Non-residents who earn rental income from Canadian real estate must comply with specific tax rules under the Income Tax Act. One of the most beneficial provisions available to such taxpayers is the Section 216 election, which allows non-residents to file a special tax return and pay tax only on net rental income instead of gross rental income. Read More

Income splitting was once a popular strategy for Canadian families and business owners looking to reduce their overall tax burden. However, the Canada Revenue Agency (CRA) significantly tightened the rules through the Tax on Split Income (TOSI) legislation. These rules can result in income being taxed at the highest marginal rate if certain conditions are not met. Read More

Selling real estate in Canada as a non-resident comes with additional tax responsibilities. One of the most important requirements is obtaining a Certificate of Compliance from the Canada Revenue Agency (CRA). This document ensures that the appropriate tax on the sale of Canada real estate property is reported and paid. Read More

Receiving financial support from family or friends is common in Canada – whether it’s for buying a home, funding education, or helping during major life events. A frequent question people ask is: How much money can you receive as a gift in Canada without paying tax? Read More

I saw a client last week, let’s call him Dave, who runs a successful IT consulting firm in Mississauga. Dave had been “drawing” money from his business account all year whenever he needed to pay his mortgage or buy groceries. Read More