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Preparing Trust Returns (T3) for Bare Trusts
Download PDF Copy Click here to download a PDF copy of the guide below. The PDF guide also contains a sample T3 Return. The Canadian government has recently implemented new reporting requirements for trusts[1]. These changes are in accordance with Canada’s international pledge to disclose beneficial ownership information and to maintain the efficiency and honesty
February 2023 Newsletter
If you found this newsletter useful, please feel free to pass it on to your team of advisors as it will be useful for them as they also consider your financial, estate, and business plan to preserve and grow your hard-earned wealth. Sincerely,LRK Tax Team
Trustees: Don’t Fall into the Underused Housing Tax Trap!
Trustees of trusts with residential property in Canada must file an Underused Housing Tax (UHT) return and may be exposed to a minimum of $5,000 per year for non-compliance. The penalty applies to each trustee and may pose further issues if the trust lacks liquidity.
Foreign Airbnb Owners Face New Underused Housing Tax in Canada
Foreign owners of Airbnb properties may face the new Underused Housing Tax (UHT), a new tax introduced in 2022, which targets foreign real estate owners who do not reside in or rent out their properties. In this article, we highlight how the tax may still apply, even if the property is not considered “underused.” Property owners should file their UHT tax return by May 1, 2023, to avoid penalties of $5,000 to $10,000.
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Preparing Trust Returns (T3) for Bare Trusts
Download PDF Copy Click here to download a PDF copy of the guide below. The PDF guide also contains a sample T3 Return. The Canadian government has recently implemented new reporting requirements for trusts[1]. These changes are in accordance with Canada’s international pledge to disclose beneficial ownership information and to maintain the efficiency and honesty
February 2023 Newsletter
If you found this newsletter useful, please feel free to pass it on to your team of advisors as it will be useful for them as they also consider your financial, estate, and business plan to preserve and grow your hard-earned wealth. Sincerely,LRK Tax Team
Trustees: Don’t Fall into the Underused Housing Tax Trap!
Trustees of trusts with residential property in Canada must file an Underused Housing Tax (UHT) return and may be exposed to a minimum of $5,000 per year for non-compliance. The penalty applies to each trustee and may pose further issues if the trust lacks liquidity.
Foreign Airbnb Owners Face New Underused Housing Tax in Canada
Foreign owners of Airbnb properties may face the new Underused Housing Tax (UHT), a new tax introduced in 2022, which targets foreign real estate owners who do not reside in or rent out their properties. In this article, we highlight how the tax may still apply, even if the property is not considered “underused.” Property owners should file their UHT tax return by May 1, 2023, to avoid penalties of $5,000 to $10,000.
How to Prepare the Underused Housing Tax Return
Check out our step-by-step guide guide on how to prepare the UHT return along with detailed explanations.
LRK Tax Newsletter – January 2023
This newsletter discusses new taxes that will be introduced in 2023 that will affect small business owners in Canada. These include the Underused Housing Tax (UHT) which will apply to foreigners who own vacant homes in Canada, a new minimum tax on the rich, and an anti-flipping tax for real estate investors. The tax rules have become increasingly complex and penalties for non-compliance are high, so it is important to stay informed and work with a qualified tax accountant.
The New Underused Housing Tax Return Applicable to all Corporations owning Canadian Real-Estate
The UHT generally applies to non-Canadians and corporations with non-Canadian owners. However, it is important to note that even if your corporation is 100% owned by Canadians, it may still be required to file the UHT Tax Return if it owns residential real estate in Canada.
Don’t forget: Inflation is a compounding tax
Inflation is often thought of as a gradual increase in prices, but it’s important to remember that it’s also a tax. As prices rise, the purchasing power of your income decreases, meaning you can buy fewer goods and services with the same amount of money. This can significantly impact your finances over time, especially if you’re not aware of how it’s affecting you.
How investors can use lacklustre returns to their benefit in 2023 by diligent tax planning
Many experts and analysts are bracing for lacklustre returns in 2023. If you are an investor, you may sell some of your investments and trigger capital losses as you rebalance your portfolio. In this article, we outline some tax strategies that can go hand-in-hand with your investment decision that will put more money into your pockets.
A new minimum tax for wealthy Canadians expected in 2023
The sentiment that a country ought to “tax the rich” has been circulating the airwaves for several years. With record levels of government spending, impending recession, inflation, an increase in immigration, and funding the Ukrainian war, the government needs more money. It seems like 2023 will be an opportune time for the Canadian government to introduce another round of tax on the rich (when the Liberals came to power in 2015, they also introduced a 4% tax hike on people in the top tax bracket).
Top Tax Predictions for 2023
The year 2022 was a busy year in the tax world. Coming out of the pandemic and dealing with an uncontrollable real-estate market, the government introduced many tax measures to boost the economy while controlling the housing market. We don’t expect as many tax measures in 2023. But we still expect the government to introduce some significant tax measures.
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 Incom 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.