Author: Bader A. Chowdry, CPA, CA, LPA

Use a Section 85 rollover under Income Tax Act s. 85(1) when you are transferring eligible property (real estate, depreciable property, inventory, eligible capital property, most shares) to a taxable…

RDTOH (Refundable Dividend Tax on Hand) is a notional tax account tracking refundable Part I or Part IV tax the corporation has paid; the CRA refunds $38.33 for every $100…

Dividends from a connected Canadian corporation are generally deductible in the recipient Holdco under Income Tax Act s. 112(1), producing no immediate income inclusion at the Holdco level. Part IV…

A passenger vehicle purchased for over $36,000 (before HST/QST) is Class 10.1, with a per-vehicle capital-cost cap of $36,000 for 2026 acquisitions and no recapture on disposal. Passenger vehicles at…

Yes, but only if the home office qualifies under Income Tax Act s. 18(12): it must be either the principal place of business or used exclusively to earn business income…

Under Income Tax Act s. 125(5.2), a CCPC’s $500,000 SBD business limit is reduced by $5 for every $1 by which adjusted aggregate investment income (AAII) in the previous tax…

Yes, you can owe your corporation money, but only briefly. Income Tax Act s. 15(2) deems any loan or debt owing by a shareholder (or non-arm’s-length person) to be included…