September 27, 2017
by
Abe Zylberlicht,
Riccardo Zerbino
In its Consultation Paper and draft legislation released July 18, 2017, the Department of Finance proposes to restrict the lifetime capital gains exemption (LCGE). The Department of Finance indicates that the current tax rules do not properly prevent the multiplication of the LCGE. In many cases, the exemption of each individual family member is used to shelter gains on a family business.
April 28, 2017
Finance Minister Charles Sousa tabled the Ontario Budget on April 27, 2017.
The deficit for the 2016-17 fiscal year is projected to be $1.5 billion, with a balanced budget projected for 2017-18, 2018-19 and 2019-20.
January 18, 2017
by
Brian Mitchell
*Updated Jan. 18 2017
With the real estate market booming (or contracting, as the case may be) in your home town, you have decided to cash in on the one income tax break that has remained relatively unchanged for individuals since its inception in 1972: the principal residence exemption (PRE). The concept seems simple enough. Generally, any gain on the sale of a home that has been ordinarily inhabited as a place of residence by you, your spouse, your common-law partner or your child will be exempt from income tax. However, the details of the rules do not reflect this simplicity.
September 14, 2016
As Baby Boomers begin to hit retirement age, a major shift is occurring in succession planning. Trillions of dollars worth of businesses will change hands in the next decade. If this shift is not well managed, the economic impact will be significant. Ineffective transitions could result in decades of experience and knowledge being lost.
June 20, 2016
by
John Bujold
A common question that we often get as farm tax advisors is whether or not farm property can be transferred to the next generation by way of a gift. This topic is becoming more and more important as nearly half of all farmers in Canada are 55 years of age or older and are preparing themselves for succession. Succession planning is the most discussed topic between farmers and their tax advisors. Contributing to this dilemma is that rising land values is creating significant amounts of wealth and making life difficult for the farmers to equalize their estates when there are active and non-active children involved in the farming business. Succession has become much more difficult, and a traditional solution of life insurance and non-farm assets may not be enough to equalize the estate.
April 21, 2016
by
Guy Desmarais
Recent amendments to the Income Tax Act have made fundamental changes to the tax rules for estates and wills. Lawyers and trustees should familiarize themselves with these new aspects.
March 30, 2016
by
Ranjan Thiruchelvam
Farm groups regularly raise awareness about the importance of succession planning, but many farmers have been slow to commit. According to studies, many believe it is simply “too early” in the life cycle of their business to devise a succession plan. But, those who put in the work to build a succession plan benefit enormously from a host of benefits and rewards.
February 23, 2016
by
Ranjan Thiruchelvam
Previous issues of Farm Alert have discussed the benefits of incorporating a farming business, factors to consider before and after incorporating, and the importance of maintaining a pure farm corporation in order to take advantage of the lifetime capital gains exemption on a potential sale or transfer of family farm corporation shares. This article discusses issues to be aware of when a family farm corporation must be discontinued or reorganized. A few practical scenarios demonstrate the downside of holding farm assets in a corporation.
January 6, 2016
by
Peter Hobb
Despite farm groups working hard to advise farm owners of the need to plan for their eventual succession, many farmers appear to be reluctant to plan properly. Though there are many reasons, studies show that the number one reason is that it is “too early” to begin planning. But is it really too early, or is there just an unwillingness to plan for succession?
May 29, 2015
by
Cheryl Grusnick
Are you one of the many Canadians who have inadvertently overcontributed to their Registered Retirement Savings Plans? If so, you should be aware that excess RRSP contributions are subject to a penalty tax of one per cent per month of the excess contribution.
