Library | GGFL Chartered Professional Accountants

Personal Services Business – Avoid the Trap

Personal Services Business – Avoid the Trap

The last thing you want, when you incorporate your business, is for Canada Revenue Agency (CRA) to label you a personal services business (PSB). If CRA determines an incorporated individual working as a contractor is really just an employee of the company they are working for, they would be deemed a PSB; a designation that comes at a great cost to the individual.

More Fallout from the Graduated Rate Estate (“GRE”) Tax Rules

More Fallout from the Graduated Rate Estate (“GRE”) Tax Rules

Estates and trusts created through Wills (“Testamentary Trusts”) are now divided in to GRE’s and non-GRE’s. GRE’s enjoy graduated tax rates for a three year period and then become non-GRE’s. Generally, any income taxed in a non-GRE estate or trust is subject to the highest personal tax rates AND a calendar year-end must be adopted.

Amendments to the Principal Residence Exemption Rules

Amendments to the Principal Residence Exemption Rules

The principal residence exemption rules permit a Canadian resident to eliminate all or a portion of the capital gain on the disposition of a principal residence. Starting in 2016, individuals who sell their principal residence (including deemed dispositions) must report the sale on their income tax return and make a principal residence designation to claim the principal residence exemption.

Don’t Pay to Stay – U.S. Residency Rules

Don’t Pay to Stay – U.S. Residency Rules

By Krysta Adamski, CPA, CA, WBLI Chartered Professional Accountants Canada’s increasingly harsh winters and shorter summers have resulted in more Canadian citizens crossing the border to vacation with our neighbours to the south. But while you’re packing your sunscreen and warm-weather clothing, are you also taking note of how this trip might affect your taxes? A lot of […]

Corporate Owned Life Insurance and the Impact of 2017 Tax Changes

Corporate Owned Life Insurance and the Impact of 2017 Tax Changes

Corporate owned life insurance on the life of an owner-manager can be an effective planning tool for Canadian- Controlled Private Corporations. The receipt of life insurance proceeds by a corporation can be used to: fund the buyout of a deceased shareholder’s interest; fund the tax liability owed by a deceased shareholder’s estate; or, offset the economic loss as a result of the death of a key employee. In addition, corporate owned life insurance may assist in securing bank financing.

Abating Penalties with the IRS

Abating Penalties with the IRS

The American tax system involves some of the most complex and onerous reporting in the world. It is of little surprise then that many taxpayers will eventually find themselves facing harsh penalties associated with failing to adequately comply with their reporting requirements.

Planning for Death and Taxes – Incorporating Your Investments

Planning for Death and Taxes – Incorporating Your Investments

As personal and corporate tax rates have fluctuated in recent years, incorporating investments has become an attractive option for Ontario residents holding sizeable portfolios. There are a number of potential advantages to holding investments in a company rather than personally. Incorporating creates flexible opportunities to minimize your personal tax liability during your lifetime and at death.