6 Rental Income Audit Support tax and accounting engagements in full — what the client came to us with, what we did, and what it was worth. Each one is specific to rental income audit support work, not a general example.
Case Study 1 · Structure rebuilt
Reorganisation Completed Tax-Deferred, $71,000 Saved Each Year — Restaurant Under a Net-Worth, Barrie
Client: A restaurant under a net-worth audit · Where: Barrie, Ontario · Engagement: 10 weeks, fixed fee
Annual saving$71,000
Tax on reorganisationDeferred
Elections filedOn time
The situation
A restaurant under a net-worth audit in Barrie, Ontario had outgrown the structure it started with. Six years of unfiled corporate and personal returns and an active collections file was the immediate problem; the longer-term one was that the structure blocked the next step.
What we did
We mapped the current structure, modelled the target, and traced each unexplained deposit to its source — loans, transfers between accounts, an insurance settlement — and reduced the net-worth assessment accordingly — with the tax-deferred elections filed on time and the supporting valuations documented.
The result
The reorganisation completed without triggering tax, and the new structure saves approximately $71,000 a year while removing the exposure the old one carried.
Case Study 2 · Missed incentive claimed
$14,500 In Credits Claimed That Prior Filings Had Missed — Importer Under a Customs, Hamilton
Client: An importer under a customs and GST audit · Where: Hamilton, Ontario · Engagement: 7 weeks, fixed fee
Credits claimed$14,500
Years adjusted5
Review outcomeNo adjustment
The situation
An importer under a customs and GST audit in Hamilton, Ontario had been filing for 5 years without ever claiming the incentives its activity qualified for. Behind that sat a director liability assessment for a corporation that had already stopped operating.
What we did
We tested each activity against the eligibility criteria rather than the description on the invoice, then brought every outstanding return current, then negotiated a payment arrangement that stopped the collections action.
The result
$14,500 in credits claimed, with the open prior years adjusted as well. The claim passed review without adjustment.
Case Study 3 · Planning that cut the bill
$62,000 Cut From The Annual Tax Bill — Family Business Under a, Windsor
Client: A family business under a related-party review · Where: Windsor, Ontario · Engagement: 11 weeks, fixed fee
First-year saving$62,000
RepeatsAnnually
Filing positionUnchanged in risk
The situation
A family business under a related-party review in Windsor, Ontario was compliant but paying more than it needed to. The prior year had been filed correctly and still left a net-worth assessment built on unexplained deposits that were actually loan proceeds on the table.
What we did
We modelled the current position against the alternatives before changing anything, then assembled the contemporaneous records, filed a structured response to each proposed adjustment with the supporting documents indexed, and had the proposal withdrawn.
The result
The change saved $62,000 in the first year and repeats annually. Nothing about the filings became more aggressive; the position is simply the one the rules already allowed.
Case Study 4 · Deadline rescue
9-Week Turnaround Beat The Deadline And Saved $128,000 — Taxpayer with Frozen Bank, Ottawa
Client: A taxpayer with frozen bank accounts · Where: Ottawa, Ontario · Engagement: 9 weeks, fixed fee
Late-filing penalty avoided$128,000
Filed with7 days to spare
Next yearPapers ready
The situation
With the deadline for rental income audit support weeks away, a taxpayer with frozen bank accounts in Ottawa, Ontario was carrying a proposal letter with a 30-day response window and no supporting records assembled. The exposure if the date slipped was around $128,000.
What we did
We filed the disclosure through the Voluntary Disclosures Program before contact, which removed the gross-negligence penalty entirely. The filing went in complete rather than provisional, so there was no amended return to follow.
The result
Filed with 7 days to spare. $128,000 in late-filing penalties avoided, and the working papers are ready for the following year.
Case Study 5 · Backlog brought current
Collections Halted And $22,500 Cut From A 5-Year Backlog — Company Facing a Payroll, Red Deer
Client: A company facing a payroll trust examination · Where: Red Deer, Alberta · Engagement: 10 weeks, fixed fee
Balance reduced by$22,500
Backlog cleared5 years
CollectionsHalted
The situation
By the time a company facing a payroll trust examination in Red Deer, Alberta called, 5 years were outstanding and the CRA had assessed on estimates. Underneath it sat a director liability assessment for a corporation that had already stopped operating.
What we did
We reconstructed the records year by year and traced each unexplained deposit to its source — loans, transfers between accounts, an insurance settlement — and reduced the net-worth assessment accordingly. Each filing replaced an arbitrary assessment with a real one.
The result
The account is current. Filing on real numbers rather than CRA estimates reduced the balance by $22,500, and a relief application addressed part of the accumulated interest.
Case Study 6 · CRA review defended
$90,000 Reassessment Reduced To Nil On Review — Professional Under a Lifestyle, Mississauga
Client: A professional under a lifestyle audit · Where: Mississauga, Ontario · Engagement: 6 weeks, fixed fee
Reassessment reduced toNil
Tax protected$90,000
Prior filingsUndisturbed
The situation
A review notice arrived at a professional under a lifestyle audit in Mississauga, Ontario covering rental income audit support for two tax years. The auditor's working position was an adjustment of $90,000, driven by six years of unfiled corporate and personal returns and an active collections file.
What we did
Rather than negotiate, we rebuilt the record. We brought every outstanding return current, then negotiated a payment arrangement that stopped the collections action and submitted a point-by-point response that answered each proposed adjustment with the document behind it.
The result
The auditor accepted the documented position and closed the review without adjustment, protecting $90,000 and leaving the prior filings undisturbed.
Reviewed for the 2025 tax year by Udit Gupta, Certified Tax Accountant. Figures describe representative engagements of this type; outcomes depend on your own facts. Client names and identifying details are omitted for confidentiality.
