21-year deemed disposition rule

21-year deemed disposition rule generally deems trusts to have disposed of and reacquired their trust property every 21 years at their fair market values. The trusts are subject to income taxes on accrued capital gains, income, or recapture.

Asset

An asset is an economic resources owned by a business that is expected to be of benefit to the business in the future. Cash, equipment, furniture, land, building, copyright, copyrights, goodwill are examples. The most basic tool of the accountant is the accounting equation, e.g. Assets = Liabilities + Owner’s equity, the mathematical structure of the balance sheet.

Long-lived asset

A long-live asset is an asset that is expected to provide economic benefits over a future period of time, typically greater than one year. It is also referred to non-current or long-term asset.  In general terms, it is “long-lived” because it is expected to contribute to earnings beyond current current year or operating period.

Deemed non-resident

If you are a factual resident or a deemed resident of Canada and are considered to be a resident of another country that has a tax treaty with Canada, you may be considered a deemed non-resident of Canada for income tax purposes. If you are a deemed non-resident, you must follow the same rules as a non-resident of Canada…

Residential ties

The most important thing to consider when determining your residency status in Canada for income tax purposes is whether or not you maintain, or you establish, residential ties with Canada.

Adjusted cost base (ACB)

Adjusted cost base (ACB) usually means the cost of a property plus any expenses to acquire it. such as commissions and legal fees.

Capital loss

You have a capital loss when you sell, or are considered to have sold, a capital property for less than the total of its adjusted cost base (ACB) and the outlays and expenses incurred to sell the property. Save on taxes from business losses

Capital gain

You have a capital gain when you sell, or are considered to have sold, a capital property for more than the total of its adjusted cost base (ACB) and the outlays and expenses incurred to sell the property. What percentage of capital gains is taxable? Tax on interest, dividends, and capital gains Certificate of compliance is…

Voluntary Disclosure Program (VDP)

The Voluntary Disclosure Program (VDP) is a program created and administered by the Canada Revenue Agency (CRA), which allows taxpayers to amend or correct their previous tax filing or reveal information to the CRA not previously provided in their tax returns. The purpose of the program is to promote compliance with Canada’s tax laws by…