Canadian Tax Podcast 012: PSB’s, W-8BEN-E, and Dual US/CAN Citizen.

Canadian Tax Podcast for the week of May 10th, 2021. This week we cover:

  • No post-tax season filing extensions;
  • Represent A Client broke;
  • Covid benefits tied to 2020 T1 filing;
  • Personal Services Business (PSB) myths;
  • Contractors: How to fill out the W8-BEN-E form;
  • Dual Citzen (US/CAN) filings;

Continue reading “Canadian Tax Podcast 012: PSB’s, W-8BEN-E, and Dual US/CAN Citizen.”

Federal Budget 2021 – Commentary and Analysis

The 2021 Federal budget was released yesterday (April 19th), for the first time in over two years. Here are some highlights:

Personal Measures

  • The Canada Recovery Benefit and related programs will be extended.
  • Individuals will have the option to claim a deduction in respect of the repayment of a COVID-19 benefit amount for the year when the benefit was received.
  • Access to the disability tax credit will be broadened.

Business Measures

  • The Canada Emergency Wage and Rent Subsidies (CEWS and CERS) will be extended.
  • The Canada Recovery Hiring Program was introduced.
  • The ability to immediately expense 100% of many capital asset purchases was introduced.
  • The corporate tax rate on zero-emission technology manufacturing will be halved.
  • The disclosure requirements for aggressive tax planning and filing positions will be expanded.

International Measures

  • A 1% tax on the value of vacant or underused real estate owned by non-residents will be implemented.

Sales and Excise Tax

  • Access to the GST/HST New Housing Rebate will be broadened for co-owners.
  • A new tax of up to 10% will apply to the purchase of luxury vehicles, aircraft, or boats.

Electronic Filing, Payments and Certification

  • Some CRA communications will be undertaken electronically without the taxpayer’s authorization.
  • Certain levels of payments will be required to be made electronically.

Previously Announced

  • Intention to proceed with a number of previously announced measures, such as the accelerated CCA changes for zero-emission vehicles, and expanded disclosure requirements for trusts.

For a full summary, keep reading below.

Continue reading “Federal Budget 2021 – Commentary and Analysis”

Canadian Tax Podcast 008: Incentive payments; Climate Action Incentive; US Double Tax;

Canadian Tax Podcast for the week of April 19, 2021. This week we cover:

  • Revenue Quebec filing extension;
  • Federal Budget Day;
  • CRA Filing deadline unchanged;
  • CPA Canada PACT guide;
  • What to do with an incentive reimbursement or credit card cash back payment;
  • Mechanics of the Climate Action Incentive;
  • Double-tax on US-source income;

Continue reading “Canadian Tax Podcast 008: Incentive payments; Climate Action Incentive; US Double Tax;”

Canadian Tax Podcast 007: GME Capital Gains; T5 Gross Up Error; Reporting T2 Foreign Dividends

Canadian Tax Podcast for the week of April 12, 2021. This week we cover:

  • Tax consulting fees capped;
  • Court case: Capital Expenditure vs. Repairs and Maintenance;
  • Principal residence exemption – more tweaking?
  • SK to hit electric vehicle owners with a fee;
  • GME capital gains;
  • Incorrectly-filed T5 and what to do;
  • Dealing with foreign income on a T2;

Continue reading “Canadian Tax Podcast 007: GME Capital Gains; T5 Gross Up Error; Reporting T2 Foreign Dividends”

Canadian Tax Podcast 006: Filing Late Returns; Self-employed Instalments; Joint Venture Reporting

Canadian Tax Podcast for the week of April 05, 2021. This week we cover:

  • Principal Residence Exemption to be taxed?
  • Joe Biden’s proposed corporate tax rate changes;
  • Quebec lowers corporate taxes on small businesses;
  • CRA’s “Before You Call” List;
  • How to approach filing 11 years of late corporate and personal tax returns;
  • What happens with late-paid instalments for self-employed people;
  • Reporting joint venture income;

Continue reading “Canadian Tax Podcast 006: Filing Late Returns; Self-employed Instalments; Joint Venture Reporting”

Canadian Tax Podcast 005 – Business Tax Planning; Personal Use Property + T1135; Capital Gains In Corp.

Canadian Tax Podcast for the week of March 29, 2021. This week we cover:

  • Coinsquare account info release;
  • Carbon tax;
  • Federal Budget announced;
  • Ontario Budget released;
  • Expense/deduction planning for the newly self-employed;
  • T1135 reporting re. personal use property and foreign currency;
  • Sale of property in a corporation, triggering capital gains;

Continue reading “Canadian Tax Podcast 005 – Business Tax Planning; Personal Use Property + T1135; Capital Gains In Corp.”

Canadian Tax Podcast 004 – Home Office/GST/Foreign Exchange

Canadian tax podcast for the week of 24 March 2021. This week we cover:

  • Headlines;
  • Home office / T777S;
  • Self-employed GST/HST;
  • When to claim forex gains/losses;

Continue reading “Canadian Tax Podcast 004 – Home Office/GST/Foreign Exchange”

Canadian Tax Podcast 003 – CEBA Loans/Accrual Method/Subcontractor Expenses

This week on Canadian Tax Podcast, we cover:

  • A tax payer with an $8mil tax bill;
  • 800,000 Canadians locked out of MyAccount;
  • New guidance on incorrect CERB T4A’s
  • Listener questions on CEBA, accrual/forex for self employed, and Subcontractor expenses on the T2125;

Continue reading “Canadian Tax Podcast 003 – CEBA Loans/Accrual Method/Subcontractor Expenses”

What To Do With Incorrect T5008’s (TSP#3)

This episode continues the 2020 Tax Season Special Series, where Canadian Tax Podcast answers random questions related to the 2020 tax filing season.

This episode covers T5008’s in more detail, specifically:

  • What to do when you have a million T5008’s issued;
  • Why you can’t always rely on your broker gain/loss report;
  • Link to Chen case here.

Continue reading “What To Do With Incorrect T5008’s (TSP#3)”

Canadian Tax Podcast 002 – CCA on Rentals / Mortgages for Self Employed / TFSA

Canadian Tax Podcast for the week of March 8th, 2021. In this episode we cover:

  • Filing deadlines;
  • Issues with CERB/CRB T4A slips;
  • Still no Federal budget;
  • Listener question: CCA Allowance on rentals;
  • Listener question: Mortgage approvals – Should a person go for high income/high tax or low income/low tax when it comes to mortgage applications and interest rates?
  • Listener question: TFSA;

Continue reading “Canadian Tax Podcast 002 – CCA on Rentals / Mortgages for Self Employed / TFSA”