Barb Carle-Thiesson, LLB, is a prominent criminal defence attorney specializing in high-profile murder and organized crime cases.
Question:
Barb Carle-Thiesson, LLB, is a prominent criminal defence attorney specializing in high-profile murder and organized crime cases. Barb is a sole practitioner.
It is now August 15, 2023. A partner at your firm recently met Barb at a social function. Barb requested a meeting to discuss her tax situation. You, CPA, have been asked by the partner to sit in on the meeting and to prepare a draft report for Barb.
Barb begins, "I am in the process of purchasing a newly constructed luxury duplex from one of my clients for $837,000. The deal closes in a month. My husband, Gary, and I are planning to move into the main-floor unit and rent out the second-floor unit. We recently sold our city home for $480,000 and we also own a cottage on the lake. I've brought you some details on the three properties (Appendix I). I already pay tax at the highest rate of 50%, so I don't want to pay any more tax than I have to. How can I minimize the tax I have to pay related to these three properties?
"Also, I would also like to discuss the phone call I recently received from an auditor at the Canada Revenue Agency (CRA). She wants to meet with me next week to review my last two years' tax returns, focusing on the statement of professional activities. I have always prepared my own taxes, which I have brought for you (Appendix II) along with some other questions I have for you. If there is anything wrong with what I did, I want to be able to tell the CRA right away. Please provide your opinion on the deductions I've taken, and tell me what information I need to present to the CRA to support my position. If there are errors, can you let me kn
t the consequences will be? And how far back I am able to amend my returns?"