tax planning (8)

Section 85 Notes

http://www.canadian-accountant.com/content/practice/dale-et-al-v-the-queen-timing-on-issue-of-shares-in-section-85-rollover

 

Important Take Aways from Dale et al. v. The Queen

Tax results are sometimes determined by laws outside of the Income Tax Act or the findings of the Tax Court. How and whether a legal transaction is recognized for tax purposes often turns on the terms of any agreements and whether the common law and legislative provisions of the jurisdiction in which the transaction is made find the transaction to be valid. If the legal transaction is valid and properly documented under the laws under which it was affected, the CRA is required to also find the legal transaction valid unless it has statutory authority to find otherwise.

Implementing a Section 85 rollover does not require the share consideration to be issued at the time the property is transferred, or even within the same tax year. The rollover does require that there be sufficient evidence of the obligation to issue the shares and that the shares be issued within a reasonable period of time given the circumstances.

Lastly, this case is a reminder that previous errors are not always fatal to a taxpayer's situation. Depending on the nature of the error, our experienced Canadian tax lawyers can implement strategies to correct outstanding errors.

This situation may have turned out well for Bernard and Paul Dale, but getting that positive result required years of litigation, expense and stress which could have been avoided if the shares had been properly issued in 1985 as intended.

With over 30 years of experience as both a lawyer and chartered professional accountant, he has helped start-up businesses, cryptocurrency traders, resident and non-resident business owners and corporations with their tax planning, with will and estate planning, voluntary disclosures and tax dispute resolution including tax audit representation and tax litigation. Visit www.Taxpage.com and email David at david@taxpage.com. Read the original version of this article on Taxpage.com. 

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Tax Planner Thoughts for 2022

http://www.canadian-accountant.com/content/practice/tax-topics-we-re-thinking-about-this-fall

 

"The Liberals have indicated they would continue to move forward with plans to allow Canadian controlled private corporations to immediately deduct up to $1.5 million of "growth investments" announced in their 2021 budget (see here for a budget commentary).

The Conservatives propose providing a 5% investment tax credit for any capital investment made in 2022 and 2023, with the first $25,000 to be refundable for small businesses and a 25% tax credit on amounts of up to $100,000 that Canadians personally invest in a small business over the next two years.

Both the Liberals and Conservatives also propose additional tax credits/incentive to encourage investment in green technology and businesses.

As a result, 2022 may be a good year for businesses to consider making significant capital investments, especially "green" ones. Businesses may be able to take advantage of this by planning their own capital expenditures or by selling their products and services to clients who are making capital expenditures."

 

Are Business Owners' Affairs In Order?

As indicated above, the Liberals certainly, but also even the Conservatives, are talking about increasing CRA scrutiny, especially of the "wealthy." As detailed here, starting this year there are increased reporting requirements for trusts, and as detailed here, there is a general trend towards additional corporate disclosure requirements. All this suggests scrutiny of businesses and their owners at a higher level than ever before.

Tax legislation has also changed significantly over the last decade and the last two years have been chaotic, resulting in many business and personal changes.

Given all of the above, we suspect that many corporate structures and estate plans may now be dated and due for a review.

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Keep Knocking Forever Young

PEAK Disclosure - Click to reflect

Hope your holidays have been going well, and my prayer is that 2021 is full of joy and peace for you, your family and the organizations that you care for.

As Bob Dylan once said, “May God Bless you all with peace, tranquility and good will.”

Cheers

Tim

https://improvingfutures.ning.com/blog/merry-christmas-2020

https://improvingfutures.ning.com/blog/holiday-schedule-year-end-2020

https://improvingfutures.ning.com/blog/your-tv-interview-with-tim-2020-year-end-tax-review

https://improvingfutures.ning.com/blog/meet-tim

 

All I can do is be me, whoever that is.

