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Tax Tip: Defer Capital Gains

When you sell certain types of property including shares, real estate, a business or farm for a gain you may be able to defer the tax on the capital gain for up to 5 years and in in certain circumstances, 10 years. The Income Tax Act allows you to defer a portion of your capital gain when you sell property but do…

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Selling Your Business & Saving Taxes

You started your business from scratch and built it into a successful enterprise. Perhaps you want to retire and spend time with your family or maybe you want to move on to something different. Either way the value built up in your business will result in a tax a tax bill. Luckily the Income Tax Act provides you the opportunity…

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What is an Estate Freeze?

An estate freeze is not a mid-winter funeral! If you have a business, the estate freeze is a way to fix the value of your business or investments and transfer future growth to your children and beneficiaries. The result is that you can split income by shifting capital gains and dividends to other family members and minimize the taxes due at…

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Renting Your Home Can Be Taxing

What happens when you start renting out your home? Understanding how the income tax act looks the situation can help you avoid an un-expected tax bill. When you sell your principal residence, you generally will not incur a capital gain because of the rule that exempts the principal residence from tax. However, converting all or a portion of your principal residence…

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The Principal Residence Exemption

When you sell personal use property such as a car, jewelry, or furniture for more than you paid for it, you have to report and pay income tax on the net capital gain. The definition also includes real property, including the principal residence you own. The Income Tax Act provides a principal residence exemption for capital gains on the sale…

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Renting Property – A Little Tax Planning Can Go A Long Way

So you have decided to take the plunge. You have a house and lot picked out. The price is right and it looks like you will have a positive cash flow. Perhaps you even have some renters in the pipeline all ready to move in. But you still have questions about the tax implications. A little tax planning now can…

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