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            <p>Are you someone who likes to procrastinate on filing your taxes? Well, in Canada, that can come with some not-so-fun consequences! While most Canadians file and pay their taxes on time, if you happen to overlook or miss the deadline for filing, you could be hit with additional penalties and interest charges.</p>
            <p><b><i>In the case that April 30th falls on a weekend or a public holiday, the due date for your tax payment will be moved to the next business day after April 30th. Interest on your balance owing will begin to accrue on the second business day after the due date.</i></b></p>
            <p>But don't worry, we've got you covered. In this blog, we'll break down exactly what you need to know about the CRA's penalties and interest charges for late tax payments and filing. From the late-filing penalty to the repeat offender penalty and more, we'll make sure you understand the ins and outs of late tax filing in Canada. </p>
            <h3>Penalty for filing your tax return late</h3>
            <p>In Canada, if you fail to file your tax return by the deadline, which is typically April 30th of each year for most individuals, you may face penalties and interest charges. <b>Here are some of the penalties you may incur:</b>
            </p>
            <li><b>Late-filing penalty:</b> If you owe taxes and fail to file your return on time, the Canada Revenue Agency (CRA) will charge you a penalty of 5% of the balance owing, plus an additional 1% for each full month your return is late, up to a maximum of 12 months.</li>
            <p></p>
            <p><b>For instance</b>, if you owe $10,000 in taxes for the current tax year and you file your return 3 months after the deadline, calculation of late-filing penalty for the tax year is explained below:</p>
            <table style="width:30%; margin-left:auto;margin-right:auto;border: 2px solid black;">
            <tr>
                <td><b>Description</b>
                </td>
                <td><b>Amount</b></td>
            </tr>
            <tr>
            <td>Tax owed for 2022</td>
            <td>$10,000</td>  
                
            </tr>
            <tr>
            <td>Late-filing penalty (5% of tax owed)</td>
            <td>$500</td>           
            </tr>
            <tr>
            <td>Additional penalty for 3 months late (1% per month)</td>
            <td>$300</td>           
            </tr>
            <tr>
            <td>Total penalty</td>
            <td>$800</td>           
            </tr>
            
           
            </table>
            <p></p>
            
            <li><b>Repeat offender penalty:</b> If you have been charged a late-filing penalty in any of the three previous tax years, the penalty for a late-filed return increases to 10% of the balance owing, plus an additional 2% for each full month your return is late, up to a maximum of 20 months.</li>
            <p></p>
            <li><b>False statement or omission penalty:</b> If you knowingly make a false statement or omission on your tax return, you may be subject to a penalty of up to 50% of the tax you sought to avoid paying.</li>
            <p></p>
            <p>In addition to these penalties, you will also be charged interest on any balance owing, starting from the date your payment was due.</p>
            <h3>Interest on taxes you owe</h3>
            <p>If you owe taxes to the Canada Revenue Agency (CRA) and you don't pay them by the deadline, which is typically April 30th of each year for most individuals, you will be charged interest on the balance owing.</p>
            <p>The CRA sets the interest rates every quarter based on the average market yield of Government of Canada bonds. The interest rate charged on late tax payments can vary depending on the current market conditions, but it's typically higher than the interest rates charged by banks and credit card companies.</p>
            <p>Currently, as of the second quarter of 2023, the interest rate charged on late tax payments is 5%, compounded daily. This rate is subject to change, so it's important to check the CRA website for the most up-to-date information.</p>
            <p>Let's say you owe $10,000 in taxes to the CRA, and you were unable to pay by the April 30th deadline. The CRA begins to charge you compound daily interest from May 1st until you pay off your balance. </p>
            <p>For example, let's assume the interest rate is 5% per year, compounded daily.
           <b> To calculate the daily interest rate, we divide the annual interest rate by 365 (the number of days in a year):</b></p>
           <table style="width:30%; margin-left:auto;margin-right:auto;border: 2px solid black;">
           <tr>
               <td><p>Daily interest rate = 5% / 365 = 0.0137%</p>
               </td>
           </tr>
           <tr>
               <td>
               <p>The interest charged on day one will be:</p>
               <p>$10,000 x 0.0137% = $1.37</p></td>
               
           </tr>
           <tr>
               <td><p>On day two, the interest charged will be:</p>
               <p>($10,000 + $1.37) x 0.0137% = $1.38</p></td>
               
           </tr>
           <tr>
               <td><p>And so on, until you pay off your balance.</p></td>
              
           </tr>
          
           </table>
          
           <p>It's important to note that even if you don't owe any taxes, you still need to file your tax return on time to avoid any penalties or interest charges.Interest is charged on the late payment.Interest is calculated from the day after the payment due date until the day the payment is received by the CRA.  </p>
           <p>For further information please contact Softron at 1-877-SOFTRON or visit <a href="https://softrontax.com/" target="_blank">www.softrontax.com</a>
          </div>  
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Understanding Taxes: Late Payment Penalties, Interest Charges

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         <p>More and more Canadians are venturing into cryptocurrency-based investments, but since it is a relatively new asset class, very few understand the fundamentals behind it and even fewer may know the tax implications of cryptocurrency transactions. In this blog, we will discuss the most common types of cryptocurrency transactions and their tax implications for the Canadians. 
         </p>
         <p>Merriam-Webster dictionary defines cryptocurrency as any form of currency that only exists digitally, that usually has no central issuing or regulating authority (central banks) but instead uses a decentralized system to record transactions and manage the issuance of new units, and that relies on cryptography to prevent counterfeiting and fraudulent transactions. Canada Revenue Agency on the other hand views cryptocurrency as a commodity for tax purposes and as with any other commodity it is subject to capital gains taxes and in some cases HST. </p>
         <p>As with any other commodity, income realization occurs on disposition, or simply put, when we dispose or get rid of something. Possessing crypto is not taxable on its own when for example a father gifts Bitcoin tokens to a child or when it’s as part of an inheritance. But there will be tax consequences when any of the following applies: </p>
         <li><b>Sell</b> or gift cryptocurrency</li>
         <li><b>Trade or exchange</b> cryptocurrency (i.e. exchange equivalent amount Bitcoin for Ethereum)</li>
         <li><b>Convert</b> cryptocurrency to any other currency issued by a central bank (i.e. Canadian dollar)</li>
         <li><b>Buy</b> goods and services using cryptocurrency</li>
         <p></p>
         <p>An individual is considered to be conducting cryptocurrency business activity or subject to capital gains tax if the individual displays any of the following signs:
         </p>
         <li>Carrying on viable commercial activity in regular intervals for generating profit, although a single transaction may also be considered business activity if material in nature</li>
         <li>The activity is well-planned and business-like which involves creating business plans, operational and capital asset budgets </li>
         <li>The activity involves promotion and advertising</li>
         <li>The individual operates and behaves in a way which others may interpret as a profit-oriented business activity</li>
         <p></p>
        <p><b>Common cryptocurrency-related business activities are:</b></p>
        <li><b>Cryptocurrency mining:</b> cryptocurrencies are acquired in two ways, either through cryptocurrency exchanges, or earned through mining. In mining operations, specifically-configured computers are tasked to solve complex mathematical algorithmic problems in order to complete a valid “block”. The miner will then combine the blocks to form a valid “blockchain”. The miner will receive two kinds of payments in cryptocurrency for his/her services:
        <li>Fee for the creation of the cryptocurrency</li>
        <li>Fee for the successful validation of the cryptocurrency</li>
        <p></p>
        <p>As with any other business, the miner can claim business expenses, capital cost allowances, business loss carry-forward/backs versus their income. Cryptocurrency miners are required to maintain receipts for the following purchases and expenses:
        </p>
        <li>Mining pool fees</li>
        <li>Hardware and software</li>
        <li>Power and internet expenses
        </li>
        </li>
        <p></p>
        <li><b>Cryptocurrency trading:</b> As mentioned earlier, when an individual trades one cryptocurrency for another, the barter transaction rules will apply to the transaction. This means the transaction is considered to be a disposition and has been converted into the Canadian dollars for tax purposes. The resulting gain or loss from the transaction will be reported as a capital gain (loss) on the individual’s income tax return. </li>
        <li><b>Cryptocurrency funds:</b> These funds are a new class of investment vehicles similar to mutual funds or Electronically Traded Funds (ETFs) who invest exclusively in a specific cryptocurrency, or they invest in a basket of various cryptocurrencies. Investment in these funds is very similar to a mutual fund where investors buy a specific “unit” in the fund. The fund will then invest investor funds in various cryptocurrencies. The units are marked-to-market on daily basis. Upon disposition of the unit, the capital gain (loss) will be reported in the individual’s form T5008.
        </li>
        <p></p>
        <p><b>Individuals and businesses should maintain adequate records for crypto transactions. Adequate records include the following (source: Canada.ca):</b></p>
        <li>Value of the cryptocurrency in the Canadian dollar</li>
        <li>Date of transactions</li>
        <li>Receipts for the purchase of cryptocurrency</li>
        <li>Digital wallet records and addresses</li>
        <li>Description of the transactions</li>
        <li>Exchange records</li>
        <li>Accounting and legal costs </li>
        <p></p>
        <p><b>Taxable property and services purchased with cryptocurrencies are subject to HST/GST.</b> The amount is calculated at fair market value (FMV) of the cryptocurrency at the time of the transaction. If a business accepts cryptocurrency as a mode of payment, complete records must be kept as to how the fair market value was calculated.</p>
        <p>For further information please contact Softron at 1-877-SOFTRON or visit <a href="https://softrontax.com/" target="_blank">www.softrontax.com</a>
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Cryptocurrency and Tax implications

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         <p>Labour Mobility Deduction or “LMD” is a new deduction available to tradesperson or apprentices which will allow them to claim eligible temporary relocation expenses paid during <b>2022 and subsequent years</b>. Eligible tradesperson can claim a deduction for transportation, meals and temporary lodging expenses incurred while traveling to distant construction project locations within Canada.</p>
         <p>An eligible tradesperson or apprentice is an individual who performs his/her duties in construction which involves such activities as erection, excavation, installation, alteration, modification, repair, improvement, demolition, destruction, dismantling or removal of all or any part of a building, structure, surface or sub-surface construction or any similar property (source: canada.ca)
         </p>
         <p>A temporary work location is <b>any location in Canada</b> where the tradesperson performs his/her duty under a temporary employment contract and the location is outside the locality where he/she is ordinarily employed.</p>
         <p>An eligible temporary relocation for an individual who ordinarily resided at a residence in Canada, must have been required by their employer to be away from his/her residence <b>for at least 36 hours</b>. Furthermore, the temporary lodging location must be <b>at least 150 KM</b> closer than the taxpayers residence to the temporary work location. </p>
         <p>Eligible relocation expenses <b>incurred in the tax year or prior to February 1 of the following year</b> include:
         </p>
         <li>Round-trip transportation expenses from the individual's residence to the temporary lodging location</li>
         <li>Meals consumed during the round-trip relocation provided there are no reimbursements from the employer</li>
         <li>Temporary lodging expenses provided that the individual's residence is not rented to any other person during the round-trip relocation</li>
         <p></p>
         <p>Eligible expenses must be claimed in the tax year they were incurred but can be carried forward if there was insufficient income earned to offset the eligible expenses. The deduction is limited to a maximum of 50% of the total income for the year, up to a <b>maximum of $4,000</b>. Labour Mobility Deduction will be claimed on the individual's T1 income tax and benefit return specifically <b>form T777 (Line 11)</b>. It should be noted that the eligible expenses must not be claimed by the individual as any other form of moving expense except as LMD.
         </p>
         <p>To support your claim, the individual is required to maintain records which may include any of the following:
         </p>
         <li>A daily record of expenses including receipts and canceled cheques</li>
         <li>Ticket stubs</li>
         <li>Invoices</li>
         <li>Tenancy agreement</li>
         <li>Credit card statements</li>
         <li>Record of motor vehicle expenses (simplified or detailed methods)
         </li>
         <p></p>
         <p>There is no need to remit the records to the CRA, but the individual must maintain them for a period of minimum six (6) years in case CRA asks for them.</p>
         <p>For further information please contact Softron at 1-877-SOFTRON or visit <a href="https://softrontax.com/" target="_blank">www.softrontax.com</a>
            </div>  
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Labour Mobility Deduction (LMD)

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         <p>We know that moving can be a stressful and expensive process, but we have some good news for you. The government wants to help lighten the load (literally and figuratively) with moving expenses deductions.
         That's right, you can claim expenses such as transportation and storage of your household goods, travel expenses for you and your family, even the cost of canceling your old gym membership (because let's face it, you won't be going there anymore).</p>
         <p>Moving expenses must be incurred to be closer to new work place or to run a business. These expenses can be claimed as a tax deduction on the individual's income tax return. In order to claim moving expenses, the individual must have moved at least 40 kilometers closer to the <b>new place of work or business location.</b></p>
         <p><b>Eligible expenses for moving expenses include:</b></p>
         <li>Transportation and storage of household goods and personal effects</li>
         <li>Travel expenses for you and your family members, including meals and lodging</li>
         <li>The cost of cancelling a lease</li>
         <li>The cost of selling your home</li>
         <li>Legal fees for selling your home</li>
         <li>Real estate commissions, appraisal fees, and legal fees for buying a new home</li>
         <li>The cost of maintaining your old home while it is for sale</li>
         <p></p>
         <p>To claim moving expenses, the individual must fill out Form <b>T1-M - Moving </b>Expenses Deduction and attach it to their income tax return. It is important to keep all receipts and records of expenses incurred during the move, as these will be required to support the claim.<b>As a general rule, CRA requires taxpayers to keep official expense receipts for at least six (6) years.</b>
         It's important to note that, if you received any reimbursement for moving expenses from your employer, you'll have to reduce the amount of your claim by the amount of the reimbursement. If the reimbursement is more than the expenses, you can’t claim any moving expenses.</p>
         <p></p>
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Moving Expenses

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         <p>The First-time Home Buyers' Tax Credit (HBTC) was enacted in 2009 by the Federal governement to assist first-time home buyers with a non-refundable tax credit in the amount of $5,000 <b>($10,000, 2022 tax year onward)</b> for the purchase of a qualifying home. In light of rising home prices in the past few years due to the over-heated Canadian real-estate market which has made home ownership unaffordable for many Canadians, the Government made the decision to increase the HBTC to $10,000 in its 2022 Budget.</p>
         <p><u><b>The credit can only be claimed in the tax year when the qualifying home was acquired and can not be carried forward to future years.</b></u> A qualifying home must fall under one of the following categories:</p>
         <table style="border: 2px solid black;">
        <tr>
         <td>Single-family house</td>
         <td>Apartments (duplex,tri/fourplexes)</td>
        </tr>
        <tr>
         <td>Semi-detached house</td>
         <td>Condominiums</td>
        </tr>
        <tr>
         <td>Townhouses</td>
         <td>Mobile homes</td>
        </tr>
         </table>
         <p></p>
         <p>A share in a cooperative housing corporation which entitles the individual to an equity share in a housing unit also qualifies for the program, but if the share is only for the right to tenancy, it will be disallowed. <u><b>The home must be located in Canada </B></u> and legally registered under the name of the individual claiming the credit, and/or their spouse or common-law partner. The home can be an existing home or under construction.</p>
         <p>To qualify for the credit, you must also be a first-time home buyer which means you and/or your spouse or common-law partner did not own a qualifying home in the past four years. There are exemptions to the first-time home buyer rule if you fall under one of these categories:</p>
         <li>You are eligible for the Disability Tax Credit (DTC), or
         </li>
         <li>If you purchased a qualifying home which has improved accessibility for a relative with DTC. The credit can only be claimed by the individual eligible for the Disability Tax Credit. You and the individual with disability must occupy the residence no later than one-year after purchase.
         </li>
         <p></p>
         <p>As explained earlier, First-time Home Buyers' Tax Credit (HBTC) is a non-refundable tax credit which reduces taxes payable to zero. In simple words, it will not be refunded to you if you had no income and did not owe any amounts in taxes. HBTC amount is reported on <b>line 31270</b> of the income tax return (T1) and taxed at the lowest tax bracket of 15% or $1,500 ($10,000 x 15%). In the event an individual owes less than <b>$1,500</b> in taxes, HBTC will only reduce the tax payable to zero. Similar to all other years, you can split the HBTC with your spouse or common-law partner ($5,000 each) as long as the total amount does not exceed the total allowable amount of $10,000. </p>
         <p>For further information please contact Softron at 1-877-SOFTRON or visit <a href="https://softrontax.com/" target="_blank">www.softrontax.com</a>
         </p>
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Increase in First-time Home Buyers' Tax Credit

