Taxes

A Judge’s Guide to Whim and Fancy, or Best Efforts Clauses; Seller Had to Have Actual Knowledge of Default, Not Deemed Knowledge of Agent, to Be Liable Under Contract; Note Re: Legally Speaking 332 #333

Legally Speaking

By Gerry NeelyB.A. LL.B. In one case, the conditional clause in a Contract of Purchase and Sale required the buyer to satisfy himself as to the tax implications of Canadian/USA/international law upon his purchase of Canadian property. The buyer lived and worked in California, and the purchase monies from an inheritance were to be transferred

Benefits – Taxable or Not? #168

Legally Speaking

By Gerry NeelyB.A., LL.B. National Revenue’s unsuccessful attempt to add to a taxpayer’s income may be of interest to your clients whose employers require them to move and to all licensees wearing uniforms. In two separate cases, payments were made to taxpayers by their employers which the Minister of National Revenue wanted to classify as

Principal Residence – Calculations and Exemptions #147

Legally Speaking

By Gerry NeelyB.A. LL.B. A taxpayer bought a home and occupied it as his principal residence for 18 months and then rented one-third of it for 46 months. He then sold the home for a gain of $52,000, which the Minister of National Revenue (MNR) taxed as a capital gain. The taxpayer appealed successfully and

Tax Deductibility of a Real Estate Training Course #133

Legally Speaking

By Gerry NeelyB.A. LL.B. A real estate salesperson in Ontario paid $525 in 1985 to attend a four-day course “List More – Sell More,” which she found to be useful in increasing her commission income. Her deduction of this amount on her tax return was disallowed and she appealed. Her grounds of appeal were that

Professional Incorporations – Continued #123

Legally Speaking

By Gerry Neely B.A. LL.B The response to the previous column discussing the lower rate of tax paid by a corporation carrying on an active real estate business confirmed that while everyone agrees that the federal deficit is too high, no one wants to be first in line to reduce it. The response also warrants

Condominium Act, Municipal Act, Social Service Tax Act #98

Legally Speaking

By Gerry NeelyB.A. LL.B. These three Acts proclaimed by the Legislature in Victoria may contain a number of booby traps waiting to explode in the face of the unwary, but each contains at least one. Anyone purchasing a condominium knows that the legal description includes an interest in the common property. And certainly a mortgagee

Capital Gains Tax – Principal Residence #96

Legally Speaking

By Gerry NeelyB.A. LL.B. Following the death of a woman in 1982 who lived on a parcel of land of 6.09 acres, the Department of National Revenue assessed a taxable capital gain of $202,800.00 on the deemed disposition of the property. This assessment was based upon the Department’s contention that only one acre was necessary

Marketing – Another Product? #91

Legally Speaking

By Gerry NeelyB.A. LL.B. For some years Victoria has had double the average population of Canadians over the age of 65 years, the result, of course, of its incomparable beauty and moderate climate. Over the next 30 to 40 years, Canada overall is expected to see a doubling of its population over this age. New

Principal Residence Exemptions #42

Legally Speaking

By Gerry NeelyB.A. LL.B. In the first case, the question was whether or not the sale of 9.3 acres made by the taxpayers under threat of expropriation by a municipality, leaving 7/10ths of an acre upon which the taxpayers’ house was situated, was exempt from taxation as falling within the principal residence exemption. Fourteen years

Income Tax, Income or Capital Gain #31

Legally Speaking

By Gerry NeelyB.A. LL.B. The intention of the taxpayer as the determinative factor in whether one hundred per cent of the profit realized on the sale of property is taxed as income, or only fifty per cent as capital gain, is described in the following two cases. In the first one, the taxpayer stated that

Income Tax #25

Legally Speaking

By Gerry NeelyB.A. LL.B. One of the results of the reduction in residential sales has been an increase in the number of trades of residential properties between people who can’t find a satisfactory cash buyer. For any one entitled to deduct moving expenses under Section 62 of the Income Tax Act, the question of how the