Archive for the ‘Trusts’ Category

Loss Trading – Rules for Trusts

Friday, April 11th, 2014

Currently, loss streaming rules generally apply to limit a corporation’s trading of certain tax attributes (for example, non-capital losses, net capital losses, farm losses, and unused investment tax credits) where a person or group of persons acquires control of the corporation. Begin in 2013 (with transactions after March 20, ...

Estate and Trusts with Foreign Properties and/or Transactions: Reporting Implications – an update

Wednesday, April 2nd, 2014

In a recent blog, I wrote about the annual reporting obligations to the Canada Revenue Agency (“CRA”) on trusts with foreign properties and/or transactions. I cautioned that it was important to stay out of the “penalty” box in this regard. Some rule changes have been introduced, some for the better ...

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 ...