David Rotfleisch

2 months ago | mondaq.com | David Rotfleisch

Starting in 2024, changes to the income tax rules disallowdeductions for expenses related to non-compliant short-termrentals. If you rent out your residential property for shortperiods, these new rules may impact you. Short-Term RentalA short-term rental refers to a residential property rented oroffered for rent for periods of less than 90 consecutive days.

2 months ago | mondaq.com | David Rotfleisch

Back in April 2024, Canada's federal government presentedthe 2024 federal budget, which included a proposal to increase thecapital gains inclusion rate. Canada currently taxes capital gainsat a 50% inclusion rate—that is, only half of a capital gainis taxable. The 2024 federal budget proposed to increase thecapital gains inclusion rate to 67% for any capital gains exceeding$250,000.

2 months ago | mondaq.com | David Rotfleisch

Navigating the complexities of the Canadian tax system can beparticularly challenging when dealing with real propertytransactions, especially in the realm of GST/HST obligations. For those involved in thebuying, selling, or constructing of residential complexes,understanding the tax implications is crucial. According to the Excise Tax Act (ETA), thesupply of real property in Canada is generally taxable unlessexplicitly exempted.

2 months ago | mondaq.com | David Rotfleisch

Canada has special income tax rules that exempt from taxationsome income from an individual's employment. In the previousarticles of this series, we discussed the special income tax rulesfor:Canadian Armed Forces members andveteransEmployees at foreign embassies, prescribedinternational organizations, and prescribed internationalnon-government organizations in Canada. To conclude this series, this article explores other commoncircumstances in which tax exemptions apply.

2 months ago | mondaq.com | David Rotfleisch

In January 2025, the Federal Court of Appeal (FCA) rendered itsdecision on Doostyar et al. v The King, 2025 FCA 6(Doostyar). The FCA dismissed the appeal by the taxpayersof a decision by the Tax Court of Canada (TCC). The issue in thecase at the TCC was the balance of the individual taxpayer'sshareholder loan account with the corporate taxpayer. The parties had made their discoveries, argued their positions,and the TCC reserved its decision.