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Wm. J. Trotter & Associates

Chartered Professional Accountants

Do you own shares in a foreign corporation?

Do you own shares in a foreign corporation?

If you have received foreign spin-off shares, then you may be overpaying on your income taxes. Under section 86.1 of the Income Tax Act, an eligible shareholder can file an election with respect to certain eligible spin-off shares. The election allows a qualifying shareholder to be exempt from treating the spin-off shares as a taxable foreign dividend. Instead there is a cost base reduction which means taxes will only be paid when the shares are sold and at the capital gains

Changes to CPP

Changes to CPP

Changes to the CPP Withholding Tax Employers pay 4.95% of salaries into CPP, on a maximum of $54,900 of earnings per year, while the self-employed contribution rate is 9.9%. The government is implementing changes to the contribution rate and annual maximum. These changes will begin in 2019 and be fully implemented by 2025. The maximum amount of income subject to CPP will be increasing from $54,900 to $82,700. In addition, the contribution rate will increase to 5.95%, whi

First Time Home Buyers

Principal Residence

Have you sold your house in 2016 or are you planning to? Effective for the 2016 personal tax year and subsequent tax years, the CRA is changing its requirements around reporting your principal residence. Under the old rules, if the property being sold was designated a principal residence for every year of ownership, the sale would not have to be reported on your tax return. The CRA will now require any sale of a principal residence to be reported under Schedule 3 of the selle

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