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What is a capital gain? A capital gain is the profit you make when you sell an asset. An asset can include land, buildings, stocks, bonds, fund units, and trust units. How are capital gains taxed? When you sell an asset at a profit, you must include 50% of the profit in your taxable income for the year. This is commonly referred to as the inclusion rate . For example, if you own shares in a taxable account that you sold for $5,000, and you bought those shares back for $3,

🔍 Key points     Here are the key points to remember:     1. Investments and expenditures     The budget includes new commitments of $141.4 billion over the next five years. Objective: to strengthen the Canadian economy, increase productivity, diversify trade, and cope with global shocks.       2. Tax measures for businesses     Introduction of a super productivity deduction: enhanced tax incentive for new capital investments. Immediate charge-off for eligible manufacturing

1. There is no inheritance tax in Canada     Unlike the United States or some European countries, Canada does not impose inheritance tax. But… it imposes a tax on deemed capital gains upon death.   👉 Death = deemed disposition of all assets at market price. This creates a capital gain that may be taxable.         🔶 2. Tax implications upon death     Here is what is generally taxable:     🔸 Real Estate     Main residence: exemption (no tax). 2nd building / rental building:

Here is the detailed explanation based on Canadian tax law. Exemption for Main Residence (ERP) This is the key concept in Canada for avoiding capital gains tax when selling a property. To claim the ERP for a given year, the property must meet all of the following conditions: It must be a housing unit, a leasehold interest in a housing unit, or a share of the capital stock of a housing cooperative. You must have owned the property alone or jointly with another person. You, you

Here is a clear and structured process for onboarding a new client to QuickBooks Online (QBO). These are the steps you or your team can follow to get started correctly and ensure a smooth transition to this modern accounting solution. Information preparation and collection Customer basic data Full company name Owner's name Business address Phone and email Company number (NE) Financial exercises Fiscal year end date GST/QST reporting frequency GST/HST Reporting Frequency Tax r

Here is a clear summary of the differences between a sole proprietorship and an incorporated company in Quebec/Canada: 1. Legal liability Sole proprietorship The owner is personally liable for all the company's debts and obligations. If the company has financial problems, creditors can seize your personal assets (house, car, etc.). Incorporation The company is a separate legal entity. Liability is limited to the company's assets, which protects the owner's personal assets (ex

An essential legal document to secure relationships between partners and guarantee the stability of your business Why a Shareholders' Convention? The shareholders' agreement goes well beyond the company's articles of association. It clearly defines the rights, obligations, and relationships between all the company's shareholders. Clarity Establishes precise internal operating rules Protection Protects the interests of all shareholders Stability Ensures the company's long-term

Business takeover is about buying an existing company to run and grow it, rather than starting from scratch as in traditional entrepreneurship. In other words, you "take the wheel" of a vehicle that's already running, rather than building one from scratch in your garage. 🧠 The advantages Huge time savings You start with clients, a brand, employees and a structure already in place. Less risk You know the financial history, the profitability, the current contracts — in short,

Faced with financial difficulties, there are concrete and effective strategies to rectify the situation before it is too late. An alarming observation, but not inevitable. Bankruptcy never happens overnight. It is often the result of a series of difficulties that gradually accumulate: chronic lack of liquidity, recurring payment delays, unpaid tax debts, poor management of operational costs, or a business strategy poorly adapted to the current market. For many entrepreneurs,

Optimization of registered accounts RRSP Immediate deduction from your taxable income → reduces the tax payable this year. CELI No impact on income but all withdrawals/gains are tax-free. FHSA (if you haven't bought a house yet): deductible contributions + tax-free withdrawals for a first residence. 👉 Strategy: always maximize the account that corresponds to your objective (retirement vs home purchase vs liquidity). Income splitting (if in a couple or retired) Pension splitt

A tax audit by the Canada Revenue Agency (CRA) is a structured process, but it can vary depending on the case and its level of complexity. Here are the main steps: 1. File selection Risk criteria Inconsistencies in the statements Atypical income Comparisons with other similar companies Denunciations or complaints The CRA may receive external reports that trigger an audit Random checks Some files are selected at random as part of the normal screening process The selection does