Turack Raguseo Lesti Gilliatt LLP
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 PERSONAL TAX LETTER FOR 2017 TAX YEAR

 SYNOPSIS

 

 January 2018

 

 This letter is to provide you with a quick look at the changes for the 2017/2018 tax years.  Please visit our website at www.turack.ca to see the complete tax letter or contact us should you have any concerns.

 

 REPORTING THE SALE OF YOUR PRINCIPAL RESIDENCE  **PLEASE TAKE NOTE**

 

  • Starting with the 2016 tax year and each year thereafter, if you or your spouse sold ANY real estate including your personal residence, cottage, vacation property or foreign property we need to know!!!

 

If you sold your personal residence you need to supply us with the date of acquisition and the gross sale price.

 

If it was anything other than your personal residence, please talk to one of the partners or staff

 

  • If you started or stopped renting a property that you owned, we need to know!!!

 

CRA is now requiring you to report any or all of the above on your 2016 personal tax returns and subsequent years in order to claim the principal residence exemption.  You do not have to pay tax on any capital gain when you sell your house if it was your principal residence for all the years you owned it and you did not use any part of it to earn income.

 

 TFSA  

 

  • Starting January 1, 2016, the annual TFSA dollar limits for 2016, 2017 and 2018 are $5,500 for each year.

 

RRSP Deduction Limit

 

  • The maximum RRSP contribution limit for 2017 is $26,010. It increases to $26,230 for 2018. You can start making RRSP contributions for the 2017 tax year as early as January 1, 2017 (March 1, 2018 is the deadline).
  • Please provide us with any contribution receipts made in the first 60 days of 2018. These amounts do not necessarily need to be deducted from income in 2017, but they do need to be reported in that year and can be carryforward to the following year.

Repeated failure to report income penalty

  • If you failed to report an amount on your return for 2017 and you also failed to report an amount on your return for 2014, 2015, or 2016, you may have to pay a federal and provincial/territorial repeated failure to report income penalty. Under proposed changes, if you did not report an amount of income of $500 or more for a tax year, it will be considered a failure to report income.
  • As a result of the proposed changes, the federal and provincial or territorial penalties are each equal to the lesser of:
  • 10% of the amount you failed to report on your return for 2017; and
  • 50% of the difference between the understated tax (and/or overstated credits) related to the amount you failed to report and the amount of tax withheld related to the amount you failed to report.

It is imperative that you let us know if you hold any Foreign Property at any time in 2017 with a total cost of more than CAN $100,000. 

Foreign property includes:

  • Shares of foreign corporations held in Canadian brokerage accounts
  • Shares of Canadian corporations held by foreign brokers
  • Foreign mutual funds
  • Precious metals held outside Canada and
  • Foreign bank accounts.

Foreign property does NOT include:

  • Property held primarily (more than 50%) for personal use
  • Holdings in Canadian mutual funds or registered accounts (RRSP, RRIF, TFSA).

The CRA has implemented changes to Form T1135 for the 2015 and subsequent tax years. The changes will allow taxpayers who held specified foreign property with a total cost amount of less than $250,000, throughout the year, to report under a new simplified reporting method rather than providing the detail of each such property.

 

The above are some quick points that we believe should be brought to your attention.  Get the full letter at www.turack.ca.

PLEASE USE OUR PERSONAL TAX CHECKLIST UNDER INFO CENTRE

 

 

 

 

TURACK RAGUSEO LESTI GILLIATT INC.


 PERSONAL TAX LETTER FOR 2017 TAX YEAR

 SYNOPSIS

 

 January 2018

 

 This letter is to provide you with a quick look at the changes for the 2017/2018 tax years.  Please visit our website at www.turack.ca to see the complete tax letter or contact us should you have any concerns.

 

 REPORTING THE SALE OF YOUR PRINCIPAL RESIDENCE  **PLEASE TAKE NOTE**

 

  • Starting with the 2016 tax year and each year thereafter, if you or your spouse sold ANY real estate including your personal residence, cottage, vacation property or foreign property we need to know!!!

 

If you sold your personal residence you need to supply us with the date of acquisition and the gross sale price.

 

If it was anything other than your personal residence, please talk to one of the partners or staff

 

  • If you started or stopped renting a property that you owned, we need to know!!!

 

CRA is now requiring you to report any or all of the above on your 2016 personal tax returns and subsequent years in order to claim the principal residence exemption.  You do not have to pay tax on any capital gain when you sell your house if it was your principal residence for all the years you owned it and you did not use any part of it to earn income.

 

 TFSA  

 

  • Starting January 1, 2016, the annual TFSA dollar limits for 2016, 2017 and 2018 are $5,500 for each year.

 

RRSP Deduction Limit

 

  • The maximum RRSP contribution limit for 2017 is $26,010. It increases to $26,230 for 2018. You can start making RRSP contributions for the 2017 tax year as early as January 1, 2017 (March 1, 2018 is the deadline).
  • Please provide us with any contribution receipts made in the first 60 days of 2018. These amounts do not necessarily need to be deducted from income in 2017, but they do need to be reported in that year and can be carryforward to the following year.

Repeated failure to report income penalty

  • If you failed to report an amount on your return for 2017 and you also failed to report an amount on your return for 2014, 2015, or 2016, you may have to pay a federal and provincial/territorial repeated failure to report income penalty. Under proposed changes, if you did not report an amount of income of $500 or more for a tax year, it will be considered a failure to report income.
  • As a result of the proposed changes, the federal and provincial or territorial penalties are each equal to the lesser of:
  • 10% of the amount you failed to report on your return for 2017; and
  • 50% of the difference between the understated tax (and/or overstated credits) related to the amount you failed to report and the amount of tax withheld related to the amount you failed to report.

