8 quick facts about the principal residence exemption

Continuing the series of “quick facts” posts (see prior ones about the capital gains exemption and the new financial instruments standards), today is all about the principal residence exemption in Canada. Any residence may be designated a principal residence as long as you “ordinarily inhabit” the home. Ordinary inhabitation includes seasonal living such as yourContinue reading “8 quick facts about the principal residence exemption”

Rolling assets into a corporation and deferring the capital gain

Generally when a disposition of capital property occurs, a gain or loss is recognized. Occasionally the disposition results in no real change to the economic interest of the property, like when an individual transfers property to a corporation they own. A rollover provides a way to defer the gain or loss. Section 85 of theContinue reading “Rolling assets into a corporation and deferring the capital gain”

6 quick facts about the capital gains exemption in Canada

Yesterday I was visiting my parents back home on the farm and enjoying a lazy Saturday afternoon away from the big city. In exchange for some really great ice cream, my Mom asked me for some tax advice related to the lifetime $500,000 capital gains exemption. Long story short, she was under the impression sheContinue reading “6 quick facts about the capital gains exemption in Canada”

Experts weigh in on interest deductibility issue

The Globe and Mail, a Canadian daily, has a feature on their website today where three tax experts from Couzin Taylor LLP and Ernst & Young LLP answer questions from readers about the interest deductibility “feature” of the Federal government’s budget. I’ve blogged about this complicated topic a couple of times now but never reallyContinue reading “Experts weigh in on interest deductibility issue”

Canadian government backs down on controversial budget move

In late March I talked about the Canadian Federal budget, which had been recently released, and how it included a measure to prevent companies from deducting interest on debt incurred to fund foreign operations. I couldn’t understand the logic of the move. It seemed strange for a conservative government normally known to be friendly toContinue reading “Canadian government backs down on controversial budget move”