Archive for the ‘Estate Administration’ Category

SHARES ISSUED FOR NOMIMAL CONSIDERATION: BE WARY OF VALUATION

Tuesday, June 28th, 2016

Recently, the Canada Revenue Agency (“CRA”) was asked to comment on the tax consequences that may result from implementing an estate planning or income splitting arrangement which involves the issuance of shares that entitled the holder to discretionary dividends, for nominal consideration. The CRA was presented with a hypothetical small business ...

Principal residence exemption – renting to a child

Tuesday, June 21st, 2016

The Canada Revenue Agency (CRA) was asked if a taxpayer's property designated as his "principal residence" but rented and lived in by his son continued to qualify as his "principal residence" for the purpose of claiming a principal residence exemption to shelter a gain from personal tax. The taxpayer owned the ...