It is imperative that you let us know if you hold any Foreign Property at any time in 2017 with a total cost of more than CAN $100,000. 

Foreign property includes:

  • Shares of foreign corporations held in Canadian brokerage accounts
  • Shares of Canadian corporations held by foreign brokers
  • Foreign mutual funds
  • Precious metals held outside Canada and
  • Foreign bank accounts.

Foreign property does NOT include:

  • Property held primarily (more than 50%) for personal use
  • Holdings in Canadian mutual funds or registered accounts (RRSP, RRIF, TFSA).

The CRA has implemented changes to Form T1135 for the 2015 and subsequent tax years. The changes will allow taxpayers who held specified foreign property with a total cost amount of less than $250,000, throughout the year, to report under a new simplified reporting method rather than providing the detail of each such property.

 

The above are some quick points that we believe should be brought to your attention.  Get the full letter at www.turack.ca.

PLEASE USE OUR PERSONAL TAX CHECKLIST UNDER INFO CENTRE

 

 

 

 

TURACK RAGUSEO LESTI GILLIATT INC.


 PERSONAL TAX LETTER FOR 2017 TAX YEAR

 SYNOPSIS

 

 January 2018

 

 This letter is to provide you with a quick look at the changes for the 2017/2018 tax years.  Please visit our website at www.turack.ca to see the complete tax letter or contact us should you have any concerns.

 

 REPORTING THE SALE OF YOUR PRINCIPAL RESIDENCE  **PLEASE TAKE NOTE**

 

  • Starting with the 2016 tax year and each year thereafter, if you or your spouse sold ANY real estate including your personal residence, cottage, vacation property or foreign property we need to know!!!

 

If you sold your personal residence you need to supply us with the date of acquisition and the gross sale price.

 

If it was anything other than your personal residence, please talk to one of the partners or staff

 

  • If you started or stopped renting a property that you owned, we need to know!!!

 

CRA is now requiring you to report any or all of the above on your 2016 personal tax returns and subsequent years in order to claim the principal residence exemption.  You do not have to pay tax on any capital gain when you sell your house if it was your principal residence for all the years you owned it and you did not use any part of it to earn income.

 

 TFSA  

 

  • Starting January 1, 2016, the annual TFSA dollar limits for 2016, 2017 and 2018 are $5,500 for each year.

 

RRSP Deduction Limit

 

  • The maximum RRSP contribution limit for 2017 is $26,010. It increases to $26,230 for 2018. You can start making RRSP contributions for the 2017 tax year as early as January 1, 2017 (March 1, 2018 is the deadline).
  • Please provide us with any contribution receipts made in the first 60 days of 2018. These amounts do not necessarily need to be deducted from income in 2017, but they do need to be reported in that year and can be carryforward to the following year.

Repeated failure to report income penalty

  • If you failed to report an amount on your return for 2017 and you also failed to report an amount on your return for 2014, 2015, or 2016, you may have to pay a federal and provincial/territorial repeated failure to report income penalty. Under proposed changes, if you did not report an amount of income of $500 or more for a tax year, it will be considered a failure to report income.
  • As a result of the proposed changes, the federal and provincial or territorial penalties are each equal to the lesser of:
  • 10% of the amount you failed to report on your return for 2017; and
  • 50% of the difference between the understated tax (and/or overstated credits) related to the amount you failed to report and the amount of tax withheld related to the amount you failed to report.

It is imperative that you let us know if you hold any Foreign Property at any time in 2017 with a total cost of more than CAN $100,000. 

Foreign property includes:

  • Shares of foreign corporations held in Canadian brokerage accounts
  • Shares of Canadian corporations held by foreign brokers
  • Foreign mutual funds
  • Precious metals held outside Canada and
  • Foreign bank accounts.

Foreign property does NOT include:

  • Property held primarily (more than 50%) for personal use
  • Holdings in Canadian mutual funds or registered accounts (RRSP, RRIF, TFSA).

The CRA has implemented changes to Form T1135 for the 2015 and subsequent tax years. The changes will allow taxpayers who held specified foreign property with a total cost amount of less than $250,000, throughout the year, to report under a new simplified reporting method rather than providing the detail of each such property.

 

The above are some quick points that we believe should be brought to your attention.  Get the full letter at www.turack.ca.

 

 

 

 

TURACK RAGUSEO LESTI GILLIATT INC.


When the Canada Pension Plan was put in place on January 1,1966, it was a relatively simple retirement savings model. Working Canadians started making contributions to the CPP when they turned 18 years of age and continued making those contributions throughout their working life. Those who had contributed could start receiving CPP on retirement, usually at the age of 65. Once an individual was receiving retirement benefits, he or she was not required (or allowed) to make further contributions to the CPP. The CPP retirement benefit for which that individual was eligible therefore could not increase (except for inflationary increases) after that point.


For all but a very fortunate few, buying a home means having to obtain financing for the portion of the purchase price not covered by a down payment. For most buyers, especially first-time buyers, that means taking out a conventional mortgage from a financial institution.


The month of September marks both the end of summer and the beginning of the new school year for millions of Canadian children, teenagers, and young adults. And, whatever the age of the student or the grade level to which he or she is returning, there will inevitably be costs which must be incurred in relation to the return to school. Those costs can range from a few hundred dollars for school supplies for grade school and high school students to thousands (or tens of thousands) of dollars for the cost of post-secondary or professional education.


The administrative policy of the Canada Revenue Agency (CRA) with respect to charities has been that no more than 10% of a registered charity’s resources can be allocated to non-partisan political activity. Where the CRA views a charity as having exceeded that threshold it may impose sanctions, up to and including revocation of a charity’s charitable registration status.


Two quarterly newsletters have been added—one dealing with personal issues, and one dealing with corporate issues.