Talking Tax for Friday, March 8, 2019
Brian Quinlan, Partner, Campbell Lawless Professional Corporation
- Life-cycle tax planning. Be sure to plan through the different stages of life. Whether you're a student, single, getting a job, becoming self-employed, getting married or living with a life partner, whether you're have new baby, more children, you're moving, going through a separation, a divorce, becoming a senior, taking care of your parents or an illness, giving to charity or planning for death, familiarize yourself with the tax provisions and strategies that impact you as you age and “cycle through” life stages.
- Tax and investment income. Make use of tax-exempt savings vehicles (TFSAs), tax deferred vehicles (RRSPs and RDSPs) and tax-saving investments (flow-through shares) and enhance yield. Acquaint yourself with how to make your investments more tax-efficient (income splitting, interest deductibility) as well as the various tax rates on the many sources of investment income.
- Take steps and put tax plans in place. Most plans will be forward-focused, as they will require some restructuring of who owns what assets.
TAX CODE CHANGES
- Residents of Saskatchewan, Manitoba, Ontario and New Brunswick will be able to claim the new Climate Action Incentive.
- Medical expenses eligible for the medical tax credit don’t include certain expenses incurred for animals specially trained to help an individual with a severe mental impairment (such as post-traumatic stress disorder). The Income Tax Act already included in eligible medical expenses costs incurred for animals that are trained to assist individuals who are blind, deaf, suffer from severe autism, epilepsy or diabetes.
- The TFSA contribution unit is $6,000 for 2019, up from $5,500 in 2018.
- The Enhanced Canada Pension Plan (CPP) began on Jan. 1.
TOP DEDUCTIONS PEOPLE FORGET ABOUT
- The caregiver tax credit and family care giver tax credit, which is meant for people taking care of their parents at home.
- Deductions for legal fees in certain instances.
- The deduction for accounting fees.
- Requesting a disability tax certificate.
FAVOURITE TAX RESOURCES
The Internet is the best place for up-to-date tax news and planning suggestions. The CRA continually upgrades their website with more information; this as well as the tax guide that comes with your tax return are good starting places. Large accounting firms also have very helpful sites, with a number of them having prepared very detailed guides and books which can be easily accessed.