Turack Raguseo Lesti Gilliatt LLP
Chartered Professional Accountants
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Tax Alerts

 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.


Getting a post-secondary education – or professional training – isn’t inexpensive. Tuition costs can range from as little as $5,000 per year for undergraduate studies to as much as $40,000 in tuition for a year of professional education. And those costs don’t factor in necessary expenditures on textbooks and other ancillary costs, to say nothing of general living expenses, like rent, transportation and food.


When the Canada Pension Plan was launched in the mid-1960s, both the working lives and the retirements of Canadians looked a lot different than they do in 2018. Fifty years ago, most Canadians were able to work at a single full-time job, often held that job for most or all of their working lives and, in many cases, benefitted from an employer sponsored defined benefit pension plan which guaranteed a certain level of income in retirement.


Most Canadians deal with our tax system only once a year, when preparing the annual tax return. And, while that return – the T1 Individual Income Tax Return – may be only four pages long, the information on those four pages is supported by 13 supplementary federal schedules, dealing with everything from the calculation of the tax-free gain on the sale of a principal residence to the determination of required Canada Pension Plan contributions by self-employed taxpayers.


Anyone who has ever tried to reduce their overall personal or household debt knows that doing so, no matter how disciplined one’s approach, can seem like a one step forward, two steps back proposition. It sometimes seems that, just as measurable progress is achieved in one area (an extra payment is made on the mortgage), unexpected costs in another area (a significant car repair bill) push up the level of debt elsewhere (e.g., credit card debt).


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