Graham Scott Enns LLP Chartered Professional Accountants

I have prepared a summary outlining what income sprinkling is and how it impacts the taxation of individuals in Canada and in particular Ontario.  I am hopeful that this documents will be useful to you in understanding the issues and help separate fact from fiction that is currently being reported in the media.

Income Sprinkling what’s the fuss – September 19, 2017

Highlights:

Tax Ticklers
Tax For Private Corporations:  Major Changes Proposed
Employee Discounts On Merchandise:  Change in CRA Policy
Death Benefits:  Tax-Free Employment Benefit
Retirement Income Calculator:  Ensure you are Financially Ready
Return of a Gifted Property:  Charitable Organizations Beware
Voluntary Disclosure Program:  Proposed Tightening
Withholdings On Remuneration To Non-Resident:  Get your CRA Filings Correct
Professional’s Work In Progress Exclusion:  Changes are Coming
Electronic T4 Slips:  Now More Widely Available

Tax, Tips and Traps 3rd Quarter – Issue 119

Highlights:

Tax Ticklers
Employment Insurance: Some Improvements
Sharing Economy: Know Your Tax Obligations
Uber Drivers: Registration for GST/HST
Personal Use Asset in a Corporation: GST/HST and Other Tax Issues
Donation of Publicly Traded Securities: Increase the Value of Charitable Giving
Investment Management Fees for RRSPs, RRIFs, and TFSAs: Are Changes Coming?
Website History: Finding What You Thought Was Lost on the Internet
Charities and For-Profits Working Together: Receipts for Cause-Related Marketing
Leave of Absence: There Are Tax Obligations

TTT118

Tax Highlights of the 2017 Federal Budget Commentary Include:

A.  Personal Income Tax
B.  Business Income Tax
C.  International Tax
D.  Sales and Excise Tax
E.  Other Measures
F.  Previously Announced Measures

Read the full article below.

The 2017 Federal Budget Commentary

Highlights:

Tax Ticklers
Principal Residence Exemption (PRE):  Changes to Reporting
Employment Expenses:  Requirements for Deduction
Meal Reimbursements:  A Taxable Benefit?
Taxpayer Relief:  Financial Hardship
Payroll Advances:  Tax Consequence
Objections:  Not so Fast
CRA Strategies on Offshore Tax Evasion:  The World is Shrinking

Tax, Tips & Traps – Issue 117

2016PersonalIncomeTaxReturnChecklist

Highlights:

2016 Year End Planning
2016 Remuneration

2016-ye-tax-planning

2016 Personal Income Tax Checklist

2016-personal-income-tax-return-checklist

If you sell your home, there is new income tax reporting to consider.

Under current income tax rules, when you sell your home for a profit there is no income tax and there is nothing reported in your income tax return for the year of sale assuming your home qualifies as a principal residence.

Beginning with the 2016 tax year under new proposed income tax measures, the Canada Revenue Agency will require a taxpayer to report the disposition of property that qualifies for the principal residence exemption.

The year of acquisition, proceeds of disposition and the description of the property are the information that will have to be reported.  We will need this information in order to prepare your income tax return.

Further information can be found on the Canada Revenue Agency website as follows.

http://www.cra-arc.gc.ca/gncy/bdgt/2016/qa11-eng.html

Other changes have been made to the principal residence exemption that would impact non-residents and trusts, however in general terms the good news is that in a situation where an individual (or couple) who were at all times resident in Canada own one or more residences there has been no additional income tax levied.

Where an individual (or a couple) owns more than one residence, such as a city home and a cottage, income tax continues to apply on any gain realized on the disposition of a property not designated as a principal residence.  An individual (or a couple) can only designate one residence as their principal residence.

Should you have questions do not hesitate to contact you trusted advisor at Graham Scott Enns.