WHAT’S NEW FOR 2017 TAX YEAR:

Individuals and families

Express NOA delivers an instant message regarding a filing, and then, within 24 hours, delivers the notice of assessment directly into EFILE-certified tax preparation software. Ask us if you need this service with applicable fees.

Four child tax credits will no longer available this year: arts, fitness, education and textbooks in 2017. However, parents of children under the age of 16 can pre-pay 2017 arts and fitness programs to claim them on 2016 tax returns as long as total spending for 2016 does not exceed $250 and $500 limits, respectively.

Reporting the sale of your principal residence

On October 3, 2016, the Government announced an administrative change to Canada Revenue Agency’s reporting requirements for the sale of a principal residence.

Starting with the 2016 tax year, generally due by late April 2017, you will be 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. A non-filing penalty may apply in case you fail to report the sale of your home. Ask your accountant the detail about how to report this.

Interest and investments

Business owners, large and small, will gain less from the sale of their operations as assets such as goodwill and trademarks will become fully taxable as investment income. Currently, half of the proceeds can be distributed tax-free as a dividend.

Investors will also no longer be able to rebalance their non-registered mutual fund investments in corporations structured as “switch funds” on a tax-deferred basis. As of the New Year, capital gains from such moves will be taxed in the same way as equities.

 

Capital gains deduction – The lifetime capital gains exemption limit has increased to $824,176 as a result of indexing in 2016.

Form T1135, Foreign Income Verification Statement – This form has changed to introduce a simplified reporting method for individuals who own specified foreign property with a total cost of less than $250,000 throughout the year.

Tax-free savings account (TFSA) – The TFSA annual contribution limit has decreased to $5,500.

Repeated failure to report income penalty – We may now charge you this penalty only if the amount of income you failed to report on your return was $500 or more. The calculation of the penalty has changed.

 

How should you prepare?

We have provided you a copy of document checklist. Please review and put together all the documents those are applicable to you. Drop off all necessary documents to our office to enable us prepare your tax return accurately and in timely manner.

You can now book your appointment over the phone at (416) 463-3330 or by emailing us at info@mmcpa.ca for your convenience.

We look forward to hearing from you early in the tax season!

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