Income Tax

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 properties by Canadians. This article is focused primarily on the Individual Canadian taxpayers disposing of U.S. property interest, and not on owning the U.S. property. Further, due to the...

Most 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 are popular amongst Accountants, Lawyers, and Medical Professionals. Disclaimer: This post is an income tax...

This article focuses on the limited emigration issues specific to shareholders of CCPCs related to their shares. Due to the complex nature of residency issues and tax implications, readers must exercise extreme caution while relying on limited resources on the internet. Every taxpayer has its unique circumstances and should consult a professional tax accountant specializing in tax residency...

Pandemic brought an extra spice to financial markets! The financial markets climbed to a record high and still climbing, due to too much money in the economy. Like many other stocks, cryptocurrencies saw an uptick in investments, mostly by novel investors. Extremely low interest rates and increased stimulus from the government contributed to the influx of many new Canadian traders!...

Global Intangible Low-Taxed Income – Simplified! The Tax Cuts and Jobs Act of 2017 (TCJA) brought some major changes for U.S. taxpayers. The Global Intangible Low-Taxed Income (GILTI) regime was enacted to tax the U.S. Shareholders of Controlled Foreign Corporations (CFC) on a current basis. TCJA introduced Transition tax and GILTI. Transition tax (Sec 965) is a one-time tax on the...

The Internal Revenue Service (IRS) has extended the deadline to file Individual income tax returns for 2020 in the U.S. The new deadline is now May 17, 2021 (the usual deadline is April 15 every year). Deadline is extended for both filing and payment of taxes, and applicable to individual taxpayers only. This includes the individuals who pay self-employment taxes as well. There is no...

A hybrid entity is an entity that has different tax treatments in different countries. The typical examples of these entities are US Limited Liability Company (LLC), Limited Liability Partnership (LLP) or Limited Liability Limited Partnerships (LLLP). We have previously published a high-level overview of the taxation of US LLCs in Canada. This post is an attempt to further explain why using...

Tax season is in full swing! Millions of Canadians and Residents are looking to file their taxes. Traditionally, taxpayers with simple tax situations tend to visit drop-off locations of various tax service providers. With Covid-19, many individual income tax preparers are offering online/remote services. Along with tax preparers and tax professionals, fraudsters and cybercriminals are working...

Cryptocurrency is the buzzword of 2021. If you’re an investor, not a single day goes by without a headline about bitcoin popping up in the newspaper, a tweet about cryptocurrency going viral, or your investor friends singing the praises of blockchain technology. It is hard not to get involved, and it is never too late to learn. Know about basic ideas and concepts behind cryptocurrency here. If...

2020 Tax season just started. Individual income tax and benefits returns are now open for e-filing. A checklist is compiled to help you preparing all the documents for your tax appointment. Please do not forget to ask your employer T2200 or T2200s in order to claim work from home expenses for 2020. CRA has issued T4As for different covid-19 related assistance payments. If you are running an...