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         <p>If you are self-employed or you are thinking about having a side gig, there are tax implications you may need to consider. There are also non-taxation issues such as the  mandatory Canada Pension Plan (CPP) contributions which will be added to your taxes due when you file your annual return.  A side business allows you to make some extra money that you can put away for a vacation, new car, or for a rainy day. You can start a side business doing something your passionate about, being your own boss and setting your own schedule which is why it is a popular way for people to make extra income. Popular ways that people can make money on the side are; Uber, food delivery, home renovations, or maybe even a DJ business. No matter what your side business is however, you must show your income on your tax return once tax season rolls around</p>
         <p><b>According to the Government of Canada, you are considered a self-employed if you meet the following criteria (source: canada.ca):</b></p>
         <li>The level of control the payer has over the worker's activities. As a self-employed, other than the terms of the agreement, the self-employed individual must have full control in fulfilling their contractual obligations</li>
         <li>Whether the worker or payer provides the tools and equipment. Self-employed individual must have their own tools and equipment unless otherwise mentioned under the terms of the agreement</li>
         <li>Whether the worker can subcontract the work or hire assistants. Most self-employed such as builders can subcontract different aspects of the project to subcontractors such as plumbers and electricians</li>
         <li>The degree of financial risk the worker takes. If the payer assumes the entire financial risk, the CRA will most likely question the relationship between the two parties</li>
         <li>The degree of responsibility for investment and management the worker holds</li>
         <li>The worker's opportunity for profit. The self-employed individuals usually retain most or all of the profits</li>
         <li>Any other relevant factors, such as written contracts</li>
         <p></p>
         <p>Income that is earned through a side business must be reported on your T1 general form specifically form <b>T2125: Statement of Business or Professional Activities.</b> The income that is earned from your business activities will be reported on this form to be added to your overall income. Now you may be thinking,”great I’ve got a higher income but now I have to pay taxes in a higher tax bracket” however, business income is also subject to expenses. Federal tax bracket for 2022 is as follows:</p>
         <li>15% on the first $50,197 of taxable income, plus</li>
         <li>20.5% on the next $50,195 of taxable income (on the portion of taxable income over 50,197 up to $100,392), plus</li>
         <li>26% on the next $55,233 of taxable income (on the portion of taxable income over $100,392 up to $155,625), plus</li>
         <li>29% on the next $66,083 of taxable income (on the portion of taxable income over 155,625 up to $221,708), plus</li>
         <li>33% of taxable income over $221,708</li>
         <p><b>As a rule of thumb, it is highly recommended that you set aside between 25%-30% of your income in order to meet your tax obligations.</b></p>
         <p>When you report business income on the T2125, you can also deduct eligible expenses from the income you earned so it’s possible that you may not have to jump up a whole tax bracket. Remember to keep receipts of expenses that you incur while performing duties related to earning income for your business. <b>The CRA can request receipts for up to 6 years prior. </b>Failure to produce receipts to prove your deductions often results in the deductions not being valid. Common Expenses that can be deducted are:</p>
         <table style="border: 2px solid black;">
         <tr>
             <td>Advertising</td>
             <td>Maintenance and repairs</td>        
         </tr>
         <tr>
             <td>Bad debts</td>
             <td>Meals and entertainment</td>
         </tr>
         <tr>
             <td>Business start-up costs</td>
             <td>Motor vehicle expenses</td>
         </tr>
         <tr>
         <td>Business tax, fees, licenses and dues</td>
         <td>Office expenses</td>
        </tr>
        <tr>
         <td>Business-use-of-home expenses</td>
         <td>Rent</td>
        </tr>
        <tr>
         <td>Capital cost allowance (CCA)</td>
         <td>Salaries, wages and benefits</td>
        </tr>
        <tr>
         <td>Delivery, freight and express</td>
         <td>Supplies</td>
        </tr>
        <tr>
         <td>Insurance</td>
         <td>Utilities</td>
        </tr>
        <tr>
         <td>Interest and bank charges</td>
         <td>Travel</td>
        </tr>
        <tr>
        <td>Legal, accounting &professional fees</td>
        <td> </td>
       </tr>
         </table>
         <p></p>
         <p>Earning business income also comes with added responsibilities that are not required for employment income. Business income requires you to pay the full amount of CPP contributions required as opposed to half the amount which you pay when you are an employee. All Canadians over the age of 18 are required to make CPP contributions if their net self-employment income is in excess of <b>$3,500</b>. CPP contribution rates are revised annually. For the 2022 tax year, the rate is set at <b>11.4%</b> of total self-employment income up to a maximum of <b>$6,999.60.</b> </p>
         <p>In addition to CPP contributions, when your business income exceeds $30,000 you must register for GST or HST depending on the province which you are based in and begin charging for it. If you have a side business, chances are you won’t need to register for GST/HST because your income won’t be that high. However, it is always good to be aware and prepare if your income starts to pass that threshold. Taxi drivers including Uber and Lyft are required to register for GST/HST regardless of income.<b>To register for GST/HST you can contact the CRA Business Enquiries at 1-800-959-5525</b>. 
         </p>
         <p><b><u>The deadline to file your self-employment taxes is June 15,2023</u></b>. Remember that if you owe any taxes, you will still have to pay them by <b><u>April 30th</u></b> or you will be subject to late-filing penalties.  </p>
         <p>You can find all the necessary forms to file your tax return online in our TaxTron Web 2022 software! Sign up and log in to file your return online or visit a Softron Tax location to have a professional prepare your return for you!</p>
           </div>  
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Tax implications for the self-employed - 2022 tax year

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            <p>Lets face it we have all made mistakes on our income tax return one time or another. Some of your mistakes (intentional or not) may have been caught by the CRA and you were reassessed because of it. Or you may have been lucky and CRA did not catch your mistake!We just need to make sure that these mistakes are not intentional. In this blog, we would like to discuss <b>7</b> common mistakes made by Canadians on their income tax returns.</p>
            <p><b>Mistake #1: Missing the filing deadline</b></p>
            <p>This is probably the most popular mistake made by many taxpayers each year. You are able to file your 2022 income tax return starting <b>February 20, 2023</b>. The deadline for filing is <b>April 30, 2023</b>. Since April 30th. is a Sunday, the CRA will accept all returns postmarked on or before <b>May 1, 2023</b>. If you are self-employed, you have until <b>June 30, 2023</b>, to file your return. However, if you owe any taxes the deadline for payment is <b>April 30, 2023</b>. </p>
            <p></p>

            <p><b>Mistake #2: Under-reporting Your Income</b></p>
            <p>We either forget or give-in to the temptation. Regardless it is crucial to report all of our earnings in a given tax year. If the mistake has not yet been caught by the CRA and you have not yet been audited, the error may be corrected by submitting a T1-Adj or Refile through your TaxTron™ software. If you have been reassessed, the CRA will add the undeclared amounts to your income and on top of the refund amounts which you may have to pay back, the CRA may also impose penalty and interest on amounts due. Unfortunately many still underestimate the reach and capabilities of the CRA and choose not to report certain income they believe to be under CRA radar. One such income is cash tips earned by restaurant waiters. CRA can catch such delinquencies by cross-referencing a restaurant's gross income versus employee earnings through their filed income tax returns. </p>
            <p></p>

            <p><b>Mistake #3: Claiming Ineligible Expenses</b></p>
            <p>Claiming ineligible expenses which will reduce your taxable income and potentially increase your refund can also land you on the hot seat with the CRA. Example of such expenses are employment and moving expenses. Most errors in the category of employment expenses occur when the individual claims expenses which are not included in their Form T2200 – Declaration of the Conditions of Employment signed by the employer. For example if the individual's T2200 allows only for fuel and insurance, the individual can not claim their mobile phone charges as a business expense on their income tax return. </p>
            <p>Allowable moving expenses are transportation and moving costs, travel expenses, temporary living expenses, cost of cancelling the lease, incidental moving expenses, cost of selling old home, and cost to maintain old home when vacant. Unfortunately every tax year certain taxpayers, knowingly or unknowingly, claim certain expenses which do not qualify as a deduction. The following expenses can not be claimed (source: canada.ca):</p>
            <li>expenses for work done to make your old home more saleable</li>
            <li>any loss from the sale of your home</li>
            <li>travel expenses for house-hunting trips before you move</li>
            <li>travel expenses for job hunting in another city</li>
            <li>the value of items movers refused to take, such as plants, frozen food, ammunition, paint, and cleaning products
            </li>
            <li>expenses to replace personal-use items such as tool sheds, firewood, drapes, and carpets</li>
            <li>mail-forwarding costs (such as with Canada Post)</li>
            <li>costs of transformers or adaptors for household appliances</li>
            <li>costs incurred in the sale of your old home if you delayed selling for investment purposes or until the real estate market improved</li>
            <li>mortgage default insurance</li>
            <p></p>

            <p><b>Mistake #4: Not claiming credits or deductions</b></p>
            <p>This mistake is more common with individuals who are paper-filing and have little or no experience in filing taxes. Tax software such as TaxTron™ are designed to guide the preparer through the maze of various deductions and credits therefore there is little or no chance of missing such credits and deductions. Overlooking such credits and deductions will increase the taxable income resulting in higher taxes due.
            </p>
            <p><b>Most common overlooked credits and deductions are:</b></p>
            <li>childcare expenses </li>
            <li>medical expenses</li>
            <li>charitable donations</li>
            <li>Canadian political contributions</li>
            <li>moving expenses </li>
            <li>professional dues</li>
            <li>investment carrying charges</li>
            <li>interest on amounts borrowed for investment</li>
            <li>student loan interest</li>
            <li>Home Buyer's Amount</li>
            <p></p>

            <p><b>Mistake #5: Not transferring unused credits to family members</b></p>
            <p>This mistake usually occurs when an individual such as a spouse or a child fails to transfer their unused tuition tax credit amounts to the other spouse or parent. Since tuition tax credit is a non-refundable credit, if the transferring spouse or child has little or no income the tuition credit will be of no use to them. In such cases the entire tax credit equal to 15% of the total tuition paid during the tax year up to a maximum of $5,000, or any unused amounts may be transferred to a spouse or a parent. TaxTron™ software's user-friendly interface is designed to guide the transferring individual through the tax credit transfer process. 
            </p>
            <p></p>

            <p><b>Mistake #6: Filing as single yet you are married or in a common-law relationship
            </b></p>
            <p>If you are married or in a common-law relationship (living in a conjugal relationship for 12 continuous months), you must correctly report your marital status on your income tax return. If you misreport your marital status as single and receive additional benefit amounts   you are not entitled to such as Canada Child Benefit (CCB), GST/HST tax credit, or the Climate Action Incentive, the CRA may require you to repay the excess amounts.
            </p>
            <p></p>

            <p><b>Mistake #7: Losing your receipts and slips
            </b></p>
            <p>The CRA requires individuals to maintain slips, receipts for income and expenses claimed on their income tax returns for a period of six years in the event the CRA requests a review. 
            </p>
            <p>Individuals are required to maintain official receipts and slips for childcare expenses, medical expenses, charitable and political party donations, tuition expenses, employment expenses, or any other expense you may have claimed. CRA may disallow the claims if the individual fails to produce proper documentation.
            </p>
            <p></p>

            <p>If you may have any questions, please do not hesitate to contact Softron Support at <b>+1(877)-SOFTRON</b> or by email at <b>softron@softrontax.com</b></p>
           </div>  
            <div>

Avoid CRA penalties and maximize your refund by avoiding these common mistakes

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            <p>In October 2022, The Canada Revenue Agency (CRA) announced significant changes to representative authorization requests. Previously the representatives could gain access to client data by submitting the details through certified tax software (EFILE). Confirm My Representative is now a 2-step verification process which allows the taxpayer (individual or business owner) to determine the access level they would grant to their representative through Confirm My Representative service. If a representative submits an authorization request, the individuals information will not be released to the representative until the request has been approved.</p>
            <h5><u>For Individuals</u></h5>
            <p>Individuals can now authorize a new representative or change their existing representative access level through Confirm My Representative service. The individual must be registered for CRA's My Account and have enabled notifications in order to be notified and approve a request. Once the representative submits the request, the individual has up to <b>10 business days</b> to approve or deny the request. If a request is cancelled, the representative will need to submit a new request.<b><i>To apply for My Account CRA, <a href="https://www.canada.ca/en/revenue-agency/services/e-services/e-services-individuals/account-individuals.html" target="_blank">click here</a></i></b></p>
            <p>Alternatively, the individual may choose to authorize the representative by providing information such as net or taxable income amounts from their previous year notice of assessment. If this option is used, the individual must provide their previous year notice of assessment to their representative in advance. The representative must provide the information from the notice of assessment when they submit their initial authorization request. The processing timeline for this option is <b>5 business days</b>. The CRA reserves the right to contact the individual to reconfirm the information submitted by the representative.
            </p>

            <h5><u>For Business Owners</u></h5>
            <p>In case of business owners, the representatives can submit authorization requests using Represent a Client or using their certified tax software (EFILE). The business owner must be registered for My Business Account in order to use Confirm My Representative service. Business owners who have already registered for My Account CRA will also have access to My Business Account. <b><i>If the individual does not have a My Business account, <a href="https://www.canada.ca/en/revenue-agency/services/e-services/e-services-businesses/business-account.html" target="_blank">click here</a></i></b></p>
            <p>Once the representative submits the authorization request, the business owner must confirm or deny the request within <b>10 business days</b> or it will be cancelled. If a request is cancelled, the representative will need to submit a new request. It is crucial that the business owner or appointed officer have enabled notifications in their account.</p>
            <p>Business owners or directors can delegate authority to confirm authorization requests, for example to an officer of the company, by designating the individual as a level 3 delegated authority.</p>
            <p>My Representative confirmation service will not be available to businesses where CRA has deemed the business owner and its directors to be non-residents of Canada.</p>
           </div>  
            <div>

Significant Changes to Representative Authorization Request

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            <div class="blog-text">
           <h2>Personal Income Tax – What's New For The 2022 Tax Year? </h2>
            <p>The Canada Revenue Agency and the provincial governments in response to the aftermath of the COVID-19 pandemic and the economic ripples resulting from the pandemic and other global events, have introduced several tax credits and benefits for the 2022 tax year with the aim of alleviating some of the pressures experienced by Canadians. For the 2022 tax year, as with any other tax year, there are also several changes to personal limits, entitlement amounts and tax brackets. </p>
           
            <h4>COVID-19 Benefits Repayment</h4>
            <p>If you received COVID-19 benefits but you did not qualify for them, the repayment is inevitable and ignoring the repayment letter will result in further action by the CRA such as interest charges, withholding of refunds and benefits,  and in a worst case scenario garnishing of bank accounts. Once you remit the repayment to the government, you will receive a T4A slip from either the CRA or Service Canada for the year the payments were made. CERB repayment amounts are reported in box 201 of the T4A slips. <b><i>To read more about CERB Repayment, <a href="https://www.taxtron.ca/blog/Canada-Emergency-Response-Benefit-(CERB)-Repayment" target="_blank">click here</a></i></b></p>

            <h4>Doubling of GST Credits for Six Months</h4>
            <p>To alleviate the financial stress on low-income Canadians who are severely affected by inflation and interest rates, the Government of Canada has proposed a plan to increase 2022-2023 Goods and Services Tax (GST) Credit by an additional six months period. The GST credit is indexed to inflation based on Consumer Price Index (CPI) as reported by Statistics Canada.<b><i>To read more about the Doubling of GST Credits for Six Months, <a href="https://www.taxtron.ca/blog/Doubling-of-GST-Credit-for-Six-Months" target="_blank">click here</a></i></b></p>

            <h4>Air Quality Improvement Tax Credit</h4>
            <p>The Government of Canada has introduced a temporary 25% “Refundable” tax credit” to encourage small businesses to invest in improved and efficient indoor air filtration and ventilation systems. The tax credit rate is </b>25%</b> applicable to an entity’s qualifying expenditures limited to maximum <b>$10,000</b> per qualifying location and a maximum of <b>$50,000</b> across all qualifying locations which incurred between <b>September 1, 2021</b> and <b>December 31, 2022</b>.<b><i>To read more about the Air Quality Improvement Tax Credit , <a href="https://www.taxtron.ca/blog/Small-Businesses-Air-Quality-Improvement-Tax-Credit" target="_blank">click here</a></i></b></p>

            <h4>Increase in Basic Personal amount</h4>
            <p>As part of the Government's initiative to increase the Basic Personal Amount (BPA) which is a non-refundable tax credit, to $15,000 by 2023, the BPA for the 2022 tax year has been increased to <b>$14,398</b> from $13,808 in 2021.<b><i>To read more about Basic Personal Amount  , <a href="https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/federal-government-budgets/basic-personal-amount.html" target="_blank">click here</a></i></b></p>
            <h4>Old Age Security Pension Recovery Tax</h4>
            <p>Old Age Security (OAS) pension is a monthly payment by the Government to supplement income for seniors 65 and older. In response to increased inflationary pressures on seniors, the Government permanently increased OAS payments by 10% for seniors 75 years of age and over starting in July 2022. OAS pension is linked to income and as income increases the amount of the pension decreases. OAS income threshold for 2022 tax year has been increased to <b>$81,761</b> from $79,845 in 2021. At incomes over <b>$134,626</b> for ages between 65-74, and <b>$137,331</b> for 75 and older, the pension will have to be paid back in its entirety.<b><i>To read more about the Old Age Security Pension, <a href="https://www.canada.ca/en/services/benefits/publicpensions/cpp/old-age-security.html" target="_blank">click here</a></i></b></p>

