What's New by Month in 2016
December 2016
Tax-Free
Motor Vehicle Allowances 2017
The per-kilometre
amounts that
may be paid
tax-free to employees or officers as reimbursement for
motor vehicle expenses incurred while travelling for
business purposes using their personal vehicle will remain at the 2016 rate of 54 cents per km for the first 5,000 km and 48 cents per km for each
additional km. For the Territories, the rates are also unchanged, 58 cents per km for the first 5,000 km and 52 cents per km for each
additional km.
Automobile
Operating Cost Benefit 2017
The prescribed rate used
to determine the operating cost taxable benefit to an employee for an
employer-owned vehicle is reduced for 2017 by 1 cent, to 25 cents per
kilometre. The standby charge taxable benefit factors for automobiles
remain unchanged.
Automobile
Sales People Operating Cost Benefit 2017
The
prescribed rate used to determine the operating cost taxable benefit to an
automobile sales person for an employer-owned vehicle is reduced for 2016 by 1
cent, to 22 cents per kilometre. The standby charge taxable benefit
factors for automobiles remain unchanged.
Passenger
Vehicle Expense Limitations 2017
The 2017 expense
limitations for passenger vehicles for interest expense, monthly lease costs,
and capital cost allowance (CCA) will remain unchanged from 2016.
BC
Back-to-School Tax Credit
BC is introducing a new tax credit for the 2016 tax year,
$250 per child for each child who is age 5 to 17 at the end of the taxation
year.
Life
in the Tax Lane - January 2017 Video
Topics this month: Family ski pass may be a taxable benefit;
New CRA administrative policy re T5008 duplicate slips; Requirement for a
business to file a T4A slip for payments for professional services; Qualified
Disability Trusts; Rollover of RPP to RDSP; Claiming eligible dependant tax
credit when support is being paid.
When are T4 Slips
Required?
Employment income is included on a T4 for the year in which
it is received, not earned. If a payment is made in
January 2017 for wages earned in December 2016, this amount will be reported on the
2017 T4, not on the 2016 T4 (exception - employee trusts).
RRSP Contribution Not
Recorded on Previous Year Tax Return
If you made RRSP contributions from March
4, 2015 to February 29, 2016, this should have been included on Schedule 7 which
was filed with your 2015 tax return. Check our article to find out what
to do if the contribution wasn't recorded.
Eligible first time home buyers may qualify for a 25-year loan that is interest-free and payment-free for
the first 5 years. Applications to be accepted starting January 16,
2017, for purchases that will close on or after February 15, 2017.
There is no "gift tax" in Canada. Any
resident of Canada who receives a gift or inheritance of any amount from almost
any source
(except from an employer) will not have to include this in
their income. However, if capital
property is
given as a gift, the person who has given the gift will be deemed to have sold
the capital property at fair market value, and will have to pay tax on any
resulting capital gain.
Ontario's land transfer tax refund for first-time
homebuyers will increase from $2,000 to $4,000 for conveyances or
dispositions that occur on or after January 1, 2017.
If foreign funds are used to purchase or sell shares, Canada
Revenue Agency now indicates that the exchange rate on the settlement date, not
the trade date, should be used when converting to Canadian dollars.
When adult size clothing, including team uniforms, is
purchased for a child under 15, it is exempt from PST. An exemption
certificate must be completed when the clothing is purchased. The
same exemption certificate can be used for purchases by an organization,
such as a sports team, when exempt merchandise is purchased for multiple
children.
This tax credit can be claimed if spouses are living
apart, even in another country. It is increased by the family
caregiver amount if the spouse has a mental
or physical infirmity.
Plan ahead by making a will and ensuring your wishes are
known. Make sure that your will complies with current provincial
legislation. Learn more about probate fees, joint ownership, and other
estate issues.
The TD1 forms for 2017 are available from Canada
Revenue Agency. If there have been changes which will affect your
tax exemptions (see our article), you should ensure that you complete
these forms so that your employer (or other payer) will deduct the
appropriate amount of income tax from your employment income or pension
income. New employees should always complete these forms. For
those working only part time, if your total income for the year will not
exceed your exemptions, you should tick the appropriate box on the back of
the form, so that your employer will not deduct any income tax from your
pay cheques.
November 2016
RRSP
Contribution Deadline for 2016
The deadline for RRSP contributions for the 2016 taxation
year is Wednesday, March 1, 2017.
Quebec Personal Tax
Credits 2017
We've update the tables of Quebec personal tax credits and
deductions which
are adjusted for inflation. The 2017 tax credits are increased by a factor
of 0.74%.
Life
in the Tax Lane - December 2016 Video
Interesting topics - Quebec mandatory tip
calculation/reporting, RRSP over-contributions incur high penalties, Small
Business Deduction changes, US Voluntary Disclosure program. Paying a
salary to a spouse from your business? Make sure you do it properly!
Legislation was passed in 2016 to revise both the eligible
and non-eligible dividend tax credit rates for New Brunswick for 2016, 2017 and
subsequent years. The NB marginal tax rate tables have been revised to
reflect this. NB Finance does not have updated information on their
website reflecting this, but we have provided a link to the legislation.
See the big
difference in taxes payable on different types of investment income.
Even when the age credit and Old Age Security are clawed back, Canadian
dividends and capital gains result in the least taxes payable when
compared to other types of income such as foreign dividends and
interest.
The 2016/2017 Detailed Quebec Income Tax Calculator is now
available. All 2017 indexation factors, tax brackets and most tax credit
amounts have been confirmed. The 2016/2017 calculator will retain data on
your computer for the next time you access it. The French language version
has been discontinued because it was rarely accessed.
The 2016/2017 Detailed Canadian Income Tax and RRSP Savings
Calculator is now available. All 2017 indexation factors, tax brackets,
and most tax credits have been
confirmed to Canada Revenue Agency.
Haven't filed your 2006 tax return yet? Taxpayers are running out of time to file requests under the taxpayer relief provisions for the
2006 tax year and any reporting period that ended in the 2006 calendar year.
As a result of a Federal Court of Appeal Case, Bozzer v
Canada, the taxpayer relief provisions (fairness provisions) can apply to
reduce interest and penalties which have accumulated in the 10 taxation
years preceding the request for leniency, even if the tax debt causing the
interest arose prior to that period. So, if a tax debt arose from
the 2004 tax year, penalties and interest that have accumulated from 2006
to 2016 could still be reduced as a result of a 2016 request for leniency.
Converting RRSPs to RRIFs
If you turned 71 this year, your RRSP must be converted to a RRIF, or used to purchase an annuity, by
Thursday December 31st, 2016. If you turned 65 this year, you may want to convert some of your RRSP to a RRIF before December 31st, to take advantage of the pension income tax credit, and perhaps pension splitting with your spouse.
