Let’s look at reporting investment income and capital gains, and which spouse should report the capital gain on a rental property. Reporting investment income When you earn investment…
Read more Can you move income back and forth between spouses? – MoneySenseRESP contributions and withdrawals Registered education savings plans (RESPs) are used to save for a child’s post-secondary education. Contributing to an RESP can give you access to government…
Read more Year-end tax and financial planning considerations – MoneySenseAt a time when Canada, just like every other country, is looking for highly skilled workers, our tax rates make it more difficult for them to choose to…
Read more How high tax rates hurt the economy – MoneySenseGifting some or all of a rental property The act of adding a name to a property itself does not give rise to capital gains tax. There’s a…
Read more Tax implications of adding a child’s name to your rental property – MoneySenseShould you keep renting a cottage or buy one? You don’t need me to explain the personal perks of having a vacation home or a cottage. But to…
Read more Yes, a cottage is an investment property—here’s how to minimize capital gains tax – MoneySenseYou mention that the cottage deed is in your name only right now. That suggests that it was either in your name all along or that the cottage…
Read more Adding names to a cottage deed could result in big tax billsAccording to the Canada Revenue Agency (CRA): “To make this election, attach a letter signed by you to your income tax and benefit return of the year in…
Read more Capital gains tax when renting out your former principal residence – MoneySenseThere are a number of expenses that can be claimed to reduce the capital gain on your cottage, Louise. Capital expenses are an example. The Canada Revenue Agency…
Read more Tax deductible expenses when selling a cottageIt sounds like you sold or are planning to sell a property in the U.S., Bob. To cut to the chase, selling costs, like a realtor commission, would…
Read more When are costs for a U.S. property tax-deductible in Canada? – MoneySenseMany non-financial assets depreciate in value. Cars, furniture and other such assets tend to be worth less over time, and they are generally not subject to capital gains…
Read more You have to sell a cemetery plot—will you owe capital gains tax? – MoneySenseHow an asset transfer between spouses is taxed First off, a transfer of assets between spouses is by default done on a tax-deferred basis at the original purchase…
Read more How real estate is taxed during a separation or divorce – MoneySenseIf you are going to sell next year, it is worth paying $833 of tax a year earlier? Think of it like debt. Imagine you can buy a…
Read more How much is capital gains tax in Canada?—and other questions answered – MoneySenseThe new capital gains inclusion rate There has been speculation in recent years about an increase in the capital gains inclusion rate. Currently, one-half of a capital gain…
Read more Federal Budget 2024: How it will affect Canadians’ finances and taxes – MoneySenseFirst, what is a covered call, anyway? A call option is an agreement that gives a buyer the right to buy a stock at a predetermined price in…
Read more What are covered call ETFs, and are they good investments? – MoneySenseCapital gains tax, Nazim, might apply to some of your assets. If you own non-registered stocks or a rental property, for example, they might be subject to a…
Read more Should you buy life insurance to pay for tax owed upon death? – MoneySenseUnless taxpayers make a request, there are no withholding taxes on the minimum RRIF withdrawal. This can result in the Canada Revenue Agency (CRA) requesting quarterly tax installments…
Read more How to cope with the RRSP-to-RRIF deadline in your early 70s – MoneySenseWhen you give cash or assets to a family member to invest, there may be attribution of that income back to you. Attribution causes income to be taxed…
Read more Can you save on taxes by owning an investment account with your child? – MoneySenseWhen you inherit real estate, any accumulated tax, if applicable, is generally paid by the estate of the deceased. This is because when a taxpayer dies, they are…
Read more How to calculate the adjusted cost base of inherited property – MoneySenseIt sounds like you are aware that you can carry back capital losses, Ramesh. If you have a net capital loss on your 2023 tax return, you can…
Read more How to carry back a capital loss for a tax refund – MoneySenseThat’s important in an increasingly digital world. Hard copy does matter. For example, if you’ve closed bank accounts, says Wall, you may not be able to get the…
Read more Can you file multiple years of income taxes together in Canada? – MoneySense