 
 

Forever Young

The Band
May God bless and keep you always,
May your wishes all come true,
May you always do for others
And let others do for you.
May you build a ladder to the stars
And climb on every rung,
May you stay forever young,
Forever young, forever young,
May you stay forever young.
May you grow up to be righteous,
May you grow up to be true,
May you always know the truth
And see the lights surrounding you.
May you always be courageous,
Stand upright and be strong,
May you stay forever young,
Forever young, forever young,
May you stay forever young.
May your hands always be busy,…
 
Source: Musixmatch

 

Knockin' On Heaven's Door

Mama take this badge from me
I can't use it anymore
It's getting dark too dark to see
Feels like I'm knockin' on heaven's door
Knock-knock-knockin' on heaven's door
Knock-knock-knockin' on heaven's door
Knock-knock-knockin' on heaven's door
Knock-knock-knockin' on heaven's door, eh yeah
Mama put my guns in the ground
I can't shoot them anymore
That cold black cloud is comin' down
Feels like I'm knockin' on heaven's door
Knock-knock-knockin' on heaven's door
Knock-knock-knockin' on heaven's door
Knock-knock-knockin' on heaven's door
Knock-knock-knockin' on heaven's door
Knock-knock-knockin' on heaven's door
Knock-knock-knockin' on heaven's door
Knock-knock-knockin' on heaven's door
Knock-knock-knockin' on heaven's door…

Source: LyricFind
 
 
I got on a little rabbit trail while giving some advice on charity year end tax receipt processing. I'll post the advice below in a min, just thought you might like a little music to help you along the research path that came with this bit of adventure. ~ TLR
 

FW: Sample Guidance on Donations for Year End Eligibility for Tax Receipts 2020

 

I thought this maybe of interest to my friends associated with charity and non profits.

 

As year end fast approaches the acceptance and classification of which year to apply a donation that comes in over the next week or so can become problematic and is often a cause of some stress for us. This appeal that I received today from SALTS which is a wonderful organization in the marine training arena reminded me that this would be a good opportunity to share some guidance around year end items with respect to charitable gifts being received and given.

 

SOP  recommendation.   When you receive a chq in the mail, keep the envelop along with a copy of the chq  to demonstrate the post mark and thus the allocation to the year is correct with no doubt should it ever be questioned.  I also  always recommend that you keep a photo copy of all chq’s received as a general standard operating procedure ( SOP ) , print a copy of any etransfers received as well, along with any offering envelops received.  CRA can ask to see these and it’s good to have for any internal auditing requirements that may come up during bookkeeping and reviews.  When posting these year end items, set them up in your accounts receivables to be paid later, a DR in the books and a CR in donations  received ledger.  When they are deposited into the bank, the payment can be allocated in your bank ledgers properly, Dr the bank ledger and a Cr to Accounts Receivable.

 

Hope you holidays have been going well, and my prayer is that 2021 is full of joy and peace for you, your family and the organizations that you care for.

 

As Bob Dylan once said, “May God Bless you all with peace, tranquility and good will.”

 

Cheers

Tim

 

https://improvingfutures.ning.com/blog/merry-christmas-2020

https://improvingfutures.ning.com/blog/holiday-schedule-year-end-2020

https://improvingfutures.ning.com/blog/your-tv-interview-with-tim-2020-year-end-tax-review

https://improvingfutures.ning.com/blog/meet-tim

 

Knocking on heavens door  https://www.youtube.com/watch?v=CGB1P1jKIoE

 

Timothy Ross, Family Advisor, CEO & Founder, Brock Shores Financial

Mutual Funds offered through PEAK Investment Services Inc.

