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Allan Madan

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Recent blog posts

The Canadian real estate market has been a lucrative investment opportunity for foreign investors due to Canada’s relatively stable economy. If you are a non-resident or a foreign investor looking to enter the Canadian real estate market, this article is for you! The article will help you understand your tax obligations, provide strategies to reduce your tax implications and will paint an overall picture of the benefit of filing a section 216 return.

Hits: 719

Imagine, sipping a steaming cup of coffee while looking out onto your beachfront property. Imagine, the sun washing over your face in the dessert heat. Many Canadians did not have to as they flocked to buy vacation properties in the U.S when the Canadian Dollar was at an approximate par with the US dollar. However as the Canadian dollar weakens, some Canadians are choosing to sell their vacation properties and lock in their gains. As a result, many sellers are running into tax implications they did not prepare for.

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Posted by on in Personal tax

Sanjeey Khatter, like many Canadians today, was in the dark as to how to file his taxes. Therefore he took on a tax preparer to assist him with his financial needs. What occurred after was an unfortunate mixture of poor judgment and severe carelessness.

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Posted by on in Corporate and business tax

Many multinational companies are using techniques to either avoid or lower their taxes by taking advantage of the fact they have a parent company or subsidiaries in other countries. The CRA, IRS, and other tax authorities are auditing taxpayers with greater scrutiny in regards to transfer pricing issues so they are able claim their share of tax revenues.

Hits: 1025
Posted by on in Personal tax

What is section 85 and why is it used?

Tax practitioners commonly refer to Section 85 as a rollover. This rollover allows a sole proprietorship to transfer assets to a corporation without resulting in a capital gain. A capital gain is a profit made from the sale of an asset.

When a sole proprietor decides to incorporate their business, the CRA (Canada Revenue Agency) dictates that the assets are to be sold at fair market value (FMV). To benefit from this rollover, sole proprietors may sell their business assets at their initial purchase price, instead of current market value. This transfer must include some shares as part of consideration received on the sale. 

 

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Recent Comments - Show all comments
  • Allan Madan
    Allan Madan says #
    Hi Daniel, Land transfer tax will be payable on the sale of the land to your corporation.
  • CHARLENE
    CHARLENE says #
    OK SO WE KNOW WHAT WE GET FOR CONSIDERATION SO FOR EXAMPLE ASSET FMV 1000 TAX VAlUE IS 700 ELECTED AMOUNT IS 300 HOW DOES THIS G
  • Allan Madan
    Allan Madan says #
    Hi Charlene, If this is a business, enter the proceeds of disposition of $300 (elected amount) on area A, column 4, of form T2125.

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