Davidow & Nelson Blog


When applying for the home accessibility tax credit (HATC), valued at 15% of up to $10,000 in expenditures per year, does it matter if the renovation increases the value of my home? Yes, and No.In a December 12, 2019 Tax Court of Canada case, at issue was whether the taxpayer was eligible for a HATC… Read more »


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 »

Reporting Issues: TIPS

Tips received by servers and other individuals in the service industry are taxable. However, since tips do not show up on T4 slips, some taxpayers are under the false understanding that they are either not taxable, or only partially taxable.In a February 3, 2020 Federal Court of Appeal case, the Court upheld the Tax Court… Read more »


In a January 10, 2020 Federal Court of Appeal case, the Court conducted a judicial review of the denial of the taxpayer’s EI benefits. While receiving benefits in 2010 and 2011, the taxpayer had incorporated a corporation and engaged in preliminary work to set up its business. In early 2015, the Canada Employment Insurance Commission (CEIC) was advised by CRA that the taxpayer had applied for a business registration number while… Read more »

TAX TICKLERS… some quick points to consider…

Canadian controlled private corporations accounted for 54% of all corporate tax paid. The 1% of Canadianswho earned income in the top federal tax bracket paid 26% of the total personal taxes. Of the8 million individual taxfilers, 36% were non-taxable. The home buyers’ plan maximumwithdrawal increased from $25,000 to $35,000 for withdrawals made after March 19, 2019. Also, it is now available for… Read more »

New Relief Procedures: U.S. EXPATRIATES

On September 6, 2019, the IRS announced Relief Procedures for Certain Former Citizens, a new process to facilitate eligible individuals in becoming compliant with their U.S. tax obligations, in conjunction with renouncing their U.S. citizenship (IR-2019-151). There was no announced specified termination date; however, a closing date will be announced in the future.Eligible individuals will… Read more »

Costs and Rebates: FEDERAL CARBON TAX

On December 16, 2019, the Department of Finance announced the climate action incentive payment amounts for 2020. These payments are associated with the provinces that are subject to the federal backstop legislation. The following amounts may be claimed on the 2019 personal tax returns: Category Ontario Manitoba Saskatchewan Alberta Single adult/first adult in a couple… Read more »

Loss of the Small Business Deduction?: MOBILE HOMES, RV PARKS, CAMPGROUNDS

In an August 29, 2019 Tax Court of Canada case, at issue was whether the taxpayer who operated a mobile home/RV park was eligible to claim the small business deduction for the 2012-2014 years. CRA argued that the taxpayer primarily earned its income from the rental of seasonal and extended seasonal campsites and the storage… Read more »

The 20 Hours Test: TAX ON SPLIT INCOME

The tax on split income (TOSI) can subject various income sources, with taxable private corporation dividends being the most common, to personal tax at the highest marginal rate. One of the exceptions from TOSI occurs when the income recipient is actively engaged in the business. An individual will be deemed to be actively engaged in… Read more »