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Cross-Border Estate Planning

The Death Tax Repeal Act and Cross-Border Estate Planning

For Canadians with assets in the United States, or whose family includes dual US-Canadian citizens or US permanent residents, the repeal of the so-called “death tax” could help simplify your estate planning. Unlike Canada, the United States has taxed an estate based on the fair market value of a decedent’s assets. Much of the support for this bill comes from farm owners and family businesses that claim to suffer unfairly under the current regime. The Death… Read More

NAFTA

Corporate Tax Planning

Navigating NAFTA Uncertainty – Legal and Financial Advice for Cross-Border Businesses

As Donald Trump enters his second month in the White House, the administration’s position regarding the North American Free Trade Agreement (NAFTA), and Canadian-U.S. trade relations generally, remains unclear. Ongoing uncertainty about American intentions for NAFTA and cross-border business Despite bombastic claims about repealing NAFTA during his campaign, Trump has not provided any reliable guidance as to what North Americans can expect on the trade agreement going forward. Threats of imposing a unilateral 20% “border… Read More

FATCA

Personal Tax Planning

IRS Blocked From Taxing Prizes & Awards for Some Olympic Atheletes in the U.S.

President Obama signed H.R. 5946 into law on October 7, 2016. The “United States Appreciation for Olympians and Paralympians” was passed by the House and Senate with little opposition. This gives some opportunity to discuss the U.S. taxation of prizes and awards. This new law provides a bit of a twist on the rules for the inclusion of prizes into income. Internal Revenue Code – Sections 61 &… Read More

Personal Tax Planning

Non-Residents of Canada and the Principal Residence Exemption: Changes to the “One Plus” Rule

This October, the Minister of Finance announced changes to the Income Tax Act relating to the principal residence exemption, including disclosure obligations following the sale of a principal residence, and the elimination of the “one-plus” exemption for non-residents. The amendments are designed to tighten loopholes and prevent misuse of the capital gains exemptions intended to protect a taxpayer’s principal residence. Ordinarily, the sale of real estate for an amount greater than its original cost will… Read More

Personal Tax Planning

Case Alert: Donations to US Charities for Quebec Residents

A recent decision released by the Quebec Court of Appeal has left residents of the province without certain benefits under the Canada-U.S. Tax Convention (the “Treaty”), impacting the availability of tax deductions for donations made by Canadian companies to US charities. Article XXI(7) of the Treaty contains provisions which allow Canadian corporations to deduct from their taxable income the value of donations made to a US registered charity, as if those donations had been… Read More