Uncategorized

Canada’s proposed tax on vacant land aims to tackle the housing crisis, but could it backfire? While the intention is commendable, experts warn that such measures may distort economic behavior and burden smaller developers. Instead of penalizing real estate developers, a more effective solution might be to offer tax incentives that encourage immediate construction. Drawing lessons from Ireland’s experience with similar policies, this article explores the potential pitfalls of a vacant land tax and advocates for a collaborative approach that benefits both the government and developers. Discover why tax breaks could be the key to solving Canada’s housing shortage.

On September 16, 2024, the federal government unveiled bold mortgage reforms aimed at tackling Canada’s housing crisis and making homeownership more accessible, particularly for younger generations. While these changes seem beneficial at first glance, a closer look reveals a more complex picture, especially for Millennials and Gen Z who are already grappling with high home prices in cities like Toronto and Vancouver.

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.

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!

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

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.

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

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