There is no deadline for contributions to a TFSA, as
the unused contribution room is carried forward into the next year.
However, a withdrawal in any year increases the TFSA room in
the following calendar year. Thus, if you are thinking of making a
withdrawal soon, make sure it is done by December 31st, in
order to have your TFSA room increased by the withdrawal amount on January
1, 2017.
The last trading date in 2016 for Canadian publicly
traded stocks is Friday December 23rd, because the Canadian stock markets
are closed on December 27th and 28th. Canadian stocks purchased or
sold after Dec 23rd will settle in 2017, so any capital gains or losses
on sale will apply to the 2017 tax year. The last trading date in
2016 for US publicly traded stocks is Tuesday December 27th.
2017 TFSA Contribution
Limit
The TFSA contribution limit for 2017 will again be
$5,500. At the current rate of inflation, it will increase to $6,000 in
2019.
RRSP, MP, DB and
DPSP Limits
The RRSP dollar limit for 2017 is $26,010, and for 2018 is
$26,230. The Money Purchase (MP) dollar limit for 2017 is $26,230.
RRSP/RRIF
Withdrawal Fees
Fees paid to financial institutions/brokerages regarding withdrawals from RRSPs and RRIFs are not
tax deductible.
Working Income Tax Benefit 2016
and 2017
The working income tax benefit (WITB) is a federal refundable tax
credit for low-income individuals or
families with working income over $3,000 (base amount for most provinces and
territories). The tables for 2016 have been confirmed to CRA amounts. The
tables for 2017 are our calculations based on the 2017 indexation factors, and
will be confirmed when WITB amounts are available from CRA in November 2017.
Small
Business Deduction Changes
Bill C-29 included changes to the small business deduction
which are more complicated and affect more businesses than anyone
anticipated. The Video Tax News team has prepared a video to help explain
how the changes may affect you.
Automobile Trip Log
A separate log should be kept for each vehicle which
is driven for both business and personal use. For the self-employed,
only the business portion of vehicle expenses can be deducted from income, and
GST/HST input tax credits are only allowed related to the business use of a
vehicle.
2017 Tables of Personal
Tax Credits
The 2017 tables of non-refundable tax
credits for all provinces (except Quebec) and territories are now
available. The amounts in the tables are indexed, using indexation
factors that are our calculations. Most of the amounts will be confirmed
when Canada Revenue publishes the 2017 TD1 forms.
Canada Pension Plan 2017
Maximums
The maximum pensionable earnings for 2017 will increase to
$55,300 from $54,900. The maximum employee/employee contribution increases
to $2,564.10 from $2,544.30. The self-employed maximum is $5,128.20, up
from $5,088.60.
2017 Quebec Pension
Plan (QPP) Rates
The maximum pensionable earnings for QPP for 2017 is $55,300. The rate increases from
5.325% to 5.40%, 10.80% for
self-employed. This results in maximum QPP contributions of $2,797.20 for
employees/employers, or $5,594.40 for self-employed.
October 2016
Bill
C-29 Budget Implementation Act, 2016, No. 2 - October 25, 2016
Bill C-29 provides amendments to the Income Tax Act and
related legislation regarding the Canada Child Benefit, eligible capital
property rules, sales of linked notes, certain GST/HST measures, and other
items.
2017 Basic
Income Tax Calculator
Compare taxes and marginal tax rates for both types of
Canadian dividends, capital gains, and other income, for all provinces and
territories, for 2012 to 2017.
2017 Tables of Personal
Marginal Tax Rates
The tables of 2017 personal tax rates are now
available. The indexation factors used to calculate the tax bracket and
basic personal amount increases are our calculations, and will be confirmed to
Canada Revenue Agency (CRA) when these are available.
Capital
Gains Can Increase Your OAS Clawback
If you have losses carried forward to offset your current
year capital gains, the capital gains can still increase your OAS clawback, as
well as the age amount clawback, because the carried-forward losses are deducted
after the calculation of net income before adjustments, which is used for the
OAS clawback calculation.
Federal
2016 Fall Economic Statement
The Minister of Finance will deliver the Fall Economic
Statement on November 1, 2016. The Statement will be available at
approximately 3:20 pm EDT.
Penalties
for Late-Filed Elections - Including Sale of Principal Residence
Effective
for 2016 and later years, the sale of your principal residence must be reported
on your personal income tax return, even if 100% of the gain is sheltered by the
principal residence exemption. The penalties for not doing so can be very
high!
Life
in the Tax Lane - November 2016 Video
This month's video talks about the changes to the principal
residence exemption, how Uber drivers must collect QST (and GST or HST), tax
changes re inter-corporate dividends, federal pre-budget consultations, and what
information you should record if you are subject to a Canada Revenue Agency
audit.
Quebec
October 2016 Economic Update - Health Contribution Elimination
The
October 2016 Economic Update announced that the Health Contribution would be
eliminated ahead of schedule, effective January 1, 2017.
Real
Estate Sales - Are They Taxable? What About My Principal Residence?
The gain on the sale of real estate is a
capital gain unless the property has been purchased with the intent
of reselling at a profit, or developed and sold as a business endeavour. If
it is considered a business transaction, the entire profit
or loss on the sale is taxable or deductible. If the transaction is a capital gain,
and the property is the
taxpayer's principal residence, the principal
residence exemption may eliminate all or part of the
capital gain.
Change
of Use of Residence - Moving Into Your Rental Property, or Starting to Rent Out
Your Home
When there is a change in use of real estate, either from
income-producing to personal-use (e.g., principal residence or
cottage/second home), or from personal-use to
income-producing, there is a deemed
disposition of the property, which will have to be reported on the owner's
tax return, for deemed dispositions in 2016 or later taxation years.
Principal
Residence Exemption (PRE)
Effective for the 2016
taxation year, the disposition of a principal residence must be reported even if
the gain is fully exempt. Effective for dispositions after October 3,
2016, the "one-plus rule" is eliminated if the taxpayer was a
non-resident in the year in which the property was acquired. There are
also some changes in the PRE regarding trusts.
September 2016
Life
in the Tax Lane - October 2016 Video
This month's video talks about the new Form T183,
which must be signed before a tax preparer can electronically file your tax
return. The form now includes a section where you can provide your banking
information so the tax preparer can create a pre-authorized debit to CRA on your
behalf - this sounds like a very bad idea! The video also covers
shared custody/Canada Child Benefit, the new Eligible Educator School Supply
Refundable Tax Credit, CRA's improved service initiative, and employment
benefits/reimbursement of moving expenses, and provides a link to a Nanny
Payroll Calculator.
