The Principal Residence Exemption Isn’t Available for U.S. Tax Purposes
The Principal Residence Exemption (PRE) has long been a significant tax break for Canadians selling their homes, especially in markets across the country that have seen sharp increases in housing prices over the past few decades. In short, if certain residency requirements are met, the capital gain (regardless of the amount) arising from the sale […]
Valuing a Dental Practice
Commercial Goodwill of Professional Practices: Dentists A professional service business (“PSB”) is a service business performed by highly-skilled professionals in a specific field. Typically, these professionals have received advanced education, training, or certification, to verify their related skills. A unique challenge in valuing a PSB is whether the underlying value beyond the net assets on […]
Controls Over Cash Management
Internal controls over cash are meant to protect and safeguard cash assets. Implementing such controls empowers organizations to limit fraud. How a business approaches cash handling controls depends on the nature of the entity. The cash system in a retail setting will differ from that of a professional services firm. However, in every organization the […]
Finance Provides More Details About the Increase in Capital Gains Inclusion Rate
The Department of Finance (“Finance”) previously announced in its 2024 federal budget changes to capital gains, as follows: The capital gains inclusion rate will be increased from 1/2 to 2/3 for capital gains realized on or after June 25, 2024. For an individual at the top marginal tax bracket in Ontario, the first $250,000 of […]
Ownership of an LLC as a Canadian Investor is Problematic
A limited liability company (LLC) is a very common legal structure in the U.S. through which many U.S. businesses and real estate ventures choose to operate. The income of an LLC flows through to its owner(s) and it offers liability protection similar to a corporation. For U.S. tax purposes, if an LLC has only one […]
What is the Cost of NHL Playoff Failure?
Our hometown Leafs have let us down (again), so we thought we would reflect on their most recent playoff elimination in the first round of the NHL playoffs (again). This is yet another season that ended in disappointment. As the weather gets warmer, and their offseason plans heat-up, we thought we would refresh our experiment […]
Canadian Federal Budget 2024 Commentary
Canada’s Deputy Prime Minister and Finance Minister, Chrystia Freeland, unveiled the country’s 2024 federal budget on April 16, 2024. This budget centers around critical tax measures, reflecting a significant shift in fiscal policy. Key highlights include proposed adjustments to capital gains taxation, enhancements to the affordability of housing, and initiatives aimed at promoting a clean […]
Canadians Considering Buying U.S. Investment Property
In recent years, Canadians have been bullish on the real estate market south of the border. Whether U.S. property is purchased for rental or strictly personal use, investors should carefully consider how the property is purchased and understand their ongoing tax obligations. This article will discuss some of the key issues that Canadian investors should […]
Proposed Changes to the Underused Housing Tax
The government introduced a national, annual 1% tax on the value of non-resident, non-Canadian owned residential real estate that is considered to be vacant or underused. This Underused Housing Tax (UHT) came into effect on January 1, 2022. The CRA previously announced transitional relief with the waiver of penalties and interest for late-filed 2022 returns, […]
2023 Personal Tax Planning Tips
Welcome to tax season! It’s time to prepare for filing your 2023 tax return. To help you get organized, we’ve put together a checklist to gather all the necessary information. The checklist along with a template to report your rental income and business income, if applicable, is located at the bottom of this article for […]
