Q4 2026 Tax Tips & Traps: Tax Updates for Canadian Businesses

Q4 2026 tax tips and traps from Forbes Andersen LLP

Q4 2026 Tax Tips & Traps

Our Q4 2026 Tax Tips & Traps newsletter covers what changed this quarter: a proposed immediate write-off for most business assets, plus Tax Court rulings on record-keeping, worker status, and support obligations.

Here's what business owners, investors, and individuals should know.

What's Inside This Edition

The Productivity Mega Deduction: Immediate Capital Asset Write-off

→ The federal government has proposed letting businesses deduct the full cost of most depreciable property acquired on or after September 15, 2026 in the year it becomes available for use. Buildings, intangibles, and certain vehicles are excluded. The proposal has not yet been tabled or passed into law.

Using an Accountant: Helps in Court!

→ Two taxpayers lost their invoices in a flood, and CRA denied over $100,000 of expenses. A summary their accountant had prepared from the original invoices helped turn the case around.

Employee or Independent Contractor: Medical Clinic Office Administrator

→ CRA said the administrator was an employee. The court disagreed, and explained how mutual intention fits into the worker-status test.

First Home Savings Account (FHSA): Closed Upon Home Acquisition?

→ Buying a qualifying home doesn't, by itself, end your FHSA's maximum participation period. It can, however, affect a future tax-free withdrawal.

Change in Living Arrangement: Eligible Dependant Claims

→ An oral agreement between separated parents didn't override a court order requiring support payments, and that cost the taxpayer the eligible dependant credit.

Employment Expenses: Not Statute-Barred

→ A commission employee lost nearly all of his expense claims, and a lack of reasonable care allowed CRA to reassess beyond the normal reassessment period.

Paying for Someone Else's Appeal: Deductible?

→ A taxpayer who paid her son-in-law's appeal costs couldn't deduct them. Neither could he, since he didn't pay them.

Read the Full Q4 2026 Tax Tips & Traps PDF

For the full breakdown, download the complete PDF here.

If you have questions about anything covered in this issue or want help with your 2026 year-end planning, don't hesitate to get in touch.

All Blog Posts

Related Articles

Q1 2026 Tax Tips and Traps - What You Need to Know - UHY Forbes Andersen LLP
February 13, 2026

Q1 2026 Tax Tips & Traps | CRA Updates for Canadian Businesses

New CRA reporting rules for trucking, digital platform income tracking, OAS clawback deadlines, CPP election updates, and more.
Read more
Crypto tax in Canada guide - understanding CRA compliance requirements for cryptocurrency investors and traders
January 28, 2026

Crypto Tax in Canada: What the CRA Actually Cares About

Understand crypto tax in Canada beyond calculations. Learn what the CRA focuses on: intent, classification, documentation.
Read more
The Hidden Dangers of Using AI for Cross-Border Tax Planning - UHY Forbes Andersen blog header
December 5, 2025

The Hidden Dangers of Using AI for Cross-Border Tax Planning

AI tools like ChatGPT can mislead you on Canada-US tax rules. Learn why cross-border tax planning needs expert guidance, not chatbots.
Read more
Federal Budget Commentary 2025 with Canadian flag - tax analysis and highlights
November 12, 2025

2025 Federal Budget Canada: Tax Changes & Key Highlights

2025 Federal Budget highlights: personal tax credits, SR&ED expansion to $6M, productivity super-deductions, clean energy incentives, and CRA enforcement updates.
Read more