2017
Federal Pre-Budget Consultations
All Canadians are invited to submit their ideas online and via Twitter, using the hashtag #Budget2017.
Gladstone
Secondary (Vancouver) Class of 1967 Graduates
Gladstone's Class of 1967 is planning a 50 year reunion to be
held in June 2017. Many of the classmates have not yet been located.
If you're one of them, or if you know someone who is, check out the reunion
website. If you're a graduate of another school, check out the
classcreator.com website to see if your graduating class is listed.
Donating Shares
or Other Capital Property Can Eliminate Capital Gains
Capital gains can be eliminated by donating certain types of capital property (qualified investments, prescribed debt obligations, or ecologically sensitive land) to qualified donees.
If you were planning to make a donation of cash but could donate property
instead, you can save some tax money. Best to do this by the end of
November for shares, or possibly months earlier for mutual funds.
Transferring
Capital Losses to a Spouse
Capital losses can be transferred to a spouse by utilizing
the superficial loss rules. Your spouse must hold the shares for more than 30 days
after your disposition before selling the shares.
Printing
Calculator Results
If you're having problems printing the results from one of
our calculators on the width of one page, please read this information.
Property
Rental - Deductible Expenses
It is often difficult to determine if a cost should be
capitalized or expensed, but there are some guidelines which can help.
Line 315 Caregiver
Amount Tax Credit
This tax credit can be claimed for a
senior parent or grandparent who lives with you, even if they are not your
dependant. However, it cannot be claimed in full if the line
305 eligible dependant tax credit can be claimed.
Line 305 Eligible
Dependant (Equivalent to Spouse) Tax Credit
A single parent can claim this tax credit for one of their
children, but if 2 single parents share a home only one of them can claim this
amount. If they can't agree on who should claim it, neither of them can
claim it. This credit can be claimed for other dependants besides a child.
Corporate
Class Mutual Fund Switching
Don't be in a panic to switch classes of mutual funds by
October 1, because the legislative changes now don't take effect until January
1, 2017.
Qualified
Investments for RRSPs, RRIFs, RESPs and TFSAs
A great variety of investments can be held in registered
accounts. Canada Revenue Agency (CRA) recently issued a new Income Tax
Folio on this topic.
BC MSP
Premium Assistance
To get premium assistance, you must APPLY FOR IT!
In 2017, a senior couple earning $51,000 or less before adjustments
will qualify for premium assistance.
BC MSP 2017 Increase
Cancelled
On September 15 the BC Government announced that it would
cancel the planned 4% MSP premium increase, and further reduce the rates for
those eligible for premium assistance. A couple will now pay only 10.3%
more than 2016, instead of the planned 14.7% increase. Note that to get
premium assistance, which is available for much higher incomes in 2017, one
must apply for it.
2017 Employment Insurance
(EI)
The 2017 EI rate will be reduced from 1.88% to 1.63%, and the
maximum insurable earnings (MIE) will increase to $51,300 from $50,800.
The result is a reduction in the maximum premium to be paid by employees, to
$836.19 from $955.04.
Not All
Employment is Insurable for Employment Insurance
Make sure you know which employment is insurable, because
there is no point in paying premiums if you won't be able to collect employment
insurance.
Employment Insurance
Premium Reduction Program For Employers
Employers who provide their employees with a short term
disability plan may be able to reduce the EI premiums they pay.
August 2016
Making Payments to
Canada Revenue Agency (CRA)
There are many different online and non-online options
available for making payments to CRA. Canada Post and CUPW have now reached an agreement so there will be no postal disruption. However, it is certainly easy to pay these amounts electronically.
Public
Transit Amount Tax Credit
A taxpayer can claim the transit pass tax credit on behalf of a
spouse or common-law partner, or the taxpayer's children under age 19.
Make sure you keep appropriate receipts.
TFSA - Foreign Dividends -
Withholding Taxes
Withholding taxes will be deducted from US and other foreign dividends
earned in a TFSA. These are not recoverable.
Tax Free Savings
Account (TFSA) Contributions
Haven't started a TFSA yet? How much can be
contributed? See our table showing annual limits and cumulative
total.
Life
in the Tax Lane - September 2016 Video
This month's video talks about joint ownership - legal
vs beneficial, change in legal title of property, keeping of books and
records, including change from CRA regarding church envelopes, changes
coming regarding switching of mutual funds, new BC property transfer tax
for foreign buyers of real estate in Vancouver, CRA crack down on real
estate tax cheats in Vancouver, and documentation required to support your
claim for foreign tax credits.
New
Eligible Capital Property Rules Can Increase Tax Cost for CCPCs
For a Canadian controlled private corporation (CCPC) selling assets which include eligible
capital property (ECP) such as trademarks or goodwill, the tax cost may be
much higher in 2017 than under the current tax rules for ECP. This
is not so for the sale of shares, but many purchasers prefer to buy assets
rather than shares. If you're considering a sale, make sure you get
professional tax advice.
Saskatchewan Marginal Tax
Rates Non-Eligible Dividends
We have revised the marginal tax rates for SK
non-eligible dividends. The rates are 0.04% lower than previously
shown. This is a result of the rate in Bill 22, which received Royal
Assent on June 30, being slightly different from the rate indicated in the
2016 Budget.
Nova Scotia Marginal Tax
Rates Non-Eligible Dividends
We have revised the marginal tax rates for NS
non-eligible dividends - the rates are 0.19% to 0.2% higher than
previously shown.
Canada
Revenue Agency (CRA) Scams to Watch Out For - article on
LinkedIn
We personally have had a couple of threatening calls
from people saying they were CRA agents. If someone calls you saying
they are from CRA, get their name and agent #, and call CRA through one of
their listed phone numbers to check on this information. NEVER give
out your personal information.
Old Age Security Pension
(OAS)
The amount you receive from the Old Age Security
pension depends on how long you, a Canadian citizen or legal resident,
have lived in Canada after age 18. The OAS may also be available to
Canadians living outside of Canada.
Back To School - Tax
Information For Students
These are articles which relate to students regarding income,
deductions, tax credits and savings plans.
Wills and Estates
Our Wills and Estate Planning page has many articles, including what happens to debts of the deceased, what happens if you die without a will, is a lawyer needed to write a will, who can challenge a will, and much more.
Draft
Legislation re Mutual Fund Switching, Eligible Capital Property, etc.
