Investment Taxes


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It’s time to do some tax planning

April 30th has come and gone. Tax filers across the country have gone through the annual ritual for assembling tax receipts to figure out how much we earned and how much tax we will have to pay as a result.
Tax preparation, therefore, is really the act of summarizing the historical events of the past [...]

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June 21st, 2010 | admin | 0 comments | Continued
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Tax Rules on Employee Stock Option Plans

Stock option plans are quite often an integral part of an employee’s compensation package to create long term capital use in retirement. Companies implement these plans to attract, reward and retain highly skilled employees.
What is a stock option?
A stock option allows the employee to purchase a certain number of shares at a specified price [...]

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May 6th, 2004 | admin | 1 comment | Continued
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Getting the Most Out of Capital Losses

Do you have unrealized capital losses? If you do…read this before selling!
In order to maximize the tax refund that can be realized from crystallizing capital losses, consider ‘transferring’ your losses to your spouse (or common law partner).
This strategy should be followed if your spouse:

is in a higher marginal tax bracket than you or,

has net capital [...]

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May 5th, 2004 | admin | 0 comments | Continued
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Taxation of Real Estate, REITs and Royalty Trusts

Rental Properties
Rental income is considered income from property and individuals are taxed at their regular marginal tax rates. Mortgage interest, property taxes, capital cost allowance (CCA) and maintenance and repair costs are all allowable deductions from taxable rental income. If deductions exceed revenues, the loss may be used to offset other sources of income. The [...]

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January 14th, 2004 | admin | 0 comments | Continued
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Taxation of Labour Sponsored Investment Funds (LSIFs)

Labour Sponsored Investment Funds (LSIFs), also known as Labour-sponsored venture capital corporations (LSVCCs), are considered mutual funds for income tax purposes.
LSIFs provide venture capital to small and medium-sized business enterprises; the funds allow investors to pool their resources to invest in small businesses in need of funds for growth. Since LSIFs are sponsored by labour [...]

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January 14th, 2004 | admin | 0 comments | Continued
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Taxation of Mutual Funds

Mutual funds are set up as either mutual fund corporations or trusts. Investors receive income and/or capital gains distributions in return for their purchase of the fund units. The investors may also realize a capital gain or loss from selling or redeeming their shares in the fund.
Mutual funds employ their capital in a wide variety [...]

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January 14th, 2004 | admin | 0 comments | Continued
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Taxation of Options and Futures

Options
Options to purchase or sell shares are the most common types of exchange-traded options. Put options give the holder the right to sell the underlying asset (shares) at the option or strike price. Call options give the holder the right to purchase the underlying shares at the option or strike price. Purchasers of put or [...]

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January 14th, 2004 | admin | 0 comments | Continued
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Taxation of Debt Instruments

Interest income is effectively reported on an annual basis even if it is not received in a particular year.
Notes and Bonds
Notes are mid-term debt instruments - usually one to ten year maturities - , bonds are longer-term instruments, ten years or more.
These instruments almost always carry coupon interest, payable on a semi-annual basis. The interest [...]

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January 14th, 2004 | admin | 0 comments | Continued
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Taxation of Dividend Income

The Dividend Tax Credit provides preferential tax treatment for individuals with dividend income from Canadian resident corporations.

The Dividend Tax Credit provides preferential tax treatment of dividend income for stockholders of Canadian resident corporations.
Taxable dividends received by Canadian resident individuals from Canadian resident corporations are taxed at lower rates than other forms of income.
Dividends are included [...]

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January 13th, 2004 | admin | 5 comments | Continued
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Stock Ownership and Taxation

There are various tax consequences associated with the ownership of stock

There are various tax consequences associated with the ownership of stock.
Dividends
Because of the dividend tax credit, individuals receiving dividends from a Canadian resident corporation are subject to tax at a favourable rate. For a stockholder in the highest marginal tax bracket, dividends are taxed from [...]

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January 13th, 2004 | admin | 0 comments | Continued