Blog

Home » Blog

Personal Real Estate Corporations in Ontario

Personal Real Estate Corporations in Ontario Unlike other regulated professionals (doctors, lawyers, engineers, architects, dentists and accountants) who can incorporate their business, Ontario real estate agents are currently excluded from this group due to a technicality in the Real Estate and Business Brokers Act, 2002. But it looks like Ontario REALTORS are one step closer to being allowed to form personal real estate corporations. Bill 104, Tax Fairness for Realtors Act, 2017, passed second reading in the Ontario legislature on...

Read More »

Tax on Split Income (TOSI Rules) – Impact to Dental, Doctor and Lawyer Professionals

Tax on Split Income (TOSI Rules) – Impact to Dental, Doctor and Lawyer Professionals The federal government has confirmed changes to tax rules that will restrict income splitting using private corporations. The changes, effective January 1, 2018, would expand the TOSI rules. The TOSI rules will generally apply to income from private business arrangements, such as dividends or interest paid from a professional Corporation. Where the TOSI applies, the income is subject to the top marginal tax rate in the hands of the individual, and personal tax credits (with the exception of the...

Read More »

Tax Advices for Dentists, Family Doctors and Lawyers

Tax Advices for Dentists, Family Doctors and Lawyers As a practicing Dentist, Family Doctor and Lawyer, it may come as a surprise that the Canada Revenue Agency will be taking close to half of your hard earned money.  Did you know the marginal tax rate for income over $150,000 is about 47.97% and increases to 53.53% for income over $220,000? Here are guidance and tax saving strategies for Dentists, Family Doctors and Lawyers: First, set up a professional corporation. There are three potential significant tax benefits of incorporating a...

Read More »

Principal Residence Exemption when Moving into Nursing Home

Principal Residence Exemption when Moving into Nursing Home Gains on the sale of a principal residence are not necessarily exempt from tax. The tax authorities can tax on capital gains in certain circumstances, such as when owner leaves their principal residence to move into a nursing home. For seniors considering a move to a nursing home, they or their children must decide what to do with their principal residence and should understand the related tax implications. To take advantage of the principal residence exemption and not have to pay tax on the...

Read More »

Benefits being reviewed?

Benefits being reviewed? If you receive a letter from CRA that the agency is reviewing your benefits, it could be a routine check. As per CRA, it sends about 350,000 such letters every year to “make sure Canadians are receiving the benefits and credits they’re entitled to.” The letter or questionnaire may ask for documents to confirm that the information in our records is right and up to date. For example, we may ask you to validate your marital status, where you live, and who cares for your children. It’s...

Read More »

Personal Emergency Leave vs Family Medical Leave

Personal Emergency Leave vs Family Medical Leave On November 27, 2017, the Fair Workplaces, Better Jobs Act became law, resulting in a number of changes to the Employment Standards Act (ESA). The new rules were in force as of January 2018. Read a complete summary of the changes to the ESA. Personal Emergency Leave Most employees have the right to take up to 10 days of job-protected leave each calendar year due to illness, injury, death and certain emergencies and urgent matters. This is known as personal emergency leave. Special rules...

Read More »

Difference between Common Law and Marriage

Difference between Common Law and Marriage You have more rights and responsibilities when you get married. If you are not married, you don’t get some rights no matter how long you and your partner have lived together. You have to go through a legal marriage ceremony to be married. There is no real difference between common law and marriage in terms of custody, access and support claims Married couples and common-law couples usually have the same rights related to children including rights to custody, access and child support. The...

Read More »

GST/HST New Housing Rebate and New Residential Rental Property Rebate

GST/HST New Housing Rebate and New Residential Rental Property Rebate If you are buying a new residential complex from a builder, the builder will collect the GST/HST at the time of sale. The CRA provides relief of a portion of the tax collected by the builder in the form of rebates: New Housing Rebate and New Residential Rental Property Rebate. The rebates are divided into two components – federal and provincial. If the property is in a GST province like Alberta, etc., you only concern with the federal rebate calculated as 36% of the 5% GST on properties...

Read More »

Income Splitting with Family Members

Income Splitting with Family Members Income splitting is a tax-planning technique designed to shift income from a taxpayer paying a high rate of tax to another taxpayer within the family unit paying tax at a lower rate. Unfortunately, there are a number of legislative provisions—“attribution rules” and other anti-avoidance measures—designed to prevent saving taxes by shifting income between taxpayers. Permitted arrangements There are still a number of legitimate tax-planning arrangements that can be used to effectively...

Read More »

Maximize Your Business Income Tax Deductions

Maximize Your Business Income Tax Deductions Tax Deductions and Business Expenses The first rule for maximizing your business income tax deductions is to have all your business-related receipts. The CRA (Canada Revenue Agency) insists that all of your business expenses need to be backed up with receipts, so you have to collect them (and keep them for six years, as the CRA may want to look at them sometime). Income Tax Deductions and the Cost of Doing Business Have you deducted all of your business taxes, and business-related dues,...

Read More »

Services