All About Estates

Category: Tax Issues

Total 157 Posts

Trust Return Due Date on Wind-up

The Canada Revenue Agency (CRA) recently provided its view on the due date of a trust information and income tax return (T3) in the year a trust is wound up. Where a trust is wound up by distributing all of its property to its beneficiaries, does the T3  have to be…

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Donation Shelters: A Tale of Financial Misadventure

Due to my conservative nature and my belief that something that looks too good to be true often is, I have been always nervous about people participating in what appear to be very aggressive charitable donation shelters and people who promote them, particularly shelters which appear to catch the attention…

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Trust Claiming a Capital Gain Reserve

The Canada Revenue Agency (CRA) answered several questions regarding a scenario in which a trust claims a capital gains reserve. When a trust claims a capital gains reserve, and the amount of the reserve is included in income in the subsequent year and flows through the trust to a beneficiary, does…

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CRA Keeps A-Knockin’ (and Can Come In)

Estate trustees be warned: you may be held personally liable for failure to pay the estate’s taxes and/or the tax arrears of the deceased. When estate trustees are advised of this fact by their lawyers, pains are taken to soften the blow. CRA tends to be more blunt. Following the…

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PLANNING AND ESTATE PLANNING FOR THE DISPOSITION OF REAL ESTATE

I am in the middle of a very difficult Canada Revenue Agency audit of a taxpayer’s claim for the principal residence exemption. It now appears the property in question,  built by my client some 25 years ago may not qualify for the full exemption due to the fact that the…

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Qualifying Costs of Medical Assistance in Dying may be Eligible for the Medical Expense Tax Credit

I previously blogged about the Supreme Court of Canada decision in Carter v. Canada[1], which ruled that Canadians are entitled to obtain medical assistance to end their lives under appropriate circumstances (See Blog on Medical Assistance in Dying – Where Are We Now?). A question that stems from that ruling…

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An Inconvenient Truth: Cross-border Estate Barriers for Non-Resident Executors

Today’s blog comes to you from Student-at-Law, Derrick Raphael. As a new resident of Canada there are several issues that an individual must consider such as tax implications while residing in the country as well as one’s previous jurisdiction. Additional areas of interest regard how to manage assets, property and other…

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“Duelling” Designations

I was reminded this week of the need for advisors to consider more than division of property, support, and custody and access arrangements in the context of marriage breakdown. Taxation issues related to family residences which could qualify as a principal residence need also be considered.  One of the requirements…

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Tax implications of losses incurred in a fraudulent investment scheme

All to often it is the elderly and disadvantaged who are taken advantage of in fraudulent investment schemes. The Canada Revenue Agency recently released some general information that applies to taxpayers who participated in what reasonably appeared to be a legitimate investment for income tax purposes. Generally speaking, an amount…

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PENSION PLAN LUMP SUM PAYOUTS

This fact scenario is based on a situation presented to me recently and I appreciated the opportunity to being “re-educated” on the tax treatment of pension plan lump sum payments. A taxpayer’s spouse retires as a teacher and elects to start receiving her guaranteed pension. A couple of year later,…

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