Canada's federal Budget 2025 emphasizes productivity, investment incentives, and tax competitiveness in a volatile global economy. While individual tax rates remain mostly unchanged, the budget introduces business-friendly measures, eliminates select taxes, and provides some relief for families. Notable additions include further deferral of bare trust filing obligations and a proposed expansion of the 21-year trust anti-avoidance rule to curb deferral strategies involving cor

If you're a Canadian taxpayer who's has been renting out a property and now wants to move back in – converting it from income-producing to your principal residence – you're likely eyeing the principal residence exemption (PRE) to shield future gains on sale. A key tool here is the Subsection 45(3) election , which lets you designate the property as your principal residence (section 54) for up to four extra years before you actually occupy it, deferring any deemed disposition

NOTE: We highly recommend you first read our article titled " Change-in-Use Rules under Section 45 – What Every Property Owner Needs to Know ", as this is a higher level topic. Here at Lakeshore, it is our duty to inform taxpayers and investors of the muddy waters that is Canadas Income Act. For this topic, it's our goal is to provide taxpayers and investors with practical guidance on navigating CCA shifts in depreciable property. Subsection 13(7) Capital Cost Allowance (CCA

Here at Lakeshore, it is our duty to inform taxpayers and investors of the muddy waters that is Canadas Income Act. Do you own a property and are thinking of renting it out? This appears to be a topic that catches too many people off guard .. Introducing Section 45 of the Act! Here's how it works When you stop using a property personally and start using it to earn income (or vice versa), the CRA treats it as if you sold the property and immediately repurchased it. That trigge

This article follows our previous article as such: https://antonioromerrow.wixsite.com/lakeshore-tax-1/post/anti-home-flipping-rules-bc-s-new-home-flipping-tax-summary We have been asked a few specific questions surrounding the BC Residential Property (Short-Term Holding) Profit Tax Act (the "flipping tax" as previously discussed in a prior article ), specifically with relation to organizational structure - PRE, Corporations, Trusts, and Partnership attribution. As we mention

In this article, I follow up on a previous article titled " Anti-Home Flipping Rules: A Deep Dive into Subsections 12(12), (13), and (14) of the Income Tax Act " with regard to the federal anti-home flipping rules by elaborating from a provincial aspect. What is the BC Home Flipping Tax? Starting on January 1, 2025, the province of BC's Residential Property Flipping Tax (the "Flipping Tax") targets quick-turnaround sales of homes, condos, and townhouses. At its core: a 2-yea

At Lakeshore, it is our duty to inform taxpayers and investors of the muddy waters that is Canadas Income Tax Act. Canadian real estate has long been a magnet for foreign investors (or a money laundering operation depending on who you ask lol). But with great investment comes great tax responsibility – especially if you're a non-resident of Canada. Understanding the income tax implications for non-resident compliance is non-negotiable. Here's a brief summary of what you need

At Lakeshore, it is our duty to inform taxpayers and investors of the muddy waters that is Canadas Income Tax Act. In the world of Canadian real estate, "flipping" – buying a property and quickly reselling it for profit – profits were formerly treated as capital gains (only 50% taxable), and if it was your principal residence, potentially tax-free. But since 2023, the federal government has introduced in subsections 12(12) , (13) , and (14) of the Income Tax Act (ITA), the a

If you’ve ever wondered exactly how the Canada Revenue Agency decides what income is taxable for individuals, the answer starts (and often ends) with Section 3 of the Income Tax Act (ITA) . This short but incredibly powerful section is the legal backbone of your entire T1. It defines what gets added together to create your “net income for tax purposes (NITP)". Section 3 – The Formula for Taxable Income The income that is subject to Part I tax under section 3 is the total of:

If you're a Canadian taxpayer, the Canada Revenue Agency (CRA) just dropped some important news that'll shape your 2026 finances. In a recent article by tax expert Jamie Golombek , managing director of Tax & Estate Planning at CIBC Private Wealth, we get the lowdown on the CRA's newly released 2026 tax numbers. Adjusted for a modest 2% inflation rate (down from 2.7% last year), these updates touch everything from income brackets to retirement savings limits. Most changes kick