Archive for the ‘Loans’ Category

RRSP ASSETS AND THE CONCEPT OF ADVANTAGE.

Wednesday, May 7th, 2014

Recently, the Canada Revenue Agency (“CRA”) was asked if there was an advantage as defined in the Income tax Act (subsection 207.05(1) for those who care to look it up) in a situation where the annuitant of an RRSP trust which holds shares of a corporation uses an asset ...

Why Being Late With a Designation is Not so Good

Tuesday, March 25th, 2014

In certain circumstances, the Income Tax Act allows a trust to designate a portion of its net taxable capital gains as a taxable capital gain in the hands of a beneficiary of the trust. This allows the benficiary to use their available capital gain exemption to shelter the ...

Prescribed rates: What goes up sometimes does come down

Monday, November 11th, 2013

In September, my fellow bloggers and I sent our warnings that the prescribed rate for income splitting loans and similar family planning arrangements was about to double from 2% to 1%, and it did on October 1. Well, if you missed the deadline to complete these arrangements before the prescribed rate ...