2018 Year End Tax Tips
January 9, 2019 - 0
Another tax season is upon us and there are number of new things this year to keep in mind:
Scammers continue to dial in from a foreign location – you will NEVER receive a phone call or an email from the CRA. It’s a phishing expedition to scare you into sending funds. Call me if you need assurance.
The tax filing deadline this year is Tuesday, April 30. In situations where at least one spouse has a business that is not incorporated, the deadline for both is then Monday, June 17 although taxes owing must be estimated and paid by April 30.
The deadline for RRSP contributions to be recognized on your 2018 tax return is March 1, 2019. Your 2017 income tax Notice of Assessment issued by the C.R.A. specifies your 2018 contribution limit.
Ontario Climate Action Incentive – the Federal Government introduced a new tax credit called the Climate Action Incentive. Ontarians will receive $300 on average when they file their 2018 tax return in early 2019.
Canada Caregiver Credit – if you care for an infirm family member, things just got a little easier. The CRA has streamlined three previously existing tax breaks into the Canada caregiver credit.
Sale of a Home – you are required to report basic information (date of acquisition, proceeds of disposition and description of the property) on your income tax and benefit return when you sell your principal residence to claim the full principal residence exemption.
If you have any assets in another country greater than $100,000 (personal use vacation property is excluded) we must report them to the CRA.
As you know Rental income is taxable income but there are offsetting deductions for maintenance, utilities interest and such but not for betterments – new kitchen, roof, additions etc.
The TFSA limit is $5,500 for 2018. The total lifetime cumulative limit is $57,500.
The Child Care Expense Deduction is $8,000 for children up to 6 years old and $5,000 for children 7 to 16 years old.
And remember, although my office prepares your tax return, you are responsible for certifying the information reported.
Carl O’Connell CPA CA