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