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 Randy Larson|2024-12-04T09:27:56-08:0001/11/2024|Taxes|Comments Off

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 Randy Larson|2024-12-03T06:26:08-08:0006/16/2023|Taxes|Comments Off

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 Randy Larson|2024-12-03T06:26:43-08:0005/25/2023|Taxes|Comments Off

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 Randy Larson|2024-12-03T06:27:12-08:0001/30/2023|Taxes|Comments Off

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 Randy Larson|2023-01-07T14:13:24-08:0001/07/2023|Business Taxes, Taxes|Comments Off

Filing Considerations for the 2022 Tax Year

There are various deadlines for filing and paying taxes in Canada for the 2022 tax year.

Mar 1, 2023 Last day for 2022 RRSP contributions

Mar 15, 2023 Due date for tax instalments for 2022 (see below)

Feb 28, 2023 Last day for filing T4s for employees, and T5s for dividends paid

Mar 31, 2023 Last day for […]

By Randy Larson|2023-01-03T06:57:48-08:0012/29/2022|Taxes|Comments Off

GST Rebates Temporarily Increased

The first of the Government of Canada’s new financial support measures took effect on November 4, 2022 with the additional one-time goods and services tax credit (GST credit) payment.

This additional one-time payment will double the GST credit for six months for those who receive it, to help make life more affordable.

GST credit recipients do not need […]

By Randy Larson|2022-12-31T13:41:11-08:0012/10/2022|Taxes|Comments Off

New Canada Dental Benefits for Children

Seeing a dental care professional is important not only for oral health, but for overall health. In Canada, a third of people do not have dental insurance, leaving many unable to visit an oral health professional to get the dental care they need.

On December 1, the Government of Canada announced that applications for the new interim […]

By Randy Larson|2022-12-31T13:41:50-08:0012/06/2022|Taxes|Comments Off

Personal Service Corporations

Rather than hiring employees directly, many taxpayers retain non-employees to provide services, whether to fill a short-term need, obtain specific expertise or otherwise fill a role that is not suited to a full-time position.

These situations carry significant income tax risk, and that risk depends on whether an individual or corporation is providing the services.

When the service provider is an […]

By Randy Larson|2022-12-31T14:03:01-08:0010/06/2022|Taxes|Comments Off

Tax Considerations When Moving Back To Your Home Country

Moving Back To Your Home Country

As Residents of Canada’s Capital move from Canada to the United States or vice versa, a multitude of unique lifestyle, immigration, financial, tax and estate planning issues must be considered. Ideally, it is best to plan or be aware of these considerations prior to the move, not afterward. In this article, we will discuss some of […]

By Randy Larson|2024-12-03T06:27:49-08:0006/28/2022|Taxes|Comments Off

BC Transfer Tax for First Time Home Buyers

Updated Canadian Dental Care Plan