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;


“This is the Canadian Tax Podcast, Episode # 005,  hosted by me, Cameron Ware. Good morning”


  • “Happy Monday, it is the week of March 29, 2021. We’ll start with the news.

 [ITEM 1] – COinsquare to hand over info

 [ITEM 2] – Carbon Tax


  • Last week Freeland announced new Budget.
  • Date set for April 19th 2021.
  • Freeland Quote during question period: “Canada entered this global pandemic in a strong fiscal position, which allows our government to provide unprecedented support to Canadians. We will continue to do whatever it takes to support Canadians and Canadian businesses, and we have a plan for jobs, and robust growth,”
  • I hope so. End of March/19 deficit was $19.7bil. At the end of 2020, at about $381bil.

ITEM [4] – Ontario Budget


  • Newly self-employed.
    • [quote]
    • Yes, use an tax calculator and plug/play numbers;
    • Buy some tax software and model;
    • Pro-tip: Use Excel;
    • Best bet: get an accountant to model;
  • Personal Use Property/T1135
    • [quote]
    • Does not need to be reported. “Specified” foreign property.
    • “a personal-use property as defined in section 54 of the Act.”
    • Good rule: Not income-producing.
    • Report on Schedule 3
    • Question about foreign currency from sale. If it’s held in a US bank account, sits in a US bank account, earns interest in a US bank account, yes. Sitting in a lawyer trust account waiting to transfer to CDN account? Beneficial ownership, maybe not.
    • Thing about T1135 is it doesn’t hurt to file anyway. It’s a disclosure form.
  • Sale of Land
    • [quote]
    • Tax at corp level, tax at personal level;
    • Corp: $550/2 = $275k CDA, $275k pay corp tax.
    • Artificially-high tax “Refundable tax”, until you pay out a dividend = trigger refund of RDTOH.
    • CDA = T2054 CDA election
    • Date things correctly, pay out the balance.
    • Personal portion: Pay out dividends over time, keep in low tax rate.


That will wrap things up for today. Like always, if you have any questions, send them to, or find us on twitter:  

This is Canadian Tax Podcast, thanks for listening. 

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