Practice Area: Tax Services

Nicholas P. Smith

For over 25 years, Nick’s practice has focused on Federal, Provincial and international tax and estate planning.

Cheyenne Reese

Cheyenne assists clients with estate and trust planning and tax matters.

Laura M. Peach

Laura assists clients with personal and corporate succession planning, including corporate reorganizations, estate planning and trust and estate administration.

Robert B. Carrothers

The primary focus of Robert's practice has been and remains advising family businesses and families in relation to tax matters and estate planning.

Christine M. Muckle

Christine practices in the area of estate planning, trust administration, estate administration, and related tax matters, with a focus on cross border U.S.-Canada transactions.

The Principal Residence Exemption

Laura M. Peach

PREPARING FOR PROPOSED CHANGES Many taxpayers are aware that an exemption from tax on capital gains may be available when those gains arise from the disposition of their principal residence. However, proposed changes to the Income Tax Act could limit the ability of many taxpayers to claim the principal residence exemption (the “PRE”). Trustees, in particular, need to be aware of the proposed changes. Current Requirements Generally speaking, a Canadian resident individual can claim the PRE if the taxpayer owned the housing unit and it was ordinarily inhabited by the taxpayer or his or her spouse or child. In…

Transfers to the Corporation: Section 85 Rollovers

Nicholas P. Smith

I.     INTRODUCTION S.85(1) of the Income Tax Act (Canada) (the “ITA”)[1] allows a person to transfer property to a taxable Canadian corporation on a tax-deferred basis.  This rollover allows a person to defer the recognition of income, capital gains and/or recapture. II.     ELIGIBILITY REQUIREMENTS The eligibility requirements for a tax-deferred transfer under s.85(1) are discussed below.      A.     TRANSFEROR The person transferring the property must be a taxpayer as defined in the ITA.[2]  This includes individuals, corporations and trusts regardless of whether they are resident or…

International and Interprovincial Tax Planning Issues for Individuals and Trusts

Nicholas P. Smith

I.     INTRODUCTION Planning for clients with assets and beneficiaries in multiple jurisdictions requires knowledge of residency and the deeming rules that could alter its common law meaning. The interprovincial source rules for the taxation of individuals and trust income are critical in planning as investment income is taxed based on residency while business income is taxed based on its source. The use of interprovincial trusts in tax planning can have benefits for clients in British Columbia given the significantly lower tax rates in Alberta for dividends. However, this type of planning requires careful…