Wondering why the market has are becoming more volatile as of late?  Simply put, the U. S government has been borrowing too much money for the bond market to absorb over the last year.   That’s despite very strong corporate profitability, a good economy and the tax revenues that come along with it.   Gone are […]

Pension income splitting is a tax savings strategy designed to lower a couple’s overall family tax bill, leaving more disposable income. When filing their annual income tax returns, a couple can jointly elect to shift up to one-half of eligible pension income from the spouse in a higher tax bracket to the spouse in a […]

The system in place to tax Canadian dividend income is designed to achieve “integration.” The intent of integration is to ensure that the combined total personal and corporate tax imposed on different types of income received directly or from a corporation is roughly equal. In other words, integration tries to ensure that there is no […]

The medical expense tax credit provides financial relief for individuals who have incurred significant medical expenses for themselves and/or certain of their dependants. This tax credit is a non-refundable credit that reduces an individual’s income tax liability. The formula for the medical credit is comprised of two components: Part one: Medical expenses in respect of […]

The term rectification comes from the word “rectify,” which has its roots in Medieval Latin and means “make right.” Rectification is used by parties to a contract to modify the contract if there has been an obvious mistake that was not intended or the meeting of the minds was improperly documented. The courts have used […]

Many times a property is bought for one use, but the owner may later decide to put it to another use. This is often the case with a house: as the family’s circumstances change, the use of the home may also change. For example, a family home may be rented out during a long-distance work […]

Every taxpayer is responsible for paying his own income tax liability when it is due. To the surprise of many, there are situations when the Canada Revenue Agency has the right to utilize an alternative remedy if individuals or their representatives fail to comply. Even more shocking for some is that individuals named as beneficiaries […]