{"id":72,"date":"2021-03-29T15:45:19","date_gmt":"2021-03-29T15:45:19","guid":{"rendered":"https:\/\/canadiantaxpodcast.ca\/?p=72"},"modified":"2021-03-29T15:45:20","modified_gmt":"2021-03-29T15:45:20","slug":"canadian-tax-podcast-005-business-tax-planning-personal-use-property-t1135-capital-gains-in-corp","status":"publish","type":"post","link":"https:\/\/canadiantaxpodcast.ca\/index.php\/2021\/03\/29\/canadian-tax-podcast-005-business-tax-planning-personal-use-property-t1135-capital-gains-in-corp\/","title":{"rendered":"Canadian Tax Podcast 005 &#8211; Business Tax Planning; Personal Use Property + T1135; Capital Gains In Corp."},"content":{"rendered":"\n<p>Canadian Tax Podcast for the week of March 29, 2021. This week we cover:<\/p>\n\n\n\n<ul><li>Coinsquare account info release;<\/li><li>Carbon tax;<\/li><li>Federal Budget announced;<\/li><li>Ontario Budget released;<\/li><li>Expense\/deduction planning for the newly self-employed;<\/li><li>T1135 reporting re. personal use property and foreign currency;<\/li><li>Sale of property in a corporation, triggering capital gains;<\/li><\/ul>\n\n\n<p><!--more--><\/p>\n\n\n<h2>[INTRO]:<\/h2>\n\n\n\n<p>\u201cThis is the Canadian Tax Podcast, Episode # 005,&nbsp; hosted by me, Cameron Ware. Good morning\u201d<\/p>\n\n\n\n<h2>&nbsp;[NEWS SECTION]<\/h2>\n\n\n\n<ul><li>\u201cHappy Monday, it is the week of March 29, 2021. We\u2019ll start with the news.<\/li><\/ul>\n\n\n\n<h2>&nbsp;[ITEM 1] \u2013 COinsquare to hand over info<\/h2>\n\n\n\n<ul><li>Federal judge ordered Coinsquare to hand over client info;<\/li><li>Threshold for reporting was accounts holding over $20,000;<\/li><li>Goes back to Jan 01\/13;<\/li><li>Uses CRA tool called \u201cUnnamed Persons Requirement\u201d<\/li><li>From CRA\u2019s site: <em>\u201cenables the CRA to obtain information from an individual or a company about third parties. After the CRA gets this information, it can verify if the unnamed person correctly reported&nbsp; income and sales tax\u2026\u201d<\/em><\/li><li><a href=\"https:\/\/www.canada.ca\/en\/revenue-agency\/programs\/about-canada-revenue-agency-cra\/compliance\/real-estate-sector\/unnamed-persons-requirements.html\">https:\/\/www.canada.ca\/en\/revenue-agency\/programs\/about-canada-revenue-agency-cra\/compliance\/real-estate-sector\/unnamed-persons-requirements.html<\/a><\/li><li><a href=\"https:\/\/nationalpost.com\/news\/canada\/major-canadian-cryptocurrency-marketplace-must-fork-over-details-of-thousands-of-clients-to-cra-court-rules\">https:\/\/nationalpost.com\/news\/canada\/major-canadian-cryptocurrency-marketplace-must-fork-over-details-of-thousands-of-clients-to-cra-court-rules<\/a><\/li><\/ul>\n\n\n\n<h2>&nbsp;[ITEM 2] \u2013 Carbon Tax<\/h2>\n\n\n\n<ul><li>Supreme Court ruled 6-3 in favour of Feds pushing a carbon tax.<\/li><li>Alberta\/West unhappy.<\/li><li><a href=\"https:\/\/www.cbc.ca\/news\/canada\/calgary\/kenney-jonathan-wilkinson-west-centre-kathleen-petty-1.5967214\">https:\/\/www.cbc.ca\/news\/canada\/calgary\/kenney-jonathan-wilkinson-west-centre-kathleen-petty-1.5967214<\/a><\/li><\/ul>\n\n\n\n<h2>&nbsp;[ITEM 3] \u2013 BUDGET ANNOUNCED<\/h2>\n\n\n\n<ul><li>Last week Freeland announced new Budget.