Canadian Tax Podcast 025: Royalties, Home Office, and Expense reimbursements

Canadian Tax Podcast for the week of 23 November 2021. This week we cover:

  • US electric vehicle subsidy;
  • GST filing extension for the E-Commerce Framework (AKA: Netflix Tax reporting);
  • 2022 TFSA limits announced;
  • Transferring intangibles from proprietorship to corp;
  • Home office: part-time vs full-time use of space;
  • Informal expense reimbursements;


“This is the Canadian Tax Podcast, Episode # 025, hosted by me, Cameron Ware. Good morning”


  1. “Happy Tuesday, it is the week of November 23, 2021. We’ll start with the news.

ITEM [1] – What Canada could do to combat US EV Tax Credit Article

  • We’ve discussed over the last few weeks the new US EV tax credit
  • CBC covered what Canada might do if they deal were to go through, even though US officials have noted Canada’s displeasure with the proposal
  • Quick summary: the US is subsidizing up to $12,500 if consumers buy an electric vehicle. The catch is the subsidy only applies to US-made vehicles. This makes Cdn manufacturers grumpy. 
  • One option Cdn govt could use: Cdn mines are a reliable source for the electric batteries. Why does the taxpayer care: Because regardless of the politics involved, tariffs are taxes. Canada applies tariffs somewhere, US does the same, = taxes go up


[ITEM 2] – Obligations for new Gst/HST rules

 [ITEM 3] – TFSA Limit for 2022 ANnounced


  • Sole proprietor artist wanting to transfer assets
    • [Question]
    • This is like any property transfer. Proprietorship, Sec 85 over to corp.
    • Watch: Passive income trap.
  • Home office deduction in studio apartment
    • [Question]
    • If I’m understanding correctly, listener filed one way, wants to change to “Dedicated” space.
    • Need T2200 if for employment. Or T2125 if self-employed. Pro-rated on basis of sq/ft for business vs. sq/ft for home.
  • How can business partner deduct expenses if they are paid on one card?
    • [Question]
    • One party is purchasing Facebook and Instagram ads, but the expenses are actually 50/50.

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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