Corporate Tax - Canada
Foreign Accrual Property Income
How to calculate foreign accrual property income for a Canadian corporation.
February 24, 2022
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Entrepreneurship & Business
January 27, 2022
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Entrepreneurship & Business
Crypto Mining in 2022 and Income Taxes
Crypto mining is on the rise! Learnt he income tax application and reporting of Crypto mining in Canada!
January 1, 2022
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Financial Statements
CSRS 4200 Compilation Engagements
Compilation of Financial Statements The Auditing and Assurance Board issued a new standard, ‘CSRS 4200 Compilation Engagements’ for the first time in almost 30 years! CSRS 4200 replaced Notice to reader report under Section 9200
December 30, 2021
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Corporate Tax - Canada
Lifetime Capital Gains Exemption in Canada
What is life time capital gain exemption? Common purification and crystallization strategies.
November 26, 2021
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Corporate Tax - Canada
How to extract Surplus cash from Corporation without paying taxes?
Corporate reorganization technique that may allow you to take cash out of corporation without paying income taxes in Canada.
October 16, 2021
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Individual Tax - Canada
Canadian Taxpayers Selling U.S. Property
Many of Canadian taxpayers maintain a second home, a vacation property, or hold a U.S. real property interest for investment purposes. In 2020 and 2021, there is an upward trend of dispositions of U.S. real
August 29, 2021
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Corporate Tax - Canada
Professional Corporations & Income Taxes
Many professionals can now incorporate their practices as professional corporations as per the provincial legislation. Professional Corporations are now becoming a very common structure since the majority of provinces have relevant professional regulations. Professional Corporations
July 14, 2021
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Business Incorporation
Ontario – Incorporation without Resident Canadian Director
News Release – July 05, 2021 Resident Canadian Director no more needed for Ontario Corproations The province of Ontario in Canada has removed the residency requirement of the Director effective July 5, 2021. Previously Ontario
July 5, 2021
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Corporate Tax - Canada
Qualified Small Business Corporation Shares (QSBC)
QSBC allows its shareholders to claim Lifetime Capital Gain Exemption on the disposition of its shares.
June 10, 2021
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Corporate Tax - Canada
CCPC Shares & Emigration
Deemed disposition and departure tax for the owner-managers of Canadian Corporations.
June 9, 2021
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Individual Tax - Canada
Cryptocurrencies: Income Tax Implications in Canada
How are cryptocurrency transactions reported to Canada Revenue Agency?
May 21, 2021
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U.S. Income Tax
Understanding GILTI – For US Expats in Canada
Global Intangible Low-Taxed Income – Simplified! The Tax Cuts and Jobs Act of 2017 (TCJA) brought major changes to the U.S. tax system. With these changes come additional complications for U.S. citizens and resident aliens.
March 29, 2021
2 Comments
Individual Tax - Canada
Hybrid Entities – The Tax Problems in Canada
U.S. LLCs and S Corps are hybrid entities due to a mismatch of income tax treatment in both U.S. and Canada
March 15, 2021
4 Comments
U.S. Income Tax
10 Things Americans in Canada Should Know!
Effective February 12, 2021, the Internal Revenue Service (IRS) has begun receiving 2020 tax returns in the U.S. In 2020, Americans have moved to Canada in record numbers. Whether you have recently moved to Canada
February 12, 2021
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Corporate Tax - Canada
Personal Services Business (Incorporated Employee)
Have you recently received a contract offer from a business that has asked you to incorporate yourself? By the way, this is very trendy in the IT and transportation industry! We receive a couple of
January 18, 2021
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Corporate Tax - Canada
Flipping Houses – Business Income Vs Capital Gains
Property flipping is an increasingly common practice to buy a property and then reselling it for a quick profit. Property flipping also includes assignment sales a.k.a. shadow flipping. Shadow flipping is the sale of a property
December 4, 2020
2 Comments
Business Plan
A Guide to Investor Pitch Deck
A beginner’s guide to Investor Pitch Deck. How to prepare the one, what to avoid and the tips for success.
October 2, 2020
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Business Plan
Canada: On Road to a New Global R&D Hub!
For a while, Silicon Valley in the United States has been a Research and Development hub in the world. Well, that may change soon. According to the 2019 global technology innovation report, the US and
September 30, 2020
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Business Incorporation
10 Reasons to Move your Business to Canada
10 Reasons to Invest in Canada Planning to start a business or looking to expand internationally? Well, Canada is the place for you. Investing in Canada offers plenty of opportunities in terms of everything right
August 27, 2020
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U.S. Income Tax
U.S. Canada Cross Border Taxation for Canadian Businesses
How can Canadian businesses operate in the U.S. Choose the right structure and common mistakes to avoid.
July 9, 2020
18 Comments
Corporate Tax - Canada
Effects of Losing CCPC Status for Corporations in Canada
What is a CCPC and how does a Canadian Corporation lose CCPC status at emigration of its shareholder.