            <h4>Canada & Québec Pension Plan Maximum Contribution Amounts</h4>
            <p>For 2022, the maximum annual pensionable earnings amounts for Canada Pension Plan (CPP) and Québec Pension Plan (QPP) have increased by 5.35% to <b>$64,900</b>. Basic exemption for both CPP and QPP remains at $3,500. CPP and QPP maximum contributory earnings have increased to <b>$61,400</b> versus $58,100 in 2021. Employee and employer maximum contributions have also increased to <b>$3,499.80</b> for CPP and <b>$3,776.10</b> for QPP. Maximum annual self-employment contribution is set at <b>$6,999.60</b> for CPP and <b>$7,552.20</b> for QPP.<b><i>To read more about CPP <a href="https://www.canada.ca/en/services/benefits/publicpensions/cpp.html" target="_blank">click here</a> and for QPP <a href="https://www.rrq.gouv.qc.ca/en/travail/emploi_rrq/Pages/votre_emploi.aspx" target="_blank">click here</a></i></b></p>

             <h4>RRSP Contribution Limit Increase</h4>
            <p>Your RRSP contribution room for any given year is limited to <b>18%</b> of earned income for the previous tax year as long as it does not exceed the contribution limit for that year. For example if you had earned $50,000 in 2021, your contribution room for 2022 would be $9,000. Any unused RRSP amounts are carried forward. The contribution limit for 2022 has been increased to <b>$29,210</b> versus $27,830 in 2021.<b><i>To read more about RRSP,  <a href="https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/registered-retirement-savings-plan-rrsp.html" target="_blank">click here</a></i></b></p>

            <h4>Adjustments to Tax Brackets</h4>
            <p>In response to inflationary pressures, for the 2022 tax year the Government has adjusted the tax bracket upwards. Canadians who were on the lower limits of a given tax bracket in 2021, will be shifted to a lower tax bracket this year which will result in lower taxes. </p>
            <h5>Federal tax rate for 2022 are as follows:</h5>
            <li>15% on the first $50,197 of taxable income, plus</li>
            <li>20.5% on the next $50,195 of taxable income (on the portion of taxable income over 50,197 up to $100,392), plus</li>
            <li>26% on the next $55,233 of taxable income (on the portion of taxable income over $100,392 up to $155,625), plus</li>
            <li>29% on the next $66,083 of taxable income (on the portion of taxable income over 155,625 up to $221,708), plus</li>
            <li>33% of taxable income over $221,708</li>

            <h4>Capital Cost Allowance (CCA) for Passenger Vehicles</h4>
            <h5>The following rates and limits have become effective as of January 1, 2022:</h5>
            <li>CCA for zero-emission vehicles has been increased to <b>$59,000</b> before tax, versus $55,000 in 2021 for all vehicles (new or used) purchased after January 1, 2022</li>
            <li>CCA for passenger vehicles (new or used) purchased after January 1, 2022, has been increased to <b>$34,000</b> before tax, versus $30,000 in 2021</li>
            <li>Deductible leasing costs have increased by $100 to <b>$900</b> per month before tax</li>
            <li>The deduction of tax-exempt allowances paid by employers to employees for the use of their personal vehicles for business purposes has increased by 2 cents to <b>61 cents per kilometre</b> for the first 5,000 kilometres, and <b>55 cents</b> for each additional kilometre</li>

            <h4>The Canada Dental Benefit</h4>
            <p>The Government of Canada initiative aims to provide dental care benefit for uninsured children under the age of 12 with family annual income of less than <b>$90,000</b> while a comprehensive long-term dental program is being developed in collaboration with provinces, territories and private enterprise.<b><i>To read more about the proposed Canada Dental Benefit, <a href="https://www.taxtron.ca/blog/The-Canada-Dental-Benefit" target="_blank">click here</a></i></b></p>

            <h4>One-Time Canada Housing Benefit</h4>
            <p>The one-time top-up to Canada Housing Benefit in the amount of <b>$500</b> is intended to lessen the financial burden borne by many low-income Canadians who are experiencing difficulties in paying their rents due to rising inflation and interest rates. The Benefit will be available to renters with adjusted net incomes below <b>$35,000</b> for families, or $20,000 for individuals based on their 2021 Notice of Assessment. Individuals who have not filed their 2021 income tax returns will not be eligible for this Benefit.<b><i>To read more about the proposed One-Time Canada Housing Benefit, <a href="https://www.taxtron.ca/blog/One-Time-Canada-Housing-Benefit-Program" target="_blank">click here</a></i></b></p>

            <h3>Provincial Tax Credits</h3>
            <h4>Ontario</h4>
            <h4>1. The Ontario Seniors Care at Home Tax Credit: </h4>
            <p>The Ontario Seniors Care at Home Tax Credit is a refundable tax credit intended to assist low to moderate income seniors with eligible medical expenses including expenses for caring for seniors at home. The credit allows 25% of eligible medical expenses up to the limit of $6,000 ($1,500). The amount is reduced by 5% of family income over $35,000. At $65,000 of income the credit is fully phased out.<b><i>To read more about the Ontario Seniors Care at Home Tax Credit , <a href="https://www.ontario.ca/page/ontario-seniors-care-home-tax-credit" target="_blank">click here</a></i></b></p>

            <h4>2. The Seniors' Home Safety Tax Credit: </h4>
            <p>The Seniors' Home Safety Tax Credit is a temporary, refundable tax credit intended to make homes more accessible and safe for seniors. The credit is available for tax years 2021 and 2022. The credit is limited to 25% of expenses up to $10,000 for a seniors principal residence in Ontario.<b><i>To read more about the Seniors' Home Safety Tax Credit  , <a href="https://www.ontario.ca/page/seniors-home-safety-tax-credit
            " target="_blank">click here</a></i></b></p>

            <h4>3. The Ontario Staycation Credit: </h4>
            <p>Ontario Staycation Tax Credit is a temporary tax credit for 2022 tax year which aims to encourage tourism in Ontario following the devastating blow to the tourism and hospitality sector by the COVID-19 pandemic. Residents of Ontario can claim 20% of their eligible 2022 accommodation expenses up to $1000 for a leisure stay with a duration of less than one month on their income tax and benefit return for the tax year. </p>
            <p></p>
            <h4>Nova Scotia</h4>
            <h4>1. Nova Scotia Children's Sports and Arts Refundable Tax Credit: </h4>
            <p>The credit which is intended to benefit the child's health and well being will allow parents to offset child's registration and expenses in sports and arts programs. Parents are entitled to claim $500 in enrolment and registration fees effective January 1, 2022. 
            </p>
            </div>
            <div>

 Tax Changes 2022

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         <p>Triggered by COVID-19 pandemic and in anticipation of future pandemics, the Government of Canada has introduced a temporary 25% “Refundable” Tax Credit” to encourage small businesses to invest in improved and efficient indoor air filtration and ventilation systems. Refundable tax credits are credits which directly reduce the tax owing and if they are higher than tax owing, the balance is refunded to the individual or an entity</p>
         <p>The tax credit rate is <b>25%</b> applicable to an entity’s qualifying expenditures limited to maximum <b>$10,000</b> per qualifying location and a maximum of <b>$50,000</b> across all qualifying locations which incurred between <b>September 1, 2021</b> and <b>December 31, 2022.</b> Limits across all locations also includes affiliated businesses (subsidiaries). The taxation year in which an individual or an entity would claim the credit is the year in which qualifying expenditures were made. As with any other business tax credits, the credit amount for Air Quality Improvement Tax Credit would be included in the taxable income of the entity.</p>
         <p>Eligibility is limited to Individuals (sole proprietors) and entities with taxable capital employed amount of less than $15,000,000 in the tax year preceding the taxation year in which the qualifying expenditures were made. For example if you made qualifying expenditures in 2022, your 2021 taxable capital employed amount should have been less than <b>$15,000,000.</b> If the taxable capital employed amount was $15,000,000 or more, the individual or the entity would not qualify for the credit. For Canadian-controlled private corporations filing T2s, the taxable capital employed can be determined using Schedule 33.
         </p>
         <p>Expenditure which qualify for this temporary credit are direct expenditures to purchase, install, upgrade, conversion of mechanical heating, ventilation and air conditioning (HVAC), and high-efficiency particulate air filters (HEPA).<br> 
         <h5>Qualifying HVAC systems must meet the following criteria:</h5>
         </p>
         <li>designed to filter air at a rate in excess of a minimum efficiency reporting value (MERV) of 8</li>
         <li>designed to filter air at a rate equal to MERV 8 and to achieve an outdoor air supply rate in excess of what is required for the space by relevant building codes. For a system that is upgraded or converted, prior to the improvement the system must have been designed to filter air at a rate equal to MERV 8. (source: budget.gc.ca)
         </li>
         <p></p>
         <p><h5>Disallowed expenditures are:</h5>
         </p>
         <li>expenditures made before September 1, 2021</li>
         <li>routine repairs and maintenance</li>
         <li>financing charges</li>
         <li>payments made to individuals or entities who do not deal at arm’s length with the individual or entity claiming the credit</li>
         <li>wages paid to an employee of the individual or entity claiming the credit</li>
         <p></p>
         <p>Locations qualifying for the credit are any properties in Canada which are used by the individual or an entity during the ordinary course of its commercial operations, but excludes properties where the individual claiming the credit generally sleeps or eat at. This provision effectively eliminates all residences which have a basement rental</p>
               </div>  
                <div>

Small Businesses Air Quality Improvement Tax Credit

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               <p>For many who received the Canada Emergency Response Benefit (CERB) and later found out that they either received the benefit in error or they didn't qualify for it, receiving repayment letters from the Canada Revenue Agency (CRA) or Service Canada was a hard pill to swallow. Regardless of circumstances the repayment is inevitable and ignoring the letter will result in further action by the CRA such as interest charges, withholding of refunds and benefits,  and in a worst case scenario garnishing of bank accounts. Once you remit the repayment to the government, you will receive a T4A slip from either the CRA or Service Canada for the year the payments were made. CERB repayment amounts are reported in box 201 of the T4A slips.
               </p>
               <p>The timing of the repayment is crucial and can significantly affect your taxes. If you repaid the benefit amount before <b>January 1, 2023,</b> you have the option to allocate the payment to the year the benefit was received or any year after up to <b>December 31, 2022.</b> You also have the option of splitting the repayment as long it does not exceed your total repayment amount.
               </p>
               <p><b>Repayments in 2020:</b> If you repaid the benefit in 2020, the total repayment amount should have been subtracted from the total benefit you received. 
               </p>
               <p><b>Repayments in 2021:</b> If you repaid your benefit in 2021, you will have three options as to how you can allocate the repayment:</p>
               <li>Claim the deduction on your 2021 income tax return</li>
               <li>ReFILE and claim the total repayment on your 2020 income tax return</li>
               <li>Split the deduction between 2020 and 2021 income tax returns</li>
               <p></p>
               <p><b>Repayments in 2022:</b> If you repaid your benefit in 2022, you will have three options as to how you can allocate the repayment:</p>
               <li>Claim the deduction on your 2022 income tax return</li>
               <li>ReFILE and Claim the deduction on your 2020 or 2021 income tax return for the year you received the benefit</li>
               <li>Split the deduction between your income tax returns
               </li>
               <p></p>
               <p>If you have not yet received the T4A for your repayment and wish to claim the amount on your income tax return, make sure to keep all repayment slips from the bank in case of an audit by the CRA.
               </p>
               <p><b>Repayments after December 31, 2022:</b> If you repaid your benefit after December 31, 2022, you can only make the deduction in the year you made the repayments.</p>
                   </div>  
                    <div>

Canada Emergency Response Benefit (CERB) Repayment

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     <p>Ontario Staycation Tax Credit is a temporary tax credit for 2022 tax year which aims to encourage tourism in Ontario following the devastating blow to the tourism and hospitality sector by the COVID-19 pandemic. The Ontario Government estimates that the credit will provide an estimated $270 million in support to about 1.85 million families (source: ontario.ca).
     </p>
     <p>The Ontario Staycation Tax Credit is refundable tax credit which means eligible individuals can receive  the tax credit regardless of taxes owed.  Residents of Ontario can claim up to <b>20%</b> of their eligible 2022 accommodation expenses for a leisure stay for a <b>duration of less than one month</b> on their income tax and benefit return for the tax year.<br>
     <h5> Maximum eligible amounts are as follows:</h5>
     </p>
     <li><b>$1000</b> for individuals</li>
     <li><b>$2000</b> for the individual with spouse or common-law partner, or eligible children</li>
     
     <p></p>
     <p>To be eligible, the individual must be a resident of Ontario on <b>December 31, 2022.</b> Only one individual per household can claim the credit. For example an individual with a spouse or a common-law partner and an eligible child would claim the credit for the entire family. The spouse can not claim partial amounts on their income tax and benefit return.</p>
     <p>Eligible expenses which can be claimed under the Ontario Staycation Tax Credit are short-term accommodation or camping accommodation, such as:
     </p>
     <li>Hotel</li>
     <li>Motel</li>
     <li>Resort</li>
     <li>Cottages</li>
     <li>Lodge</li>
     <li>Bed and breakfast</li>
     <li>Campground</li>
     <li>Vacation Rental Property</li>
     <p></p>
     <p><h5>Additional eligibility requirements are:</h5>
     </p>
     <li>If the accommodation is part of a package, only the accommodation portion of the package can be claimed</li>
     <li>The expense should be limited only to the portion necessary to have access to the accommodation</li>
     <li>Accommodations were booked either online or directly by the accommodation provider</li>
     <li>The accommodation provider or the online platform where the reservation was made must provide a detailed receipt which clearly states the name of the payor, location of the accommodation, charge for the accommodation portion of the stay, GST/HST paid, and the duration of stay</li>
     <p></p>
     <p><h5>Expenses which can not be claimed are:</h5>
     </p>
     <li>Accommodations at a time-share, a boat, train, or other self-propelled vehicles</li>
     <li>Airfare, car rental, fuel, parking, groceries, admission tickets to local attractions</li>
     <li>Accommodation expenses which may have been refunded to you either by an employer, a child, or by a friend or relative</li>
     <li>Accommodation expenses incurred for employment, work related travel, school or other educational activities, or to seek medical attention (to be claimed under medical expense tax credit)</li>
     
