Our tax code allows you to receive, on a tax free basis, a capital gain made on the sale of your principal residence. In the normal course of events, you are only permitted to receive this tax benefit once a year. If you improve the property while living there (and are not in the renovation business), there may be an opportunity to obtain a larger tax free windfall because of your sweat equity. Should you later acquire another principal residence, a further tax free gain could be available.
The Family Cottage
But what about the family cottage? Because it is not your principal residence, if it is sold or left as a bequest at death, even if you are passing it on to your children, it must be appraised and tax paid on the capital gain. To avoid or reduce this tax, consideration should be given to setting up a simple corporation now while your cottage can still be valued at a reasonable amount and giving your children shares in the company. This is a relatively straightforward and cost effective way to avoid or reduce taxes. As an additional benefit, it will likely avoid a family fight on your passing.
The foregoing provides only an overview and does not constitute legal advice. You are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained in the context of your own particular circumstances.
Our tax code allows you to receive, on a tax free basis, a capital gain made on the sale of your principal residence. In the normal course of events, you are only permitted to receive this tax benefit once a year. If you improve the property while living there (and are not in the renovation business), there may be an opportunity to obtain a larger tax free windfall because of your sweat equity. Should you later acquire another principal residence, a further tax free gain could be available.
The Family Cottage
But what about the family cottage? Because it is not your principal residence, if it is sold or left as a bequest at death, even if you are passing it on to your children, it must be appraised and tax paid on the capital gain. To avoid or reduce this tax, consideration should be given to setting up a simple corporation now while your cottage can still be valued at a reasonable amount and giving your children shares in the company. This is a relatively straightforward and cost effective way to avoid or reduce taxes. As an additional benefit, it will likely avoid a family fight on your passing.
The foregoing provides only an overview and does not constitute legal advice. You are cautioned against making any decisions based on this material alone. Rather, specific legal advice should be obtained in the context of your own particular circumstances.
Tax Law
DioGuardi offers solutions for tax problems such as:
Unreported income
Unfiled tax returns
Payment arrangements
Unpayable tax debt
Tax dispute litigation
Criminal tax defense
Wills, Estates & Trusts
DioGuardi Law offers these will, estate and trust services for individuals and business-owners:
Wills
Preparation of trust agreements
Powers of attorney
Estate administration
Probate
Representation in estate driven litigation
Real Estate
DioGuardi Law can assist you with all your real estate needs including:
Newly constructed/Resale
Purchases and Sales
Title transfers
Leases
Private mortgages
Refinancing
Condominiums
Vacant land
Tax Debt Relief
When your tax balance is too large to be affordable, DioGuardi Law can protect your home, your cash flow and your financial assets from the Taxman. It is essential that we begin planning a strategy before the CRA registers a lien against your properties or seizes financial accounts, and before you engage with an insolvency trustee.
Business & Tax Planning
DioGuardi Law has the experience to provide:
Resident and non-resident corporate restructuring
Optimum use of holding corporations
Continuity and succession planning
Tax-free transfers
Losses and ABIL planning
Making interest tax deductible
Small business planning
Corporate & Commercial Law
DioGuardi Law have represented business clients for the last 50 plus years and have supported their legal requirements on an on-going basis by offering the following services:
Incorporations and corporate governance
Corporate reorganizations and transactions for the directors and shareholders
Negotiation and drafting of agreements, professional corporations, minute book maintenance
Brigitte DioGuardi
B.A., LL.B
Brigitte obtained her Law Degree from the University of Sheffield in the United Kingdom. Upon her return, she qualified for the Bar and was called to the Law Society of Ontario (formerly the Law Society of Upper Canada) in 2002. She was also a member of the Bar of British Columbia and headed up the Vancouver office of DioGuardi Tax Law. Fluently bilingual in English and French, Brigitte has broad experience in the areas of:
Joyce Bruno has worked as executive legal assistant to Paul Dioguardi for 35 years and continues to offer her expertise and experience to the Dioguardi Law firm. Joyce’s role has evolved over the years and has acquired and developed many skills. She is an invaluable asset in case management and ensures the smooth running of our office.
Paul DioGuardi
B.A., LL.B, KING’S COUNSEL, SENIOR COUNSEL
Paul obtained his Law Degree from Queen’s University in 1964. He is a member of the Bars of Ontario, British Columbia and the Turks and Caicos Islands, a British tax free territory in the West Indies. He has over 50 years of experience and was trained at the Ottawa head offices of Revenue Canada and the Tax Litigation Section at the Department of Justice. Paul has had and continues with an extensive career in various areas of law such as:
