Gifts Directed to Other Donees: Loss of Charitable Status
Gifts Directed to Other Donees: Loss of Charitable Status In some situations, a registered charity may be asked to receive donations on behalf of another organization or cause. While this may seem like a good way to generate funds and reward donors with charitable contribution receipts, it can have serious implications for the charity. A…
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Paying Rent to Non-Residents: Withholdings Required
Paying Rent to Non-Residents: Withholdings Required In a March 30, 2023 Tax Court of Canada case, the taxpayer was assessed for failing to withhold taxes on rent paid on Canadian real estate to a non-resident. Penalties and interest were also assessed. The information known to the taxpayer was limited to an Italian telephone number on…
Disability Tax Credit (DTC): Electronic Applications
Disability Tax Credit (DTC): Electronic Applications The DTC is a non-refundable tax credit that provides tax relief for individuals (or those that support those individuals) who have a severe and prolonged impairment in physical or mental functions. To access the DTC, eligible individuals must apply for it by completing Form T2201, Disability Tax Certificate. Recently,…
Multigenerational Home Renovation Tax Credit: More Housing Support
Multigenerational Home Renovation Tax Credit: More Housing Support The multigenerational home renovation tax credit is a refundable tax credit applicable to the costs of constructing a secondary suite for an eligible person (generally a relative either age 65 or over, or eligible for the disability tax credit) to live with a qualifying relation. The tax…
Cryptocurrency Exchange Cessation: Recordkeeping
FIRST HOME SAVINGS ACCOUNT (FHSA) : A NEW SAVINGS TOOL A June 7, 2023 CryptoTaxLawyer.com article (Binance Bids Canada Bye-Bye! Canadian Tax Implications for Cryptocurrency Investors and Traders) reminded Canadians about the importance of maintaining an offline record of transactions as exchanges, such as Binance, shut down in Canada. On May 12, 2023, Binance announced…
First Home Savings Account (FHSA): A New Investment Tool
FIRST HOME SAVINGS ACCOUNT (FHSA) : A NEW SAVINGS TOOL The tax-free FHSA was introduced in 2023 to help first-time home buyers save up to $40,000 for a home purchase. Individuals eligible to open an FHSA must be at least 18 years of age and resident in Canada. The individual must also have not lived…
CPP Enhancements: Higher Contributions & Benefits
CPP ENHANCEMENTS : HIGHER CONTRIBUTIONS & BENEFITS In 2019, the government commenced a two-part enhancement to the Canada Pension Plan (CPP), with full implementation to be completed in 2025. Phase 1 occurred from 2019-2023; phase 2 will occur from 2024-2025. Overall, the changes will require larger contributions but also will provide larger benefits. Pre-CPP enhancement…
TFSA: Carrying on a Business Within It
TFSA: Carrying on a Business Within It Earnings in a TFSA are typically not taxable. However, earnings in a TFSA become taxable when they are earned from carrying on a securities trading business. n a February 6, 2023 Tax Court of Canada case, CRA had assessed the TFSA on the basis that it was carrying…
Digital Adoption Program: Grants, Loans & Professional Assistance
Digital Adoption Program: Grants, Loans and Professional Assistance On March 3, 2022, the Canada Digital Adoption Program (CDAP) was launched and opened for application. This $4 billion program provides funding through two initiatives. Grow Your Business Online Initiative This initiative provides $2,400 micro-grants and access to e-commerce advisors to help applicants adopt digital technology. Grants…
Money Received from Abroad: CRA Reviews
Money Received from Abroad: CRA Reviews As of 2015, financial institutions must report electronic fund transfers (EFT) into Canada of $10,000 or more not only to FINTRAC but also to CRA. Where two or more EFTs of less than $10,000 each are made within 24 consecutive hours by or on behalf of the same individual…