On July 27, 2016, draft legislative proposals and explanatory
notes were released relating to mutual fund switching, eligible capital
property, the small business deduction, the business limit and taxable capital
limit, life insurance policies, and other items. Interested parties are
invited to submit comments by September 27, 2016. The changes re mutual
fund switching will be effective January 1, 2017 instead of the originally
planned October 1, 2016.
July 2016
Life
in the Tax Lane - August 2016 Video
This month's video talks about travel allowances and
when they are or are not considered reasonable, deductibility of expenses
re a theoretical business venture which may really be a hobby, claiming
input tax credits in the start-up phase of a business, shareholder
benefits from the use of corporately owned assets, and how CRA can
retroactively register a business for GST/HST and require payment of
amounts that should have been collected.
Dividends received by a corporation are taxed
differently from those received by individuals in Canada. There is
no grossup or dividend tax credit. Part IV tax of 38 1/3% may be
payable on dividends received from Canadian corporations, but in this case
a dividend refund may be received when dividends are paid out to
shareholders.
Unless a person has been trained in preparing corporate tax returns and is up to date on current tax laws, the return should be prepared, or at least reviewed, by a professional accountant.
This article provides information on corporate tax returns, and links to Canada
Revenue Agency information on filing deadlines, payment due dates, instalments,
and more.
If a Canadian resident individual, corporation or trust
holds foreign investment property with a cost exceeding $100,000 Canadian at
any time in the year, form T1135, foreign asset verification
statement, must be filed at the same time as the tax return. Make
sure you keep good records in order to determine if you need to file this
form, as the penalties can be onerous.
GIS is available to low-income Old Age Security (OAS)
recipients. It is usually based on the prior year income, but if an
OAS pensioner has a reduction in income, Service Canada may base GIS on
estimated current year earnings.
When an individual earns income from the rental of real property, it
may be considered business income instead of property income. These
2 types of income are treated differently for tax purposes. This
affects CPP premiums, among other things.
Draft
Legislation re GST/HST for Public Consultation
On July 22, 2016, the Department of Finance released draft
legislative and regulatory proposals re GST/HST, which includes revising rules
re pension plans, drop shipments, and RESPs, and also includes housekeeping
amendments.
Employment
Standards in Canada
Whether you're an employee or employer, it's very useful to
know the employment standards, or at least to know where to find them if you
have a question. We've added links to some tools that help with
calculations of various employment entitlements.
Children's
Fitness Tax Credit - 2016 is the last year
The Children's Fitness Tax Credit is available for registration and membership costs
for prescribed programs of physical activity for children who are, at
the beginning of the taxation year, under 16, or under 18 for a child with a
disability. The credit was reduced for 2016 and is eliminated
thereafter. Some provinces also have a similar tax credit.
Children's Arts
Tax Credit - 2016 is the last year
Many programs, including those providing enrichment or
tutoring in academic subjects, are eligible for the Children's Arts Tax Credit,
so make sure you save the receipts from all your children's activities that may
qualify. The credit was reduced for 2016 and is eliminated
thereafter. Some provinces also provide this tax credit.
Manitoba
Dividend Tax Credit for Non-Eligible Dividends
Manitoba's 2016 Budget bill includes a revision to the
calculation of the non-eligible dividend tax credit, for 2017 and later years.
2016 Sales
Tax Rates
Both New Brunswick and Newfoundland and Labrador increased
their HST rates to 15% on July 1, 2016.
Transfer
Shares to Your Registered Account, but not at a Loss!
If you want to make an in-kind contribution of shares to your
RRSP, TFSA or another registered account, make sure they are not shares on which
you have a loss, because the loss will not be deductible. Also be careful
if you are going to sell them and then repurchase them in your registered
account - read our article!
Foreign Exchange
Transactions
Next year, effective March 1, 2017, the Bank of Canada will
change the way it publishes foreign exchange rates. It will no longer
publish a noon and closing rate, but instead will publish an average rate for
the day, at 4:30 pm ET. Currently it publishes historical tables based on
the noon rate, and an average annual rate for the taxation year based on the
noon rate.
June 2016
Life
in the Tax Lane - July 2016 Video
This month's topics include upcoming changes to the CRA
website, in-trust accounts for children, the small business deduction as it
relates to campgrounds, CRA information requirements, and how CRA can recover
CCTB and GST/HST overpayments years after the overpayments, even if you told
them you were no longer eligible!
Canada's
Finance Ministers Agree to Strengthen Canada Pension Plan
On June 20, 2016, it was announced that an agreement in
principal had been reached to strengthen the CPP. Changes would begin in
2019 and be gradually phased in. The CPP annual retirement pension would
increase from 1/4 to 1/3 of pensionable earnings.
Home
Renovation and Home Accessibility Tax Credits
There are both refundable and non-refundable tax
credits available, both federal and provincial (BC, NB, ON), for seniors
and persons with disabilities. After 2016, the Ontario tax credit
will no longer be available.
Pay Off Your
Mortgage, or Contribute to RRSP?
You are better to pay off your
mortgage first if your mortgage interest rate is equal
to or higher than the rate of return on your RRSP.
Mortgage
vs RRSP Calculator
Are you trying to decide whether to increase your
monthly mortgage payment, or contribute the extra
monthly amount to an RRSP? Let our RRSP
vs mortgage calculator help you make the decision. Tax rates in the
calculator include 2016 budget changes.
What is Better - TFSA
or RRSP?
If you're in the lowest tax bracket, TFSA may be best,
and you can transfer to an RRSP when your income increases, to get a
better deduction. The RRSP and TFSA have almost equivalent results when
the marginal rate for RRSP contributions is the same as for RRSP
withdrawals. If you've used up all RRSP contribution room, then it's
time to use up all your TFSA room! See when TFSA may be best.
TFSA vs RRSP
Calculator
This calculator, updated with 2016 budget changes, can help you decide which type of
account is better for you. This will depend on your current age, annual income now
and after retirement, province of residence, as well as other factors.
Borrowing
To Invest
Borrowing to invest (in a non-registered account) can
be a good strategy, but should not be done by novice investors. When you borrow to invest, you are converting regular
income, which is fully taxed, into Canadian dividends and capital gains,
which are taxed at lower rates and/or allow you to defer tax.
However, if
borrowing to invest would keep you awake at night, it is probably not for
you!
Borrow To
Invest Calculator
The Borrow to Invest Calculator, which has been updated
with all 2016 budget changes, helps you to see the
advantages of borrowing to invest in stocks and exchange traded funds (ETFs). You can input different interest rates, rates of return and other data to
compare scenarios. You will be provided with details of net after
tax income for two different cases - borrowing to invest, or doing
nothing. The calculator works for all provinces and territories,
including Quebec. Make sure you read the related Borrowing to Invest
article before using this strategy!