           </div>  
            <div>

Ontario Staycation Tax Credit

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                    <p>Bill C-8, Economic and Fiscal Update Implementation Act, 2021, which included provisions for Underused Housing Tax (UHT), received Royal Assent in June 2022. Under the provisions of the Act, the Government intends to impose a 1% annual tax on the fair market value of a residential property, or 1% of its most recent sale price whichever is greater. <b>For example,</b> if you purchased a home in 2018 for $1,700,000 and it current fair market value is $2,000,000, you will be required to pay $20,000 in taxes.
                    </p>
                    <p>The UHT will be imposed on underused residential properties owned as of December 31 of the calendar year, directly or indirectly, wholly or partially, by non-resident, non-Canadians. The owner, being the person registered on the title of the property, will be liable for the UHT in proportion to their interest in the property. Canadian citizens and permanent residents are “excluded owners” for the purposes of the Act.</p>
                    <p>Residential property is defined as detached or semi-detached homes, row-house units, residential condominiums, duplexes, triplexes, or any other property designated as “residential property” under provincial or local zoning laws.
                    </p>
                    <h5>Excluded owners for the purposes of the Act are:
                    </h5>
                    <li>Canadian citizens and permanent residents</li>
                    <li>Publicly listed corporations listed on a Canadian stock exchange</li>
                    <li>Registered charities</li>
                    <li>Cooperative housing corporations</li>
                    <li>Indigenous governing body or a corporation owned by the governing body</li>
                    <li>Municipalities
                    </li>
                    <li>Government of Canada or an agent appointed by the Government</li>
                    <li>Provincial governments  or an agent appointed by provincial governments</li>
                    <li>Public service bodies such as hospitals, public schools and colleges</li>
                    <p></p>
                    <p>Canadian corporations that are not publicly listed on a Canadian exchange, Canadian trusts, and partnerships are <u>NOT</u> considered “excluded owners” and are subject to the provisions of the Act.</p>
                    <p>Owners other than “excluded owners” are required to file an annual declaration with the Canada Revenue Agency (CRA) before <b>April 30th </b>of the following year. For example the UHT annual returns for calendar year 2022 are required to be filed on or before April 30, 2023. Certain owners may require to pre-register with the CRA prior to filing a declaration. </p>
                    <h5>An owner is required to report the following information in their declaration:</h5>
                    <li>The calendar year of the declaration</li>
                    <li>Legal name of the owner</li>
                    <li>Contact information of the owner</li>
                    <li>Type of owner (Individual, partnership, corporation, etc)</li>
                    <li>Civic address and other property-related information</li>
                    <li>Percentage interest in the property</li>
                    <p></p>
                    <h5>In certain circumstances, owners who are not “excluded owners” are exempt from the provisions of the Act if the property:
                    </h5>
                    <li>was rented under a written agreement for a period of six (6) months or more to an arm's length renter</li>
                    <li>is used by the owner for the period of at least one-month while the individual is in Canada for work</li>
                    <li>is used by spouse or children of owner as their principal residence</li>
                    <li>is owned by a corporation where at least 90% of the share capital is owned by Canadian citizens or permanent residents</li>
                    <li>is owned by a specified Canadian partnership where every member is an “excluded owner”</li>
                    <li>is owned by a specified Canadian trust where every person with beneficial interest is an “excluded owner”</li>
                    <li>was not inhabitable for a period of at least sixty (60) days during the calendar year due to a disaster or hazardous conditions</li>
                    <li>is not suitable for year-round use and is inhabitable or inaccessible for a portion of the year due to weather</li>
                    <li>is undergoing major renovations and it is inhabitable for at least 4 months (120 days)</li>
                    <li>is vacant due to the death of the owner
                    </li>
                    <li>is newly constructed and the property was not substantially completed before April 1st of the calendar year</li>
                    <p></p>
                    <p>There are severe penalties for non-compliance. If the owner fails to file the declaration on April 30th of the following calendar year, the owner will be liable for a penalty equal to greater of the following amounts even if no UHT is owing:</p>
                    <li>$5,000 if the owner is an individual, or $10,000 if not an individual</li>
                    <li>The total amount of: 5% of the UHT applicable in respect of the owner’s interest in the property for the calendar year, <u>and</u> 3% of the UHT applicable in respect of the owner’s interest in the property for the calendar year for each calendar month the declaration is past due.
                    </li>
                    <p>As at the date of this publication, the CRA has not posted any detailed information regarding filing requirements such as forms and instructional guidelines.
                    </p>
                   </div>  
                    <div>

Underused Housing Tax (UHT) For Foreign Owners Of Canadian Real Estate

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                    <div class="blog-text">
                <p><b>Are you receiving Old Age Security (OAS) pension and you are a non-resident? If you answered yes to both questions then you are required to file an Old Age Security Return of Income annually.</b></p>
                <p>Non-resident Canadians who receive Canadian Old Age Security (OAS), may have to pay a “recovery tax” if their net global income exceeds the threshold for a given tax year. Net global income is the total of all income minus any allowable deductions. Non-resident individuals who receive OAS and and reside in countries which do not have a tax treaty with Canada, must submit an Old Age Security Return of Income (OASRI) to the CRA. Failure to do so may result in the suspension of OAS payments. Individuals who reside in countries with tax treaties with Canada are not required to file a OASRI return.<h5>These countries are: </h5></p>
                <p></p>
                <table style="border: 2px solid black;">
              
                <tr>
                    <td>Argentina</td>
                    <td>Colombia</td>
                    <td>Greece</td>
                    <td>Madagascar</td>
                    <td>Papua New Guinea</td>
                    <td>Serbia</td>
                    <td>Trinidad & Tobago</td>   
                </tr>
                <tr>
                    <td>Australia</td>
                    <td>Cyprus</td>
                    <td>Hungry</td>
                    <td>Malaysia</td>
                    <td>Peru</td>
                    <td>Spain</td>
                    <td>Turkey</td>
                </tr>
                <tr>
                    <td>Azerbaijan</td>
                    <td>Dominican Rep</td>
                    <td>Ireland</td>
                    <td>Malta</td>
                    <td>Poland</td>
                    <td>Sri Lanka</td>
                    <td>United Kingdom</td>
                </tr>
                <tr>
                    <td>Bangladesh</td>
                    <td>Eucador</td>
                    <td>Israel</td>
                    <td>Mexico</td>
                    <td>Portugal</td>
                    <td>Switzerland</td>
                    <td>United States</td>
                </tr>
                <tr>
                    <td>Barbados</td>
                    <td>Finland</td>
                    <td>Ivory Coast</td>
                    <td>New Zealand</td>
                    <td>Romania</td>
                    <td>Taiwan</td>
                    <td>Zambia</td>
                </tr>
                <tr>
                    <td>Bulgaria</td>
                    <td>Germany</td>
                    <td>Kenya</td>
                    <td>Norway</td>
                    <td>Senegal</td>
                    <td>Tanzania</td>
                    <td>Zimbabwe</td>
                </tr>
                </table>
                <p></p>
                <p>OASRI returns' only purpose is to calculate the recovery tax. Recovery tax is an additional tax that is used to repay all or portion of Old age Security pension received by higher income individuals whose income are above the threshold for the tax year. The recovery tax can not exceed the amount of the Old Age Security Pension including supplements in a given tax year. The threshold for the 2021 tax year is <b>$79,845</b>. </p>
                <p>If the individual becomes subject to OAS recovery tax, their future monthly OAS pension payments, starting with the first payment in the July following the tax year, will be reduced by the recovery tax amount.</p>
                <h5 style= "text-align:center;">
                The recovery tax for 2021 tax year can be calculated using the template below:
                </h5>
                <p></p>
                <table style="width:60%; margin-left:auto;margin-right:auto;border: 2px solid black;">
                <tr>
                    <td>Net world income from Line 24200</td>
                    <td style= " width:10%; text-align:right;">$</td>
                    <td style= "width:10%;">Line 1</td>
                </tr>
                <tr style="background-color:#FFFFFF;">
                    <td>Less:OAS repayment threshold for 2021</td>
                    <td style= " width:10%; text-align:right;color:red">-$79,845</td>
                    <td style= "width:10%;">Line 2</td>
                </tr>
                <tr>
                    <td>Line 1 minus Line 2 (if negative, enter "0")</td>
                    <td style= " width:10%; text-align:right;">$</td>
                    <td style= "width:10%;">Line 3</td>
                </tr>
                <tr style="background-color:#FFFFFF;">
                    <td></td>
                    <td style= " width:10%; text-align:right;">X 15%</td>
                    <td style= "width:10%;">Line 4</td>
                </tr>
                <tr>
                    <td>Line 3 multiplied by Line 4</td>
                    <td style= " width:10%; text-align:right;">$</td>
                    <td style= "width:10%;">Line 5</td>
                </tr>
                <tr style="background-color:#FFFFFF;">
                    <td>OAS pension and net federal supplements receieved from Line 11300</td>
                    <td style= " width:10%; text-align:right;">$</td>
                    <td style= "width:10%;">Line 6</td>
                </tr>
                <tr>
                <td>OAS benefits overpayment recovered in 2021 (Line 23200)</td>
                <td style= " width:10%; text-align:right;">$</td>
                <td style= "width:10%;">Line 7</td>
                </tr>
                <tr style="background-color:#FFFFFF;">
                    <td>Line 6 minus 7(if negative enter "0"</td>
                    <td style= " width:10%; text-align:right;">$</td>
                    <td style= "width:10%;">Line 8</td>
                </tr>
                <tr>
                    <td>Enter whichever is less: Line 5 or Line 8</td>
                    <td style= " width:10%; text-align:right;">$</td>
                    <td style= "width:10%;">Line 9</td>
                </tr>
                <tr style="background-color:#FFFFFF;">
                    <td></td>
                    <td style= " width:10%; text-align:right;">X 75%</td>
                    <td style= "width:10%;">Line 10</td>
                </tr>
                <tr>
                    <td>Line 9 multiplied by Line 10</td>
                    <td style= " width:10%; text-align:right;">$</td>
                    <td style= "width:10%;">Line 11</td>
                </tr>
                </table>
                <p></p>
                <p>Amount from Line 11 will be entered on Line 23500 of the return.
                </p>
                <p>The deadline for filing Old Age Security Return of Income (OASRI) is <b>no later than April 30</b>. Failure to file the annual OASRI on time will result in the suspension of your OAS pension payments by Service Canada.
                </p>
                <p>For further information please contact Softron at 1-877-SOFTRON or visit <a href="https://softrontax.com/" target="_blank">www.softrontax.com</a>
                </p>
                   </div>  
                    <div>

Old Age Security Return of Income (OASRI)

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                    <div class="blog-text">
                <p>During the 2022 budget negotiations, the Government proposed the Tax-Free First Home Savings Account (FHSA). The proposal which is yet to receive the royal assent would allow individuals to save $40,000 tax-free. Similar to RRSPs, the contributions to FHSA would be tax deductible and eligible withdrawals to purchase a qualified first home are also non-taxable. A qualified home would be a housing unit in Canada. Annual contributions to an FHSA account are capped at $8,000 annually in addition to the lifetime contribution limit of $40,000. Based on Government's estimates, Canadians can expect to open and contribute to their FHSA some time during 2023. Individuals would be allowed to contribute their full $8,000 contribution limit in 2023 regardless of when the royal assent is granted.</p>
                <h5>To open a FHSA account, the individual must be:</h5>
                <li>at least 18 years of age</li>
                <li>a resident of Canada (183-day rule)</li>
                <li>a first-time home buyer, meaning that they have not owned a principal residence during the calendar year or at anytime in the past four calendar years</li>
                <p></p>
                <p>An Individual's FHSA ceases to be a FHSA and the individual will be disallowed to open a FHSA account, after <b>December 31</b> of the year which the earliest of the following occurs</p>
                <li>The fifteenth anniversary of the opening of FHSA account</li>
                <li>The individual turns 71 years of age</li>
                <p></p>
                <p>In the event FHSA ceases to be a FHSA, or any amounts remaining in the account after purchasing a qualifying home can be transferred tax-free to a RRSP, RRIF, or withdrawn on a taxable basis. </p>
                <p>FHSAs are allowed to hold the same qualified investments that are currently allowed to be held in a TFSA accounts such as publicly-traded shares, bonds, GICs and mutual funds. Disallowed investments are the investments in entities where the individual does not deal in arm's length, and investments in land, shares of private corporations, and general partnership units.
                </p>
                <h5>Several important points regarding FHSA contributions:</h5>
                <li>Unlike contributions to a RRSP, contributions to FHSA made within the first 60 days of a given year can not be contributed to the previous tax year. Therefore it is critical that all contributions are made on or prior to <b>December 31</b> of the tax year</li>
                <li>The unused portion of a FHSA contribution limit can be carried forward to future years. For example: If Jane contributed only $2,000 in 2023, she can carry forward the remaining contribution room and contribute $14,000 in 2024</li>
                <li>An individual is allowed to have more than one FHSA account, but the total annual and lifetime contribution amounts can not exceed $8,000 and $40,000 respectively</li>
                <li>Contributions made to a FHSA following a qualifying withdrawal (to purchase a first home) would not be deductible from net income</li>
                <li>Non-residents will be allowed to contribute to their FHSA after emigrating from Canada but they will not be able to make a withdrawal as a non-resident</li>
                <li>Unlike RRSPs, individuals will not be able to contribute to their spouse's FHSA and claim a deduction</li>
                <p></p>
                <h5>Qualifying withdrawals must meet the following conditions</h5>
                <li>Individual must be a first-time home buyer when the withdrawal is made</li>
                <li>Individual must have a written agreement to buy or build a qualifying home before <b>October 1</b> of the year following the year of withdrawal</li>
                <li>Qualifying home is a residential unit located in Canada. A share in a cooperative housing corporation where the individual taxpayer has an equity interest would also qualify. However, a share in a cooperative housing corporation where the individual taxpayer has only the right to tenancy is disallowed</li>
                <p></p>
                <p>Similar to RRSPs, non-qualifying FHSA withdrawals in a given tax year will be included in the individuals income and taxed. Financial institutions are also required to remit withholding tax on all non-qualifying withdrawals.</p>
                <p>Transfers from a FHSA to another FHSA, a RRSP, or a RRIF are allowed on a tax-free basis. Transfers from FHSA to RRSP and RRIF will not reduce the individual's RRSP contribution room. Individuals will also be allowed to transfer from RRSP and RRIF to FHSA subject to their annual and lifetime contribution amounts. 
                </p>
                <p>Similar to TFSA, a 1% tax will be imposed on all FHSA over-contributions for each month (or part) the over-contribution remained in the account. The amount used for calculation of the penalty is the highest balance of the over-contribution in a given month.
                </p>
                   </div>  
                    <div>

Tax-Free First Home Savings Account (FHSA)

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                    <div class="blog-text">
                    <p>Disability Tax Credit (DTC) can now be filed online by medical practitioners. The paper version of form T2201 is still available for download at the CRA website but given postal delays and longer processing times for the paper version of the form, filing digitally is strongly advised.
                    </p>
                    <p>First lets discuss what is the DTC. DTC is a non-refundable tax credit intended to partially offset the costs related to impairments for people with various physical and psychological disabilities, or their families who care for them. In order to receive the DTC, qualifying individuals or their family members need to apply for the credit. Individuals with impairment can apply for the DTC at anytime during the year but if they submit their application with their annual tax return, it may result in significant delays in the assessment of their return. Applying for the DTC is crucial for persons with disability as it is a requirement for applying for other types of benefits such as the Registered Disability Savings Plan (RDSP), Canada Workers Benefit (CWB), and Child Disability Benefit. We will discuss these benefits in future blogs.</p>
                    <h5>There are three steps for receiving the DTC:
                    </h5>
                    <li>Certification of the impairment by a medical practitioner who specializes in the type of impairment</li>
                    <li>Approval of the DTC by the Canada Revenue Agency</li>
                    <li>Claiming the credit on the individual's or their caregivers' tax return</li>
                    <p></p>
                    <p>To be eligible the medical practitioner will have to certify that the individual has a severe or prolonged impairment in 1 of the categories, significant limitation in 2 or more categories, or receive therapy to support a vital function,h5>The categories are:</h5>
                    </p>
                    <li>Walking: assessed by a physiotherapist</li>
                    <li>Mental functions: assessed by a psychologist</li>
                    <li>Dressing: assessed by a occupational therapist</li>
                    <li>Feeding: assessed by a occupational therapist</li>
                    <li>Eliminating (Bowel or bladder functions): assessed by a medical doctor</li>
                    <li>Hearing: assessed by a occupational audiologist
                    </li>
                    <li>Speaking: assessed by a speech-language pathologist</li>
                    <li>Vision: assessed by a optometrist
                    </li>
                    <li>Life-sustaining therapy </li>
                    <p></p>
                    <p>Regardless of which version of the form is used (paper or digital), the medical practitioner will complete part “B” of form T2201. Part “A” is dedicated to the details of the individual with impairment and their caregiver (where applicable). In the digital version of the form, once the medical practitioner completes part “B” online, the form is downloaded in PDF format and handed over to the individual with impairment to complete part “A”.</p>
                    <h5>There are two ways to submit the form:</h5>
                    <li>The individual may submit the digital copy of the form by signing into their CRA “My Account” and select “Submit Documents”</li>
                     <li>By mail to one of the tax centres in Sudbury, Jonquière, or Winnipeg</li>
                   <p></p>
                     <p>It will take approximately eight (8) weeks for the CRA to render a decision. The decision will be confirmed either by a hard-copy letter or by email if the individual has opted for CRA online mail. Upon approval, the individual may claim the DTC on their tax return or if they can not use the entire amount, they may transfer the remainder. DTC claimants who are 18 years of age on the last day of the tax year may claim the base disability amount (2021: $8,662). Claimants who are 17 years old and younger may also claim the supplemental amount for children with disabilities (2021: $5,053). 
                   </p>
                   <p>If the individual with the impairment was eligible for the DTC but they did not claim the disability credit amount, they are able to go back and claim for the previous <b>ten (10) years.</b></p>
                   <p>For further information contact Softron at 1-877-SOFTRON or visit <a href="https://softrontax.com/" target="_blank">www.softrontax.com</a></p> 
                   </div>  
                    <div>

Digital Disability Tax Credit(DTC) 

