CCPCs earning more than $50,000 in passive investment income lose the small business deduction dollar by dollar under Section 125(5.1). The 2026 planning playbook to protect the SBD. By Bader A. Chowdry, CPA, CA, LPA.
Canadian payers of rents, royalties, dividends, interest, management fees, or pension benefits to non-residents must withhold tax at 25% under Part XIII unless a tax treaty reduces the rate. Section 215 strict-liability mechanics, NR301/NR302/NR303 documentation, NR4 filing, section 216/217 elections, and a 2026 case study saving $266,000 in penalty exposure.
The Multigenerational Home Renovation Tax Credit (MHRTC) delivers a refundable 15% federal tax credit on up to $50,000 of qualifying renovation costs — a maximum $7,500 — when building a secondary unit so a senior (65+) or DTC-eligible relative can live with a qualifying relation. The 2026 playbook covers the qualifying-renovation tests, eligible vs ineligible expenditures, Schedule 12 mechanics, the documentation file, and the HATC stacking interaction.
The federal residential property flipping rule (in force since January 1, 2023) deems any housing unit owned for less than 365 consecutive days a flipped property — the entire gain is taxed as business income with no Principal Residence Exemption. The 2026 owner-manager and investor playbook covering the nine life-event exemptions, the parallel assignment-sale HST regime, and the documentation needed to survive a CRA review.
The 2026 CRA vehicle deduction limits: Class 10.1 cap raised to $39,000, Class 54 zero-emission cap held at $61,000, monthly lease deduction $1,100 + HST, per-km tax-free allowance 73¢/67¢, and the standby and operating taxable benefit rules for owner-managers.
Ontario REALTORS® can incorporate a Personal Real Estate Corporation (PREC) under TRESA. The single-registrant model, RECO registration, the deferral and income-splitting tax math, and the eight setup steps from Insight Accounting CPA Professional Corporation.
The annual year-end tax planning checklist for Canadian owner-manager CCPCs in 2026 — salary vs dividend mix, RRSP $33,810 and TFSA $7,000 room, bonus accrual 180-day rule, capital loss harvesting, CDA payouts, prescribed-rate spousal loans at 3%, LCGE $1,275,000 crystallization, and December-31 deadlines. By Bader A. Chowdry, CPA, CA, LPA.
T1135 is Canada’s mandatory foreign property reporting form for residents holding specified foreign property with a total cost over $100,000 CAD at any point in the year. Penalties for late or unfiled returns range from $2,500 to $24,000, with 5% of asset value for sustained non-compliance. The 2026 thresholds, simplified vs detailed reporting, and the VDP relief path from Insight Accounting CPA Professional Corporation.
Every Canadian trust hits a deemed disposition under paragraph 104(4)(b) on its 21st anniversary — taxing accrued capital gains as if all capital property were sold at fair market value. Budget 2025 amended subsection 104(5.8) to capture indirect trust-to-trust transfers. The 2026 planning playbook from Insight Accounting CPA Professional Corporation.
Share sale vs asset sale of a Canadian private corporation in 2026: LCGE at $1,275,000, QSBC 24-month purification, section 84.1 anti-stripping, hybrid sale structures, section 22 and section 167 elections, and the after-tax delta typical for owner-manager exits.
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