On July 27th, 2018 the federal government released draft legislation related to sales and excise taxes and related to income tax, including extended reassessment periods. Canadians are invited to comment by September 10th, 2018.
Guaranteed Income Supplement (GIS) The Guaranteed Income Supplement (GIS) is available to low-income Old Age Security (OAS) recipients. It is usually based on the prior year income, but if an OAS pensioner has a reduction in income, Service Canada may base GIS on estimated current year earnings. Note that capital gains can reduce the GIS payable even if they are offset by capital losses carried forward.
Capital vs Expense
Everyone in business, or with a rental property, is faced at some point with the decision as to whether an expense is capital or current in nature - in other words, whether the cost should be capitalized or expensed. There are general guidelines that can be followed to determine the answer, but in some cases the decision is left to the courts.
Buying Real Estate From a Non-Resident of Canada Know the tax implications of purchasing Canadian-situated real estate from a non-resident. Not knowing could be very costly!
Consultation on Canadians' Unclaimed Bank Balances and Unclaimed Pension Balances
On June 22nd, 2018 the Government of Canada released for comment a consultation paper. The aim of the consultation is to modernize the unclaimed balances regime and provide proposals for an unclaimed pension balances framework. Written comments should be sent by email, by August 21st, 2018.
Transferring Shares to a Registered Account
You can transfer shares from a non-registered account to a registered account such as an RRSP. However, if you transfer shares on which there is a loss, the loss will not be deductible. If you transfer shares on which there is a gain, you will have a taxable capital gain.