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Tax news for 2017!
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$20 off

On any Couple Income Tax for 2016

Thank you for being a loyal customer. We hope you will benefit from this discount for your personal income tax 2016. To be used prior to March 31, 2017.

What's new for the 2017

Canada child benefit (CCB) –The CCB is a tax-free monthly payment made to eligible families to help them with the cost of raising children under the age of 18. The CCB might include the child disability benefit and any related provincial and territorial programs. It replaces the Canada child tax benefit, national child benefit supplement and the universal child care benefit.
 
Northern residents deductions – If you have lived, on a permanent basis, in a prescribed northern or intermediate zone for a continuous period of at least six consecutive months, you may be eligible for a deduction. For 2016 and later years, the basic and the additional residency amounts used to calculate the northern residents deductions will be increased from $8.25 to $11 per day.
 
Eligible educator school supply tax credit – Eligible educators may be able to claim a 15% refundable tax credit based on up to $1,000 of eligible teaching supplies bought during the tax year.
 
TAX CONSEQUENCES OF TEMPORARY AND PERMANENT DEPARTURE
FROM CANADA

 
When you move temporary or permanently from Canada to establish in another country, there
are many aspects to consider in the year of departure and even before you move, to avoid paying
lots of taxes! 

Determination of your residency for tax purpose after your departure is very important, especially 
if you will still maintain your assets in Canada.
 
The best way to avoid the tax surprises with the tax authority is to consult your Canadian Tax Adviser
long before your move.
 
One of the common decision is to keep your principal house after your departure and make it rental property
while you are a non-resident of Canada. Therefore, you must report your rental income during
your non-residency in your Canadian income tax while you are resident of another country. If you ever
decide to sell that house during your non-residency, your notary will have to withhold 35% of the selling
price at the time of transaction and remit it to Canada Revenue Agency (CRA) to cover any tax you may owe
to CRA as a non-resident. You may recuperate some of the withholding taxes after filing your income taxes
as non-resident and be up-to-date with CRA.

There is other formality to respect with CRA while you have rental property in Canada as a non-resident.
So, before you buy, sell or rent your property always consult your tax adviser.

It is very important to know all the criteria for determination of your residency for tax purposes. As a
resident of Canada, you will have to report your worldwide income in your Canadian income tax.
But if you will be consider as non-resident of Canada, only your Canadian income need to be reported
in the Canadian income tax. 
PLAN YOUR TAX!

Other tax changes

Income splitting tax credit – The family tax cut has been eliminated for the 2016 year and future tax years. However, if you are receiving a pension, you may be able to split your eligible pension income with your spouse or common-law partner to reduce your taxes.
 
Children’s fitness tax credit – For 2016, the maximum eligible fees in the year is reduced from $1,000 to $500, but the additional amount of $500 for children eligible for the disability tax credit has not changed. Therefore the maximum credit is reduced to $75 ($150 for a child eligible for the disability tax credit).
 
Children’s arts tax credit – For 2016, the maximum eligible fees in the year is reduced from $500 to $250, but the additional amount of $500 for children eligible for the disability tax credit will not change. Therefore the maximum credit is reduced to $37.50 ($112.50 for a child eligible for the disability tax credit).
 
Home accessibility tax credit (HATC) – For 2016 and subsequent tax years, you can claim a non-refundable tax credit for eligible expenses incurred for work performed or goods acquired for a qualifying renovation of an eligible dwelling of a qualifying individual.


A qualifying individual is:

  • an individual who is eligible for the disability tax credit for the year; or
  • an individual who is 65 years of age or older at the end of a year.

Reporting the sale of your principal residence – Starting with the 2016 tax year, you are required to report basic information (date of acquisition, proceeds of disposition (e.g. sale) and address) on your tax return when you sell your principal residence to claim the full principal residence exemption. You do not have to pay tax on any capital gain when you sell your house if it was your principal residence for all the years you owned it and you did not use any part of it to earn income.

For the sale of a principal residence in 2016 or later tax years, CRA will only allow the principal residence exemption if you report the sale and designation of principal residence in your income tax return. If you forget to make a designation of principal residence in the year of the sale, it is very important to ask the CRA to amend your income tax and benefit return for that year. Under proposed changes, the CRA will be able to accept a late designation in certain circumstances, but a penalty may apply.

The penalty is the lesser of the following amounts:

  1. $8,000; or
  2. $100 for each complete month from the original due date to the date your request was made in a form satisfactory to the CRA.

FOR MORE INFORMATION ABOUT EACH SUBJECT IN THIS NEWSLETTER, SIMPLY CLICK ON THE HIGHLIGHTED OR UNDERLINED TEXT
GET PROFESSIONAL HELP!

Taxes and Revenu Quebec


RenoVert Tax Credit:

You can claim the RénoVert tax credit only for the 2016 and 2017 taxation years, and you must do so when you file your income tax return.

This refundable tax credit has been introduced on a temporary basis to encourage individuals to invest in recognized eco-friendly home renovation work that has a positive environmental impact or improves their dwelling's energy efficiency.  

You can claim the credit if you have recognized eco-friendly home renovation work done to a dwelling you own or co-own that is your principal residence or a winterized cottage that you normally occupy. The initial construction of the dwelling must have been completed before January 1, 2016, and the dwelling must be one of the following:

The renovation work must have been done by a qualified contractor under a contract entered into after March 17, 2016, and before April 1, 2017. 

The amount of the tax credit you can claim in respect of an eligible dwelling corresponds to 20% of the portion of your eligible expenses paid after March 17, 2016, and before October 1, 2017, that exceeds $2,500, up to a maximum tax credit of $10,000.

Start filing your Releve 31 today!

RL-31 slips must be filed by any person or partnership that is the owner of a leased dwelling for which rent was paid or payable on December 31 of a given year.

Owners have to issue an RL-31 slip to each tenant and subtenant responsible for a lease on December 31, 2016.

The Prepare and View the RL-31 Slip online service is available starting December 1, 2016. Owners of residential complexes can prepare and file RL-31 slips as of this date. Owners of residential complexes must file RL- 31 slips with Revenu Québec and issue the slips to their tenants and subtenants no later than February 28, 2017.

The RL-31 slip provides information about the occupant(s) of a dwelling as at December 31 of a given year. Tenants and subtenants use this information to claim the solidarity tax credit in their income tax return.

FILL OUT OUR ONLINE TAX FORM! PWD: 7200

By completing our online tax form, you will receive a checklist tailored to your situation. You can therefore, prepare your tax slips and do not miss anything before you meet us for your personal income tax preparation.

Visit and contact us at www.miagesolutions.com

BE ON-TIME!
Copyright © *2017* *M.I.A.G.E. Business Solutions Inc.*, All rights reserved.

Our mailing address is:
Mahtab Saghafi, Senior Finance and Tax Advisor
MIAGE Business Solutions Inc.
6600 route Transcanada, suite 750, Pointe-Claire, QC, H9R 4S2
Tel: 514.426.7200
Email: info@miagesolutions.com
www.miagesolutions.com

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MIAGE BUSINESS SOLUTIONS INC · 6600 Transcanada Highway, Suite 750 · Pointe-Claire, Qc H9R 4S2 · Canada

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