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.

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