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                    <div class="blog-text">
                    <p>We all agree that in comparison to our neighbour to the south and many other industrial nations, Canada's provincial health insurance programs such as OHIP, are excellent in providing basic healthcare coverage to Canadians. But we still lag behind some industrial nations such as UK and Germany in providing basic dental care to our citizens.</p>
                    <p>According to the Canada Revenue Agency (CRA), in 2018 more than one in five Canadians avoided going to the dentist due to high costs. In 2022, with the rising inflation and interest rates this trend will most likely accelerate.</p>
                    <p>For the above mentioned reasons, in the first phase, the government has committed to provide dental care benefit for uninsured children under the age of 12 with family annual income of less than $90,000 while a comprehensive long-term dental program is being developed  in collaboration with provinces, territories and private enterprise. It is estimated that 500,000 Canadian children would benefit from this program (canada.ca)</p>
                    <p>The implementation of the Canada Dental Benefit is set for <b>December 1, 2022</b>, pending Parliamentary approvals and Royal Assent. An application platform is currently being developed by Health Canada and the CRA that would administer the Benefit payments in a timely manner.</p>
                    <p></p>
                    <h5 style="color: #EF5350">The Canada Dental Benefit is divided into three categories:</h5>
                    <li> Family adjusted net income under $70,000:	<b>$650</b> for each eligible child</li>
                    <li>Family adjusted net income between $70,000-$79,999:<b>$390</b> for each eligible child</li>
                    <li>Family adjusted net income between $80,000-$89,999: <b>$260</b> for each eligible child</li>
                    <p></p>
                    <h5 style="color: #EF5350">The Benefit is subject to the following condition precedent:</h5>
                    <li> The parent or guardian attest that the child does not have access to any private dental care coverage</li>
                    <li> The parent or guardian of the child understand that they will have out of pocket dental care expenses when they use the Benefit</li>
                    <li>The parent or guardian of the child understand that if required, they will need to provide documentation to verify out of pocket expenses</li>
                   <p></p>
                    <p>To apply for the Benefit, the parents or guardian of eligible child(ren) would need to contact the CRA individual tax enquiries line (1-800-959-8281) or apply through their “My Account CRA” on or after December 1, 2022 pending parliamentary approvals.</p>
                   </div>  
                    <div>

The Canada Dental Benefit

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                    <div class="blog-text">
                    <p>To alleviate the financial stress on low-income Canadians who are severely affected by inflation and interest rates, the Government of Canada has proposed a plan to increase 2022-2023 Goods and Services Tax (GST) Credit by an additional six months period.</p>
                    <p>Before we can discuss the proposed enhancements, first a background on GST credit and its current benefits. The GST credit is intended to assist low-income Canadians to partially offset the GST paid by them and their families. The GST credit benefits are paid in four equal instalments in April, July, October and January. The amounts paid through the benefit depends on family income and size. The GST credit is indexed to inflation based on Consumer Price Index (CPI) as reported by Statistics Canada. <b>For the period of July 2022 to June 2023, eligible individuals are entitled to the following amounts:</b></p>
                   <li>Single:	<b>$467</b></li>
                   <li>Married or Common-law:<b>$612</b></li>
                   <li>Single Parents:	<b>$612</b></li>
                   <li>Each Child Under 19:	<b>$161</b></li>
                    <p>As mentioned earlier, since GST credit is targeted towards low-income individuals, the combined family income amounts derived from income tax returns are used to calculate the benefit amounts. For 2021 tax year individuals with family income less than $39,826 will receive full benefit amounts. Above $39,826 threshold, the benefits are lowered as the income increases and eventually the benefits will disappear at $49,200 for a single person without children.  </p>
                    <p>Due to the sharp rise in inflation and the extra financial burden on individuals and families, the Government of Canada has allocated $2.5 billion dollars in additional GST credit for the period of 2022-2023 by doubling the GST benefits for an additional six month period. The additional six month period amount is equal to two GST credit instalment payments.</p>
                    <p style="color: #EF5350"><b>Let us look at some examples:</b></p>
                   <p><b> 1) A couple with two children with an annual income of $30,000 are entitled to the following GST credit and enhanced amounts:</b></p>
                         Married couple amount:			$ 612<br>
                         Two children amount x 2:		$ 322<br>
                         Total GST Credit:				$ 934    </p>
                         <p></p>
                         July 2022-Dec 2022 Instalment:		$ 467 (934 / 2)<br>
                        January 2023-June 2023 Instalment:	$ 467<br>
                        Additional July - Dec 2022 Amount:	$ 467(Under the new proposal)<br>
                        Total GST Credit (Revised):		$1,401<br>
                    <p></p>
                    <p><b>2) A single mother with one child and an annual income of $20,000 is entitled to the following GST credit and enhanced amounts:</b></p>
                    Single parent amount:			$ 612<br>
                    One child amount				$ 161<br>
                    Total GST Credit				$ 773 </p>
                    <p></p>
                    July 2022-Dec 2022 Instalment:	$ 386(773 / 2)<br>
                January 2023-June 2023 Instalment:	$ 386<br>
                Additional July - Dec 2022 Amount:	$ 386(Under the new proposal)<br>
                Total GST Credit (Revised):			$1,158
                <p></p>
                <p></p>
                    <p>As long as you have filed your 2021 tax return, there is no need for recipients to apply for the enhanced GST credit benefits.  According to the CRA, the enhanced GST credit will be paid to all GST credit recipients who have filed their 2021 tax returns, as a one-time lump-sum payment before Christmas 2022.</p>
                   </div>  
                    <div>

Doubling of GST Credit for Six Months

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                    <div class="blog-text">
                    <p>If you are a renter, you are more than likely to have felt the dramatic increase in rents across Canada. According to “rental.ca” website the average year-on-year rent in Canada for the period of August 2021-September 2022 has increased from $1,676 in 2021 to $1,959 in 2022. Some parts of Canada have shown astonishing increases in rents such as London, Ontario (36.9%), Calgary, Alberta (29.8%), and Vancouver, BC (18.8%).</p>
                    <p>The one-time top-up to Canada Housing Benefit in the amount of $500 is intended to lessen the financial burden borne by many low-income Canadians who are experiencing difficulties in paying their rents due to rising inflation and interest rates. According to the CRA, it is estimated that 1.8 million low-income renters, including students, who are struggling with the cost of housing would be eligible for this new support. The proposed funding totals $1.2 billion, of which $475 million was committed in Budget 2022. (canada.ca)</p>
                    <p>To be eligible for the One-time Canada Housing Benefit Program, the individual must meet the following criteria:</p>   
                 
                    <li>Born on or before <b>December 1, 2007</b> (at least 15 years old on December 1, 2022)</li>
                    <li>The individual's principal residence was in Canada on <b>December 1, 2022</b>
                    </li>
                    <li>The individual has already filed their 2021 income tax return or statement of income. To qualify the spouse or common-law partner of the individual must have also filed their 2021 income tax return or statement of income</li>
                    <li>In 2021, the individual had an adjusted family net income of <b>$25,000</b> or less for and <b>$35,000</b> and less for families</li>
                   
                    <p></p>
                    <p>2022 eligible rent must meet the following criteria (source: canada.ca):</p>
                    <li>paid in the 2022 calendar year</li>
                    <li>paid for any of your qualifying principal residences in 2022</li>
                    <li>equal to at least 30% of your <u>2021 adjusted family net income</u></li>
                    <p></p>
                    <p>There are four ways you can apply for the Benefit:</p>
                    <li>Canada Revenue Agency (CRA) account</li>
                    <li>My Service Canada account
                    </li>
                    <li>Online application at canada.ca
                    </li>
                    <li>Softron Tax offices</li>
                    <li></li>
                    <p>All applications must be received or postmarked <b>on or before Friday, March 31, 2023</b>.
                    </p>
                    <p>The one-time benefit will not reduce other federal benefits which are based on the individuals income such as Canada Child Benefit, GST Credit Benefit, Guaranteed Income Supplement, and Canada Worker's Benefit.</p>
                   
                    <p>To apply for the benefit, contact the CRA at 1-800-959-8281.</p>
                   </div>  
                    <div>

One Time Canada Housing Benefit Program

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                  <p>In February 2022, The Canada Revenue Agency (CRA) launched “Confirm My Representative”, a two-step authorization/verification process for tax accountants who wish to represent a client. In October 2022, the CRA expanded the two-step verification for for business clients using the “Business Consent Service” in EFILE. Previously, once the representative submitted the authorization request through their certified tax software such as TaxTron™, the request would be automatically approved by the CRA. The authorization allows the representative to access, view and download the client's information on “My Account” and “My Business Account” such as: previous years notices of assessment, balances and amounts owing, RRSP and TFSA details, various benefits, and the client's slips.</p>
                  <p>Under the new procedures, the authorization request submitted by the representative will go into a “pending state” and will not be activated until the client (business owner) logs into their “My Business” account and clicks on the “Confirm Pending Authorizations” button in the “Authorized Representatives” section. The authorization request submitted through the Business Consent remains active for the period of ten (10) business days. If the request is not confirmed within this time-frame, the request will be cancelled by the system and a new request needs to be submitted. The new procedures apply only to new authorization requests and will not affect authorization request which were approved previously.</p>
                  <p>The new clients who have not registered for “My Business Account” need to made aware of the new changes and account registration procedures.</p>
                  <h5 style="color: #EF5350"> The client will need the following information in order to create an account:</h5> 
                <li>Business number (BN)</li>
                   <li>Social insurance number (SIN)</li>
                   <li>Date of birth</li>
                   <li>Current postal code</li>
                   <li>Personal income tax for current and previous years</li>
                   <p></p>
                   <p>The business owner name and social insurance number must match the information on file with the CRA. In the event of an error message, the business owner will be required to contact the CRA and update their information. Once the account has been established, the client will need to add their business number to the account and enable notifications on their accounts. Enabling notifications will inform the business owner each time a new representative access is requested.</p>
                   <p>Although the two-step representative authorization process for business clients is a good step in the right direction in protecting the client's data by adding an extra layer of protection, it will undeniably slow down the processing of new clients by tax accountants.</p>
                   </div>  
                    <div>

Two-step Representative Authorization Process for Business Clients

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                        <p>When we donate cash to a charity such as the Salvation Army, March of Dimes, or the Red Cross, we receive a tax receipt in exchange for the value to which we have donated. However, how do we account for non-cash donations, such as publicly traded shares, a share of the capital stock of a mutual fund corporation or a unit of a mutual fund trust?</p>
                        <h5>For non-cash gifts, in this case shares, they fall into two categories:</h5>
                        <p>
                        <li>  Publicly traded shares: Charities which receive publicly traded shares can issue an official donation receipt for the fair market value of the gift on the date it was donated. To qualify the shares must be listed on a designated stock exchange domiciled in an OECD member nation which has a tax treaty with Canada. Example: John purchased 100 shares of Intel at $56 per share in October 2021. On October 15, 2022, John donated the shares to the Salvation Army. The share price on October 15, 2022, is $25 per share. The Salvation Army will issue John a donation slip in the amount of $2,500.</li>
                        <li>Non publicly traded shares: If the shares are not listed on a designated stock exchange, the charity shall apply the “deemed fair market value rules”. Under this rule the charity will issue the receipt for the lesser of the gift's fair market value and its cost to the donor immediately before the gift is made. Example: John subscribed to 1,000 shares of XYZ Corporation (non listed corporation) in June 2018 at $100 per share. In June 2021 he donated all his shares to the Salvation Army. The appraised valuation of the company on the same date was $150 per share. In this case the charity will issue John a donation slip in the amount of $100,000 being the lesser of the market value and its cost to the donor.</li>
                        </p>
                       <p>The date the share is donated is the date that the charity takes ownership of the shares. Since most shares are no longer in physical form (share certificate) and are transmitted electronically, the date of the donation is the date the shares are credited to the charity’s broker account.</p>
                       <h5 style="color: #EF5350">From the CRA point of view, the charity has taken ownership of the shares when:</h5> 
                       <p>
                        <li>   The charity has the right to receive dividends from the share.</li>
                        <li>   The charity has received the right to receive proceeds from the liquidation of the corporation.</li>
                        <li>   The charity has the voting right attached to the share.</li>
                        </p>
                        <p>It is recommended to contact the charity before a donation of share is made. Some charities may reject certain share donations due to conflict with the charity’s values. For example, the Canadian Lung Association may reject donated Philip Morris International shares. Once the charity has accepted the donation by providing their account coordinates, the donor will advise their broker to complete the transfer through a “Letter of Direction”.</p>
                        <p>For shares listed on a designated stock exchange, the CRA accepts the closing stock price as the fair market value on the date the stock is donated. On certain circumstances, the CRA may also accept the midpoint between high and low trading prices.</p>
                        <h5 style="color: #EF5350">As to the capital gains, the following gift of assets and securities are entitled to an exclusion rate of 0% (source: canada.ca):</h5>
                       <p>
                       <li> A share of the capital stock of a mutual fund corporation</li>
                       <li> A unit of a mutual fund trust</li>
                       <li> An interest in a related segregated fund trust</li>
                       <li> A prescribed debt obligation that is not a linked note (for example, government savings bond)</li>
                       <li> Ecologically sensitive land including a covenant, an easement, or in the case of land in Quebec, a personal servitude (when certain conditions are met), or a real servitude donated to a qualified done other than a private foundation,a share, debt obligation, or right [for example, security (stock) option] listed on a designated stock exchange.</li>
                       </p>
                       <p>If the donor did not receive an advantage for their gift (meaning they just gave it away without expecting anything in return), the full amount of the capital gain is eligible for the inclusion rate of 0%. However if the donor received an advantage in respect of the gift, only a portion of the gift is eligible for the inclusion rate of 0% and the remainder is subject to an inclusion rate of 50%. </p>
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Donation of Shares

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                <h2>RRSP contribution limit and deadline</h2>
                <p>We all know what an RRSP is. RRSP is a banking savings product which allows the taxpayer to exclude
                    their annual RRSP contributions from their income for two specific purposes. Firstly, the annual RRSP
                    contribution amounts are deducted from the income therefore the taxpayer will not be taxed on the
                    amounts contributed. Secondly, the RRSP contributed amounts will continue to grow tax-free until the
                    individual reaches the retirement age (71 years old). Yet many are confused by the RRSP deduction limit
                    and how it is calculated. First thing first lets discuss what constitutes a RRSP deduction limit or
                    contribution room.</p> 
                    <h4>Canada Revenue Agency defines it as follows:</h4>
                    <li>The amount that you can contribute to your RRSP, PRPP (in addition to your employer's
                    contributions), or SPP</li>
                    <li>The amount that you can contribute to your spouse or common-law partner’s RRSP or SPP</li>
                    <li>The maximum you can deduct on your tax return, reducing your tax for that year</li>
                    <p></p>
                    <h4>The annual deduction limit is calculated by the CRA as follows:</h4>
                    <li>Your previous year deduction limit (as per Notice of Assessment), PLUS (+)</li>
                    <li>The lesser of any of the following amounts:</li>
                    <li class="subList">Maximum deduction limit for the tax year ($29,210 for 2022, $30,780 for 2023)</li>
                    <li class="subList"> 18% of earned income in the previous year, PLUS (+)</li>
                    <li> Pension adjustment reversal, minus (-)</li>
                    <li> Net past service pension adjustment</li>
                    <p></p>
                    <p>Let's look at few examples. Josh earned $100,000 in 2022 and had $20,000 contribution room for 2022 as
                    per his 2021 Notice of Assessment. He contributed $15,000 to his RRSP in 2022. How much is his
                    contribution room for 2023? His contribution room will be $23,000 which is calculated as follows:
                    (100,000 x 18%) + (20,000-15,000). Now lets assume Josh earned $175,000 for the year. How will that
                    affect his deduction limit? In that case, Josh's limit will be $30,780 since 18% of $175,000 ($31,500) will
                    exceed the maximum deduction limit for the year.</p>
                    <p> A common question asked by many: So what will happen if I contribute more than my limit? CRA will
                    charge a 1% penalty per month on the amounts that exceeds your deduction limit by $2000. Lets assume
                    you contributed $10,000 in excess of your contribution room. The CRA will charge you a 1% monthly
                    penalty on the $8000 (10,000-8,000) or $80 per month.</p>
                    <p><b>The RRSP contribution deadline for the 2022 tax year is <u>March 1, 2023.</u></b>Any contributions beyond this date can only be claimed as a deduction on your 2023 income tax return.
                    </p>
                    
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RRSP contribution limit and deadline

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          <h2>Major Enhances to T3 E-File trust return processes</h2>
            <p>Rules are Changing and CRA is finally modernizing its systems for T3 returns. The changes will be rolled out over the next few years. Online registration for trust account numbers  is available on CRA’s My Business Account and Represent a Client (RAC). T3 electronic filing for certain T3 return types is available now  and it will be expanded for the 2023 Tax season.
            </p><p>Taxtron has a T3 Web product for professional Users that is reasonably priced compared to competitors.
            </p>
            <p>There will be other major enhancements to the T3 processes including access to T3 accounts using RAC and E Docs. This is Great News for all Tax Preparers. 
            </p>
            <p>When the CRA has the capability to receive and process T3 returns electronically, they will be able to analyze and assess T3 information more quickly. 
            </p>
            <h4>Takeaways and what to watch out for ?</h4>
            <p>Baby Boomers are aging and the current CRA processes are antiquated. There is an expected increase in T3 returns due to the New Rules for Trusts.
            </p>
            <p>Accountants who are not familiar with the Trust Rules and regulations should take steps to get familiarized now by taking the Softron T3 Tax Preparation Course. There are major penalties for non compliance and non reporting of  the new beneficial ownership details.
            </p>
            <p>CRA is going to increase the transparency and scrutiny of T3 returns going forward. It's time for Tax Preparers  to get ready to meet the new Challenges.
               </p>     
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Major Enhances to T3 E-File trust return processes

