income tax
Loopholes Tagged "income tax"
Plain-English guides to Canadian legal rights and workarounds related to income tax.
Allowable Business Investment Loss — Deduct Failed Small Business Investments Against Any Income
If you lose money on a loan or share investment in a qualifying small business corporation, 50% of that loss is deductible against any income — not just capital gains.
Capital Gains Reserve — Spread a Large Capital Gain Over Up to 5 Years
If you sell capital property and receive payments over multiple years, the capital gains reserve lets you report the gain gradually — over up to 5 years (10 years for farm or fishing property sold to family) — instead of all at once.
Spousal Trust — Defer Capital Gains Tax on Appreciated Assets Until a Surviving Spouse Dies
A qualifying spousal trust allows assets to roll over to a surviving spouse at cost — deferring capital gains tax on death until the survivor disposes of the assets or dies, potentially saving hundreds of thousands in estate taxes.
Employment Stock Option Deduction — Reduce Tax on CCPC Stock Options by 50%
Employees of Canadian-controlled private corporations who exercise stock options may qualify for a 50% deduction that cuts the effective tax rate on option gains roughly in half — if the right conditions are met.
Principal Residence Change-in-Use Election — Protect Capital Gains When Converting Your Home to a Rental
When you convert your principal residence to a rental property (or vice versa), you can elect under s.45(2) to defer the deemed disposition and continue designating the property as your principal residence for up to 4 more years.