Category: Blogs

In this blog we will be discussing on how the various financial benefits received during 2020 Covid pandemic from Government of Canada will be taxed in the hands of individuals. Canada Emergency Response Benefit (CERB) and Canada Recovery Benefit (CRB) have become important income support to employed and self-employed individuals who are directly affected financially during Covid-19 pandemic. If you qualified for CERB starting back in March, it meant ongoing payments of $2,000 a month up to a maximum of $14,000 in 2020. However, there was a lot of confusion surrounding CERB and many of us did not realize that …

Effective October 1,2020, the Trust in Real Estate Services Act, 2020 (“TRESA”)- Bill 145 was approved and has allowed the formation of Personal Real Estate Corporations (PREC) in Ontario. As of October 1,2020, real estate salespeople and brokers are allowed to incorporate their real estate business in Ontario and can receive their self-employed income to be paid into their PREC. Personal Real Estate Corporations bring many tax benefits for realtors which we will discuss below. However, the decision to form a PREC should be made after careful consideration of an individual realtor’s business, family, financial and personal situation. Before you …

For business owners, implementing the below mentioned tax strategies before year end would save tax dollars by claiming higher tax deductions against your business income. There is still time left to take advantage of these tax strategies before year end. Business Tax Tips to be implemented before the end of the year: Maximize your CCA Claim – Purchase business assets before the year end – Do not wait until the next year to purchase business assets for your business. If you purchase the assets in the next few days until Dec 31st , then your corporation can claim 6 months of tax depreciation …

Are you the owner of a rental real estate or an investment property? Are you thinking of selling or have already sold your investment property? In this article, we will discuss the various tax implications of selling investment properties in Canada. This section is broken down into 2 parts: Taxable Capital Gain & Recapture of CCA. Please read below to understand each section. Taxable Capital Gain When you sell investment real estate property in Canada, you are required to pay Capital Gains Tax on the profit you made from the sale of real estate. The Taxable Capital Gain is calculated as follows: …

CERB has been received by six million Canadians who have been financially impacted during Covid-19 pandemic. However, individuals who have collected CERB payments during 2020, may need to pay tax when they file their 2020 personal tax returns. CERB payments are a taxable benefit as Canada Revenue Agency has not deducted any income tax at source from the payments made to individuals; this means that the recipients of CERB have received full $2000 for each period without paying any tax on it. The total amount received for CERB will be reported as income for 2020 personal tax filing. The maximum …