July 8, 2020
4 Comments
Corporate Tax - Canada
US Income Taxes for Canadian Businesses – Which Forms to File?
How to report and pay U.S. income taxes for Canadian Corporations?
May 10, 2020
4 Comments
Corporate Tax - Canada
How and When U.S. Taxes Canadian Businesses
U.S. Income tax is one of the most complex tax systems in the world. Being a global leader, many times international businesses get their income connected to the U.S. and they even don’t know it.
May 9, 2020
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Individual Tax - Canada
Principal Residence Exemption and Change of Use
Principal residence exemption allows a taxpayer to eliminate capital gains on the disposition (or deemed disposition) of his/her principal residence in Canada. This post is meant for general information purposes. You can find below a
May 5, 2020
2 Comments
Individual Tax - Canada
Income Tax Returns for Actors in Canada
How can I lower my taxes if I am an actor or a person employed in the entertainment industry? This post outlines income tax returns for actors in Canada who are also residents of
April 15, 2020
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Corporate Tax - Canada
Infographic – Income taxes for US Amazon Store
In recent times there is an uptick in E-commerce sales, especially due to COVID-19 Pandemic. With the closures of more and more retail stores, customers are ordering online. Amazon is one of the biggest online
April 10, 2020
2 Comments
Corporate Tax - Canada
Voluntary Disclosure Program (VDP) in Canada – Come Clean with Taxman
You can come clean with the Taxman in Canada using VDP whether the non compliance was intentional or unintentional.
April 1, 2020
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Corporate Tax - Canada
Rental Income from Associated Corporations as Active Business Income
Rental income earned by a corporation is considered property income i.e. aggregate investment income. Active business income of Canadian-controlled private corporations (CCPC) is subject to preferential tax treatment due to the small business deduction. Earning
March 27, 2020
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Corporate Tax - Canada
Earning Investment income in a CCPC and Refundable tax
Earning investment income in CCPC can affect Small business deduction and QSBC Status of a Canadian Corporation.
March 27, 2020
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Individual Tax - Canada
Reporting Online Trading on Personal Income Tax Returns in Canada
If you are generating gains or losses from the sale of securities, this is most likely to be treated as Capital gains. However, in certain cases, this might be treated as business income (or loss)
March 15, 2020
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Individual Tax - Canada
How to report foreign rental income in Canada?
In recent days, we have received a couple of inquiries from our blog subscribers and readers about the foreign rental income of Canadian residents. This post is for general information purposes and cannot be relied
March 10, 2020
35 Comments
Individual Tax - Canada
How is foreign inherited property taxed in Canada?
Canada is a country having vast immigrant population. Every year new immigrants come to Canada and gradually achieve their immigration status as permanent residents and ultimately Canadian citizenship. If you are a new permanent resident
March 5, 2020
8 Comments
Business Plan
What Should Your Business Plan Include? Dissecting the Essentials
Preparing a good business plan is a time-consuming task that requires dedication and far-sightedness. Many entrepreneurs choose not to craft a business plan before going ahead with the execution of their idea since it is
February 26, 2020
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Business Plan
How to Explain Business Concept in a Business Plan Clearly
Your business plan is incomplete without a clear business concept. If you don’t highlight what your business is about, your plan is missing its key component; business concept about which you are writing the business
February 26, 2020
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Individual Tax - Canada
Income taxes for non-residents on Rental Income from Canada
Income taxes for Non residents having rental income from Canada. When and how to report a non resident’s rental income to CRA.
February 17, 2020
6 Comments
Corporate Tax - Canada
Year End Tax Planning Guide for Businesses in Canada
Businesses and their managers can optimize their corporate business taxes using below simple and effective planning strategies in Canada: Caution: Below post explores tax planning strategies for businesses in Canada without getting into depth. You
February 3, 2020
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Individual Tax - Canada
Tax Tips: Newcomers (Immigrants) to Canada
Canada taxes its residents on their worldwide income. You become a resident of Canada when you establish residential ties with Canada. The year in which you become a resident of Canada is considered a part-year
February 2, 2020
3 Comments
Individual Tax - Canada
Tax Tips: If you are leaving Canada
If you have been a resident of Canada and decide to leave Canada, you must review your assets, income, and income tax obligations. Leaving Canada is often referred to as “Emigration”. The year in which
February 1, 2020
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Individual Tax - Canada
Tax residency in Canada – Common Questions
Tax Residency in Canada is determined using a very subjective approach; primary and secondary residential ties.
January 26, 2020
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Business Plan
Start a Business in Canada in 15 Easy Steps
Bored by your 9 to 5 work life? Is there an inner voice urging you to escape the mundane professional life, the grunts of your boss? Is your mind innovative enough to brainstorm ideas and
January 18, 2020
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Business Plan
5 Ways to Strengthen Financial Section of Your Business Plan
No doubt, the Financial section is one of the most critical areas of the business plan writing process! You should not be surprised if you gave your business plan to someone and that person immediately
January 15, 2020
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Business Plan
What is A Business Plan and How do I Write One?
