TaxTips Nov 2019: 2020 Calculators; Last 2019 trading day; Retire at 50!; Convert RRSP to RRIF at 71; Lifetime capital gains exemption; Quebec indexation; 2020 CPP/QPP; and much more!
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We're wishing everyone a very Merry Christmas!

Important Dates

NetFile is available until January 24, 2020, for filing 2015 to 2018 personal tax returns. EFile is available for the same period, for filing 2015 to 2018 personal tax returns.

RRSP Contribution Deadline:  March 2, 2020 is the deadline for making RRSP contributions for the 2019 tax year.

Tax-Free Savings Account (TFSA) Withdrawals If you're considering a withdrawal in the next few months, do it before Dec 31st so it increases your contribution room in January 2020.

Canadian Financial & Income Tax Calculators

We have lots of calculators - re income tax, borrowing, investing, RRIF withdrawals, US estate tax for Canadians, CPP retirement pension calculator and more.

2020/2019 Canadian Tax & RRSP Savings Calculator

This very detailed calculator is great for tax planning! For all provinces and territories except Quebec.

2020/2019 Quebec Tax & RRSP Savings Calculator

The detailed Quebec calculator is a great tax planning tool - let it help you determine how much to put into RRSPs.

2020 Basic Tax Calculator

This simple calculator compares taxes on both types of Canadian dividends, capital gains, and other income, for every province and territory for 2015 to 2020.  Also shows marginal tax rates for different types of income for the year selected, for every province and territory.

Personal Tax

Life in the Tax Lane December

This month's video discusses: 
 - Investment management fees re TFSA paid via non-registered account - advantage tax;
 - Rental property losses/source of income?; 
 - Penalty re repeated failure to report income; 
 - Agency relationship re GST/HST; 
 - Represent a Client updates re deceased taxpayers; 
 - Corporate ownership reporting changes.

2020 Personal Tax Rate Tables

All tax rates, thresholds, and personal amounts have been confirmed to CRA or Revenue Quebec.  Things could change when 2020 budgets are tabled, and federal is probably guaranteed to change after the election.

Taxpayer Relief Deadline December 31, 2019

Haven't filed your 2009 tax return yet? Taxpayers are running out of time to file requests under the taxpayer relief provisions for the 2009 tax year and any reporting period that ended in the 2009 calendar year. If a tax debt arose from a tax year prior to 2009, penalties and interest that have accumulated from 2009 to 2019 could still be reduced as a result of a 2019 request for leniency.

Employee Tools Deduction - Electricians, Cooks, Hairdressers, Plumbers, etc.

Employed tradespeople can claim a maximum $500 deduction for tools purchased in the year. Apprentice mechanics can get a much larger deduction. Both can be calculated using our Employee Tools Deduction Calculator.

Quebec Tax Credits and Deductions Subject to Indexation

Quebec's tax credits and deductions are increased for inflation by 1.72% for 2020.

2020 Canada Pension Plan (CPP) Maximum Pensionable Earnings

The maximum pensionable earnings for 2020 will be $58,700, and the rate will be increased to 5.25%, including the 0.30% additional contribution for enhanced CPP.  The additional contributions are deductible from income.

2020 Quebec Pension Plan (QPP) Maximum Pensionable Earnings

The maximum pensionable earnings for 2020 will be $58,700, and the rate is increased to 5.7%, including the 0.30% additional contribution. The additional contribution is deductible from income.

2020 Canada Workers Benefit (CWB) - All Prov/Terr except Quebec

The CWB is a refundable tax credit of up to $1,381 per person or $2,379 per couple ($1,481 and $2,216 in Alberta) for those with working income.

2020 Canada Workers Benefit (CWB) - Quebec

The Quebec CWB is a refundable tax credit of up to $2,318 per person or $3,618 per couple for those with working income.

Financial & Estate Planning / Registered Plans / Investing

Retire at 50!

Would you like to retire at 50?  Or just be financially independent by then? See our article for help in achieving this goal.

Converting RRSPs to RRIFs at Age 71

If you turned 71 this year, your RRSP must be converted to a RRIF, or used to purchase an annuity, by December 31st, but if you haven't done this already your financial institution will probably be automatically converting it soon.  If you turned 65 this year, you may want to convert some of your RRSP to a RRIF before December 31st, to take advantage of the pension income tax credit, and perhaps pension splitting with your spouse.

Last Trading Date for 2019 Gains and Losses to be Recorded in 2019

The last trading date in 2019 for Canadian and US publicly traded stocks is Friday, December 27th.  Stocks purchased or sold after this date will settle in 2020, so any capital gains or losses on sale will apply to the 2020 tax year.


Lifetime Capital Gains Exemption

The capital gains exemption increases to $883,384 in 2020, for eligible small business corporation shares.  The exemption is still $1 million for qualified farming or fishing property.

Government / Budgets

Ontario Fall Economic Update November 6, 2019

Legislation was tabled to reduce the small business corporate income tax rate to 3.2% and the non-eligible dividend tax credit rate to 2.9863% effective January 1, 2020.

Quebec Fall Economic Update November 7, 2019

Family allowance amounts are enhanced for 2020, and prescription premium exemptions are adjusted for 2019.

Manitoba 2020 Budget Consultations

Manitoba has started their 2020 budget consultations, which will continue until some time in February.  There are a few ways to provide your input.

If you need tax or financial help, check our Directory for links to Accounting, Bookkeeping and Financial Planning organizations in Canada.  Canadian income tax is getting more complicated every year, and getting your tax return prepared or reviewed by a professional may save you money!

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The information in this e-mail and on the website is not intended to be a substitute for professional advice.  Each person's situation differs, and a professional advisor can assist you in using the information to your best advantage.
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