This has been a busy year at the tax department as several long standing tax benefits and reporting has changed. It is always beneficial to acquaint yourself with the tax changes, this year in particular it is crucial as you will read below.
As always, we are here to discuss how the changes affect you.
Some Changes for 2016
Source: This information is directly from the CRA website.
Children’s arts amount – The maximum eligible fees per child (excluding the supplement for children with disabilities) has been reduced to $250. Both will be eliminated for 2017 and later years. For more information see line 370.
Children’s fitness tax credit – The maximum eligible fees per child (excluding the supplement for children with disabilities) has been reduced to $500. Both will be eliminated for 2017 and later tax years. For more information see lines 458 and 459.
Family tax cut – The family tax cut has been eliminated for 2016 and later years.
Canada child benefit (CCB) – As of July 2016, the CCB has replaced the Canada child tax benefit (CCTB), the national child benefit supplement (NCBS), and the universal child care benefit (UCCB). For more information see Canada child benefit.
Sale of principal residence – The sale of a principal residence must now be reported, along with any principal residence designation, on Schedule 3. See Schedule 3, Capital Gains (or Losses) in 2016. Under proposed changes, the CRA will be able to accept a late designation in certain circumstances, but a penalty may apply. Go to Reporting the sale of your principal residence for individuals (other than trusts) and select question 7.
Reassessment period – Under proposed legislation, for tax years that end after October 2, 2016, the CRA may at any time reassess your income tax return if you fail to report a sale or other disposition of real estate. See the Guide T4037, Capital Gains.
Eligible educator school supply tax credit – If you were an eligible educator, you can claim up to $1,000 for eligible teaching supplies expenses. For more information see lines 468 and 469.
Contact us to discuss your tax situation in more detail.
Your referrals are welcome. Each year we accept a limited number of new personal tax clients. If you know someone who would like to work with us, please suggest they call early to avoid disappointment.