Government's Private Company Taxation Proposals - Part One
The government is proposing a review of tax planning strategies in three areas:
- Income sprinkling using private corporations
- Converting a private corporationâ€™s income into capital gains
- Holding a passive investment portfolio inside a private corporation
Selling Your Principal Residence
Since 1971, Canadians have been taxed on the gain realized when capital assets â€“ real estate, stocks and mutual funds and other investments â€“ 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 â€œprincipal residenceâ€ 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:
Canadaâ€™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?