Tax Tips: Second Quarter 2023

We provide tax tips on available benefits, CRA policies, and more.

2ND QUARTER 2023 TAX TIPS

Overview

Budget 2023: Top Five Items for Owner-Managers

• Budget 2023 was introduced in the House of Commons on March 28, 2023 and details five key changes that may impact individuals and owner-managed businesses:
  • Dental plan
  • Green investments
  • Intergenerational business transfers
  • Employee ownership trusts (EOTs)
  • Alternative minimum tax (AMT)

Underused Housing Tax (UHT): Increased Disclosures and Taxes

• Some common questions regarding the filing of the Underused Housing Tax are addressed

TFSA: Carrying on a Business Within It

• Earnings in a TFSA are typically not taxable but can become taxable when they are earned from carrying on a securities trading business

Unreported Capital Trades Included on a T5008: CRA Policy

• Report all gains from the disposition of securities fully otherwise CRA may assess the taxpayer with unreported income much higher than the actual gain

Employment Expenses for Commissioned Employee: Sponsorship

• Rules surrounding deducting expenses against employment earnings are complicated and care should be afforded before incurring expenses intended to be deducted against employment income

Small Business Succession: Many Business Transfers Coming Shortly

• If you are considering selling or transitioning your business in the near term, start planning now to ensure a smooth transition