Cash damming is a banking strategy for business owners and rental property owners that can shift some interest from personal, non-deductible debt (like a mortgage) to potentially deductible interest tied to business or rental expenses. It doesn’t make mortgage interest deductible—clean tracing, separate accounts, and strong documentation are what make it work.

Table of Contents Housing Affordability and Government Policy Initiatives Why the Old HST Rules Were Largely Ineffective What the New HST Rules Are — and How Much You Can Save Who Qualifies for the First-Time Home Buyer HST Rebate Legislative References Contact Us Housing Affordability and Government Policy Initiatives Housing affordability has become a defining economic issue in Canada, particularly for first-time home buyers in Ontario. Elevated interest rates, persistent s

This blog explores how the CRA taxes passive income earned inside a corporation, why those rules exist, and what they mean for business owners. It breaks down the mechanics of high corporate tax rates, the Refundable Dividend Tax on Hand (RDTOH), and the Small Business Deduction (SBD) grind, showing how they limit the use of corporations as tax shelters. It also highlights strategic alternatives like the TFSA, RRSP, and FHSA, which offer benefits corporate investments can’t.

Discover how CRA’s little-known 45(2) and 45(3) elections can save homeowners thousands in capital gains tax when converting a home to a rental or moving back in. These elections defer deemed dispositions under Income Tax Act s.45(1) and preserve access to the Principal Residence Exemption (PRE) — in some cases for up to four extra years. Learn how strategic planning with change of use rules can unlock massive tax savings and avoid unexpected bills when selling your property.

Unlock the Lifetime Capital Gains Exemption (LCGE) with proper planning around Qualified Small Business Corporation (QSBC) shares. This guide covers the SBC Test, Holding Period Test, and 50% Basic Asset Test, plus purification strategies to meet CRA requirements. Avoid costly mistakes and maximize tax savings when selling your business. Learn how to qualify for up to $1,250,000 in tax-free capital gains in 2024.

Learn how Canadian homeowners can reduce or eliminate capital gains tax using the Principal Residence Exemption (PRE). Eligibility rules, ca

Understand deemed dispositions & their tax implications in Canada. Learn when they apply & how to minimize taxes.

Flipping a home? The CRA may tax it as business income. Know the rules & avoid surprises!

Learn how Proposed capital gain rules impact individuals & corporations. Plan smarter to save taxes.

Learn the basics of capital gains, tax implications, and property types in Part 1 of our 6-part series.

Explore Canada’s registered savings plans—RRSP, TFSA, FHSA & more. Unlock tax savings, grow wealth, and achieve your financial goals!

Get ready for tax season! Discover 2024 deadlines, rates, and credits to maximize your return. Contact Elkhanagry Accounting today!

This blog examines CRA’s framework for classifying individuals as employees or independent contractors and explores PSB risks!

This blog explores Canadian tax residency rules for individuals and corporations, tax treaties, and compliance essentials!

This blog post will unpack the latest CRA guidelines and explain the HST implications on a sale of a Airbnb property