tax free rollover of retirement plans have to be carefully planned and executed to get the desired result. Here are a couple of cases in point: Rollover of a Registered Pension Plan (“RPP”) to an infirm dependent child In a recent technical interpretation, CRA concluded that where a RPP lump sum death benefit is paid from the….
TAX FREE ROLLOVER “WRINKLES” Continue Reading »
Canada Revenue Agency, Dependant Support, Estate Administration, Investments, Tax Issues