​This transmission is intended solely for the individual or entity to whom it is addressed and is confidential in nature. Please be advised that any distribution, reproduction or other use of this document by anyone other than the addressee is strictly prohibited. If you have received this communication in error, please notify us immediately. Thank you for your assistance.  Please feel free to share our contact info below with those who may benefit from our services. All rights reserved, Timothy Ross


Brock Shores Financial / Timothy Ross & Associates, Family Office Providing Omega Stewardship
​4502 Airport Road – Tincap, GTA Professional Center, Elizabethtown, Ontario K6T 1A2
​613-345-0016 Office 613-213-4625 Cell/Text 613-345-5231 Fax advisor@timothyross.com
​Executive Assistant: Heather Kiley assistant@timothyross.com
​Office Manager: Megan Ross megan@timothyross.com  


Mission - Vision – Core Values

“Serving our clients and community since 1988”


OMEGA STEWARDSHIP
​* One Stop Process Driven Approach for Retirement & Income Planning
​* Personalized Tax Management Solutions for Individuals & Business Owners
​* Confidential Wealth Management Solutions
www.BrockShoresFinancial.ca www.TimothyRoss.com 

#ImprovingFutures www.ImprovingFutures.ca


Helping Families Achieve ... Life's Major Goals
​1. Tax Smart Planning & Investing
​2. Worry Free Retirement
​3. Education of Our Children & Grandchildren
​4. Quality Care for Our Parents
​5. Meaningful Financial Help for Our Loved Ones
​6. Meaningful Legacy


​Member of Advocis, The Financial Advisors Association of Canada
​Member of IFB, Independent Financial Brokers of Canada
​Member of RIA, Responsible Investment Association
​Member of the Rotary Club of 1000 Islands, Paul Harris Fellow

PEAK Disclosure - Clck here for Lots of Good Stuff

 

We value your business, please leave a review on our Bark profile

Leave your Review Here & Check Others
​ ​Have a Blessed Day! "People influence People”

 

From: SALTS Sail and Life Training Society <info@salts.ca>
Sent: December 27, 2020 4:55 PM
To: Advisor@timothyross.com
Subject: Your gift sustains SALTS

 

Thank you for your support!

 

 

 
 

 

As 2020 winds down, why not consider your charitable giving this year and whether you have given all you've decided in your heart to give. If you are able, your support this year sustains SALTS until we can sail again safely!

 

Donate online

 

If you are considering a donation to SALTS, please note that online gifts received by midnight PST on Dec 31st (or cheques mailed with a postmark on or before Dec 31st) will receive tax receipts for the year 2020.

 

Thank you for generously investing in transformation for future SALTS trainees.

 

Gratefully,

 

Loren Hagerty

Executive Director

 

 

 

S.A.L.T.S. Sail and Life Training Society

"Training young people, by the sea, for life."

Phone: 250-383-6811    Toll Free: 1-888-383-6811

Website: www.salts.ca

 

Subscribe to the SALTS Newsletter

 

 

 

SALTS Sail and Life Training Society | 451 Herald Street, Victoria, British Columbia V8W 3N8 Canada

Unsubscribe Advisor@timothyross.com

Update Profile | About our service provider

Sent by info@salts.capowered by

Try email marketing for free today!

 
Now, we got a little Rod Stewart , that's a good beat, and some rolling memories
 
 

Forever Young

May the good Lord be with you down every road you roam.
And may sunshine and happiness surround you when you're far from home.
And my you grow to be proud, dignified and true.
And do unto others as you'd have done to you.
Be courageous and be brave.
And in my heart you'll always stay
Forever young. (Forever young)
Forever young. (Forever young)
May good fortune be with you, may your guiding light be strong,
Build a stairway to heaven with a prince or a vagabond.
And may you never love in vain.
And in my heart you will remain
Forever young. (Forever young)
Forever young. (Forever young)
Forever young. Forever young
And when you fin'lly…


Source: LyricFind
Read more…

Dividend Time Year End 2020

PEAK Disclosure - Click to Learn

DIVIDEND TIME YEAR END 2020 

It's that time of year to check out estimated Dividends. I started looking at over the last couple months at the trends to get some perspective of the tax burden we will be facing, it's going to be more than 2019, It's Dividend Time ! 

