Year End Tax Letter 2017
February 6, 2018 - 0
Dear Clients, Feb 6, 2018
Another tax season is upon us and there are number of new things this year to keep in mind:
The tax filing deadline this year is Monday, April 30. In situations where at least one spouse has a business that is not incorporated, the deadline for both is then Friday, June 15 although taxes owing must be estimated and paid by April 30.
The deadline for RRSP contributions to be recognized on your 2017 tax return is March 1, 2018, 2017. Your 2016 income tax Notice of Assessment issued by the C.R.A. specifies your 2017 contribution limit. Be midful of your contribution limit as penalties apply if you over-contribute by more than $2,000.
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 (personal use vacation property is excluded), you must report them to the CRA this year – make sure to mention this to me early so we can get on top of these very onerous forms.
As you know Rental properties are taxable income but there are offsetting deductions for maintenance, utilities interest and such but not for betterments – new kitchen, additions etc.
The TFSA limit is $5,500 for 2017. The total lifetime cumulative limit is $52,000.
The Children’s Fitness Credit and the Children’s Arts Credit have been eliminated for the 2017 taxation year. Don’t shoot the messenger! But if they are on the internet for more than a few hours a day you get a tax credit of $10,000 – ask them to look up the specifics for you. (Bring this to my attention at tax time and get a bonus for reading this far).
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.
The Canada Child Benefit is income indexed and includes benefits for children up to 17 years. This change provides an additional $720 per year for each child under 18 depending on Family Income.
And remember, although my office prepares your tax return, you are responsible for certifying the information reported.
Carl O’Connell CPA CA