Monthly Archives: September 2020

Eligible Expenses: BUSINESS USE OF THE HOME

A November 27, 2019 French Tax Court of Canada case reviewed various deductions claimed against the taxpayer’s business income derived from engineering and arbitration services related to the business use of his home. The taxpayer and CRA had agreed that 35.83% of the home, mainly the basement which was used as a business office, was… Read more »

Home Office Expenses: WORKING FROM HOME DURING COVID-19

In order for home office expenses to be deductible against employment income, the employee must be required by contract to incur such expenses, and one of the following has to be met: The home is where the employee principally (more than 50% of the time) does their work. The employee uses the space exclusively to… Read more »

Tax Implications: CONTRIBUTIONS OF GOODS OR SERVICES TO AN NPO

In a January 6, 2020 Technical Interpretation, CRA considered whether a deduction was available to suppliers who contributed in-kind goods or services to an NPO with the expectation that they would benefit from word of mouth advertising and promotion.Where the supplier is providing goods or services to an NPO in exchange for advertising and/or promotional… Read more »

Taxable or not?: REAL ESTATE SALES

In general, gains are fully taxable where the taxpayer buys a property with the intention to sell for a profit (sold on “account of income”). In other cases, half the gain is taxable (sold on “account of capital”). When a sale on “account of capital” involves the sale of a principal residence, the tax may… Read more »