Capital Gains Tax

Amendment to Capital Gains Tax

The 2024 federal budget (Budget 2024) proposed to increase the capital gains inclusion rate for individuals, trusts, and corporations. Specifically, 66.7% of capital gains realized on or after June 25, 2024 would generally be included in income for tax purposes (this is up from 50%). To provide some relief, the budget proposed that capital gains up […]

By |2024-05-22T14:36:22-07:0005/22/2024|Taxes|0 Comments

CRA Announces Changes in 2023

The Canada Revenue Agency (“CRA”) has announced the following changes to the Income Tax Act for 2023.

Advanced Canada workers benefit (ACWB)

Advance payments of the Canada workers benefit (“CWB”) are now issued automatically under the ACWB to those who received the benefit in the previous tax year. As a result, Form RC201, Canada Workers Benefit Advance Payments Application, has been discontinued.

Starting […]

By |2024-01-30T16:08:43-08:0001/30/2024|Taxes|0 Comments

BC Renter’s Tax Credit

Budget 2023 introduced an annual income-tested renter’s tax credit that will give $400 to low- and moderate-income renter individuals and families with an adjusted income of $60,000 or less. Individuals and families with an adjusted income greater than $60,000 and less than $80,000 may receive a reduced amount.

You can start claiming the renter’s tax credit on the 2023 T1 […]

By |2024-01-24T15:38:53-08:0001/24/2024|Taxes|0 Comments

Underused Housing Tax

The Underused Housing Tax is an annual federal 1% tax on the ownership of vacant or underused housing in Canada that took effect on January 1, 2022.

The tax generally applies to foreign national owners of housing in Canada. However, in some situations, this tax also applies to some Canadian owners (such as certain […]

By |2024-01-11T16:30:52-08:0001/11/2024|Taxes|0 Comments

Prohibition on the Purchase of Residential Property by Non-Canadians

Key Highlights

  • The Act defines residential property as buildings with 3 dwelling units or less. This includes semi-detached houses and condominium units. The Act doesn’t prohibit the purchase of larger buildings with 4 or more dwelling units.
  • Non-Canadians can purchase residential properties located outside of Census Metropolitan Areas (CMA) and Census Agglomerations (CA).
  • Certain exceptions apply allowing Non-Canadians to purchase a […]
By |2024-01-11T16:28:30-08:0001/11/2024|Taxes|0 Comments

Residential Property Flipping Rule

For 2023 and subsequent taxation years, Budget 2022 introduced a new deeming rule for residential real estate (including rental property). The new deeming rule is to ensure that profits from the disposition of flipped property are taxed as business income.

What is property flipping?

Property flipping involves purchasing residential property and reselling the property in a short period of time to realize a […]

By |2023-06-16T06:38:34-07:0006/16/2023|Taxes|0 Comments

US Citizens that own over 10% of a Canadian Corporation

Foreign Corporation that is not a PFIC- Form 5471

At Focused Tax Strategies, we feel obligated to inform our US clients about their obligations to file form 5471, failing which they could be liable for significant fines and exposure to life-long audits. Given the complexity of these situations, we are NOT accepting clients who need a 1040 and/or state return who own […]

By |2023-05-25T14:16:56-07:0005/25/2023|Taxes|0 Comments

Tax-Free First Home Buyer’s Savings Plan (FHSA)

First Time Home Buyers

In the Budget 2022, the government proposed the introduction of the Tax-Free First Home Savings Account (FHSA). This new registered plan would give prospective first-time home buyers the ability to save $40,000 on a tax-free basis. Like a Registered Retirement Savings Plan (RRSP), contributions would be tax-deductible, and withdrawals to purchase a first home—including from investment income—would be […]

By |2023-01-30T15:37:09-08:0001/30/2023|Taxes|0 Comments

Cryptocurrency Taxation Issues

Cryptocurrency is treated as a commodity for tax purposes

Any income from the sale or transfer of such cryptocurrency is treated either as business income or as a capital gain. Similarly, losses are either treated a a business loss or capital loss and can be set off against business profits or capital gains, respectively

Taxable Transactions

Taxable transactions occur in the following situations:

  • You […]
By |2023-01-07T14:13:24-08:0001/07/2023|Business Taxes, Taxes|0 Comments
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