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Category: General Help

How the CRA Calculates Your Net Worth

The concept of “Net Worth” is used in taxation, originally, as part of the definition of what counts as and what doesn’t count as income.  The initial analysis created a relationship between “net worth”, “personal expenditures”, and “Income”. In effect, the equation...

CRA Income Splitting

Income splitting is a general phrase that refers to many ways in which two or more persons can distribute income or gains from business or property, or from other sources of income. Income splitting, where possible, can result in substantial tax savings. Note that...

Transfer to Settle Debt to Beneficiary

Trusts are used as part of tax planning, but the planning doesn’t stop with the set-up of a trust. Where a Canadian resident trust that meets the definition of a “personal trust” in subsection 248(1) of the Income Tax Act holds property that has appreciated in value...

Superficial Loss Rules

Not all losses on the sale of capital property can be used to offset gains. The claim of capital losses on a disposition of shares can be denied if both of the following apply: The identical shares are repurchased 30 days before or after the disposal by the taxpayer...
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