Canadian Dividends -
No Tax
We've updated our tables which show how much can be
earned in Canadian eligible or non-eligible dividends without attracting
income tax, when the dividends are the only income earned.
Alternative minimum tax kicks in when eligible dividends exceed
$51,475. Over $100,000 in eligible dividends can be earned in
Alberta and BC before attracting regular provincial income tax, but of
course federal income tax and provincial alternative minimum tax will be
payable.
2016 Tax
Comparisons Employment Income
We compare taxes paid on varying levels of employment income for all
provinces/territories, for a single person, and for a family with 2 children.
Ontario, Alberta and BC are again the lowest tax provinces for a single person earning $50,000. For a single income family with 2 kids
aged between 6 and 17, and $50,000 employment income, Saskatchewan is the lowest tax province.
6 months of income from UCCB is included in the analysis. Taxes include BC MSP premiums, ON Health Premium, and QC health
contribution and prescription drug premiums.
2016 Tax
Comparison Dividends vs Interest
See the taxes paid at varying levels of eligible and non-eligible dividends
and interest for all provinces and territories. The lowest-tax provinces
for higher levels of eligible dividends are still AB and SK. AB is still the
lowest-tax province at $100,000 of non-eligible dividends.
Seniors 2016
Tax Comparison Dividends vs Interest
We compare taxes paid in each province/territory by a senior with eligible
dividends vs other income (foreign dividends, interest, etc.) - see how the
taxes (including OAS clawback) are significantly lower with eligible dividends.
Saskatchewan
Budget - June 1, 2016
There were very few tax changes in this budget. The
Active Families Benefit refundable tax credit is being eliminated effective for
the 2016 taxation year. The legislation for the non-eligible dividend tax
credit will be revised so that the 2016 dividend tax credit will be 3.4% of the
taxable dividend, as in previous years.
May 2016
Manitoba 2016 Budget - May
31, 2016
The Manitoba budget announced that the personal income tax
brackets and basic personal tax credit would be indexed for inflation starting
in 2017. The Seniors School Tax Rebate will be income-tested, and will now
be administered through the income tax return, so the 2016 credit will be
claimed on the 2016 income tax return filed in 2017.
Life
in the Tax Lane - June 2016 Video
This month's topics include German social security
pensions, employment expenses, the principal residence election as it
relates to multigenerational homes and rentals to children, use in court of your accountant's discussions with CRA, partnerships
and the Notice of Determination, and U.S. Limited Liability Partnerships.
Notice of
Objection
Don't agree with your income tax assessment? How
to file a notice of objection.
Late Filing
Penalties and Interest
How to file a late tax return, what is your exposure to
interest and penalties?
Our article on unlocking pension accounts includes
links to pension regulators, both provincial and federal. Contact the
regulator of your pension plan to determine what you can do
with your locked-in account - don't rely solely on information from your
financial institution.
RRSPs must be converted to RRIFs by the end of the year
in which the holder turns 71, but they can be converted earlier.
Converting some of your RRSP at age 65 allows you to take advantage of the
pension income tax credit, and pension splitting with a spouse. If
making regular withdrawals before age 65, you may save fees by converting
to a RRIF.
An "in kind" withdrawal is a withdrawal of
investments. The total withdrawal amount will include the market
value of the investments, plus applicable withholding tax.
2016
Donation Tax Credit Rates
2016 brings a few changes regarding donation tax
credits. The federal tax credit rate is now 33%, to the extent that income
is taxed at 33%. Newfoundland and Labrador's donation tax credit rates
increased along with the increases in personal income tax rates. The limitation on donations of 75% of income is eliminated for
the Quebec donation tax credit.
Where Did
Canada's Interest-Bearing Debt Come From?
We've done some analysis to try to find the source of
Canada's interest-bearing debt by political party. The interest paid on
this debt from April 1, 1963 to March 31, 2016 totals $1.267 trillion.
Lifetime
Capital Gains Exemption / Deduction
The maximum
lifetime capital gains exemption (LCGE) for the sale of qualified small business
corporation shares is $824,176 for 2016. For qualified farming or fishing
property the maximum is $1 million. Planning ahead is absolutely necessary
if you're hoping to claim this exemption in the future!
Investment
Income Tax Calculators
This calculator works for all provinces and
territories, with a separate one for Quebec. The purpose of the calculator is to show the big
difference in taxes payable on different types of investment income.
Even when the age credit and Old Age Security are clawed back, Canadian
dividends and capital gains result in the least taxes payable when
compared to other types of income such as foreign dividends and
interest.
Canadian Income Tax
Calculator
Changes from all 2016 budgets tabled thus far have been
included in the calculator, including the higher donations tax credit rate and
revisions to NL and NB tax rates, PE personal tax credits and low income tax
reduction, BC MSP, BC tax reduction, and NL non-eligible dividend tax
credit. The NL deficit reduction levy is also now included in the
calculator.
Quebec Income Tax
Calculator
The Quebec 2016 budget changes have now been incorporated
into the calculator, including changes to donations, experienced worker tax
credit, work premium tax credit, and progressive health contribution. The
Federal 2016 budget revisions are also included, with the latest revision being
to the donation tax credit calculation.
Basic Income Tax
Calculator
Enter your income from Canadian eligible and non-eligible dividends, capital gains, and other income, see taxes payable for every province and territory, as well as your marginal tax rate for Canadian eligible and non-eligible dividends, capital gains, and other income. Shows results for
2016 and earlier years for a single person, and includes the basic personal exemption and dividend tax credits.
Updated to include changes from all 2016 budgets that have been tabled thus far.
April 2016
Requesting a Change to
your Tax Return
If you have filed your return and then determine that you need to make a
change, either because you have received another T-slip, or because you didn't
claim an expense and later learned it was deductible, you can request an
adjustment to your tax return, either online or by mail.
Life in the
Tax Lane - May 2016 Video
The Life in the Tax Lane video for May: CRA's report to
Parliament, restrictions coming to Small Business Deduction, Panamanian accounts
hacked, oocyte preservation (re sperm and embryos) as a medical expense,
proposed stock option changes dropped, Alberta vs Newfoundland and Labrador
budgets - spend vs tax.
Ceasing
Business
When a business is being closed down, there are many
issues that need to be addressed.
GST/HST - Who Has
to Register to Collect it?
Is your business (whether incorporated or
self-employed) required to register to collect GST/HST? Make sure
you know how to determine this. See how often you will have to
report and remit GST/HST. Even some small suppliers are required to
register.
