What is new:
A- Split income: Guidance on the application of the split income rules for adults:
The Department of Finance consultation paper, Tax Planning Using Private Corporations, released on July 18, 2017, included proposed amendments to expand the existing tax on split to restrict income sprinkling involving adult individuals. The consultation period for public comments on the paper ended on October 2, 2017. Based on the comments received during that period, revised draft legislative proposals were released on December 13, 2017 (the “Proposals”). These new rules are proposed to be applicable to the 2018 and subsequent taxation years. This is a very complicated issue, please seek professional advice. Still interested to learn more? click on the link bellow to see full article at CRA website.
B- Home Accessibility Expenses:
Are you eligible?
You can claim an amount for the eligible expenses for a qualifying renovation of an eligible dwelling, if:
you are a qualifying individual; or an eligible individual making a claim for a qualifying individual.
A qualifying individual is: an individual who is eligible for the disability tax credit for the year; or
an individual who is 65 years of age or older at the end of a year.
Click below to see full article at Canada Revenue Agency website:
C- Climate Action Incentive (CAI) Refundable Tax Credit:
The Climate Action Incentive refundable tax credit was included in the 2018 Federal Budget and enacted for 2018 and later years as part of Bill C-86, Budget Implementation Act 2018, No. 2.
The only provinces for whom this credit is available are:
Manitoba, New Brunswick, Ontario, and Saskatchewan
Who is Not Eligible:
– non-resident of Canada at any time in 2018
– those confined to a prison or similar institution for a period of at least 90 days during 2018
– those exempt in Canada at any time in 2018 due to being an officer or servant of the government of another county, such as a diplomat, a family member who resided with such a person, or an employee of such a person
– person in respect of whom a children’s special allowance (CSA) was payable at any time in 2018
– taxpayers who died before April 1, 2019
Who is Eligible:
Only residents of Manitoba, New Brunswick, Ontario or Saskatchewan on December 31 of the taxation year are eligible, and the resident must meet one of the following criteria at that time:
– 18 years of age or older, or
– had a spouse or common-law partner, or
– is a parent who lived with their child
Prepare yourself and make the tax tape less sticky.
Thank you for the opportunity of preparing your previous year(s) tax
return(s). Most of us have yet to receive some critical documents needed
to complete our 2018 income tax returns. But it is a good idea to think
ahead about how to pay less TAX:
- RRSP: You have until March 01, 2019 to purchase any RRSP amounts that you want
to claim in your 2018 return. If you are not certain of the optimum
amount please give me a call. For advice on how to purchase or
invest your RRSP please contact your financial institution/financial
- Employees: T4, babysitting receipts (with sitters SIN#
or institutions name on it), property taxes or rent receipts, kids
camp, sports & other expenses, medical and drug receipts,
charitable donations. Most of these items may also apply to other
- Investors: T3s, T5s, Capital gain/losses-stock
transactions, interest on investment related loans, brokerage &
safety deposit box fees.
- Rental income: all expenses (gas, hydro, repairs, etc…), mortgage expenses, insurance and rental income.
- Truckers: TL2, logbook, meals, and other expenses.
self-employed and commissioned persons: all expenses and
income (If you have any questions please call me for more details).
- Qualified Employees: T2200 (declaration of conditions of employment).
- Work out of home: all gas/hydro bills and invoices for any home office-related expenses.
Get your Cash Refund on the spot; ask for it and get it super-fast. Cash Back now available for the 2013, 2014 ,2015, 2016, 2017 & 2018 Tax years