Download PDF Copy Click here to download a PDF copy of the guide below. The PDF guide also contains a sample T3 Return. Download PDF Guide The Canadian government has recently implemented new reporting requirements for trusts[1]. These changes are in accordance with Canada’s international pledge to disclose beneficial ownership information and to maintain the efficiency and honesty of the Canadian tax system. However, the new rules are burdensome and have significant penalties for noncompliance. Consider the scenario where you co-sign a mortgage for your child on a million-dollar home. Thi ..read more

Click here to download PDF Increase Generational Wealth Through Unique Tax Planning During Recession – Despite the possibility of a recession or sluggish economic growth in 2023, there are ways for entrepreneurs and small business owners to leverage the tax system and boost their long-term financial security. These tax planning opportunities can help them accumulate generational wealth. Flip the Anti-Flipping Tax on its Head – The government introduced the anti-flipping tax to discourage short-term residential home flips. However, through clever tax planning, taxpay ..read more

Are you a resident of Canada? Do you believe that the Underused Housing Tax (UHT) rules don’t apply to you? Well, think again! If you are a permanent resident or citizen of Canada, you don’t have to pay the UHT tax and file a UHT return. However, if you’re a trustee of a trust with residential property, you face stricter rules. Trustees Need to file a UHT Return If you’re a trustee, there’s no escaping the requirement to file a UHT return*. Failure to do so could result in hefty penalties, with a minimum of $5,000 per year for each trustee. That’s right, each trustee! So, if there are two to t ..read more

Foreign owners of Airbnb properties may face the new Underused Housing Tax (UHT), a new tax introduced in 2022, which targets foreign real estate owners who do not reside in or rent out their properties. In this article, we highlight how the tax may still apply, even if the property is not considered “underused.” Property owners should file their UHT tax return by May 1, 2023, to avoid penalties of $5,000 to $10,000. CRA’s position on UHT and short-term Airbnb rental properties To be exempt from UHT, the property must have 180 days of occupancy in a year. In other words, someone must have had ..read more

Table Of Contents How to prepare the UHT Return Download our PDF Guide What is the Underused Housing Tax (UHT)? Step 1: Do You Need to File the Underused Housing Tax Return? Step 2: Download the UHT Tax Return Step 3: Part 1 – Information about the owner Step 4: Part 2 – Information about your residential property in Canada Step 5: Part 3 – Multiple Residential Properties Step 6: UHT Exemptions Exemption 1: Exemption for Qualifying Occupancy Exemption 2: Exemption for Specified Canadian Corporations Exemption 3: Exemption for Partner of Specified Canadian Partnership Exemption 4: Exemptio ..read more

Please click here to read our January 2023 edition of the LRK Tax Newsletter. This newsletter highlights the most notable tax developments affecting small business owners. In 2023, the government has or will be looking to introduce new taxes: The Underused Housing Tax (UHT) – This new tax is meant to apply to foreigners who own vacant homes in Canada. However, suppose you’re a Canadian and own residential real estate in a corporation. In that case, you must still file a UHT tax return (in addition to your regular tax return) indicating your corporation has no foreign owne ..read more

Many experts and analysts are bracing for lacklustre returns in 2023. If you are an investor, you may sell some of your investments and trigger capital losses as you rebalance your portfolio. In this article, we outline some tax strategies that can go hand-in-hand with your investment decision that will put more money into your pockets. Utilizing capital losses to maximize a tax refund Capital losses can only offset capital gains. If you don’t have capital gains to offset using capital losses, you can carry forward the capital losses indefinitely or carry them back 3 years, and offset capital ..read more

The sentiment that a country ought to “tax the rich” has been circulating the airwaves for several years. With record levels of government spending, impending recession, inflation, an increase in immigration, and funding the Ukrainian war, the government needs more money. It seems like 2023 will be an opportune time for the Canadian government to introduce another round of tax on the rich (when the Liberals came to power in 2015, they also introduced a 4% tax hike on people in the top tax bracket). According to the federal government, “wealthy Canadians” pay comparatively little personal incom ..read more

The year 2022 was a busy year in the tax world. Coming out of the pandemic and dealing with an uncontrollable real-estate market, the government introduced many tax measures to boost the economy while controlling the housing market. We don’t expect as many tax measures in 2023. But we still expect the government to introduce some significant tax measures. A new minimum tax for wealthy Canadians According to the federal government, “wealthy Canadians” pay comparatively little personal income tax as a share of their income. In the 2022 Fall Economic Statement, the Liberal government expressed i ..read more