Government Benefits,
Programs and Services
There are many benefits provided by the federal,
provincial and territorial governments, for seniors, persons with
disabilities, low-income,
children, families, and students. You may get financial assistance,
rebates, refundable tax credits and more. You probably have to file
a tax return to be eligible for many of these benefits, even if you have
no tax to pay.
Tax
Treatment of Income From Investments
Learn how to properly track your adjusted cost base (ACB) and report income depending on the type of investment - shares,
bonds, mutual funds, income trusts, ETFs, options and more.
Discussion of return of capital, negative ACB and reinvested distributions
from ETFs.
Family
Caregiver Amount
The family caregiver amount tax credit is available for
dependants who are mentally or physically infirm. It is added to the
spousal amount, equivalent to spouse/eligible dependant amount or
caregiver amount, included in the infirm dependant (18+ years of age)
amount, and claimed on line 367 for infirm minor children.
Free Tax
Preparation Service
If your income is relatively low ($30,000 for an
individual) and your tax return is simple, you may be able to get free
help to prepare your tax return.
What If I Can't Afford
to Pay the Tax I Owe?
Always file your tax return on time, even if you can't
afford the tax, in order to avoid late filing penalties!! Then talk
to Canada Revenue Agency.
Why Should I
File a Tax Return if I Don't Have Tax to Pay?
Even if you don't have to pay tax, you should file a
tax return to establish your TFSA or RRSP contribution room, apply for or
renew government benefits, including the GST/HST credit, or receive any
refundable tax credits for which you may be eligible.
Prince Edward Island
2016 Budget - April 19, 2016
Effective October 1, 2016, PEI will increase the HST
rate to 15%, and will eliminate the real property transfer tax payable by
first-time home buyers. Some non-refundable personal tax credit
amounts increase for 2016, as does the low-income tax reduction and the
refundable sales tax credit.
Nova
Scotia 2016 Budget - April 19, 2016
The above link is to the Nova Scotia budget documents -
no tax changes were announced.
Newfoundland
and Labrador 2016 Budget - April 14, 2016
Tax increases are happening in many areas - personal
income tax, corporate income tax, fuel taxes, retail sales tax on
insurance premiums, and a temporary deficit reduction levy (another
personal tax), among other measures.
Alberta
2016 Budget - April 14, 2016
Alberta is introducing a carbon levy effective January
1, 2017, but this will be offset with a rebate paid to low and middle
income taxpayers. The small business corporate income tax rate will
be reduced from 3% to 2% effective January 1, 2017, with a resulting
reduction in the dividend tax credit for non-eligible dividends. Two
new tax credits will be introduced for individuals and corporations that
invest in Alberta.
Tax
Treatment of Income From Investments in Call and Put Options
For taxpayers who record gains and losses from call and
put options as capital gains or losses (this isn't the case for everyone),
the timing is a little trickier for options which have been sold, as
opposed to options which have been purchased. See our table which
explains how to do things.
Free in 30 - Becoming
Financially Independent
Living below our means, saving and investing - this is
the story of how we achieved financial independence. Hopefully you
can do the same.
RRSP
Repayments for Home Buyers' Plan and Lifelong Learning Plan
Make sure you report these repayments on Schedule 7 of
your tax return, otherwise you could lose RRSP contribution room.
Canada
Pension Plan Pensionable Earnings
It's not always easy to know whether earnings are or
are not subject to CPP contributions. An employer must deduct
contributions from most types of income of their employees, but not
usually from
self-employed contractors, who would normally pay the employee and
employer portions of the CPP contributions when they file their tax
return. Sometimes Canada Revenue Agency will decide that a payee is
an employee instead of a self-employed contractor, causing problems for
the payer. However, their decision is not always upheld by the Tax
Court of Canada.
Tax
Treatment of Income From Income Trusts
Income from income trusts are usually comprised of a
few different types of income for tax purposes. As with mutual funds
and exchange-traded funds, there will often be return of capital which
will reduce your adjusted cost basis. Sometimes, this can result in
a negative adjusted cost basis, which is reported as a capital gain.
This article describes how to report this on your tax return.
March 2016
Filing
Your Tax Return - Deductions From Income
Deductions are usually better than a tax credit,
because they are reducing your income, so your tax is reduced at your
marginal tax rate, not the lowest tax rate. Available deductions
include child care expenses, interest expense, moving expenses, and other
deductions.
Family Tax Cut (FTC)
2015 is the last year in which the Family Tax Cut will be
available. A form of income splitting, it is available to couples with
children under 18, to a maximum of $2,000. See 2015 examples of the
calculation of the FTC.
Eligible
Dependant Tax Credit
A person who is single at any time during the year can claim a tax credit for a dependent
child or other dependent relative living with them at that
time. If the person was required to make support payments for the
dependent child this may affect the eligibility for the tax credit.
Pension Income
Amount Tax Credit and Pension Splitting
Check out our articles on what qualifies as eligible
pension income; how pension income can be created; pension splitting, how
to determine if the spouse will get a pension tax credit when pension
income is split; and how to complete Step 4 of form T1032 Joint Election
to Split Pension Income.
2016
Corporate Income Tax Rates
We've published the table of 2016 corporate income tax
rates, showing the federal changes and any provincial changes that have
already been made.
Optimizing
the Donation Tax Credit
It is usually best for the highest income spouse to
claim the tax credit for all donations of both spouses. However,
sometimes not all donations are utilized, and can then either be carried
forward or split between spouses. Our tax calculators will help with
this.
Reinvested
(Phantom) Distributions From Canadian Exchange Traded Funds (ETFs)
The T3 you receive for your income from an ETF may have an
amount in box 21 for capital gains. It is possible that all or part of
this amount was not actually paid to you, but was reinvested. You have to increase your adjusted cost base
(ACB) for the amount of reinvested
distributions. This will reduce your capital gain when you eventually
dispose of the investment. You may have to do some searching to determine
the amount of the ACB increase, although at least a couple of brokerages have
done things to make this easier.
Professional
Tax Preparation
Even if you are paying someone to prepare your tax return,
you are ultimately responsible to ensure that the correct information is filed,
so make sure you provide your preparer with complete, organized information, and
that you review your return for accuracy. Choose a reputable accounting
firm or tax preparation firm. If your financial planner is doing your tax
return for you, ensure they are trained in doing so, and that they are prepared
to sign the return as the preparer.
Life in the
Tax Lane - April 2016 Video
The Life in the Tax Lane video for April has a surprising
court case about employee vs contractor (trucker) - payer owns truck, but driver
is contractor, as well as information on:
RESPs and how taxing they can be; how reliance on an accountant or bookkeeper
won't help you avoid penalties; employee travel expenses; and circumstances where
employment earnings are not always insurable.
