Tax Tips

Browse LRK Tax LLP’s Tax Tips Archives for expert advice on tax planning, Consulting, compliance updates, and strategies to maximize savings for individuals and businesses. Stay updated with reading articles!

3 Year Rule for Post Mortem Tax Planning with Executors Post Mortem Tax Planning for Executors Relief for Executors

Relief for Executors: New “3-Year Rule” for Post-Mortem Tax Planning

tax guide, Tax Tips

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 […]

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Canadian Entrepreneurs’ Incentive

Canadian Entrepreneurs’ Incentive: A Promising Tax Break Needing Greater Clarity

tax guide, Tax Tips

Are you a Canadian business owner considering selling your company? The new Canadian Entrepreneurs’ Incentive (CEI) could be of benefit. Starting in 2025, this promising tax break will significantly reduce your capital gains tax. With a gradual increase in the lifetime limit to $2 million by 2029, the CEI offers substantial savings for eligible entrepreneurs. However, the draft legislation raises important questions about qualifications and exclusions. Discover how this incentive could impact your business and what clarifications are needed for a smoother implementation.

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Tax Filing Relief for Trusts in 2024 and Beyond

tax guide, Tax Tips

Navigating the complexities of trust tax filing can be daunting, but there’s good news for 2024! Recent draft legislation will exempt bare trusts from filing tax returns, easing the burden on many Canadians. The definition of Listed Trusts is also expanding, providing more relief for smaller and family trusts. Discover how these changes can simplify your tax obligations and offer greater flexibility in managing your assets. Stay informed on updates that could impact your financial planning—read on to learn more!

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How to Multiply Your Capital Gains Allowance Using Your Spouse: A Case Study

Tax Tips

As of June 25, 2024, capital gains in Canada are included in income at a 2/3 inclusion rate, up from the previous 1/2 rate. This increases the tax for large gains on investments. However, there’s good news: the first $250,000 of capital gains still benefits from the 1/2 inclusion rate, providing substantial tax savings. For

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UHT and Airbnb Properties

Foreign Airbnb Owners Face New Underused Housing Tax in Canada

Tax Tips

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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LRK Tax Newsletter – January 2023

Tax Tips

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.

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Top Tax Predictions for 2023

Tax Tips

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.

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