Common  theme I am seeing in communications from our portfolio managers and fund companies,  Q: Why are the estimated distributions relatively high ?

Well, volatility, and many companies have been profitable during the plandemic. So trading creates capital gains dividends, profits create income type dividends. We will see higher dividends this year, depending on your asset class and type of portfolio, 2-4% will not be uncommon in many portfolio's. If you have done a lot of trading or your manager has, expect taxable capital gains, if these are significant, some planning may be in order, or at a bare minimum a resolve to be a happy tax payer, I know a couple who are.  This is brief update, everyone will be different. Just a "Heads Up",  thankfully it's been a good year for peoples investments for the most part. Around the world, it's been a little rough lok at Spain and Russia, US pretty good , Canada not even on the list.  This link I found gives a bit of perspective.

https://luckboxmagazine.com/trends/best-and-worst-global-stock-markets-in-2020/

Remember, celebrate dividends, means business was good for the most part, only downside, you will need to share some of them with the government and they need the money, also remember dividends have already had taxes paid on them by the companies owned, so there is some tax advamatges of receiveing income that has been pretaxed, not going into the details, that will be a whole new topic, I will probably find a few articles that explain it so much better than I can. The important thing here is to be aware. 

So, Perhaps will dive a little deeper on this topic going forward.  Search the site at the top right corner for keyword Dividends for other posts in the past and in the future.

Also check the comment section for articles regarding the topic 

As a member , if you come across a relevant article , please post in the comment section, so we can all benefit

Thank you

TLR 

 

 

 

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Your largest expense

Peak Disclosure - Click Here Please

One of my esteemed thought leaders that I know posted this early this morning. 

"understand that taxes will be the largest expense during your lifetime
understand the tax code and rules
and get a good tax planner, not a tax preparer (Know the difference)
tax planning is part of financial planning"

It's so true, it's one of the reasons we run a family office, it gives us the full picture of a clients financial life, plus important insights in other aspects of their life as well. We are able to make sure all the pieces of the puzzles fit and a big part of this is to maximize the tax efficency's that my be possible, everyone's sitution is different. 

For many, taxes are number one, even those with modest incomes will find that they are paying a lot out in various taxes, even if there personal federal and provincial taxes is nil or minimal.

 

Taxes are part of our Mission, Vision and Core Values , incase anyone ever wonder ,  we get it 

 

Will expand on this topic in the future. 

Tim

Mission - Vision – Core Values

“Serving our clients and community since 1988”

OMEGA STEWARDSHIP

* One Stop Process Driven Approach for Retirement & Income Planning

* Personalized Tax Management Solutions for Individuals & Business Owners

* Confidential Wealth Management Solutions

www.BrockShoresFinancial.ca www.TimothyRoss.com #ImprovingFutures www.ImprovingFutures.ca


Helping Families Achieve ... Life's Major Goals

1. Tax Smart Planning & Investing

2. Worry Free Retirement

3. Education of Our Children & Grandchildren

4. Quality Care for Our Parents

5. Meaningful Financial Help for Our Loved Ones

6. Meaningful Legacy

 

 

 

Read more…

Home Office Refunds

Home Office  can mean potentially some nice tax deductions, check in with me and we can discuss your situation and perhaps save you a few grand every year and protect it from CRA should they question yet, plus a Hst Rebate that many miss

 

Great article on Home Office Decorating and Setup sourced from Dave Wilson a great local realtor / broker in the Brock Shores area. I seen this article on his Linked In feeds and it inspired me to work on this blog. It reminded me of the importance of having this deduction if possible and what qualifies. 

https://freshome.com/rooms/office/

 

Now the basics ......