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           <h2>Budget 2022</h2>
           <p>The Budget includes plans to create a new Tax-Free First Home Savings Account (TFFHSA) to help Canadians get into the housing market save for a down payment. Taxpayers can contribute $8,000 per year to a maximum of $40,000 per person towards the purchase of a first home. Each individual can save in their own TFFHSA.
            </p>

           <p>Similar to the Current TFSA,  withdrawals from a TFFHSA would be non-taxable, including any income earned  within the account.
           Contributions are also tax-deductible, similar to registered retirement savings plan (RRSP'S) .
           </p>
           <p><b>“Tax-free in, tax-free out,”</b></p> 
           
           <p>The TFFHSA is expected to roll out in 2023.</p>
           
           <p>The budget also proposes doubling the First-Time Home Buyers’ Tax Credit to $10,000, retroactive to any homes purchased from January 1, 2022.
           </p>
           
          <p> The budget plans to setup a Home Buyers’ Bill of Rights.
           The bill would plan to end “blind bidding” practices nationally, and ensure a legal right to a home inspection before buying.
           </p>
           <p>There are new rules for  tax property flippers. Anyone who sells a property which is held for less than 12 months would be considered a "Flipper" under the new rules and would be subject to tax on their profits as business income and not eligible for Principal Residence Exemption. Any Gains on Flipping Houses would be Taxed Fully at the taxpayers marginal rates.
           </p>
           
           <p>Finally, the government also announced plans to explore a two-year ban on foreign ownership in the budget.
           </p>
           <p>The government intends to propose restrictions that would prohibit foreigners who are not  Canadian citizens or permanent residents from acquiring non-recreational, residential property in Canada for a period of two years.
           Refugees and international students would be subjected to the proposed law.
            <p></div>
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Tax-Free First Home Savings Account and Housing Measures

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           <h2>Simplified Method</h2>
            <p>This method simplifies your claim for home office expenses (<a href="https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-22900-other-employment-expenses/work-space-home-expenses/expenses-can-claim.html#h-2-1" target="_blank">work-space-in-the-home expenses</a> and <a href="https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-22900-other-employment-expenses/work-space-home-expenses/expenses-can-claim.html#h-2-2" target="_blank">office supply and phone expenses</a>). If you worked more than 50% of the time from home for a period of <b>at least four consecutive weeks</b> in the year due to the COVID-19 pandemic, you can claim $2 for each day you worked from home during that period. The <b>maximum amount that can be claimed is $400 per individual in 2020 and $500 per individual in 2021 and in 2022. 
            </b></p>

            <h2>Detailed Method</h2>
            <p>This method allows you to claim the actual amounts you paid, supported by documents. You must complete Form T777S or Form T777 and get a completed and signed Form T2200S or Form T2200 from your employer.
            </p>
            <p>For more information please <a href="https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/whats-new.html" target="_blank">click here.</a></p>.
        
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Covid Home office Expenses

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           <h2>Medical Expenses</h2>
            <p>Individual taxpayers are entitled to claim tax credit for qualifying medical expenses incurred.  Medical expenses are the costs to treat or prevent an injury or disease, such as dental, prescription eye glasses, prescriptions, 
            health insurance premiums, hospital visits, and rehabilitation services. You can claim expenses for your parents, grandparents and children who depend on you for support.
            </p>

            <p>Detailed information on the rules governing the types of expenses which qualify for the credit, any required documentation for such expenses, and the amount of credit claimable at different income levels are outlined in the Canada Revenue Agency (CRA) publication RC4065, Medical Expenses.
            </p>
            <p>  <a href="https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4065.html" target="_blank">Click here</a> for complete list</p>.
        
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Medical Expenses

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               <h2>Benefits of filing taxes for students</h2>
                <p>Post-secondary students filing a return for the 2021 tax year are entitled to claim a number of tax credits and deductions for education-related expenses which they incur, in addition to the credits and deductions available to all individual taxpayers.
                </p>
    
                <p>Students can receive quarterly GST, climate incentive payments and monthly provincial benefits. Starting 2022, climate incentive payments are no longer paid on the income tax return. Instead, the payments will be paid quarterly starting July 2022.
                </p>

                <p>For more information please <a href="https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/p105/p105-students-income-tax.html" target="_blank">click here.</a></p>.
        

               
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Benefits of filing taxes for students

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                    <p>If you receive pension income that qualifies for the pension income tax credit, you can transfer up to 50% of it to your spouse or partner. Note that this is a notional transfer and therefore, no actual transfer of cash occurs. There is no maximum dollar amount.</p>
                   
                    <h4>How do I know if I'm eligible for pension splitting?</h4>
                    <p>The principal residence exemption may reduce or eliminate your capital gain. For example, if the property was solely a principal residence, you do not have to pay tax on the capital gain every year that you owned it. However, if the property was not your principal residence at any time when you owned it, you may have to report all, or part, of the capital gain.</p>
                    
                    <h4>What do you need to do to get the principal residence exemption?</h4>
                    <p>Different types of pension income may be eligible for splitting, depending on your age:</p>
                    <p><b>If you’re under 65:</b> Annuity payments from a registered pension plan, certain payments received as a result of the death of your spouse or partner (e.g., a survivor pension annuity), amounts received from a retirement income security benefit (with respect to Canadian Forces veterans), subject to certain conditions.</p>
                    <p><b>If you’re 65 or older:</b> The payments described above and annuity payments from a RRSP or a deferred profit-sharing plan, Registered Retirement Income Fund (RRIF) payments, and certain qualifying amounts distributed from a retirement compensation arrangement. Pension income for this purpose does not include OAS, CPP or QPP benefits, death benefits, retiring allowances, RRSP withdrawals (other than annuity payments), or payments out of a salary deferral arrangement or employee benefit plan. </p> 
                   <p>A foreign pension may qualify for income splitting. However, neither the portion that’s tax exempt, due to a tax treaty with the foreign country, nor income from a US Individual Retirement Account (IRA) qualifies.</p>
                   <h4>Take advantage of Pension Splitting</h4>
                   <p>Splitting pension income is a big deduction for most Canadians. Pension splitting allows higher-income spouses to lower their payable tax by sharing up to 50% of eligible pension income with a spouse. Eligible pension income includes most employer sponsored pension, foreign pension income excluding CPP and OAS.
                   </p>
                   <p>Why pay more tax when you can split your pension income?  Partner up with your spouse and save!</p>
                  
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Pension income splitting can help lower your taxes!

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           <h2>Tax Changes 2021</h2>
           <h4>Amounts received related to COVID-19</h4>
           <p>If you received federal, provincial, or territorial government COVID-19 benefit payments, such as the Canada Recovery Benefit (CRB), Canada Recovery Sickness Benefit (CRSB), or Canada Recovery Caregiving Benefit (CRCB), you will receive a T4A slip with instructions on how to report these amounts on your return.
            </p><p>If you are self-employed and received federal, provincial, or territorial government COVID-19 assistance for your business, such as the Canada Emergency Wage Subsidy (CEWS), Canada Emergency Rent Subsidy (CERS), Canada Recovery Hiring Program (CRHP) or Fish Harvester Benefit and Grant Program (FHBGP), you have to include these amounts in your business income or reduce your expenses by the amounts you received. If you received a government loan, the loan is not taxable but you have to include in your business income any portion of the loan that is forgivable.
            </p><p>
            </p>If you received the CRB, you may have to repay all or part of the amount received if your net income after certain adjustments is more than $38,000. The repayment is calculated using the chart for line 23500 of the Federal Worksheet.
            <p>
            <h4>If your income was tax exempt </h4>
            <p>If your CRB, CRCB, or CRSB income is eligible for tax exemption under section 87 of the Indian Act, complete Form T90, Income Exempt from Tax under the Indian Act, and file your 2021 Income Tax and Benefit Return or simplified return to claim the tax withheld on your CRB, CRCB, and CRSB payments. For more information, <a href="https://www.canada.ca/en/revenue-agency/campaigns/covid-19-update/guidance-application-indian-act-exemption.html" target="_blank">click here</a></p>
            <h4>Federal COVID-19 benefits repayment</h4>
            <p>If you repaid federal COVID-19 benefits (CERB, CRB, CRCB, CRSB or CESB) in 2021 that you received in 2020, the amount repaid will be reported in box 201 of your T4A slip, or on your T4E slip along with other employment insurance (EI) amounts repaid. You can choose to claim a deduction on your return for the repayment in the year that the benefit was received or in the year that the benefit was repaid. You may also choose to split the deduction between these two returns as long as the total deduction is not more than the amount repaid. For more information, see line 23210 on page 21 or go to canada.ca/repay-covid-benefits.</p>
        <h4>Canada workers benefit </h4>
        <p>The Canada workers benefit (CWB) rates and income thresholds have changed for 2021. A new “secondary earner exemption” has also been introduced.</p>
        <h4>Zero-emission vehicles</h4>  
        <p> The definition of zero-emission vehicle has changed for vehicles acquired after March 1, 2020. A vehicle may still qualify as a zero-emission vehicle if the vehicle was subject to a prior capital cost allowance (CCA) or terminal loss claim provided that the vehicle was not acquired by the taxpayer on a tax-deferred "rollover" basis or previously owned or acquired by the taxpayer or a non-arm's length person or partnership. </p>  
        <h4>Disability tax credit</h4>
        <p> The rules relating to the mental functions necessary for everyday life, life-sustaining therapy, and the calculation of therapy time would change. </p>
        <h4>Northern resident deductions </h4>
        <p>The deduction for travel benefits would change and be expanded to be available to eligible northern residents who take a trip even if their employer does not provide travel benefits for personal travel. </p>
        <h4>Postdoctoral fellowship income</h4>
        <p>Beginning in 2021, postdoctoral fellowship income would be included as earned income for registered retirement savings plan (RRSP) purposes. This change would provide postdoctoral fellows with additional RRSP contribution room in order to make deductible RRSP, pooled registered pension plan (PRPP), or specified pension plan (SPP) contributions. This measure would apply retroactively to 2011. If you reported postdoctoral fellowship income in a tax year after 2010 and before 2021, you could send an adjustment request to the CRA to have your RRSP contribution room adjusted. </p>
        <h2>Prince Edward Island</h2>
        <p>The dividend tax credit rate for non-eligible dividends has changed. </p>
        <p>A new non-refundable children’s wellness tax credit has been introduced for all families with children under the age of 18 for eligible activities related to their children’s well-being.
</p><p>You can claim up to $500 per child for fees paid in 2021 relating to the cost registration or membership for your (or your spouse’s or common law partner’s) child in a prescribed program of artistic, cultural, recreational, or developmental activity or a physical activity. The child must have been under 18 years of age at the start of the year during which fees were paid for an eligible activity related to the child well-being.
</p>
        
        <h2>Ontario</h2>
        <h4>Senior’s Safety Tax Credit</h4>
        <p>A refundable Ontario seniors’ home safety tax credit has been introduced for seniors and individuals who share a home with a senior relative. Complete Schedule ON(S12), Ontario Seniors’ Home Safety Tax Credit, to claim this credit. This is a temporary credit for 2021 only. You may be eligible for this credit if, at the end of 2021, all of the following conditions apply:</p>
        <li>You were a resident of Ontario on December 31, 2021</li>
        <li>You were 65 years of age or older or living with or expecting to live with a family member who is a senior</li>
        <li>You or someone on your behalf, paid eligible expenses in 2021 for improvements to your principal residence or the land on which your principal residence is situated</li>
        <p></p>
        <p>Eligible expenses are expenditures for improvements to the principal residence or to the land on which the principal residence is situated that: </p>
        <li>allow a senior to gain access to the home or the land or to be more mobile or functional within the home or on the land</li> 
        <li>reduce the risk of harm to a senior within the home or on the land or in gaining access to the home or the land</li>
        <li>would normally be done by or for a person who has an impairment to allow him or her to be mobile or functional within the home or on the land</li>
        <p></p>
        <p>The improvements must also be of an enduring nature and be integral to the home or land, or must be a modular or removable version of an item of a type that can otherwise be installed as enduring and integral to the home or land. 
        </p><p>You can claim the lesser of $10,000 and the amount of eligible expenses that you, or someone on your behalf, paid related to your principal residence. If you occupied more than one principal residence at different times in 2021, eligible expenses you paid for one or more of those residences would qualify for the credit, but those expenses may not exceed $10,000.
        </p>
        
        
        <h4>Job Training Tax Credit</h4>
        <p>A refundable Ontario jobs training tax credit has been introduced for eligible individuals. This is a temporary credit for 2021 only. You may be able to claim this tax credit if all of the following conditions apply: </p>
        <li>You were a resident of Ontario on December 31, 2021</li>
        <li>You have a Canada Training Credit Limit for 2021 greater than zero</li>
        <li>You have entered an amount on line32000 on your federal Schedule 11 Eligible expenses are amounts entered on line32000 of your federal Schedule 11</li>
        <p></p>
        <h2>Manitoba</li>
        <h4>Teaching expense tax credit</h4>
        <p>You can claim up to $1,000 as an eligible supplies expense if both of the following conditions are met:</p>
        <li>you received income from a source in Manitoba in 2021</li> 
        <li>you were an eligible educator Eligible educator You are considered an eligible educator if you were employed in Manitoba at any time during the 2021 tax year and both of the following conditions are met</li> 
        <li>you were a teacher at an elementary or secondary school, or an early childhood educator at a regulated child care facility</li>
        <li>you held a teaching certificate, license, permit or diploma, or a certificate or diploma in early childhood education, which was valid and recognized in the province or territory in which you were employed</li>
        <p></p>
        <h4>Eligible supplies expense </h4>
        <p>An eligible supplies expense is an amount that you paid in 2021 for teaching supplies that meet all of the following conditions:</p>
        <li>you bought the teaching supplies for teaching or facilitating students’ learning</li>
        <li>the teaching supplies were directly consumed or used in an elementary or secondary school or in a regulated child care facility in performing your employment</li> 
        <li>you were not entitled to a reimbursement, allowance, or any other form of assistance for the expense (unless the amount is included in the calculation of your income of any tax year and is not deductible in the calculation of your taxable income)</li> 
        <li>the eligible teaching supplies expense was not deducted from any person’s income for any year or included in calculating a deduction from any person’s tax payable for any year</li>
<p></p>
        <p>Teaching supplies are consumable supplies and prescribed durable goods. Prescribed durable goods include: </p>
        <li>books, games, and puzzles</li> 
        <li>containers (such as plastic boxes or banker boxes)</li> 
        <li>educational support software</li>
<p></p>

        <h2>Saskatchewan</h2>

        <h4>Home Renovation Tax Credit</h4>
        <p>The Saskatchewan Home Renovation Tax Credit (HRTC) allows homeowners to claim a non-refundable tax credit on qualifying home renovation expenses. The total eligible expenses incurred between October 1, 2020 and December 31, 2021, must be in excess of $1,000 (base amount), but not more than $12,000 can be claimed on your 2021 tax return (maximum claim of $11,000 for 2021.</p>
        
        <h4>Claiming home renovation tax credit</h4>
        <p>The claim for eligible expenses is family-based. Eligible family members include you and your spouse or common law partner and your or your spouse’s or common-law partner’s children who are under 18 years of age at the end of year for which the credit is claimed. The claim can be split among eligible family members, but the total amount claimed cannot exceed the maximum allowable.</p>
        
        <h4>Eligible Expenses</h4>
        <p>Eligible expenses include the cost of labor and professional services, building materials, fixtures, equipment rentals, and permits. The costs of routine repairs and maintenance normally performed on an annual or more frequent basic are not eligible.
        </p><p><b>Examples</b> of eligible expenses Generally, in addition to projects you do yourself, work performed by electricians, plumbers, carpenters, architects, etc. in respect of an eligible expense qualifies for the HRTC. The following items are examples of eligible expenses: 
        ></p>

        <li>Renovating a kitchen, bathroom or basement</li> 
        <li>New carpet or hardwood floors</li>
        <li>Building an addition, garage, deck, garden/storage shed, fence </li>
        <li>Re-shingling a roof </li>
        <li>A new furnace, woodstove, boiler, fireplace, water softener or water heater </li>
        <li>A new driveway or resurfacing a driveway </li>
        <li>Painting of interior or exterior of a house </li>
        <li>Window coverings directly attached to the window frame and whose removal would alter the nature of the dwelling</li>
        <li>Laying new sod</li>
        <li>Swimming Pools (Permanent - in ground and above ground)</li>
        <li>Fixtures – lights, fans, etc</li>
        <li>Associated costs such as permits, professional services, equipment rentals & incidental expenses</li>
        <li>Window coverings, such as blinds, shutters and shades, that are directly attached to the window frame and whose removal would alter the nature of the dwelling are generally considered to be fixtures (i.e., have become part of the home) and therefore would qualify for the HRTC</li>
        <p></p>
        <p><b>Note :</b> If an eligible expense qualifies for medical expense amounts, you can claim both the medical expenses and the HRTC for that expenditure</p>

