For 2016 or later, the sale of a principal residence must now be reported on your tax return. You will receive an exemption from any tax.
To monitor and prevent serial sales of principal residences. The exemption may be lost to you in subsequent years.
Fitness Credit is reduced to $500.00 in 2016 and eliminated in subsequent years.
Art amount is reduced to $250.00 in 2016 and eliminated in subsequent years.
The new increased Child Tax Benefit will give parents more tax free dollars to provide these services to their children.
The tax credit rate is increased for taxpayers with taxable income over $200,000.
HOME ACCESSIBILITY TAX CREDIT
A 15% credit of a maximum $10,000.00 for qualifying expenses in an eligible dwelling of a qualifying individual. This is a tax credit an is only available to taxpayers who pay Federal Tax. The amount is reduced to the amount of Federal Tax you pay.
This is in addition to the Ontario Healthy Homes program which is a refundable tax credit. You will be able to claim both credits.
TEACHER & EARLY CHILDHOOD EDUCATOR SCHOOL SUPPLY TAX CREDIT
A refundable tax credit of 15% of the first $1000 of eligible school supplies. To be eligible you must belong to a professional association..
Registered Educational Savings Plans are not a tax planning tool.
They can increase tax payments upon withdrawal for both the child and the contributor. The investment aspect can also be in question.
Tax Free Savings Accounts can save you a very small amount of taxes now but cost you much more in tax savings in other areas.
It is important that you are incorporating is for the right reason.
Incorporating may prove to be an expensive situation to get into and out of later with little or no tax savings.
Rental income is a long term investment which may lead to greater tax savings later. It is not a vehicle to produce expenses to create an immediate tax advantage now.
The purpose of self employment is to create income. Self employment to create a loss may lead to difficulties in the future.
CANADA REVENUE AGENCY
The information provided by the Canada Revenue Agency for the majority of questions may be correct. A recent survey shows that 25% of the answers on the telephone are incorrect.
The basic problem is they do not either understand the question nor know the whole story.
Tax software is only a tool for tax preparation not unlike a hammer in building a house. Proper tax preparation requires a plan to save tax dollars. A tax plan requires an architect to build a firm foundation.
Tax preparation software provides no accountability or recourse other than the Canadian Revenue Agency
As you can see 2016 is a very special year for Eggett Tax Services. It was a very young and handsome Bob Eggett who went with his erasable pen from home to home preparing tax returns, in duplicate and long hand in 1976. They may not have been very pretty but they were in most cases accurate. Bob opened his first office in 1986 but still hand wrote the majority of tax returns in his clients homes. In 2000 with the start of EFILE, the move to office preparation increased but in-home appointments were still a major percentage of tax returns completed. By 2010 the majority of tax returns were in the office with the number of in home visits decreasing. We currently do not offer in-home preparation but offer a pick-up service where the client does not need to visit the office. We still have some of our original clients from 1976. We feel blessed that these clients stuck with us over the years and are still here to celebrate our 40th year in business.
We would like to take this opportunity to thank all our clients for their support loyalty and encouragement over the years.
We continue to provide a full-time year-round tax preparation system based on personalized service to minimize the tax an individual is required to pay. Our newsletter and website are designed to inform our clients as to the deductions and credits they are entitled. Our process is a collaborative one stressing communication and trust. Unfortunately we are not perfect even when we strive to be. If errors are made we work with our clients to minimize the effect on their bottom line.
The forty years in business has developed a positive interactive system in which our clients are ensured that they are paying the least amount of taxes.
The 2015 tax year is the third year of a five year plan to transfer the active business decisions from the maturing Bob Eggett to his daughter, Tracy. As long as Bob can be propped up at his desk he will be here but be prepared to see him less and Tracy more.
We look forward to seeing you in the next couple of months for a fulfilling celebration.
Pitfall: Interest on a margin account to purchase stocks is not an eligible interest expense. Interest to earn interest or dividend income is the only interest allowed. The interest to purchase stock is added to the adjusted cost of the stock when you sell it.
What's Upcoming in 2017 and future years
CRA will strive to deliver correspondence that is straightforward and easy to read.