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TD1 Looking Ahead to 2018

Looking ahead to 2018 (December 2017)

"Some tips from support at Cantax, be proactive this year and get your forms done up in advance and if your doing some extra tax stuff, use the T1213, Request to Reduce Tax Deductions at Source", links are noted below ~ TLR 

Planning for – or even thinking about – 2018 taxes when it’s not even mid-December 2017 may seem more than a little premature. However, most Canadians will start paying their taxes for 2018 with the first paycheque they receive in January, and it’s worth taking a bit of time to make sure that things start off – and stay – on the right foot.

For most Canadians, (certainly for the vast majority who earn their income from employment), income tax, along with other statutory deductions like Canada Pension Plan contributions and Employment Insurance premiums, are paid periodically throughout the year by means of deductions taken from each paycheque received, with those deductions then remitted to the Canada Revenue Agency (CRA) on the taxpayer’s behalf by his or her employer.

Quick Download for Federal Form TD1 & respective Provincial Forms

https://www.canada.ca/en/revenue-agency/services/forms-publications/td1-personal-tax-credits-returns/td1-forms-pay-received-on-january-1-later.html

Of course, each taxpayer’s situation is unique and so the employer has to have some guidance as to how much to deduct and remit on behalf of each employee. That guidance is provided by the employee/taxpayer in the form of TD1 forms which are completed and signed by each employee, sometimes at the start of each year, but certainly at the time employment commences. Each employee must, in fact, complete two TD1 forms – one for federal tax purposes and the other for provincial tax imposed by the province in which the taxpayer lives. Federal and provincial TD1 forms for 2018 (which were recently posted on the CRA website at https://www.canada.ca/en/revenue-agency/services/forms-publications/forms.html) list the most common statutory credits claimed by taxpayers, including the basic personal credit, the spousal credit amount, and the age amount. Adding amounts claimed on each form gives the Total Claim Amounts (one federal, one provincial) which the employer then uses to determine, based on tables issued by the CRA, the amount of income tax which should be deducted (or withheld) from each of the employee’s paycheques and remitted on his or her behalf to the federal government.

While the TD1 completed by the employee at the time his or her employment commenced will have accurately reflected the credits claimable by the employee at that time, everyone’s life circumstances change. Where a baby is born, or a son or daughter starts post-secondary education, a taxpayer turns 65 years of age, or an elderly parent comes to live with his or her children, the affected taxpayer will be become eligible to claim tax credits not previously available. And, since the employer can only calculate source deductions based on information provided to it by the employee, those new credit claims won’t be reflected in the amounts deducted at source from the employee’s paycheque.

Consequently, it’s a good idea for all employees to review the TD1 form prior to the start of each taxation year and to make any changes needed to ensure that a claim is made for any and all credit amounts currently available to him or her. Doing so will ensure that the correct amount of tax is deducted at source throughout the year.

Where the taxpayer has available deductions which cannot be recorded on the TD1, like RRSP contributions, deductible support payments or child care expenses, it makes things a little more complicated, but it’s still possible to have source deductions adjusted to accurately reflect the employee’s tax liability for 2018. The way to do so is to file Form T1213, Request to Reduce Tax Deductions at Source (available on the CRA website at https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t1213.html) with the CRA. Once that form is filed with the CRA, the Agency will, after verifying that the claims made are accurate, provide the employer with a Letter of Authority authorizing that employer to reduce the amount of tax being withheld at source.

Of course, as with all things bureaucratic, having one’s source deductions reduced by filing a T1213 takes time. Consequently, the sooner a T1213 for 2018 is filed with the CRA, the sooner source deductions can be adjusted, effective for all paycheques subsequently issued in that year. Providing an employer with an updated TD1 for 2018 at the same time will ensure that source deductions made during 2018 will accurately reflect all of the employee’s current circumstances, and consequently his or her actual tax liability for the year.


The information presented is only of a general nature, may omit many details and special rules, is current only as of its published date, and accordingly cannot be regarded as legal or tax advice. Please contact our office for more information on this subject and how it pertains to your specific tax or financial situation.
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