Concerned About Capital Gains Taxes? Comment by Sept. 3!
Especially if you are working with a business owner thinking of transferring the interests in their small businesses to the next generation, consider commenting on the draft legislation released by the Federal Government on August 12. These clients require more information about new taxing initiatives; in particular, the changes to the Capital Gains Inclusion Rates (CGIR) and the related Lifetime Capital Gains Exemption (LCGE), the new Canadian Entrepreneurs’ Incentive (CEI) and Employee Ownership Trusts (EOTs). But the rules are very complex and the deadline for response to the draft rules is short: for the CGIR rules, it’s September 3. For the case of the CEI it’s September 11. Here’s what you need to know:Purchase a Zero-Emission Vehicle in 2020?
Do you have clients that purchased zero-emission vehicles (such as electric cars)? There are some newer rules to get up to speed on as the government has continued to offer a $5,000 rebate for light-duty, zero-emission vehicle purchases along with the 100% write-off for zero-emission autos purchased by those who can write off the purchase of a vehicle. Here’s what you need to know.
April 30: A Special Deadline for Income Splitting
April 30 is an important deadline for more than one reason: late elections for pension income splitting for 2017 expire April 30, 2021 as taxpayers can optimize pension income splitting, but only for up to three years. Taxpayers who elect to split pension income with a spouse must claim an offsetting deduction on Line 21000 for the elected amount of income that will be reported by the pensioner's spouse. Form T1032 Joint Election to Split Pension Income is used to determine the election. What should professional tax and financial advisors know?
Tax Tip: Writing Off Your Investment Interest Costs
The difference between good and bad debt often lies in its tax deductibility. Those who leverage their assets as part of their strategic plan to build wealth will often do so more successfully by earning more income and increasing their net worth. However, should you borrow to invest? Claiming tax-deductible interest is often the only consolation for the eroding effect that the costs of debt can have on personal wealth. Here’s what you need to know this tax season:
Easter Egg Hunt Planned?
Okay, we admit, it’s a stretch, but we wanted to hop into the spirit, and surprise you, our Knowledge Bureau Report readers, with a tuition treat to celebrate the long weekend!
CEWS & CERB: Audit Potential Emerges for High Ineligibility Rate
The Canada Emergency Wage Subsidy (CEWS) program is set to end on June 15, 2021. Has it been a success? It depends on your perspective. Last week, a Performance Audit on this program and the Canada Emergency Response Benefit (CERB) was completed by the Auditor General of Canada and the findings do raise eyebrows.
Cyber Attack Residue: Taxpayers Still Struggle with CRA Services
Taxpayers who are filing 2020 tax returns and need to report a move to a new address will have a new hurdle to overcome in changing their address with the CRA. This is due to the cyber security incidents dating back to August of 2020.
