Shaelene’s Tax Tip of the Week – September 4th

Hopefully you haven’t, but maybe you’ve had a loss on one of your allowable business investments. An allowable business investment is any investment in a private Canadian corporation that is

a “small business” corporation that:

a)    carries out 90% of its business on Canadian soil, and;
b)    existed 12 months before the disposition of the investment

While capital losses can only be used to reduce capital gains, you can use 50% of an “allowable business investment loss” to reduce all other types of income. 

Do note that the disposition cannot be with a person you are in an arm’s length relationship with, ie, a family member.

Have questions? Give us a call at 905-571-2665.

Shaelene’s Tax Tip of the Week – August 21

Usually, if you sell personal-use property at a loss, you can’t claim the loss. The exception is for “listed” personal property; which generally increases in value the longer you hold on to it. This includes Canadian cultural property (i.e. national treasures), stamps, coins, works of art, jewelry, rare books, folios, and manuscripts. These sorts of losses can be carried back three years, or forward for seven, and used to reduce the gain on the sale of other listed personal-use property.

Have questions? Give us a call at 905-571-2665.