Tax Implications of
Owning a Second Home or Cottage
Unless it is used to generate income, a cottage or second
home is normally considered personal-use property. It's important to track
the adjusted cost base (ACB) of your principal residence or your cottage, as the
principal residence exemption could apply to either one. Even if you don't
own a second property, the ACB of your home needs to be tracked, because its
status as a principal residence could change in the future.
Deductible
Employment Expenses
Expenses that are paid to earn employment income are sometimes deductible,
including any GST/HST that was paid on them. This can only be done if your
employer requires you to pay the expenses, and either you didn't receive
reimbursement for the expenses, or the amount you did receive is included in
your income. Employee clothing is not deductible, and if purchased by the employer will be a taxable benefit, except in certain circumstances.
Federal
2016 Budget Proposals for Seniors and Veterans
The Budget proposes to eliminate the increased age of
eligibility for the Old Age Security (OAS), increase the GIS top-up for single
seniors, increase GIS and Allowance benefits for senior couples living apart,
continue the consultation regarding enhancing the Canada Pension Plan retirement
pension, and look into creating a new Seniors Price Index to use for indexation
of the OAS. It also proposes to increase services and financial support
for veterans.
Federal 2016
Budget March 22, 2016
The Budget stops the reduction of the small business tax rate
after 2016, creates the new Canada Child Benefit, eliminates the education and
textbook tax credits, reduces and then eliminates the children's fitness and
arts credits, eliminates tax-free switching of mutual fund classes, expands tax
support for clean energy, and proposes many other measures.
Manitoba Fiscal Update
March 8, 2016
Manitoba will not table a Budget prior to the April 19, 2016
election, and no legislative proposals have been tabled for the fiscal
update. The proposals include a new top tax rate of 20.9%, increases to
the Seniors' School Tax Rebate, Family Tax Benefit, and Personal Tax Credit (to
be renamed the Affordability Tax Credit). A new donations tax credit rate of
20.9% is proposed, to be applicable to the extent that taxable income is taxed
at 20.9%.
Quebec 2016 Budget March
17, 2016
Quebec's 2016 budget includes several personal tax measures,
including a new temporary RenoVert refundable tax credit for eco-friendly
renovations, further reduction and quicker elimination of the health
contribution, enhancement of the adapted work premium refundable tax credit,
greater access to the tax shield, improved tax treatment of donations, and
further lowering the age of eligibility for the experienced worker tax
credit. There are many business measures, including reduction of the
Health Services Fund contribution rate for small and medium-sized businesses (SMBs),
and adjustments to the criterion for the Small Business Deduction (SBD).
Wills
and Estates - Joint Ownership
Joint ownership of assets with someone other than a spouse
can have many potential problems if beneficial ownership is transferred as well
as legal ownership. Documentation of intentions is very important to avoid
costly court challenges.
February 2016
Life in the
Tax Lane - March 2016 Video
The Life in the Tax Lane video for March has a long list of interesting topics, including foreign vacation property as principal residence, future changes in CPP benefits/premiums, EI benefits while working but not being paid, changes to stock options,
and Form T1135 and jointly held property. There's also mention of a "Tax Ninja" contest!
Filing Your Canadian Income Tax
Return
There are many topics available here under the headings of reporting your
income,
deductions from income, non-refundable tax credits and
refundable tax credits. Browse the topics to see which deductions and tax credits may be
available to you.
Ontario 2016
Budget - February 25, 2016
The Ontario government is eliminating (for 2017) tax credits
for tuition and education, children's activities, and home renovations.
They are creating the Ontario Student Grant. The kiddie tax will be at the
top tax rate effective January 1, 2016. Tobacco and some alcohol taxes are
increasing.
How is Income
Tax Calculated in Canada?
Federal income tax is calculated separately from
provincial/territorial income taxes. Both calculations start with
the same taxable income, except in Quebec, where the taxable income could
differ from the federal taxable income. After tax is calculated
based on the taxable income, non-refundable tax credits are deducted.
Canadian Dividends -
No Tax
We've updated our tables which show how much can be
earned in 2016 in Canadian eligible or non-eligible dividends without attracting
income tax, when the dividends are the only income earned. The
amounts for non-eligible dividends may change with upcoming provincial
budgets.
T1135 Foreign
Asset Reporting - Simplified for 2015 Tax Year
If you owned, at any time in 2015, specified
foreign property with a total cost of more than $100,000 Canadian,
you must complete form T1135. The foreign property could be many things -
foreign stocks, real estate, amounts in foreign bank accounts, etc. The
fair market value may be under $100,000 - the form still must be filed. If
the maximum total cost during 2015 is less than $250,000, a new simplified
reporting method can be used.
Canadian Tax and
RRSP Savings Calculator
This calculator is very detailed, includes most common tax
credits - use it to determine how much you can save from an RRSP contribution,
to check your 2015 tax return, or to start your 2016 tax planning.
BC 2016 Budget February
16, 2016
MSP changes, property transfer tax exemptions, home
renovation tax credit expanded to persons with disabilities, farmers' food
donation tax credit, PST exemptions expanded for farmers, etc.
BC 2017 MSP Rates
Effective January 1, 2017, children will be exempt from MSP
premiums. Rate for single adult increases 4%, rate for couple increases 14.7%.
Single parent will pay as a single person instead of as a family. Premium
assistance will be expanded from a threshold of adjusted net income of $30,000
to $42,000.
Registered Retirement Savings
Plans (RRSPs), RRIFs and TFSAs
Contribution limits, attribution rules, investments, Home
Buyers Plan, RRSP savings calculator, unlocking pensions, RRIF withdrawal
calculator, and lots more information on RRSPs, RRIFs and TFSAs.
Is a Separate Business Tax
Return Required For My Business?
This will depend on whether your
business is incorporated. A corporation requires a separate T2 corporate
income tax return. Unless you are
trained in preparing corporate tax returns and are up to date on current
tax laws, a T2 corporate tax return should always be prepared or reviewed by a
professional accountant.
Registered Education Savings Plan (RESP)
If you are going to invest in an RESP for your child's future
education, make sure you are aware of all the options and provisions
first. A few provinces also provide grants towards the RESP.
Disability Tax
Credit / Promoters Restrictions Act
One need not be completely disabled to claim
the disability tax credit. To claim the credit a form must be completed by
a physician. In 2016 it is expected that regulations will be completed for
the Disability Tax Credit Promoters Restrictions Act, which is not yet in force.
Federal GST-HST Credit -
Turning 19 in 2016 - File a Tax Return for 2015!
