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Tax advisory
Income Tax Considerations in Structuring Real Estate Transactions with Life Interest
A life interest in real estate provides an exclusive right to use a property during the lifetime of the holder of the interest. Often, an individual will incorporate a life interest on a transfer of a property by way of gift to a relative in order to ensure that the individual has use of the property during their lifetime, to know for certain who will own the property when they die, and to avoid probate fees upon death.
Aug 11, 2014
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Tax advisory
Safe Income Strips
Safe income accumulates to particular shareholders on a per-share basis, with consideration given to the holding period of the share. This can result in differing amounts of safe income for different shareholders, particularly where reorganizations have occurred in the past or where shares have changed hands. As a result, an understanding of the share ownership history is required.
Darlene Shaw Greg Leslie Jul 23, 2014
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Tax advisory
U.S. citizens and Canadian trusts
Trusts are important tools in Canadian tax and estate planning. Discretionary family trusts, in particular, have become common and are continually evolving. Some of the most powerful benefits of these tools include: <ul> <li><strong>Flexibility</strong> – the ability to maintain control of assets while directing income and value as the trustees see fit.</li> <li><strong>Income splitting</strong> – directing income of the trust to lower-income beneficiaries (usually family members) to minimize the overall family tax burden.</li> <li><strong>Capital splitting</strong> – allocating capital gains to beneficiaries, enabling the use of multiple capital gains exemptions.</li> </ul>
Todd King May 29, 2014
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Tax advisory
Mitigating U.S. Tax exposure through the Closer Connection Statement
Canadian persons that spend significant time in the United States can become subject to U.S. taxation and reporting requirements unexpectedly, even if they are not earning income from U.S. sources.  Starting June 30th, 2014 a new initiative will begin that is designed to track a Canadian person’s movement across the Canada/U.S. border.  Prior to this new initiative, many Canadian persons felt, perhaps justifiably, that U.S. authorities had no way of actually knowing how many days they were present within their border.
May 29, 2014
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Tax advisory
Holding Companies Demystified
As tax professionals, we are often asked by clients to explain the concept and appropriate uses of holding companies. The answer generally is not straightforward; a variety of tax and commercial factors are relevant in any particular case. Though it is beyond the scope of this article to provide a complete list of potential benefits and drawbacks, an introduction to several key issues will be examined.
May 28, 2014
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Indirect tax Tax advisory
Oh! Taxman, what big teeth you have!
Today, no one seems to doubt the existence of tax havens. But tax hell... does it exist? Based on the testimony of taxpayers and tax practitioners, one might wonder. Reports of abuse and misconduct by the tax authorities seem increasingly common.
Mar 5, 2014
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International Tax advisory
RESP and TFSA Accounts for U.S. Citizens
Recently, Canada and the U.S. reached an agreement providing that Canada will assist with the collection and reporting of information to the U.S. Internal Revenue Service (IRS) on U.S. persons living here in Canada in order to comply with the U.S. Foreign Account Tax Compliance Act (FATCA). See our February U.S. Tax Flash for details on the agreement.
Feb 25, 2014
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Tax advisory
U.S. Citizens in Canada: Are you sure you don’t owe U.S. income tax?
The U.S. income tax filing requirements of U.S. citizens living in Canada has seen more than its fair share of press coverage in recent times. That said, despite the onerous personal income tax filing obligations and related foreign bank and financial account disclosure requirements imposed on U.S. citizens living outside of the U.S., few of these taxpayers end up owing U.S. income tax.
Mike Hayward Feb 25, 2014
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Tax advisory
Considerations on incorporating your business or professional practice
If you have an unincorporated business or professional practice, consider incorporating to take advantage of various tax planning opportunities not otherwise afforded to unincorporated businesses.
Feb 4, 2014
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Indirect tax Tax advisory
Providing services to a non-resident? Prove it!
This article is to shed light on the age-old question – are the services I am providing to a non-resident exempt from tax or not? As is true of most questions relating to sales tax implications, there is no clear-cut answer. To answer this question, you need to contemplate several other questions first.
Feb 3, 2014
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International Tax advisory
Snowbirds and the Closer Connection Exception
Fall is the time of year when Canadian snowbirds pack up and head south for the warmer winter in the U.S. Some limit their stay to a maximum of 182 days, under the mistaken belief that this will avoid being considered a resident of the U.S. for income tax purposes (and conveniently brings them home just in time for spring). Many do not realize that the U.S. residency rules for income tax purposes involve a much shorter time period.
Shelley Smith Dec 5, 2013
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