Canadian Tax Podcast 014: TFSA; US Contractor; Inter-corporate Loans;

Canadian Tax Podcast for the week of June 14th, 2021. This week we cover:

  • The ProPublica tax leak;
  • CRA releases details on new tax scam;
  • More detail on G7 worldwide corporate tax proposal;
  • Bill C-208;
  • What to do with a TFSA if you move to the US;
  • Canadian resident doing contract work for US client;
  • Inter-corporate loans;

Continue reading “Canadian Tax Podcast 014: TFSA; US Contractor; Inter-corporate Loans;”

Canadian Tax Podcast 013: Contractor vs Employee; US Real Estate; T1135

Canadian Tax Podcast for the week of 07 June 2021. This week we cover:

  • TI 2020-086579 CEWS/Shareholder problem;
  • CRA is “outgunned”
  • CRA decreases volume of public company audits;
  • G7 agrees to global minimum tax;
  • Listener question: Taking a contract job vs staying employee;
  • Listener question: Sale of US real estate;
  • Listener question: T1135 and cost basis to use;

Continue reading “Canadian Tax Podcast 013: Contractor vs Employee; US Real Estate; T1135”

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”