Advisory Ledger | October 2026

1. Real Estate Podcast with Ahsan Raza

This month, I had the pleasure of joining Ahsan Raza on his real estate podcast to discuss important tax developments affecting homebuyers, investors, landlords, and real estate professionals.

Third time on the podcast with Ahsan Raza!  A big thank you to Ahsan for having me back for another great conversation about one of the topics that comes up repeatedly for real estate investors and homeowners: taxes.

As an accountant, I’m always happy to have the opportunity to break down some of the tax issues that can have a real impact on real estate decisions; and this time, we talked about some of the latest real estate tax updates and what people should be paying attention to.

I always enjoy these conversations with Ahsan. He asks the questions that matter, and it makes for a great discussion.

Thanks again for having me, Ahsan. Looking forward to the next one!

Watch the full episode here: https://youtu.be/oy8Z6dE-Ibw

During the discussion, we covered the following:

1. New federal and Ontario HST rebate enhancements
2. Personal versus corporate ownership of real estate
3. Tax planning opportunities for investors
4. Common tax mistakes made by property owners
5. Planning considerations for buyers, sellers, and developers

The episode focused on recent real estate tax developments, including HST rebates and ownership structuring decisions that can significantly impact after-tax returns.   One of the most significant recent developments for prospective homeowners is the expansion of available GST/HST relief on newly constructed homes.  Under the enhanced rules, qualifying purchasers may be eligible for the federal and provincial rebate

The federal government has proposed a full GST rebate on qualifying new homes valued up to $1 million, with phased-out relief available on homes valued between $1 million and $1.5 million.

Ontario continues to offer a provincial new housing rebate. When combined with the federal relief, eligible purchasers can access total rebate savings of up to approximately $130,000, depending on the purchase price and facts of the transaction.

Who May Benefit – The new rules may be particularly valuable for:

1. 1. First-time home buyers
   2. Purchasers of new construction homes
   3. Pre-construction condo buyers
   4. Young families entering the housing market
   5. Individuals considering assignment transactions

Planning Matters:  The availability of these rebates often depends on:

1. How the property is owned
2. Whether the home will be owner-occupied or rented
3. Assignment and closing structures
4. Filing deadlines and supporting documentation
5. Compliance with CRA and provincial rebate requirements

Many purchasers assume rebates are automatic. Unfortunately, missed deadlines, improper ownership structures, or incorrect filings can result in substantial lost savings.

Key Takeaway:

For many families purchasing a new home, the combined federal and provincial rebates could represent up to $130,000 of tax savings, making it more important than ever to review the tax implications before signing an agreement of purchase and sale.

If you are considering a new construction purchase, pre-construction condominium, investment property, or assignment sale, we recommend obtaining tax advice early in the process.

1. Bare Trust Reporting Rules Are Back: Are You Affected?

After several years of uncertainty and administrative relief, Canada has finalized new reporting requirements for certain bare trust arrangements. The CRA has confirmed that while most bare trusts did not have filing obligations for 2023, 2024, and 2025, certain reportable bare trusts will be required to file beginning with taxation years ending on or after December 31, 2026.

What is a Bare Trust?

A bare trust generally exists when one person holds legal title to an asset while another person enjoys the benefits and risks associated with ownership.

Common examples include:

1. Parent on title of an adult child’s property
2. Nominee corporations holding real estate
3. “In trust for” bank or investment accounts
4. Joint venture real estate structures
5. Certain estate and succession planning arrangements

The trustee has little or no discretionary authority and acts primarily on behalf of the beneficial owner.

Why It Matters

The new reporting rules were introduced to improve transparency around the beneficial ownership of assets and to provide the CRA with greater visibility into certain ownership structures.

The challenge is that many bare trust arrangements arise from ordinary family, business, or real estate transactions rather than formal tax planning. In many cases, individuals are unaware that a bare trust relationship may exist. For example, a parent may be added to a child’s property title for financing purposes, an adult child may be listed on a parent’s bank account for estate planning purposes, or a nominee corporation may hold legal title to real estate on behalf of the true owner.  As a result, arrangements that have historically been viewed as administrative conveniences may now need to be reviewed to determine whether a trust reporting obligation exists.