A Canadian Perspective on business plan writing… Recall your middle school teachers insisting on making a routine for the completion of your syllabus. Why would you do it? How would you frame your routine? And
January 15, 2020
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Individual Tax - Canada
Short-term residents of Canada and Income Tax
Canada taxes its residents on worldwide income. When an individual becomes a resident of Canada by immigration or leaves Canada as an emigrant, there are specific income tax rules. It’s possible for an employer to
January 1, 2020
2 Comments
Corporate Tax - Canada
Important considerations while paying Management Fee in Canada
What is a Management Fee? Often, businesses in Canada use multiple entities to run their operations or there are allocations of Management fees because of the centralization of management within a corporate group. The management
December 23, 2019
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Corporate Tax - Canada
Year End Tax Planning for Businesses– Owner-Manager or Shareholder Manager
If you are an owner-manager of a Canadian Controlled Private Corporation (CCPC) you can use certain tax planning strategies to optimize both personal taxes and corporation taxes in Canada. You should always exercise caution while
December 23, 2019
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Business Plan
How to Strengthen Your Business Plan
Are you looking forward to new business and sketching up your business plan? Or, are you rethinking your business model? Business plan writing can be tough, especially if you have a time crunch. Not to
November 30, 2019
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Business Plan
How to write a killer business plan for immigration to Canada?
Are you good at the business nitty-gritty? Canada is looking for entrepreneurs who can contribute to the economy. If you want to successfully immigrate to Canada as a businessperson, you need to draw up a
November 19, 2019
2 Comments
Corporate Tax - Canada
How a US LLC is taxed in Canada?
What is a US LLC? A Limited Liability Company (LLC) is a type of business entity that is created by a state statute in the US. This type of structure does not exist in Canada.
November 8, 2019
40 Comments
Individual Tax - Canada
US Taxes for Canadian Snowbirds
What is a Snowbird? If you are a Canadian and spend winter in the U.S. you may, unknowingly, become a US resident under the tax laws of the United States. So, now you are a
September 27, 2019
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Corporate Tax - Canada
Tax Treaty Benefits for Non-U.S. members of LLC
Question: Can a U.S. LLC claim exemption from Canadian corporate income tax under article VII of treaty if it has non-us members?
November 4, 2022
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U.S. Income Tax
U.S. Tax Rules for PFICs – Canadian Context
Passive Foreign Investment Companies (PFICs) In this post: What is a PFIC? Definition of PFIC Deep dive into PFIC definition Gross Income Test Asset Test Exceptions – What is not PFIC? Controlled Foreign Corporations (CFCs)
August 26, 2022
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Corporate Tax - Canada
IT Contractors – Employee Vs Incorporation
Question: I Am An IT Professional. I Just Received An Offer From My Employer. My Employer Wants Me To Incorporate And They Have Agreed To Offer A Better Hourly Rate. I Am Confused Should I Set Up A Corporation Or Become An Employee?
August 17, 2022
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Individual Tax - Canada
Tax on Inheritance in Canada
Question: My mother passed away in India last month. I am receiving my share of the family house. The home is located in India. I am a resident of Canada. Do I need to pay taxes in Canada when this property is transferred to me?
August 10, 2022
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Corporate Tax - Canada
Incidental Rental income of CCPC
Question: My corporation, a CCPC, has a catering business and holds a building as an asset. I rent a portion of the building but use the rest in my operations. Is my corporation now Specified Investment Business?
June 7, 2022
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Individual Tax - Canada
Income Tax Issues for Ukrainians moving to Canada
Canada is going the extra mile to support the Ukrainians affected by the Russian Invasion. With every passing day number of applications for temporary residence is growing. Many of the Ukrainians are already in Canada
May 19, 2022
2 Comments
Individual Tax - Canada
Moving from Canada & Principal Residence Exemption
A lot of taxpayers emigrate from Canada every year, some to the south of the border and others beyond. In Canada, generally, the owners of the residential property are exempt from the taxes on capital
April 7, 2022
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U.S. Income Tax
Controlled Foreign Corporations (CFCs)
The U.S. tax system went through a major overhaul as a result of the Tax Cuts and Jobs Act (TCJA). Beginning in 2018, the U.S. taxes individuals on worldwide income whereas corporations on a Quasi-territorial
March 24, 2022
5 Comments
U.S. Income Tax
IRS form 5471: U.S. Persons with Canadian Corporations
IRS form 5471, Information Return of U.S. Persons With Respect to Certain Foreign Corporations, is one of the most complex forms in the U.S. Expat tax return package. The form has evolved significantly post-TCJA to
March 21, 2022
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