Get Your Year End Tax Planning Tips & Remuneration Planning Tips Here!

The 4th Quarter 2017 PEL Tax Break is now available for download here.

We have also uploaded some Year End Tax Planning Tips for individuals and Remuneration Planning Tips for owners of private corporations.

As always, contact us if you have any questions or wish to take action on anything so we can ensure it is applicable to your circumstances.

Did you know…? Some tidbits about the relationship between CRA and the IRS

CRA can assist the IRS in collecting a debt. In one case, CRA assisted in collecting a six-figure U.S. tax penalty for unfiled disclosures from a U.S. citizen resident in Canada.

In September 2016, the CRA transmitted 315,160 banking records to the IRS under the information sharing requirements in the Foreign Account Tax Compliance Act (FATCA).

Changes to Settlement Date for Investments

Effective September 5, 2017 the settlement date for the purchase or sale of investments such as stocks, and bonds, will now be two business days after the trade date instead of three. For call options and put options, it is one business day after the trade date. The purchaser does not own the investment until the settlement date – which is important to note if the trade occurs around year end, as the gain or loss is recorded in the tax year of the settlement date.

Thus, the last date to trade stocks in Canada for the 2017 year is Wednesday, December 27 (keep in mind the statutory holidays on December 25 and 26). Anything purchased or sold after December 27 will be settled in 2018.

Source: http://www.taxtips.ca/personaltax/investing/taxtreatment/tradeandsettlement.htm#settlement-date-t+2, accessed November 23, 2017