While a bare trust filing generally does not create additional tax, failing to identify and report a required arrangement could result in penalties and unnecessary scrutiny. More importantly, these rules place greater emphasis on documenting who legally owns an asset and who ultimately benefits from it.

What We Recommend

If any of the following situations apply to you, there may be a bare trust arrangement that should be reviewed to determine whether a trust filing requirement exists under the new reporting rules:

1. You own real estate through a nominee corporation.
2. You have added a parent, child, spouse, or other family member to the title of a property while retaining the beneficial ownership of that property.
3. You hold property, investments, or bank accounts on behalf of another individual.
4. You participate in a joint venture where legal ownership differs from beneficial ownership.
5. You maintain “in trust for” investment or bank accounts.
6. You have implemented estate, probate, or succession planning strategies involving separate legal and beneficial ownership of assets.

Not every arrangement listed above will require a bare trust filing. However, these are among the most common circumstances where a bare trust relationship may exist and where professional review is advisable.

Please contact our office if any of the above situations apply to you. We can help determine whether a bare trust exists, whether a filing obligation may arise under the new reporting rules, and what steps, if any, should be taken to remain compliant.

1. Artificial Intelligence is Changing Accounting & Tax: Strategic Advice Matters more than ever

Artificial Intelligence is rapidly transforming the accounting profession. While many discussions focus on automation, we believe the real opportunity is much bigger. AI is allowing accountants to spend less time on routine processing and more time helping clients with tax planning and to make better business decisions.

At ARJCPA, we are embracing AI to improve efficiency, enhance client service, and deliver deeper insights. By automating many administrative and data-processing tasks, we can focus on what creates the greatest value: strategic planning, financial analysis, tax optimization, and business advisory services.

How We Are Using AI:  We are leveraging technology to assist with:

1.     Tax research and technical analysis

2.     Document review and summarization

3.     Workflow automation

4.     Financial reporting support

5.     Data analysis and forecasting

6.     Internal knowledge management

7.     Client communications and reporting

Every output is reviewed by a CPA professional before being delivered to clients, ensuring accuracy, professional judgment, and personalized advice.

What This Means for Business Owners:

Many entrepreneurs have access to bookkeeping and financial statements, but few have access to ongoing strategic financial guidance.  As accounting technology becomes more efficient, personal taxpayers and business owners have an opportunity to redirect resources from compliance activities toward proactive planning and growth initiatives.

Our focus is helping clients answer questions such as:

1.     Am I paying more tax than necessary?

2.     What effective personal investment decisions can I make?

3.     How do I manage my personal tax flows?

4.     Is my business generating enough cash flow?

5.     Can I afford to hire additional staff?

6.     Should I incorporate a personal holding company?

7.     What is my business worth today?

8.     How can I improve profitability?

9.     What does my succession or exit plan look like?

10.Virtual CFO & Advisory Services

Growing businesses often need the insight of a Chief Financial Officer (CFO) but may not require a full-time executive. Our advisory and Virtual CFO services provide business owners with access to high-level financial leadership without the cost of a full-time CFO. We assist with:

Ø  Cash flow planning and forecasting

Ø  KPI and dashboard reporting

Ø  Budgeting and financial modelling

Ø  Tax minimization strategies

Ø  Business acquisitions and expansion decisions

Ø  Succession and exit planning

Ø  Financing and banking support

Ø  Corporate structure reviews

Whether you are an incorporated professional, a growing entrepreneur, a real estate investor, or an established business owner, our goal is to help you use financial information to make better decisions and build long-term wealth.

Technology + Human Expertise:

Technology will continue to evolve, but successful businesses still need trusted advisors who can interpret information, identify opportunities, and help navigate complex decisions.  At ARJCPA, we believe the future of accounting is not just compliance. It is the combination of technology, data, tax expertise, and strategic advice that helps our clients grow with confidence.  If you are looking for a CPA who can provide more than tax returns and financial statements, let’s have a conversation about how advisory and Virtual CFO services can support your business goals.