Tax Planning and Preparation

Disentangle Tax Hassles

Tax Planning and Preparation

We prepare Personal (T1), Corporate income tax (T2) and Trusts (T3) returns in Canada. We have more than 20 years of experience in the field of income tax preparation and this expertise is backed by our strong integrity and relationships with our clients.

The preparation of personal and corporation tax returns is becoming more complex as a result of the constant changes and amendments of the tax rules imposed by Canada Revenue Agency. This could sometimes be challenging for individuals and business owners to keep up with while managing their businesses. Let us do this on your behalf while you concentrate on growing your business and work.

With our strong emphasis on domestic and international taxation, we endeavour to minimize your tax liabilities. We also undertake various compliance services as well as representing you before the tax agencies.

Our fully automated system ensures that all your documents are electronically secured.

We provide services for:

Taxation for Investments

Tax planning for investors requires more specialized knowledge. Regardless of whether you are investing in real estate, portfolios, or private businesses, we can help you with the right decision to maximize your tax benefit.

Investments can be made through various entities such as individuals, corporations, trusts, partnerships, joint ventures and so forth.

Different type of entities are subject to different tax rules and there are numerous tax implications whether it is income splitting, capital gains exemption, ABIL, Capital dividends etc.

Change in Use of a Residence Rules

Starting from the 2016 taxation year, the disposition of principal residence will have to be reported on the taxpayer’s income tax return even if all of the gain is exempt due to the principal residence exemption (PRE).

When there is a change in the use of real estate, either from income-producing to personal-use (e.g., principal residence or cottage/second home), or from personal-use to income-producing, there is a deemed disposition. The owner is deemed to have disposed of the property (land and building), and to have immediately reacquired it, with both transactions done at fair market value.

If only a part of your home qualifies as your principal residence and you used the other part to earn or produce income, you have to split the selling price and the adjusted cost base between the part you used for your principal residence and the part you used for other purposes (for example, rental or business).

When there is a change in use, the owner is treated as having sold and repurchased the property at its fair market value. This causes any capital gain that has arisen since the property was originally bought to be realized. Any gain resulting from this deemed disposition may be eliminated by the PRE if the property has always been the taxpayer’s principal residence. If the property has been the principal residence for only a portion of the time it has been owned, then the gain could still be partially eliminated by the PRE.

New Canadians and Students

You become a resident of Canada for income tax purposes when you establish significant residential ties in Canada. You usually establish these ties on the date you arrive in Canada.

The rules for newcomers to Canada who have established residential ties with Canada can be quite complex.

If you owned certain properties, other than taxable Canadian properties, at the time you immigrated to Canada, tax laws consider you to have sold the properties and to have immediately reacquired them at a cost equal to their fair market value (FMV) on the date you became a resident of Canada.

Even if you are part year resident, non-resident or a student it might be beneficial to file a tax return. For example, you have to file a tax return if you have to pay tax, if you want to claim a refund, or if you want to get benefit and credit payments.

Even if you have not received income in the year, you have to file a tax return so that the CRA can determine if you are eligible for the goods and services tax/harmonized sales tax (GST/HST) credit, or if you or your spouse want to begin or continue receiving the Canada child benefit and payments from certain related provincial or territorial programs.

Some advantages students and others should consider for filing a tax return