<\/li><li>Date set for April 19<sup>th<\/sup> 2021.<\/li><li><em>Freeland Quote during question period: &#8220;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,&#8221;<\/em><\/li><li>I hope so. End of March\/19 deficit was $19.7bil. At the end of 2020, at about $381bil.<\/li><li><a href=\"https:\/\/www.canada.ca\/en\/department-finance\/news\/2021\/03\/government-of-canada-announces-date-of-budget-2021.html\">https:\/\/www.canada.ca\/en\/department-finance\/news\/2021\/03\/government-of-canada-announces-date-of-budget-2021.html<\/a><\/li><\/ul>\n\n\n\n<h2>ITEM [4] \u2013 Ontario Budget<\/h2>\n\n\n\n<ul><li>March 24, Ontario budget released;<\/li><li>Run a $33bil deficit;<\/li><li>On track to balance in 2029\/20<\/li><li><a href=\"https:\/\/budget.ontario.ca\/2021\/contents.html\">https:\/\/budget.ontario.ca\/2021\/contents.html<\/a><\/li><\/ul>\n\n\n\n<h2>QUESTIONS<\/h2>\n\n\n\n<ul><li>Newly self-employed.<ul><li>[quote]<\/li><\/ul><ul><li>Yes, use an tax calculator and plug\/play numbers;<\/li><\/ul><ul><li>Buy some tax software and model;<\/li><\/ul><ul><li>Pro-tip: Use Excel;<\/li><\/ul><ul><li>Best bet: get an accountant to model;<\/li><\/ul><ul><li><a href=\"https:\/\/www.wealthsimple.com\/en-ca\/tool\/tax-calculator\/\">https:\/\/www.wealthsimple.com\/en-ca\/tool\/tax-calculator\/<\/a><\/li><\/ul><ul><li><a href=\"https:\/\/www.taxtips.ca\/calculators.htm\">https:\/\/www.taxtips.ca\/calculators.htm<\/a><\/li><\/ul><\/li><li>Personal Use Property\/T1135<ul><li>[quote]<\/li><\/ul><ul><li>Does not need to be reported. \u201cSpecified\u201d foreign property.<\/li><\/ul><ul><li><em>\u201ca personal-use property as defined in section 54 of the Act.\u201d<\/em><\/li><\/ul><ul><li>Good rule: Not income-producing.<\/li><\/ul><ul><li>Report on Schedule 3<\/li><\/ul><ul><li>Question about foreign currency from sale. If it\u2019s 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.<\/li><\/ul><ul><li>Thing about T1135 is it doesn\u2019t hurt to file anyway. It\u2019s a disclosure form.<\/li><\/ul><ul><li><a href=\"https:\/\/www.canada.ca\/content\/dam\/cra-arc\/formspubs\/pbg\/t1135\/t1135-19e.pdf\">https:\/\/www.canada.ca\/content\/dam\/cra-arc\/formspubs\/pbg\/t1135\/t1135-19e.pdf<\/a><\/li><\/ul><\/li><li>Sale of Land<ul><li>[quote]<\/li><\/ul><ul><li>Tax at corp level, tax at personal level;<\/li><\/ul><ul><li>Corp: $550\/2 = $275k CDA, $275k pay corp tax.<\/li><\/ul><ul><li>Artificially-high tax \u201cRefundable tax\u201d, until you pay out a dividend = trigger refund of RDTOH.<\/li><\/ul><ul><li>CDA = T2054 CDA election<\/li><\/ul><ul><li><a href=\"https:\/\/www.canada.ca\/content\/dam\/cra-arc\/formspubs\/pbg\/t2054\/t2054-20e.pdf\">https:\/\/www.canada.ca\/content\/dam\/cra-arc\/formspubs\/pbg\/t2054\/t2054-20e.pdf<\/a><\/li><\/ul><ul><li>Date things correctly, pay out the balance.<\/li><\/ul><ul><li>Personal portion: Pay out dividends over time, keep in low tax rate.