Tax season is here and we would like to see you armed with knowledge to make the right decisions around your tax planning. Here are a few items to note around changes coming your way related to taxes:
- The federal government is ending four child tax credits this year: arts, fitness, education and textbooks in 2017. Parents of children under the age of 16 can pre-pay 2017 arts and fitness programs to claim them on 2016 tax returns as long as total spending for 2016 does not exceed $250 and $500 limits, respectively.
Business owners, large and small, will gain less from the sale of their operations as assets such as goodwill and trademarks will become fully taxable as investment income. Currently, half of the proceeds can be distributed tax-free as a dividend.
- No more income-splitting for families. This is was a tax reduction measure that allowed someone to transfer up to $50,000 of income to a spouse with lower income if they had a child under 18 years of age. The tax credit for income splitting was capped at $2,000.
High-income earners in most provinces will pay more but for the majority of Canadians, these two changes will mean more money in their pockets,” Canadian Taxpayers Federation federal director Aaron Wudrick said Wednesday in a news release.
Minimizing your tax burden requires knowledge, expertise and most importantly, planning. We are here to assist with your 2016 personal income tax and benefit returns.
Tax planning is vital to building your personal wealth and should happen throughout the year, not just at “tax time”. We have the experience and knowledge to help you understand the Canadian taxation system and can assist you in preparing and filing your income tax returns.
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We provide complete Accounting, Taxation and Advisory services for small to medium sized business’ and individuals. We work with you now to meet your current and long-term financial objectives and minimize your taxes. Email us at firstname.lastname@example.org or call us at 905-875-4444 (Melanie).