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New for 2016 Tax Returns

 

Sale of Your Principal Residence

When you sell your home, or when you are considered to have sold it, usually you do not have to pay tax on any gain from the sale. This is the case if the property was solely your principal residence for every year you owned it. Starting in 2016, if you sold your principal residence, and it was your principal residence for every year you owned it, you must report the sale on your personal tax return.

Home Accessibility Tax Credit

The Home Accessibility Tax Credit worth up to $1,500 is available for personal tax returns starting in 2016.

If you have done a permanent renovation to an eligible dwelling that increases the accessibility, functionality or mobility to that dwelling you may qualify for this credit! This credit may also be claimed if the renovation reduces the risk of harm to the qualifying individual. To qualify you must be eligible to claim the disability tax credit or be 65 years of age or older.

For more information see the CRA website http://www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns360-390/398/398-eng.html or contact us!

Income Splitting Tax Credit –Gone!

The Income Splitting Tax Credit for couples with at least one child under 18 has been eliminated after 2015. This credit provided up to a $2000 credit on the personal tax return but it has been replaced with the new Child Tax Benefit.

Child Fitness & Arts Credits –Reduced for 2016, Eliminated for 2017

Fitness credits are reduced to $500 per child in 2016. Arts Credits are reduced to $250 per child in 2016.

New CRA Website Coming 2016

All Government of Canada websites, including CRA, are in the process of migration to a new Canada.ca website. Timeline for the completion of this project is currently undetermined.

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