Shedding the Tax Light on a Blind Trust

Wednesday, July 16th, 2014

A blind trust is a trust in which a settlor (who would also be the contingent beneficiary) reserves the right to terminate the trust but agrees to relinquish all other control over the trust i.e. administered and managed by others without updates, advice, instruction, or account to the settlor. Whether ...

Designation of a Taxable Capital Gain for a Trust Beneficiary

Friday, June 27th, 2014

The Canada Revenue Agency (CRA) was asked to consider a situation where a testamentary trust (the trust) disposed of qualified small business corporation shares (QSBCS) in 2013 during its taxation year ending on January 31, 2014. The trust allocated the taxable capital gain to its beneficiary. The CRA was asked to ...

A Cabin in The Woods: Avoid the Tax Horror?

Monday, May 26th, 2014

Recently a taxpayer asked the Canada Revenue Agency (“CRA”) if an exemption could be applied to eliminate the capital gain on the sale of a cabin “in the woods” purchased in very poor condition and made livable with subsequent investment. I thought the details of CRA’s response were a good ...