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Relief for Executors: New “3-Year Rule” for Post-Mortem Tax Planning
If you are an executor or involved in estate planning, you know the clock usually starts ticking loudly the moment someone passes away. For years, one of the most stressful deadlines has been the strict one-year window to manage capital losses and avoid double taxation. That deadline has now effectively tripled. Under Bill C-15 (Budget 2025 Implementation Act, No. 1), the
Personal Support Workers Tax Credit – What You Need to Know from Budget 2025
Budget 2025 introduces a significant new tax measure aimed at supporting personal support workers (PSWs) across Canada. The proposed Personal Support Workers Tax Credit is a temporary, refundable tax credit designed to recognize the essential role PSWs play in our health care system and to provide direct financial support to
Understanding the Home Accessibility Tax Credit (HATC) and the Medical Expense Tax Credit (METC) : What You Need to Know for 2025
If you or a loved one is a senior or a person with a disability, you may be planning home renovations to make your living space safer and more accessible. The Canadian tax system offers two important credits that can help offset the cost of these renovations: the Home Accessibility
2025 Canada Federal Budget – Key Tax Changes for Canadians
The 2025 federal budget was released on November 4, 2025 (“Budget Day”). It proposes significant tax changes that could impact individuals, estates, and businesses across Canada. Below is a summary of these proposals which are subject to change until voted on and signed into law. View the Prime Minister’s statement
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More real-estate investors are hitting the sell button but need to watch out for the new anti-flipping tax
With rising interest and energy costs, more real-estate investors are expected to sell in 2023. These investors need to watch out for the Anti-Flipping Tax that comes into effect on January 1, 2023.
2023 Automobile Deduction Limits Increase Due to Inflation
The Department of Finance has announced the 2023 automobile deduction limits and expense benefit rates for businesses. The amounts have generally gone up because of high inflation in Canada.
LRK Tax Newsletter – December 2022
In this edition, we cover the following: Please click here to read our December 2022 edition of the LRK Tax Newsletter. The year 2022 was a strange year in the tax world. We came out of the pandemic with a lot of government spending relief programs, a red-hot housing market, and skyrocketing interest rates to
Canadian banks raise prime rates & tax strategies to mitigate the blow
The Canadian banks have increased their prime lending rate to 5.45%. We discuss strategies to mitigate the blow of high interest rates.
CRA Targets “Incorporated Employees” in Latest Campaign
The CRA is escalating its scrutiny of personal services businesses towards the end of 2022. CRA typically undertakes campaigns where they focus on a specific issue and cast a large net to identify taxpayers who may be in violation of certain tax rules.
CRA to Require Electronic Payments for Amounts over $10,000 starting in 2024
The government released draft legislation under new subsection 160.5(2), which requires making payments and remittances to the CRA through electronic means where the amount of the remittance or payment exceeds $10,000. There is an exception if the payor or remitter cannot reasonably remit or pay the amount electronically. It is unclear what the threshold for
Latest Tax Court Ruling on Why Preparing Financial Statements is Important to Receive Tax Benefits
A recent court ruling demonstrates why preparing financial statements is important if you are receiving tax benefits and credits.
The Capital Dividend Election Just Got More Complicated
The CRA made changes to the capital dividend election form (T2054). We highlight some of the changes in this article.
The Government of Canada’s Affordability Plan and What It Means for You
On June 16, 2022, Deputy Prime Minister Crystia Freeland announced an “Affordability Plan” to tackle the ongoing price increases in the economy. These measures are meant to help Canadians weather the recent price increases for goods and services.
Underused Housing Tax & Traps That Could Result in Huge Penalties
If you own residential property, you should be aware of the newly proposed Underused Housing Tax (“UHT”) set to take effect on January 1, 2022. The UHT is a national, annual 1% tax on the value of non-resident, non-Canadian-owned residential real estate that is vacant or underused.
Budget 2022: Measures Affecting Individuals &Small Business Owners
On April 7, 2022, Finance Minister, Chrystia Freeland tabled the federal budget. We highlight some of the newly announced tax measures that affect individuals and small business owners.
