What is New and What are the Hot Issues

• Capital loss of estate extended from 1 year to 3-year carryback for deceased, learn the impact on estate planning
• A reminder about reporting for reportable and notifiable transactions, with large penalties for failure
• The 25% GAAR penalty that clients should understand
• When does a trust pay a dividend, impact of Vefghi case and far-reaching implications
• CRA audit activity, results of our recent survey and what you should know

AMT still applies to relatively few people, but when it does, it can really hurt.

• Lessons from 2024 on impact of new AMT rules, typical profiles that cause AMT
• Planning ideas to minimize AMT
• Recovery mission, strategies to claim back AMT paid

We all learn from our mistakes, but better to learn from experiences of others. See 10 areas where we see mistakes commonly arise.

• Stranded foreign tax credit
• Part IV tax surprise
• Dividends you don't want
• Kiddie tax catastrophe
• Stock options gone wrong
• Non-deductible bonus
• Principal residence redo
• Flipped property from left field
• Disastrous debit balance cycle
• Overpayment of capital dividend account

• US estate tax, exemption now $15 million US, examples and implications
• Structures for US real estate
• Recent US tax changes

A Deep Dive
At $1,250,000, the exemption is worth more than ever. Many challenges exist in effectively claiming the exemption. A detailed review of the rules, common traps to avoid, strategies to multiply the exemption, purification techniques and ideas to revive the exemption when it seems hopeless.

A series of rules deny or limit the deduction for interest expense. Understanding the basic rules and principles means the difference between success and failure.

• Corporate tax rules for small business deduction, investment income, and personal services business
• Integration, salary v. dividend, tax deferral, and planning ideas

• Form of remuneration, and impact of AMT
• Capital gains strips revisited
• Debit balances, loans and repayments

When done successfully, the benefits of income splitting are considerable. Understand the rules and planning ideas.

• Income attribution rules
• Tax on split income (TOSI)
• Prescribed rate loans, and new AMT implications
• Examples of real-life situations

CRA has become more aggressive in reviewing and challenging stock market gains arguing they are regular income. What are the rules based on established case law. What to do and not do in the course of a CRA audit.

A comprehensive review of tax ethics from the perspective of an accountant in public practice. From the theoretical to the practical, we look at accountants' liability in tax practice with a focus on issues such as retrospective dating on documents, accountants' conflicts of interest, reputational risk and professional responsibility. Other matters covered include common mistakes, preparer penalties, and ethics related to trusts.

Taxpayers, advisors, and even CRA are often confused about the rules for determining when a year is statute barred. A quick refresher on what the rules and case law say, that may prove immensely useful.

For 2025 filing, bare trust reporting is back. Learn:

• When there is a bare trust
• Common exemptions (recent changes have added to this list)
• How to report, with worked examples
• Tips obtaining information and identifying when reporting is required

The best year-end planning ideas for 2025 as well as some cautions, as we approach the end of the year.