Taxation

Tax planning strategies for high-income earners

Depending on your province of residence, you may be subject to tax at a rate of 50% or higher when your income exceeds a set amount.

Discover several strategies that make for a tax-smart wealth plan.

Taxation of investment income in a corporation

As a business owner, you may have surplus cash accumulating in your corporation. Perhaps you have been setting aside funds for a large future business purchase or perhaps you received a cash inflow from a major sales contract. Either way, you should determine how to maximize the value of this surplus cash. One method of increasing the value of the surplus is investing the funds within your corporation. This article discusses the taxation of passive investment income in a corporation should you decide to invest the surplus cash.

Passive investment income in a private corporation

How might the new passive income rules impact your business?

Tax planning basics

This article provides an overview of the Canadian tax system, basic investments and how the two interact. By investing tax-efficiently, you may be able to keep more of your investment income and achieve your financial goals more quickly.

Tax planning calendar

This article highlights important tax dates during the calendar year and some strategies which may help you maximize tax savings and avoid interest and penalties.

Early 2023 tax tips

Many investors are aware of the importance of tax planning near the end of the year to minimize their income tax liability. However, often-neglected areas of tax planning include meeting the important deadlines for implementing tax planning strategies that may only be available early in the new year. The purpose of this article is to summarize some of the strategies that have deadlines in early 2023.

Tax planning checklist for high-income earners

Depending on your province of residence, you may be subject to tax at a rate of 50% or higher when your income exceeds $200,000. This article highlights a non-exhaustive list of tax minimization strategies to consider with your professional advisor. The use of these strategies will vary based on personal circumstance. As such it is crucial to check with your qualified tax advisor prior to implementing any of these strategies.

Principal residence - the basics

A home is often the single largest purchase made by Canadians and an asset that can appreciate significantly over time. In many cases, a family may own more than one home. On the sale of any of these properties, there can be a significant tax liability on the increase in the value of the home, unless the principal residence exemption can be applied to eliminate or reduce the tax liability.

Principal Residence

A home is often the single largest purchase made by Canadians and an asset that can appreciate significantly over time. In many cases, a family may own more than one home. On the sale of any of these properties, there can be a significant tax liability on the increase in the value of the home, unless the principal residence exemption can be applied to eliminate or reduce the tax liability. This article addresses a number of tax and estate planning questions surrounding the principal residence exemption such as what qualifies as a principal residence and some implications of holding the residence in joint ownership with an adult child.

Taxation of employee stock options

Many companies use stock options to attract or reward good employees as it gives the employees the opportunity to share in the future growth of a company. Stock options are an incentive that aligns the goals of the employees with the goals of the company as both benefit from an appreciation in the stock price. Stock options are also a popular form of compensation because they do not generally affect the company’s cash flow.

The taxation of employee stock options can be complex, as there are a number of factors that determine how and when an employee stock option will be taxed. The following article outlines the rules around the taxation of employee stock options and presents several common examples to help illustrate the rules.

Tax planning checklist for students

If you are a student or are considering a return to school, you may wish to take advantage of all the tax credits and deductions available to you as a student. This checklist provides a useful quick reference for the most common federal tax credits, deductions, and tax-assisted programs available to students.

Return of capital

Certain investments will distribute a non-taxable payment to you called a “return of capital” (ROC). ROC represents a return of all or a portion of your original invested capital. This article describes the types of investment vehicles which may make ROC distributions to you. It also explains the tax implications as well as the tax reporting associated with receiving ROC distributions.

Capital gains exemption on private shares

How you may be able to save approximately $200,000 of tax on the sale of your business

Tax carryforwards and carrybacks checklist

Canadian tax rules allow you to carry forward or carry back certain tax credits and deductions that you do not use in one year to another year. This may reduce your tax payable or help you to take advantage of government benefits in another year.

Bond taxation

The following article provides an overview of bonds denominated in Canadian dollars that pay regular interest. It discusses how the Adjusted Cost Base (ACB) is determined, explains premiums and discounts and discusses how to calculate and report a capital gain or loss on the sale of a bond. The following discussion applies to bonds held in a non-registered account.

Claiming losses on worthless securities

This article explores the requirements to recognize a loss on a share or debt instrument (“security”) for tax purposes when that security becomes worthless. To answer this question, you must examine the cause of the security becoming worthless. Once the cause of the loss is understood, steps can be taken to ensure that the loss can be realized for Canadian tax purposes in the current taxation year.