The CRA confirmed that or purposes of the farming-use condition in clause 110.6(1.3)(a)(ii)(A), the person or individual that meets this condition need not be the person who owns the property at the determination time or in the 24 months immediately…
CDA addition for Benco
A corporate beneficiary of a trust can add an amount to its CDA in respect of a capital gain realized by the trust only if the trust allocates the entire capital gain to the corporation. Moreover, the addition can only…
Foreignco owning a vacation property
The CRA confirmed that a non-resident corporation that owns a Canadian vacation property confers a benefit on its non-resident shareholders where the shareholders or non-arm’s length persons use the property. The benefit, as a deemed dividend (214(3)(a)), is subject to…
Deduction for TOSI under 20(1)(ww)
A taxpayer can deduct an amount under paragraph 20(1)(ww) even if the taxpayer must include a taxable capital gain in income that is subject to TOSI but he or she can offset the gain with an allowable capital loss. STEP…
Trusts and control
The CRA accepts that, if A and B are the trustees of a trust that controls Corp1, and A and B also constitute a group that controls Corp2, then Corp1 and Corp2 are related to each other under subparagraph 251(2)(c)(i).…
Preparer penalties
I have become aware of a case where the CRA has imposed preparer penalties on an accountant who filed tax returns for corporations and their shareholders where the shareholders did not report income in respect of shareholder loan debit balances…
Post Number 1,000
This post is number 1,000 in this, my blog about Canadian income tax law. I have been writing here more or less regularly, since August, 2005. I started writing the blog as a way of informing clients about recent developments…
Reporting the ID of disaster clause beneficiaries
At the STEP Canada 2023 Round Table, in answer to question 4, the CRA stated that a contingent beneficiary is a beneficiary for the purposes of subsection 204.2(2) of the Income Tax Regulations, which now requires trusts to provide identification…
Property of a trust that prevents the prevention of filing
At the STEP Canada 2023 Round Table, in answer to question 3, the CRA stated that a trust settled with a gold or silver bar, or a collectible coin, cannot satisfy the exception in paragraph 150(1.2)(b) of the Income Tax…
Forgotten capital losses
At the STEP Canada 2023 Round Table, in question 2, the CRA addressed a hypothetical question about the executors of an estate finding evidence of a capital loss realized years before that was not claimed. The CRA agreed that the…