        <p><b>Examples</b> of ineligible expenses The following items are examples of ineligible expenses:</p>
        <li>Furniture, appliances, and hot tubs</li>
        <li>Audio and visual electronics</li>
        <li>Purchasing of tools </li>
        <li>Cleaning carpets </li>
        <li>House cleaning </li>
        <li>Maintenance contracts (e.g. furnace cleaning, snow removal, lawn care, and pool cleaning)</li> 
        <li>Financing costs</li>
        <p></p>
                
        <h4>Supporting documents</h4> 
        <p>Eligible expenses must be supported by acceptable documentation, such as agreements, invoices, and receipts, and must clearly identify the type and quantity of goods purchased or services provided,
        </p>
        <h4>Active Families Benefit</h4>
        <p>Saskatchewan’s budget for 2021 announced the restarting of the Active Families Benefit (AFB) for families with children enrolled in sport, recreation and cultural activities. Families can claim this refundable tax credit for 2021 and subsequent tax years.
        </p>
        <h4>Eligibility</h4>
        <p>
        An eligible individual who is a resident in Saskatchewan on the last day of the taxation year can claim this refundable tax credit up to a maximum of $150 per eligible child who is 18 years of age or less for the costs of participation in an eligible activity. If an eligible child is eligible for the disability tax credit, an additional $50 can be claimed.
        </p>

        <h4>Eligible activity</h4>
        <p>In order for an activity to be eligible for the Active Families Benefit, it must take place within a program that: </p>
        <li>Is offered by a service provider located in Saskatchewan</li> 
        <li>Involves instruction and supervision by the service provider</li> 
        <li>Provides proper supervision of children</li> 
        <li>Is suitable for children</li> 
        <li>Requires children to actively participate</li>
        <li>Requires registration with the service provider and the payment of a registration fee or membership fee in order for a child to participate</li> 
        <li>Complies with all relevant requirements and standards imposed by statute or by any other law</li>

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 Tax Changes 2021

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            <p>
            Have you been injured or have a significant health condition? You may qualify for the Disability Tax Credit (DTC), either for yourself or your dependent. Any Canadian, who has a vital health condition, may be eligible for the Disability Tax Credit.
            <p>

            <h4>Some common conditions that regularly qualify are:</h4>
           <li>Attention Deficit Disorder (ADD)</li>
           <li>Addiction</li>
           <li>Alzheimer’s Disease</li>
           <li>Anxiety Disorder </li>
           <li>Bi-polar Disorder</li>
           <li>Depression</li>
           <li>Difficulty in Walking</li>
           <li>Eating Disorders</li>
           <li>Diabetes</li>
           <li>Heart Disease</li>
           <li>Cancer</li>
           <li>Irritable Bowel Syndrome (IBS)</li>
           <li>Learning Disabilities</li>
           <li>Mental Illness</li>
           <li>Obsessive-Compulsive Disorder (OCD)</li>
           <li>Physical Disabilities</li>
           <li>Post-Traumatic Stress Disorder (PTSD)</li>
           <li>Schizophrenia</li>
           <li>Hearing or Speech Disability</li>
           <li>Arthritis</li>
           <li>Kidney Dialysis</li>
           <li>Parkinson’s Disease</li>
            

        <p>There are two levels of qualifying disability categories for the credit. The first level is the disabled group, and the second level being unable to perform basic activities of daily living. Canadians with medical conditions that slow their daily functions may qualify for the tax credit.
        To apply for the Disability Tax Credit, you must complete Form T2201 – Disability Tax Credit Certificate. Click here to learn more about this program.</p>
       
       <h4>The Disability Tax Credit Refund Method:</h4>
       <p><b>Retroactive one-time refund</b> – The CRA will evaluate your DTC application and see when you were diagnosed or how long you had symptoms of the qualifying disabilities. The disability credit can be approved for the past ten years.
        </p>
        <p><b> Annual refund</b> – if you have been found eligible to receive the DTC, you will be able to claim the DTC refund annually when you prepare your taxes.
        You may claim the disability tax credit for yourself, a child, or your spouse/common-law partner.
        </p><p>
        To apply, you must fill out the disability form T2201 Part A, and a medical practitioner is required to fill out Part B of the form.
        </p>
        </div>
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Disability Tax Credit guide

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            <p>
            Support payments come in a variety of different types. Below is a quick guide for you to understand how these payments can affect your taxes.</p>
            <p>

            <h4>What are support payments?</h4>
            <p><a href="https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/p102/support-payments.html" target="_blank">Support payments</a> are regular allowance amounts paid to, or received from, a spouse, former spouse, or parent of a child.</p>

            <h4>Types of support payments</h4>
            <p>Amounts paid for child support under a court order, or a written agreement made after April 30, 1997, are not deductible, and amounts received are not taxable.</p>
            <p>Amounts paid for spousal support payments under the court, or written agreement, are deductible if claimed under line 22000 - support payments made. However, the amounts received must be reported by the recipient as taxable income under line 12800 - support payments received.</p>

            <p>In taxes, there is a priority of child support over spousal support. If you are required to pay both spousal child support,and spousal support, all payments made in the year are considered to be paid for the support of the child, while the rest are accounted for as the support of the spouse.</p>

            <h4>How to apply for support payments?</h4>

            <p>Some requirements must be met to apply for support payments:</p>
            <li>The payer and the recipient are living apart when payments are made</li>
            <li>The support amount is paid/received periodically</li>
            <li>The recipients of spousal support use the amount for the maintenance of themselves</li>
            <li>The recipients of child support use the amount for the maintenance of children</li>
            <p>(E.g., rent, property taxes, home maintenance, medical expenses, etc.)</p>
            
            <p>Support amounts are receivable under a court order, written agreement or an order of a competent tribunal:</p>
            <li>If the payer was not common-law or married, support payments must be made under a tribunal order</li>
            <p></p>
            <h4>Non-Resident support payments</h4>
            <p>If you are financially supporting your spouse who is a non-resident of Canada, you may be eligible to claim line 30300 - spousal amount.</p>
        </div>
            <div>

What are Support Payments?

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                <p>
                The Ontario Government has introduced a new tax credit called the  “Seniors’ Home Safety Tax Credit”. It is refundable and available only for the 2021 tax year.
                </p>
                <p>
                The intent of this credit is to support seniors who choose to stay in their homes. It provides a refundable tax credit for renovations made to their home to improve its safety and accessibility.
                </p><p>
                This refundable tax credit will help support Ontario seniors who are at least 65, by the end of the 2021 tax year, or the people who live with senior relatives.
                </p>
    
                <p><b>Qualifying expenses:</b> Expenses should be paid or become payable in the 2021 tax year.</p>
                <p>Examples of some qualifying expenses:</p>
    
                <li>Grab bars, and related reinforcements, for the toilet, bathtub, shower etc</li>
                <li>Renovations to permit 1st-floor occupancy or a secondary suite for a senior</li>
                <li>Stairlift</li>
                <li>Wheelchair ramp</li>
                <li>Non-slip flooring</li>
                <li>Hands-free taps</li>
                <li>Comfort high toilets</li>
                <li>Door locks that are easy to operate</li>
                <li>Automatic garage door openers etc</li>
                <p></p>
                <p>For a detailed list of eligible expenses, please visit : <a href="https://www.ontario.ca/page/seniors-home-safety-tax-credit" target="_blank">click here</a><p>
                <p>The Seniors’ Home Safety Tax Credit is worth 25%, up to a maximum of $10,000, in eligible expenses for a senior’s principal residence in Ontario. The maximum credit is $2,500.
                </p><p>
                The maximum amount can be split between people who share a home, including a spouse or a common-law partner.
                </p><p>
                Seniors can take advantage of this credit regardless of their income.
                </p>
                <h4>How it works:</h4>
                <li>Add a wheelchair ramp to your house at the cost of $4,500; receive a refundable tax credit of $1,125</li>
                <li>Add a wheel-in shower at the cost of $7,000; receive a refundable tax credit of $1,750</li>
                <li>Add a stairlift to your home at the cost of $10,000; receive a refundable tax credit of $2,500</li>
                <li>Add non-slip flooring at a cost of $12,000; receive a refundable tax credit of $2,500</li>
                <p></p>
                <p>It’s important to keep our independence as we go with the Seniors’ Home Safety Tax
                Credit, you, or your loved one, can enjoy being home for as long as possible!</p>
                
    
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                <div>

Ontario Seniors’ Home Safety Tax Credit

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                <p>An assignment is a sales transaction where the original buyer of a property (the "assignor") allows another buyer (the "assignee") to take over the buyer's rights and obligations of the Agreement of Purchase and Sale before the original buyer closes on the property. 
                </p><p> 
                In an assignment sale, the assignor must report any profit realized from the sale in the tax year in which the right is assigned. The profit will be treated as taxable business income, which is fully taxable unless the taxpayer can prove that the intention was not to FLIP the property.
                </p><p>      
                Taxpayers generally assume that the sale of real estate results in a capital gain.  Despite this, they must realize that it is not the nature of the property, but the buyer's intent at the time of purchase, that determines if the property is capital or inventory.
                </p>
    
                <h4>Is the profit realized a business profit, or a capital gain?
                </h4>
    
                <p>Firstly, the sale of the property is booked with the builder and not transferred on the taxpayer name(s). Therefore, there is less possibility for a 50% exemption. One can claim a capital gain and a 50% exemption if it would have been transferred after paying land transfer cost or any associated cost.
                </p><p>Secondly, it is determined that the taxpayer's intention at the time of purchase was to resell the property for a profit. Therefore, the proceeds would be considered business income with a 100% inclusion rate instead of 50% capital gains. 
                </p>
                <p>Assignment sales, undertaken by individuals looking to make a quick profit on the “flip”, are often based on short-term transactions.
                </p><p>
                Taxpayers who have a history of flipping properties in a short time frame will have difficulty justifying that their investment is capital property. 
                Suppose the taxpayer wants to treat assignment sales as a capital gain. In that case, they must ensure that the facts support the taxpayer's claim; that their intention to hold on to the property was long-term, either as a personal-use property or as an income-producing property. They must show that they could not close the property due to mortgage failure or unavoidable personal reasons. Thus, the CRA may dismiss the taxpayer(s) claim that the real estate was capital property because the facts did not support their claim, and the taxes will be assessed on the sale as business income.
                </p>
    
                    <h4>Can an assignment sale be considered for a principal residence exemption?</h4>
                    <p>Some taxpayers originally purchased a pre-construction unit intending to live in it as a principal residence, which then qualifies for the principal residence exemption (PRE) and therefore is not taxable. 
                   </p><p> However, in the case of an assignment sale, the rights to the property have been sold before closing. The property, therefore, was never inhabited as a principal residence, and cannot qualify for the PRE.
                    </p>
    
                <h4>HST on assignment sales:
                </h4>
                <p>An assignment sale carries income tax and HST. Like income tax, much depends on the buyer's intent at the time the contract was entered. The CRA deems that if a person buys a property for the primary purpose of selling the house or interest in the house, then that person will be considered a trader. The CRA will consider the taxpayer a trader/builder (even if they have never built a home) if they conclude that property was purchased for the primary purpose of selling it or an interest in it. Once the seller is considered a builder/trader, they must charge HST on the transaction on the profit being made and the deposits. For example, if John had put down $150,000 in deposits on a property and made a further profit of $120,000 as an assignment fee, the CRA's position is that 13% HST is payable on $270,000. This has been challenged successfully with HST being found to apply only to the assignment fee/profit, but the CRA's position remains that it is payable on the total of the profit plus the deposits. Under most contracts, HST is included in the purchase price to the assignee/final buyer, so this would have to be paid by the seller/assignor.</p>
                            
                <h4>Who pays the HST on an assignment sale?</h4>
                <p>Generally, the HST will be in addition to the price and paid for by the buyer. The assignment agreement must be explicit to show the profit on the transaction, as it should only be the profit subject to HST.</p>
                <h4>Who pays the GST in assignment sales?</h4>
                <p>GST/HST is payable by the assignee on the assignment fee and the amount attributable to the deposit that the assignor paid to the builder of the property. The assignee is eligible to claim the GST/HST new housing rebate. The new housing rebate can be assigned to the builder and credited against the purchase.</p>
                <h4>Is the sale subject transfer taxable?</h4>
                <p>Transfer Tax is the tax imposed on any mode of transferring the ownership of real property, either through sale, donation, barter, or any other method.</p>
                <h4>What expenses can be claimed under assignment sale?</h4>
                <li>Assignment fees charged by the builder (in most cases) </li>
                <li>Any other legal expenses incurred while signing can be deducted from profit</li>
                <p></p>
                <p>Taxpayer can summarize:</p>
                <li class="listNumber"> Assignment fees charged by the builder</li>
                <li class="listNumber"> Commission paid to any real estate broker or real estate agent</li>
                <li class="listNumber"> Legal or professional fees paid to a lawyer for consultation and services</li>
                <li class="listNumber"> Any other expenses to carry out the sale of the property</li>
                <p></p>
                <p>Don’t let the tax man come knocking after your assignment sale!  Understand your tax obligations today!</p>
    
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Tax implications of Assignment Sales

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                <p>Certain tax preparation software products (<a href="https://web.taxtron.ca/" target="_blank">web.taxtron.ca</a>/<a href="https://taxtron.ca/" target="_blank">taxtron.ca</a>) offer the CRA’s <a href="https://www.canada.ca/en/revenue-agency/services/e-services/about-express-noa.html" target="_blank">Express NOA</a> service, which can provide you with your Notice of Assessment immediately after you file your tax return electronically. You must be registered for both My Account and CRA email notifications with the CRA, and use a NETFILE certified tax preparation software (<a href="https://web.taxtron.ca/" target="_blank">web.taxtron.ca</a>/<a href="https://taxtron.ca/" target="_blank">taxtron.ca</a>), to use the Express NOA service.</p>
                <h4>The CRA email notifications service</h4>
    
                <p>Effective February 11, 2019, the CRA merged its online mail and account alert services into its new email notification service. Email notifications allow the CRA to send you an email when you have new CRA mail to view in My Account. The CRA also provides you with an email alert whenever there is a change to your account. </p>
                <p>Some changes may include:</p>
                <li> Your address (home and mailing)</li>
                <li>Your banking information (for direct deposit)</li>
                <li>An authorized representative on your account</li><p></p>
                <p>Email notifications also let you know if the mail that the CRA sent to you has been returned. This service can be beneficial as it effectively provides you with a confirmation of requested changes made to your address, direct deposit information or an authorized representative. If you receive an email for a change that you have not requested, you can report it to the CRA immediately. In addition, the email notification for mail returned to the CRA can prevent you from missing out on any payments made by the CRA by paper mail, such as a cheque. You must be registered for My Account to sign up for email notifications.</p>
            
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                <div>

What is the Express NOA service?

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                <h2>Autofill makes tax filing very quick and efficient!</h2> 
                <p>All information from the CRA  will be automatically entered into your return. Once the data is downloaded from the CRA, TaxTron will ask your permission to populate data from available slips into the tax return. The CRA receives T-slips and other tax information from employers, financial institutions, and third parties. The CRA should have most T-slips and additional tax-related information for the tax year by mid-March of the following year. Tax documents that are not on the CRA must be entered manually. We highly recommend that you review the downloaded data to ensure that there is no discrepancy between the downloaded information and the information you have received from the payers.</p>
    
               <li> T2202 (and unused tuition amount from prior years)</li>
               <li>  T3</li>
               <li> T4</li>
               <li> T4A</li>
               <li> T4A(P)</li>
               <li> T4A(OAS)</li>
               <li> T4E</li>
               <li> T4RIF</li>
               <li>T4RSP</li>
               <li> T5</li>
               <li> T5008 slips</li>
               <li> RRSP contribution receipts (and unused contribution amount from prior years)</li>
               <li> Home Buyers’ Plan information</li>
               <li> Lifelong Learning Plan (outstanding balances and repayment amounts)</li>
               <li> Certain carryover amounts (such as capital loss)</li>
               <li> Instalment tax payments</li>
                
            <h2>How do I enter on the TaxTron Web?
            </h2>
            <h4>The CRA and MyCRA mobile app
            </h4>
            <p>The <a href="https://www.canada.ca/en/revenue-agency/services/e-services/cra-mobile-apps.html" target="_blank">MyCRA mobile app</a> lets you access your personalized tax information on your mobile device such as; your Notice of Assessment, return status, benefits and credits, and TFSA and RRSP contribution limits. The app also lets you manage your contact and direct deposit information,make a payment from your mobile device, and register to receive email notifications when correspondence is available for viewing in My Account.</p>
            <h4>The CRA and MyBenefits on the CRA mobile app 
            </h4>
            <p>The <a href="https://www.canada.ca/en/revenue-agency/services/e-services/cra-mobile-apps.html" target="_blank">MyBenefits CRA mobile app</a> allows you to view all of your benefit and credit information on your mobile device. This includes the dollar amount of your payments or credits, and when they will be paid. You can also view your Canada Child Benefit application status. The app also lets you update some of your personal information that may affect benefit and credit eligibility, such as your marital status and children under your care. You can access the MyBenefits CRA mobile app through My Account.</p>
                </div>
                <div>

Does TaxTron support Auto-fill My Return service?

