The government is proposing a review of tax planning strategies in three areas:

  • Income sprinkling using private corporations
  • Converting a private corporation’s income into capital gains
  • Holding a passive investment portfolio inside a private corporation


Since 1971, Canadians have been taxed on the gain realized when capital assets – real estate, stocks and mutual funds and other investments – are sold.  There are a few exceptions, and the one we are most familiar with is the sale of a residence.

The sale of a “principal residence” is specifically exempted from tax in the Income Tax Act.  Here are a few things to keep in mind when selling your home or vacation property:

Canada’s tax incentives for charitable donations are designed to encourage support of your favorite charities.   Did you know that in Alberta, the tax credit you receive may result in a refund of over half the contributed amount?