If you run a farm or other small business, be prepared for a tax auditor’s call. Previous reviews of Canada Revenue Agency’s (CRA) practices by the Canadian Attorney General’s office flagged “small and medium enterprises” (SMEs) for high levels of “non-compliance” with tax legislation.

Farming is big business. And big business is knowledge-intensive. Like other successful business people, farm operators need to acquire, maintain, and upgrade business skills and technical know-how on a regular basis. It’s the only way to keep pace with changes in their industry.

The principal residence exemption is one of the largest tax breaks in the Canadian personal tax system. It can entirely eliminate tax on capital gain incurred when a principal residence is sold. For a property to qualify as your principal residence in a given tax year, you must first own it in that year, or own it jointly with another person.

Do you struggle every year to complete your income tax return?

Consider hiring a professional tax preparer to handle this unpleasant chore. That way, you leave most of the hassle to an expert who knows the ropes.

Income trust units have their place but make no mistake: when you buy one of these investments you’re not buying a Government of Canada bond.

The increase in the number and types income trusts has been spurred to a large extent by income-oriented investors seeking higher yields than those available through traditional income-generating investments like bonds, GICs and money market funds.

In addition, because income trusts benefit from tax efficiencies not available to conventionally structured companies, many corporations have been hurrying to convert themselves to income trust arrangements to attract investor financing.

Many milestones can mark aging, but one of the more important ones from a financial perspective is age 71. That is the birthday year you must unbundle your RRSP.

When it comes to off-farm income, CRA appears all too willing to view it as a reason to restrict farming losses. They seem to have a lack of understanding about how the business of farming really works.

It’s often forgotten that life insurance has tax shelter features in addition to its other benefits. Keep this in mind when talking tax and estate strategies with your financial advisors. Life insurance may play multiple roles in tax and estate planning, but its ultimate suitability for you depends on your unique situation. Important variables include … Read more

You want your children to have the best opportunities in life, and you recognize that higher education will provide them with many advantages. You also know that the costs of post-secondary education are climbing steadily each year, and it’s not always easy to put the necessary funds aside.