In this article, we explain how the recent changes in capital gains rates will impact small businesses in Canada. They will affect not only how much they pay in taxes on capital gains but also their regular business income.
Recent changes to capital gains inclusion rates have introduced complexities for corporations managing their Capital Dividend Account (“CDA”). Understanding these changes is crucial as they could result in significant unexpected penalties.
Unexpected CDA Issues from New Capital Gain Inclusion Rate Read More »
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
Preparing Trust Returns (T3) for Bare Trusts Read More »
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
February 2023 Newsletter Read More »
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.
Trustees: Don’t Fall into the Underused Housing Tax Trap! Read More »
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.
Foreign Airbnb Owners Face New Underused Housing Tax in Canada Read More »
Check out our step-by-step guide guide on how to prepare the UHT return along with detailed explanations.
How to Prepare the Underused Housing Tax Return Read More »
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.
LRK Tax Newsletter – January 2023 Read More »
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.
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.
Don’t forget: Inflation is a compounding tax Read More »
