Robertson Sharpe & Associates

06/06/2026

I’ve had a couple of clients surprised by unexpected taxable capital gains this year (they didn’t seek any advice in advance) so I think it’s worthwhile covering the “change of use” rules again.

Scenario 1. You convert your principal residence into a rental property. Get it appraised, the gain between when you bought it and when you converted to a rental property (change of use =deemed disposition at fair market value) is tax free but the gain when you do ultimately sell it ( or pass away, another potential deemed disposition) is taxable and you want to be able to justify the cost basis if CRA decides to review the transaction.

Scenario 2. You decide to sell your principal residence and move back into your rental property. This change of use has the potential to create an unfunded but taxable capital gain. In a nutshell you are deemed to have sold the rental property at Fair Market Value (again, get it professionally appraised so you can defend the values if CRA decides to review the transaction).

In either case get professional advice.

04/28/2026

Almost across the finish line!

03/30/2026

Have I ever told anyone how much I hate Bell Canada?

They are migrating to fibre optic in our area and, as a consequence, we're currently unable make outgoing phone calls until a technician comes to the office. After being bounced from department to department at what are clearly offshore call centres I've been told that the earliest appontment is Wednesday. 🤬🤬🤬🤬🤬

I need a new service provider.....

03/27/2026

I just completed preparing the final return for a deceased client. They had been quite successful and amassed retirement savings of close to 2 million dollars in their RRSP.

As you are deemed to have sold all of your assets at fair market value and RRSPs / RRIFs become taxable in your year of death CRA can expect a windfall.

Be sure, if you have one, to name an eligible beneficiary/ successor annuitant on your RRSPs or consider naming a registered charity as the beneficiary if you’re single.

In this case the client’s estate is going to lose over $900,000 to taxes…..

While we’re on the topic of estate planning, make sure that your will reflects the current taxation of trusts if you’re leaving a bequest to be held in trust for a minor.

01/07/2026

Given the current circumstances I regret to announce that we will no longer be preparing US tax returns as it would involve buying software from a US vendor. Thank you for your understanding.

01/06/2026

Once again I've had a client asking about salary vs dividends for their compensation, so here's how the number break down......

Target income $100,000 per annum.

To have $100,000 in dividends available for distribution the corporation (assuming that it's Canadian Controlled Private Corporation that qualifies for the Small Business Deduction and located in Ontario) would have to earn approximately $113,900 and pay $13,900 in income tax.

The individual taxpayer would then also pay about $13, 283 in income tax (again, assuming Ontario residency) for a total tax burden of $27, 183.

If, they paid themself a salary of $100,000 their tax liability would be $21,719 plus $4,034 as the employers portion of CPP of a total of $25,753. The corporation would pay no tax as salaries are deducted from their corporation's taxable income.

In addition to saving about $1,440 with the salary model the taxpayer is contributing to CPP thus saving for retirement and their salary is earned income for purposes of calculating RRSP contribution limits.

Counterintuitive as it may seem at this income level it's more tax efficient to pay yourself a salary.

12/24/2025

Merry Christmas! Our office will be closing today at noon and we’ll see you in the New Year! (Back January 2nd)

11/29/2024

Finally, a little common sense from CRA....

The Canada Revenue Agency (CRA) will not require bare trusts to file a T3 Income Tax and Information Return (T3 return), including Schedule 15 (Beneficial Ownership Information of a Trust) for the 2024 tax year, unless the CRA makes a direct request for these filings.