The
GST-HST credit is a tax-free payment paid quarterly, to eligible recipients 19 or
older, or to younger spouses or parents. Many provinces also provide a
credit to be paid in conjunction with the GST-HST credit. A single person with
income of $42,000 or less in 2014 would have received a GST-HST credit for July 2015
to June 2016.
2016 Sales
Tax Rates
Our table of 2016 sales tax rates for PST, GST and HST is now
available.
New
Brunswick 2016 Budget Feb 2, 2016
The 2016 NB budget increases corporate tax rates and HST,
eliminates the top personal income tax rate and reduces the 21% rate to 20.3%.
New Brunswick Revised Tables of
Marginal Tax Rates
The 2016 marginal tax rates have been revised according to
the 2016 NB Budget.
Caregiver Amount If
Parent or GrandParent Lives With You
If you have a parent or grandparent over the age of 65 living with you,
even if they are not your dependant you could be eligible for the caregiver amount of
$4,608, if their net income was less than $20,343 in 2015. This can also be claimed for dependent relatives over the age of 17 who are living with you, if they are dependent on you due to mental or physical impairment. Each province and territory also has a caregiver tax credit.
Moving Expenses re
School or New Job
If
you moved at least 40km to be closer to a new job, to run a business, or
to attend a post-secondary educational institute full time, then you may
deduct moving expenses, up to the amount you earn at the new location, or
up to the amount of taxable award or scholarship income received in the
year. A move between two locations outside Canada can sometimes be
an "eligible relocation".
T4
Slips - Requirements, How to Complete and File
T4 slips for 2015 must be distributed to employees on or
before February 29, 2016. They can be filed online, no need to wait for a web access code.
Wages paid in January 2016 for December 2015 wages will NOT be reported on a
2015 T4.
Access CPP and OAS
Slips Online
With Service Canada’s online Tax Information Slips service, you can access your official OAS, CPP or EI tax slips earlier, and file your income tax sooner. Your tax slips for the prior year are available online as early as February 2nd.
January 2016
Tax
Treatment of Income From Investments in Exchange- Traded Funds (ETFs)
Whether you own foreign or Canadian ETFs, you should know the
tax consequences of the income from them, and how to calculate your adjusted
cost base (ACB). With Canadian ETFs, you need to know about reinvested
distributions and how they increase your ACB and thus reduce your capital gain
on sale.
Historical
Returns on Investments - Stocks, Bonds, T-Bills
Although most stock markets were down in 2015, investments in
foreign stocks had a good return when converted to Canadian dollars.
Transfer
Shares to Your Registered Account, but not at a Loss!
If you want to make an in-kind contribution of shares to your
RRSP, TFSA or another registered account, make sure they are not shares on which
you have a loss, because the loss will not be deductible. Also be careful
if you are going to sell them and then repurchase them in your registered
account - read our article!
Life in the
Tax Lane - February 2016 Video
The Life in the Tax Lane video for February discusses CRA's
new "auto-fill" of tax returns as well as their online mail and
"My Payment", CPP and EI on tips, taxable benefits, and how the leap
year affects tax due dates. Click "like" or "share" on
the video to win a t-shirt!
Tax Return Due
Date
Most 2015 personal income tax returns have a due date
of May 2, 2016, because April 30th falls on a Saturday. Self-employed individuals have until June
15th to file
their personal tax returns, but any amounts owing must still be paid by
May 2nd.
NetFile and
EFile Available
February 15, 2016
NetFile will be available from Feb 15, 2016 to Jan 20, 2017
for filing 2013 to 2015 personal income tax returns. EFile will be
available during the same period, for filing 2012 to 2015 personal income tax
returns.
US Estate Tax May be
Payable by Canadians
A U.S. federal estate tax return must be filed if a deceased
Canadian resident who is not an American citizen owned U.S.-situated assets
(including US stocks in a Canadian brokerage) exceeding $60,000 US in fair market
value at the time of death. However, if the total worldwide estate of
the deceased is less than $5.45 million US, there will probably be no US estate
tax.
US Estate Tax
Calculator
The US estate tax calculator will now calculate the US
federal estate tax for any year from 2011 to 2016.
Auto-Filling
of Tax Returns
For the 2015 taxation year, CRA is introducing a new service
to be provided through certified tax preparation software. Information
from tax slips filed with CRA can be used to automatically fill in parts of a
current-year income tax return.
Legislative
Proposals Re Income Taxation of Certain Trusts and Estates
The
Department of Finance has released for consultation draft legislative proposals
that would modify the income tax treatment of certain trusts and their
beneficiaries. Interested parties are invited to provide comments on the
draft legislation by February 15, 2016.
Automobiles, Passenger Vehicles and Motor Vehicles
What motor vehicle expenses can be deducted from income for
self-employed or corporations; Employee-owned vehicles; Taxable benefits; Expense limitations;
GST/HST input tax credits.
Reporting Foreign
Income and Expenses on the Tax Return
All income and
expenses must be reported on your tax return in Canadian dollars, converted
either at the transaction date exchange rate, or the average exchange rate for
the year. The average US exchange rate for 2015 is 1.2787108.
TaxTips.ca Calculators and
Internet Explorer (IE)
There were some problems with
our Detailed Canadian Income Tax and RRSP Savings Calculator and our Investment
Income Tax Calculators for those using IE, but those problems have been
corrected.
TFSA vs RRSP
Calculator
This calculator, which now includes 2016 tax rates and TFSA/RRSP limits, may be able to help you decide which type of
account is better for you.
Borrowing to
Invest in Stocks
Before borrowing, you should read our article. Novice
investors should not borrow to invest. Borrowing to invest can convert
regular income into tax-efficient dividend income and capital gains.
Borrow to Invest
Calculator
The Borrow to Invest Calculator has been updated to use 2016
income tax rates.
BC
Single Parent Employment Initiative
Participants can receive funded training for in-demand jobs,
or on-the job training through a paid work-experience placement. Benefits could
also include child-care costs, transportation costs, and exemptions for
bursaries, scholarships and grants.
BC
Disability
Assistance Recipients and Gifts of Cash
As of Dec 1, 2015, family, friends, supporters and community
groups can give regular gifts of cash to people receiving disability assistance
in BC,
without affecting their assistance.
BC
Palliative and End-of-Life Care
BC's health authorities provide a range of services for dying
people of all ages, including children, and their families, including provision
of drugs and medical equipment.
See also Prior Years:
What's New 2015
What's New 2014
What's New 2013
What's New 2012
What's
New 2011
What's
New 2010
What's
New 2009
What's New
2008
[back to top]
Revised: March 27, 2024