It’s that time of year where everyone is waiting for that big tax return to come in! But the more tips you know, the better!
Common Law or Living Together
– If you live together for more than 12 months together, CRA anticipates that you will file as common law
– If you have medical expenses and charitable donations, you can pick and choose between who optimizes the expenses
– You may be able to claim as independent depending on your income
– If you previously qualify for the GST as a single, your income will be put together and only one person can get the return
– Claiming your dependent adult children’s medical expenses. You can include some of their income and claim their medical expenses
– Can also be a deduction that could be available for some situations such as relatives
Property South of the Border
– If you had a property down south and sold it, there is a capital gain claim on your Canadian tax
– If you had tax deducted in US, you can deduct US tax from what you would have to pay on your Canadian tax. Proof of that will be your US tax filing or a tax slip that shows the tax deducted.
– If you have US rental property, keep in mind that the US exchange rate needs to be calculated at the time you receive the money (if you receive the money monthly, you need to calculate the exchange rate each month)
Loss from Corporations
– If things did not work out with the corporation, you may be able to claim something on your personal taxes called an allowable business investment loss. The calculations can be cumbersome, so seek advice from an accountant!
– If you have a loss from a sole proprietorship, there are also options to carry the loss back
Changes in the Year
– Fitness Tax Credit has changed. Last year, it doubled, but this year they made it a refundable tax credit. (If you are claiming the maximum amount, it is also refundable)
Questions about some of these tips or other inquiries? Comment below or give us a call and we will help you as soon as we can!