The New Luxury Tax: Draft Legislation Released
On March 11, 2022, the government released a 173-page draft legislation for the up-and-coming luxury tax on vehicles, aircraft, and vessels. In other words, these rules are meant to tax you if you purchase luxury cars, airplanes, helicopters, boats, yachts over a certain price.
New CRA Disclosure Rules: CRA Proposes to Target Common Private Company Aggressive Tax Planning
The Department of Finance is proposing new disclosure rules that allow CRA to better target owner-manager aggressive tax planning.
New Rule Proposal: Postdoctoral Fellowship Income Can Now Generate RRSP Room
The government announced good news for taxpayers who earned fellowship income all the way back from 2011 to increase their RRSP room.
Government Extends CEBA Loan to End of 2023
Good News! The government has just announced an extension for the repayment of CEBA to December 31, 2023! This means that you can repay CEBA on or before December 31, 2023, and qualify for loan forgiveness of up to $20,000. CEBA provided interest-free loans of up to $60,000 to small businesses to help cover their
You May be able to Deduct More Vehicle Expenses in 2022
For the 2022 year, you may be able to deduct more vehicle expenses in your business. This is not because the government wants to encourage businesses to invest in vehicles. Instead, it reflects recent increases in the Consumer Price Index (CPI). Inflation is driving up these increases, and the tax rules are allowing you to
Everything You Need to Know about the Tourism and Hospitality Recovery Program (Updated December 22, 2021)
What is it? In a nutshell, the Canadian federal government plan to continue the wage and rent subsidies for the tourism and hospitality industry with updated subsidy rates Who qualifies? The subsidy would be available only to organizations in selected sectors of the tourism and hospitality industry. The subsidy helps businesses deeply affected by the
Parliament Returns Today, What Tax Changes Can We Expect?
Today, the House of Commons reconvenes after nearly five months. Normally, there would’ve been a fall economic update. Last year, Finance Minister Chrystia Freeland released the fall economic statement on November 30th. We do not yet know when Minister Freeland will release this year’s fall economic statement. Still, with many campaign promises to implement, we
CRA Releases TFSA and Other Limits for 2022
Each year, certain personal income tax and benefit amounts are indexed to inflation using the Consumer Price Index (CPI) data as reported by Statistics Canada. Because of the higher inflation this year, some amounts indexed to inflation are a lot higher. Here are some of the highlights for 2022: 2022 2021 Basic personal amount
Your Cryptocurrency May Be Foreign Property, and Failure to File Form T1135 Could Result in Severe Penalties
Canadian resident individuals, corporations, and certain trusts have to file a unique form called Form T1135 if, at any time during the year, they owned foreign property costing more than $100,000. There are significant penalties for failure to file Form T1135 or for making a false statement or omission. The maximum penalty could be anywhere
Changes to the Canada Recovery Hiring Program
To help businesses emerge out of the pandemic, the government introduced the new Canada Recovery Hiring Program (CRHP) to provide businesses with a subsidy of up to 50% on the incremental remuneration paid to eligible employees between June 6, 2021 and November 20, 2021. The subsidy was determined by the following formula: A x (B-C)
Everything You Need to Know About the Hardest-Hit Business Recovery Program
What is it? In a nutshell, the Canadian federal government plan to continue the wage and rent subsidies for hard-hit businesses that do not qualify for the Tourism and Hospitality Recovery Program and that have been deeply affected by the pandemic. This generally means a prolonged revenue decline of at least 50%. Who qualifies? All
2021 Election Platforms: Tax and Housing Measures Promises
The federal election is only a few days away. The below is a summary of all the tax and housing market promises by Canada’s major political parties. Click the below image for more details.
Liberals: 2021 Election Tax & Real Estate Measures
The below highlights some of the tax measures proposed by the Liberal Party of Canada for the 2021 Canadian federal election that will be held on September 20, 2021. The purpose of the below article is to summarize and outline the different tax measures published by the political parties in their election platforms in an impartial manner.
The NDP: 2021 Election Tax and Real Estate Measures
The below highlights some of the tax measures proposed by the New Democratic Party of Canada for the 2021 Canadian federal election that will be held on September 20, 2021. The purpose of the below article is to summarize and outline the different tax measures published by the political parties in their election platforms in an impartial