Tax Tip: TAX TICKLERS - some quick points to consider

  • Canada Pension Plan (CPP) – The Federal Government has been consulting on, and intends to continue examining possibilities to enhance the CPP.

  • Principal Residence Exemption (PRE) – A vacation property, even if situated outside of Canada, may be eligible for the PRE.

  • U.S. Real Estate – Sales of U.S. real estate by non-residents are now generally subject to a 15% U.S. Federal withholding tax (previously at 10%) if a waiver certificate is not obtained.

  • Canada Child Benefit (CCB) – The new CCB will replace the Canada Child Tax Benefit and Universal Child Care Benefit commencing July 2016, providing a maximum annual benefit of $6,400/child under age 6, and $5,400/child aged 6-17. The benefit will be phased out dependent on adjusted family net income.

  • Teachers and Early Childhood Educator School Supply Tax Credit – This new 15% refundable tax credit (maximum value of $150/year) proposed to commence in 2016 is based on up to $1,000 of eligible expenditures, such as amounts paid out-of-pocket for classroom supplies