If you bought or sold your home this year or plan to buy or sell a home soon, the Canada Revenue Agency (CRA) has information to help you. Please click on the link below to read more about this topic on Canada.ca
The following information is now available on Canada.ca:
The sharing economy connects individuals or businesses that are looking for a particular product or service to those that have it. Sharing economy arrangements are generally booked using online platforms through a third party, using a website or a software application.
There have been a number of developments with respect to the taxation of cryptocurrency in Canada. The CRA has recently updated its compliance guidelines and appears to be engaged in increased Bitcoin audit activity.
To read more about this topic you can visit the MLT AIKINS website HERE
Did you know that if you’re earning income from one or more properties, you are required to report all the money you make? The income collected from these activities is taxable.
To read more about this topic please visit the CRA website HERE
If you have any additional questions please contact one of our offices.
If have questions about TOSI or if you are just curious about the topic take a moment a read this blog post from Moodys Gartner:
Do your employees use their personal vehicles for work-related travel? If so, you may provide them with an automobile or motor vehicle allowance to help cover expenses. It is important that you understand your responsibilities around these allowances.
What is an automobile or motor vehicle allowance?
An automobile or motor vehicle allowance is any payment that you give your employees for using their own vehicle in connection with their employment. This payment forms part of their salary or wages. An allowance is a taxable benefit to your employees unless it is based on a reasonable per-kilometre rate.
Please visit the CRA website here for additional informtion.
Please note our offices will be closed from December 24th until January 1st. We will resume normal office hours on January 2nd.
Enjoy your time with friends and family. All the best from the management and staff of Reschke Fritz LLP.
What is the disability tax credit?
The disability tax credit (DTC) is a non-refundable tax credit that helps persons with disabilities or their supporting persons reduce the amount of income tax they may have to pay. An individual may claim the disability amount once they are eligible for the DTC. This amount includes a supplement for persons under 18 years of age at the end of the year.
Scammers posing as Canada Revenue Agency (CRA) employees continue to contact Canadians, misleading them into paying false debt. These persistent scammers have created fear among people who now automatically assume that any communication from someone representing the CRA is not genuine.
This tax tip will remind Canadians that the CRA does indeed contact taxpayers by phone, email and mail for legitimate reasons. The following tips will help Canadians identify legitimate communications from the CRA.
Click HERE to get more details from the CRA website
The following information is now available on Canada.ca:
Dealing with the death of a loved one is difficult. With this in mind, the Canada Revenue Agency (CRA) wants to help make filing their final tax return easier.
What is the sharing economy?
The sharing economy is a way to consume and access property and services. In this economy, communities pool, loan, and share their resources through networks of trust, often using technology to connect.
The five key sectors of the sharing economy are:
To read more about this please visit the CRA website
If you recently sold a principal residence, you have to report the sale on your income tax and benefit return. This requirement ensures that only those entitled to the principal residence exemption can claim it. This is part of the Canada Revenue Agency's (CRA) effort to maintain the fairness and integrity of the Canadian tax system.
What is a principal residence?
A principal residence can be any of these types of housing units:
- apartment in an apartment building
- apartment in a duplex
- trailer, mobile home, or houseboat
Generally, a housing unit will qualify as a principal residence if (1) you own the property alone or jointly with another person, (2) you, your spouse, your common-law partner, or any of your children lived in it at some point during the year, and (3) you designated the property as your principal residence.
You can have only one principal residence at a time. However, when you sell a principal residence and buy another (or move to another property that you own) in the same year, you can use the "plus one" rule when calculating the principal residence exemption amount. This rule allows you to claim the principal residence exemption for both properties for that year even though you can only designate one property as your principal residence.
If you were not a resident of Canada throughout any tax year during which you owned the designated property, contact the CRA. Your principal residence exemption may be reduced or eliminated based on how long you were not a resident.
What is the principal residence exemption?
When you sell a housing unit, you may realize a capital gain. However, special rules, referred to as the “principal residence exemption,” may reduce or eliminate your capital gain. If the property was solely your principal residence for every year you owned it, you may not have to pay tax on the capital gain. If the property was not your principal residence at any time when you owned it, you may have to report all or part of the capital gain.
What do you need to do to get the principal residence exemption?
You will need to report the sale of your principal residence and make the designation. You can do this by filling out the relevant sections on Schedule 3, Capital Gains (or Losses), when you file your income tax and benefit return. To claim the principal residence exemption for sales in 2017, you also have to file Form T2091(IND), Designation of a Property as a Principal Residence by an Individual (Other Than a Personal Trust), which includes certain information such as: the address of the property you sold, the date it was purchased, and the amount you sold it for. You can submit the Form T2091 electronically using EFILE and NETFILE software.
What happens if you don't report the sale?
If you forget to report the sale of your principal residence or don't make the designation, you will need to ask the CRA to amend your income tax and benefit return for the related tax year as soon as possible. The CRA may be able to accept a late designation in certain circumstances, but you may have to pay a penalty.
Visit this link for the original post from CRA: Principal residence exemption