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New TaxTips.ca Content as it Happens
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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.
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.
When the 2017 debt of all levels of government is included, every man, woman and child in Canada owes $52,859. We need to pressure all levels of government to reduce our debt!
Life in the Tax Lane October 2019
This month's topics include: EI benefits denied to employee fired due to misconduct; Property flipping - income or capital; Deduction denied for employee travel/vehicle expenses; Shared-custody parents and CCB.
Cannabis as an Eligible Medical Expense
The provisions for the inclusion of cannabis as an eligible medical expense changed when cannabis was legalized effective October 17, 2018. If you want to claim it as a medical expense, make sure you have your medical document, and buy from a holder of a licence for sale of cannabis products!
2019 Donation Tax Credit Rates
We're a little slow with this table, but donation tax credit rates have not changed from 2018 to 2019.
2020 Employment Insurance (EI) Rates
The 2020 employee EI rate is reduced to 1.58% from the 2018 rate of 1.62%. The employer rate is 2.212%, down from 2.268%. The maximum insurable earnings (MIE) is increased to $54,200 from the 2019 rate of $53,100. The resulting maximum annual contribution per employee for 2020 is decreased to $856.36 from the 2019 maximum of $860.22, a decrease of 0.2%.
Canada Workers Benefit 2019 Except Quebec
The Canada Workers Benefit amounts for 2019 are now available including Alberta and Nunavut, which are different from the other provinces/territories. Quebec is also different but is in a separate table.
Canada Workers Benefit 2019 Quebec
The Canada Workers Benefit amounts for 2019 for Quebec are now available.
Canada Child Benefit / Child Disability Benefit / Shared-Custody Parent
Proposed legislation will retroactively change the definition of a shared-custody parent. to a parent who resides with the qualified dependant at least 40% of the time. See 2019 CCB and CDB payment and threshold amounts.
Financial & Estate Planning / Registered Plans / Investing
Money-Saving and Wealth Building Tips
We have a wealth of information that may help you cut costs, save money, and build your wealth! For instance, how much would you have to deposit today to have $1 million in the future? Info on unclaimed bank balances, calculating your loan interest rate, and much more.
Free in 30! / Financial Freedom
This is a plan to help you go from having nothing to being financially independent in 30 years or less.
Donating Shares or Other Capital Property Can Eliminate Capital Gains
Capital gains can be eliminated by donating certain types of capital property to qualified donees. If you were planning to make a donation of cash but could donate property instead, you can save some tax money. Best to do this by the end of November for shares, or possibly months earlier for mutual funds.
Transferring Capital Losses to a Spouse
Capital losses can be transferred to a spouse by utilizing the superficial loss rules. Your spouse must hold the shares for more than 30 days after your disposition before selling the shares.
Reinvested Distributions on the T3
It's been reported to us that Qtrade is showing reinvested capital gains distributions on the T3 not only in box 21, but also as a negative amount in box 42. This is technically correct, but might be confusing, as you won't be able to enter the negative amount into tax software.
Campgrounds and the Small Business Deduction
In most cases, a campground owned by a corporation would be considered to be earning property income, and would not be eligible for the small business deduction unless it employed more than 5 full-time employees.
Government / Budgets
Bank of Canada / Money Supply
We've expanded our article "Can the Government of Canada Print Money and Spend it?" to include information on how the Bank of Canada works, and on the Canadian Money Supply.
Alberta 2019 Budget
Alberta's new government will table their first budget on October 24, 2019, 3 days after the federal election.