There are many tax-planning tips for death and estate, but not much is written about the death of your accountant who has been taking care of the family’s finances for decades. I just read a statistic that says 43% of financial advisors are over the age of 55, and are approaching retirement. Even my own experience with new clients tells me that there are more than a few well-established financial advisors getting ready to retire in the Greater Vancouver Area. If you suspect that your ... Read More
Vancouver Sale of Rental Property and the Principal Residence Exemption
While at dinner recently, a friend of mine, Carla, informed me that she sold her rental property and was curious about the amount of tax that she would owe on the gain. Upon further questioning, I uncovered that, in the past, my friend had lived in this rental property (a condo) for many years. She purchased a second condo a few years back and moved into it. She had then rented out the first condo—the one she just sold. From her line of questioning, I realized that, other than the tax ... Read More
Guidance for Vancouver Small Businesses Using QBO
Using QBO - QuickBooks Online More small-business owners are migrating from desktop accounting software to a cloud-based system. Cloud-based accounting software, such as QBO, allows the user access anywhere in the world. This ease of access, combined with the ability to download transactions from banks, vendors, credit card companies, etc., makes bookkeeping so straightforward now, pundits claim, that small businesses using cloud software no longer need bookkeepers. Unfortunately, as great as ... Read More
Vancouver Tax Planning: Time to Look at the Capital Dividend Account
As we reach the mid-point of the 2017 calendar year, it has been a good financial year for many British Columbian investors. Real estate gains continue and, for equity investors, the stock market has been on a tear since the fall of 2016. Vancouver Corporate Tax Planning With the conclusion of the personal tax-filing season, summer and fall is the time for corporate tax planning. The one tax planning item that should be looked at this year, due to such favorable macro-financial conditions, is ... Read More
New Tax Reporting Rules For Principal Residence Sales
New Real Estate Tax Reporting Rules in Canada
Canadian Tax advisors have always known that the principal residence capital gains tax exemption rules are much more complex than the general public can grasp. Until recently, there have been no reporting requirements on fully tax-exempted gain on the sale of a principal residence which only distorted the taxpayer’s sense of ease and entitlement of the exemption. Although Ottawa changed the reporting rules on October 3, 2016, the new ... Read MoreMoving Abroad Part Two
Canadians moving abroad have the option to either continue maintaining their residential ties to Canada or sever them (or most of them) completely. By continuing ties, the obligation to pay Canadian taxes will continue. Similarly, if a Canadian plans to not pay taxes on income earned outside of Canada, they must sever ties with Canada so that they’re no longer considered a Canadian “resident” for taxation purposes.
When Cutting Ties
If a Canadian chooses to sever ties, steps must be ... Read MoreMoving Abroad?
When a Canadian is deciding if they should work abroad for a few years, thought should be given to whether or not they want to continue holding ties to Canada and pay Canadian taxes on worldwide income or sever most of their ties with Canada so that their obligations to pay Canadian taxes are limited only to income earned from Canadian sources. Many taxpayers automatically assume that taxes will be lower if ties to Canada are severed. Although this might be correct, taxpayers should pay close ... Read More