<\/li><\/ul><\/li><\/ul>\n\n\n\n<h2>OUTRO<\/h2>\n\n\n\n<p>That will wrap things up for today. Like always, if you have any questions, send them to <a href=\"mailto:questions@canadiantaxpodcast.ca\">questions@canadiantaxpodcast.ca<\/a>, or find us on twitter: <a href=\"https:\/\/twitter.com\/cdntaxpodcast\">https:\/\/twitter.com\/cdntaxpodcast<\/a>&nbsp;&nbsp;<\/p>\n\n\n\n<p>This is Canadian Tax Podcast, thanks for listening.&nbsp;<\/p>\n<iframe src=\"https:\/\/player.blubrry.com\/?media_url=https%3A%2F%2Fmedia.blubrry.com%2Fcanadiantaxpodcast%2Fcontent.blubrry.com%2Fcanadiantaxpodcast%2F2021-03-29_CTP005.mp3&amp;podcast_link=https%3A%2F%2Fcanadiantaxpodcast.ca%2Findex.php%2F2021%2F03%2F29%2Fcanadian-tax-podcast-005-business-tax-planning-personal-use-property-t1135-capital-gains-in-corp%2F#mode-Light&border-000000&progress-000000\" scrolling=\"no\" width=\"100%\" height=\"165\" frameborder=\"0\" id=\"blubrryplayer-1\" class=\"blubrryplayer\" title=\"Blubrry Podcast Player\"><\/iframe><p class=\"powerpress_links powerpress_links_mp3\" style=\"margin-bottom: 1px !important;\">Podcast: <a href=\"https:\/\/media.blubrry.com\/canadiantaxpodcast\/content.blubrry.com\/canadiantaxpodcast\/2021-03-29_CTP005.mp3\" class=\"powerpress_link_pinw\" target=\"_blank\" title=\"Play in new window\" onclick=\"return powerpress_pinw('https:\/\/canadiantaxpodcast.ca\/?powerpress_pinw=72-podcast');\" rel=\"nofollow\">Play in new window<\/a> | <a href=\"https:\/\/media.blubrry.com\/canadiantaxpodcast\/content.blubrry.com\/canadiantaxpodcast\/2021-03-29_CTP005.mp3\" class=\"powerpress_link_d\" title=\"Download\" rel=\"nofollow\" download=\"2021-03-29_CTP005.mp3\">Download<\/a><\/p>","protected":false},"excerpt":{"rendered":"<p>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;<\/p>\n","protected":false},"author":1,"featured_media":0,"comment_status":"open","ping_status":"open","sticky":false,"template":"","format":"standard","meta":[],"categories":[21,19,20],"tags":[],"_links":{"self":[{"href":"https:\/\/canadiantaxpodcast.ca\/index.php\/wp-json\/wp\/v2\/posts\/72"}],"collection":[{"href":"https:\/\/canadiantaxpodcast.ca\/index.php\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/canadiantaxpodcast.ca\/index.php\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/canadiantaxpodcast.ca\/index.php\/wp-json\/wp\/v2\/users\/1"}],"replies":[{"embeddable":true,"href":"https:\/\/canadiantaxpodcast.ca\/index.php\/wp-json\/wp\/v2\/comments?post=72"}],"version-history":[{"count":1,"href":"https:\/\/canadiantaxpodcast.ca\/index.php\/wp-json\/wp\/v2\/posts\/72\/revisions"}],"predecessor-version":[{"id":73,"href":"https:\/\/canadiantaxpodcast.ca\/index.php\/wp-json\/wp\/v2\/posts\/72\/revisions\/73"}],"wp:attachment":[{"href":"https:\/\/canadiantaxpodcast.ca\/index.php\/wp-json\/wp\/v2\/media?parent=72"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/canadiantaxpodcast.ca\/index.php\/wp-json\/wp\/v2\/categories?post=72"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/canadiantaxpodcast.ca\/index.php\/wp-json\/wp\/v2\/tags?post=72"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}