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                <h2>Uber and Lyft!</h2>
                <p>Uber and Lyft drivers are considered self-employed. Therefore, they are required to report their <a href="https://www.investopedia.com/terms/s/self-employed.asp#:~:text=A%20self%2Demployed%20person%20refers,another%20individual%20(an%20employer)." target="_blank">self-employment</a> income on form T2125 - Statement of Business or Professional Activities.
                </p>
    
                <h4>Are food delivery services self-employed?</h4>
                <p>Uber eats, SkipTheDishes and many others are considered self-employed businesses that must be reported for taxes.
                </p>
                
    
                <h4>How to prepare Income Taxes as a <a href="https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/compliance/ride-sharing.html" target="_blank">Ride-Sharing</a> Driver</h4>
    
    
                <p>To prepare, you should gather documents related to your income, mileage and other tax-related expenses, such as:
                </p>
                <li>The Annual Tax Summary from Uber, Lyft, or your Ride-share partner</li>
                <li>Receipts, bills, and statements for all tax-deductible expenses</li>
                <li>The total vehicle mileage that was driven for the year (E.g., Odometer reading from the beginning of the year and at the end of the year)</li>
                <li>Number of Kilometres driven for business and personal</li>
                <li>The GST/HST number (business number)</li>
                </p></p>
    
                 <h4>What kind of expenses can be claimed as a Ride-Sharing Driver
                 </h4>
                <p>The annual statement will include costs such as:
                </p>
                <li>Booking fees</li>
                <li>Service fees</li>
                <li>Ride sharing fees</li>
                <p></p>
                <p>You can also report other related expenses such as:
                </p>
    
                <li>Meals (food or water services provided for clients)</li>
                <li>Parking fees during pick-up and delivery</li>
                <li>Telephone (air-time for business use only)</li>
                <li>License fees to work as a driver</li>
                <p></p>
                <p>Regarding vehicle expenses:</p>
                <p>If you own the vehicle, you cannot deduct the total cost of the car as expenses. Instead, you will need to determine the Capital Cost Allowance (CCA) you may claim. Instead of claiming the price as an expense, you depreciate the value over the years. Choose the depreciation <a href="https://www.canada.ca/en/revenue-agency/services/tax/businesses/small-businesses-self-employed-income/business-income-tax-reporting/business-expenses/motor-vehicle-expenses.html" target="_blank">class type</a> depending on the type of vehicle - a passenger vehicle, a motor vehicle, or a zero-emission vehicle.</p>
                <p>Ride-Sharing is a great way to create income. Know what tax rules apply when declaring this business to make the most of your new occupation!</p>
                </div>
                <div>

What is a Ride-Sharing Operating Business?

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                <h2>So you’re wondering, how can I retire? Using your TFSA efficiently is one of the ways to do so.</h2>
                <p>Canadian residents aged 18 and older can open a <a href="https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4466/tax-free-savings-account-tfsa-guide-individuals.html" target="_blank">Tax Free Savings Account (TFSA)</a> and make contributions up to their available limit each year. The contribution limit is retroactive since their inception in 2009. Particular rules govern the dollar amount of contributions that can be made, the re-contribution of funds withdrawn from a TFSA, and the type of investments that can be held in a TFSA. Penalty taxes may be imposed on excess TFSA contributions, contributions made by non-residents, holding non-qualified or prohibited investments in a TFSA, and on the accrual of certain benefits or advantages from a TFSA.
                </p>
    
                <h4>Background</h4>
                <p>Unlike Registered Retirement Savings Plans (RRSPs), contributions to a TFSA are not tax-deductible. There are, however, significant benefits to holding a TFSA, such as:</p>
                <li>Income and capital gains earned on investments held in a TFSA are not taxable, even when withdrawn.</li>
                <li>You can make withdrawals at any time and use them for any purpose without attracting any tax.</li>
                <li>Any funds you withdraw from the TFSA both the income and capital portions are added to your contribution room in the next year. This means that you can re-contribute all withdrawals in any subsequent year without affecting your allowable annual contributions. However, note that re-contribution in the same year will result in an over-contribution if you have no available contribution room for that year. In this case, you would be subject to a penalty tax on the over-contribution.</li>
                <p></p>
                <h4>TFSA Contributions Limit</h4>
    
    
                <p>You can contribute up to $6,000 annually ($6,000 in each of 2021, 2020 and 2019; $5,500 in 2016, 2017 and 2018; $10,000 in 2015; $5,500 in 2013 and 2014; $5,000 prior to 2013). If you contribute less than the maximum amount in any year, you can carry forward and use that unused contribution room in any subsequent year. The cumulative contribution limit for 2021 is $75,500.
                </p>
                <p>Do not exceed your annual contribution room limit. In general terms, the maximum TFSA contribution room available to an individual is the sum of three amounts:
                </p>
                <li>The annual TFSA dollar limit (currently $6,000 as noted above)</li>
                <li>The cumulative unused TFSA contribution room from previous year(s)</li>
                <li>The total amount of withdrawals made from the TFSA in the previous year(s)</li>
                </p></p>
                <p>Certain qualifying transfers and exempt contributions will not result in a TFSA over-contribution.
                The CRA tracks your contribution room and reports it to you annually as part of your income tax notice of assessment. If you over contribute to your TFSA in a given year by exceeding the maximum contribution room, you will be subject to a 1% penalty tax on the excess amount.
                </p>
                <p>As noted above, you must be a Canadian resident to be able to contribute to a TFSA. If you hold a TFSA and become a non-resident of Canada, you will not be taxed in Canada on income earned in the TFSA, although foreign taxes may apply or on withdrawals from your plan. No contribution room will accrue for any year throughout which you are a non-resident. In the year of your emigration or immigration, the annual dollar contribution limit without peroration applies. Suppose you re-establish Canadian residence, any withdrawals made while a non-resident will be added back to your TFSA contribution room in the following year. A 1% penalty tax will also apply to any contributions you make to your TFSA while you are a non-resident.</p>
                <h4>Penalty tax on excess TFSA contributions</h4>
                <p>At the 2021 STEP conference, the CRA commented (in the CRA document 2021-0883221C6) on a specific scenario where a taxpayer moved to Canada in 2021 and then opened a TFSA account. Since he was previously a non-resident of Canada, the taxpayer’s cumulative TFSA contribution room for 2021 was only $6,000 (the contribution limit for the 2021 taxation year).
                Nevertheless, due to a misunderstanding of the rules, the taxpayer contributed $18,000 to his TFSA and invested the entire amount in shares of one company. Unfortunately, before he had a chance to withdraw the $12,000 overcontribution, the company went bankrupt. As a result, the fair market value of the investment held in the TFSA was now zero.
                </p>
                <p>The CRA was asked whether there was any way it could waive the 1% penalty tax, or if there was any other way the tax could cease to apply, notwithstanding that it was not possible to withdraw the excess contributions since the value of the shares held in the plan was nil.
                The CRA responded that since it was impossible to withdraw any amounts from the TFSA in this scenario, subsection 207.06(1) did not apply, and the CRA had no authority to waive or cancel the penalty tax. Only new TFSA contribution rooms that would become available to the taxpayer in future years would reduce the excess TFSA amount.
                </p>
                <p>Therefore, assuming that no additional contributions would be made in 2021, 2022 or 2023, and the annual contribution limit was to remain the same at $6,000 per year; the $12,000 over-contribution would be reduced to $6,000 on January 1, 2022, and fully eliminated on January 1, 2023. The taxpayer would be subject to the 1% penalty tax in 2021 and 2022 and must complete Form RC243, Tax-Free Savings Account (TFSA) Return, and remit the penalty tax for each year. The taxpayer could begin making TFSA contributions again in 2024.
                The CRA did not comment on the calculation of the total penalty tax amount in this scenario. Although it’s not mentioned in the CRA document, assume that in this scenario, the taxpayer became a resident of Canada in July 2021 and made his $18,000 TFSA contribution on September 1, 2021. Although the taxpayer was only a resident of Canada for half of 2021, his TFSA dollar contribution limit for 2021 is $6,000 since the limit is not prorated for the year of immigration.
                </p>
                <p>The penalty tax for 2021 is $480, calculated as the $12,000 over-contribution x 4 (months) x 1%. For 2022, the total penalty tax is $720, calculated as the $6,000 over-contribution x 12 (months) x 1%. In addition to the penalty tax, interest will also be assessed at the prescribed rate plus 4% and will apply from the time the penalty tax is assessed to the time it is paid.</p>
    
                <h4>TFSA Conclusion</h4>
                <p>The CRA’s comments illustrate the importance of complying with the rules pertaining to TFSA contribution limits and the adverse tax consequences associated with not complying with those rules. They also serve as a reminder that contribution room does not accumulate during the period that a taxpayer is a non-resident of Canada.</p>
                <p>In addition, it should be noted that the CRA can only waive the penalty on over contributions if certain conditions are met, as noted above. In particular, the CRA is not empowered to grant a waiver where the over contribution cannot be withdrawn from the account.</p>
                <p>It’s true, the TFSA is a great way to support your retirement goals!  It’s important to know the rules of your TFSA to maximize your wealth for future endeavors! </p>
    
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What is a TFSA (Tax-Free Savings Account)?

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                <h2>Divorce Or Separation!</h2>
                <p>The breakdown of a marriage or common-law relationship may include financial settlements, custodial decisions and various accompanying tax consequences.</p>
                
                <h4>Attribution rules</h4><p> Attribution of income ceases to apply when a couple is separated. However, capital gains attribution does not cease until divorce (for married couples), unless the parties jointly elect to have it cease on separation.</p>
                <h4>Support payments</h4><p> If an individual makes support payments, they may deduct them for tax purposes, provided certain conditions are met. Generally, the payments must be payable periodically to their current (or former) spouse, or partner, and in accordance with a signed separation agreement or a court order. In addition, certain payments to third parties under the terms of a separation agreement may also be deductible. The individual can also claim a deduction for payments made before signing an agreement or obtaining a court order, provided that the contract is signed, or the order is obtained, before the end of the following year. The agreement or order must deal explicitly with these payments.</p>
                <p>Deductible alimony payments must be included in the recipient’s income in the year received. Child support is treated differently than spousal support in that the paying parent cannot deduct the payments, and the recipient parent would not include them in their income.</p>
                <h4>Professional fees</h4><p> Legal fees paid to obtain a separation or divorce are not deductible for tax purposes. However, the individual receiving support may deduct legal fees paid to establish or increase the amount of support.</p>
                <h4>Tax credits and deductions</h4><p> After separation, a parent may claim an eligible dependent credit for a child under the age of 18 living with that parent. The credit is not available to the parent who is paying support. In cases where there is more than one child, and both parents support and house the children, each parent can claim the credit in respect of one child. Both eligible parents must agree on who is entitled to claim the personal tax credits for a particular child, or neither will be allowed to make a claim. Child-care expenses may only be claimed by the parent living with the child, provided the deductible conditions are met. If the children live with both parents, each parent may claim a share of the expenses for the period of time their children live with them. Either parent can claim the transfer of tuition credits, but the total claim cannot exceed the maximum per child.</p>
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Tax implications of Divorce or Separation

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                <h2>Do you receive any income from another country?</h2>
                <p>Below are the key points to know if you must declare foreign income in Canada.
    
                If you live or work in Canada and have any of the following types of foreign income, you must report it on your tax return in the year you receive the income.
                </p>
                <li>Foreign Employment Income</li>
                <li>Foreign Interest and Dividends Income</li>
                <li>Foreign Pension Income</li>
                <li>Foreign Rental Investment income</li>
                <p></p>
                <h4>Tax Resident in Canada:</h4>
                <p>The CRA has specific rules on determining the tax residency if you live in a foreign country.</p><p> Ask yourself the following questions: </p>
                
                <li>Do you own a house in Canada?</li>
                <li>Does your spouse or children live in Canada?</li>
                <li>Do you have investments, property, insurance, bank accounts, credit cards in Canada?</li>
                <p></p>
                <p>If you fulfill any of the above conditions, you will need to file a tax return declaring all of your foreign income.
    </p><p> 
                Canadian residents must report all income received, including those made outside of Canada. <a href="https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-10400-other-employment-income/line-10400-foreign-employment-income.html" target="_blank">Foreign income</a>, however, is treated differently, depending on the type of income for every different country.
           </p>     
           <h4>Foreign Employment Income</h4>
            <p>Canadian residents employed and paid by a foreign organization must report the amounts paid under Other Employment Income on Line 10400. Foreign taxes paid can also be reported to offset taxes payable. Taxpayers should have supporting documents that prove the amounts received and paid. All quantities reported should be in Canadian dollars.</p>
    
            <h4>Foreign Interest and Dividends</h4>
            <p>Interest and dividends received from foreign corporations have to be reported in a Canadian resident's income taxes. Foreign tax credits may be claimed if tax was withheld from the foreign interest or dividend. Amounts reported on the tax return must be in Canadian dollars.</p>
    
            <h4>Foreign Pensions</h4>
            <p>Generally, pensions must be reported and are fully taxable in Canada. All foreign pension amounts are converted and reported in Canadian dollars. There are exceptions where foreign pensions can be excluded or tax-exempt due to various tax treaties. Reporting the amount of taxes paid to the source country should be supported with documents to claim respective foreign income credits.</p>
            <p>If income is taxable both in Canada and the source country, income is reported on Line 11500 and is eligible for pension credit. In addition, foreign tax credits may also be claimed, up to the maximum rate stated in the treaty between Canada and the source country.</p>
            <p>If income is taxable in Canada but exempt from tax in the source country, income is reported on Line 11500 and is eligible for pension credit. However, it is ineligible for the foreign tax credit.</p>
            <p>If income is partially or fully exempt in Canada but taxable in the source country, portions of the income are reported on Line 11500. Deductible portions are reported on Line 25600 to reduce taxable income.</p>
                
    
            <h4>Special Treatments for Specific Pensions</h4>
            <p>Particular types of pensions from the U.S., Italy, Austria, Germany, and Belgium are treated differently. Therefore, sometimes the equivalent to the Notice of Assessment from the source country is needed.</p>
            <p>For example, the U.S. Social Security Benefits are fully exempt from the U.S. and  only partially taxable in Canada. Another example is the Italian Social Security Pensions, which are made up of 3 parts and are all treated differently when calculating Canadian taxes.</p>
            <p>Some pensions are excluded and not reported on Canadian taxes at all. These include foreign pensions paid for disability or death due to war or military service if the foreign country was a Canadian ally.</p>
    
            <h4>Foreign Rental Investment income</h4>
            <p>If you own a property in a foreign country and earn a rental income, you must report these in your Canadian taxes. You must report the gross rental income and can deduct related expenses, resulting in only the net rental income being taxable. However, if the rental income is earned in a foreign country, it may be taxable in that country too.</p>
            <h4>Foreign Property</h4>
            <p>If you own a foreign property that costs $100,000 CAD or more at any time of the year, <a href="https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t1135.html" target="_blank">form T1135</a> must be filed to the CRA. Examples of foreign property include funds in bank accounts outside of Canada, interest in a non-resident trust, shares in non-resident corporations, real estate located outside of Canada, and other income-earning foreign property. Personal-use property and assets used in an active business are not required to be filed in form T1135.</p>
    
            <p>At <a href="https://softrontax.com" target="_blank">Softron</a> we can help you know what to do, when foreign income comes home to you!
            </p>
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Foreign Income: What Should Be Reported?

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            <p>Are you an employee, and your employer requires you to pay expenses to earn your employment income? If so, you can calculate your expenses and deduct them!</p>
           <li> You will need a declaration form completed and signed by your employer to claim your expenses</li>
           <li> You cannot deduct the cost of travel to and from work, or clothing purchased. These expenses are personal</li>
           <li> You cannot deduct any expenses reimbursed by your employer</li>
           <li> You must keep records for each year you claim expenses</li>
            <p></p>
            <h4>What's new for 2020?</h4>
            <p>As a result of Covid 19, in 2020 the CRA introduced "Home office expenses for working at home.”</p>
            <p>You may be eligible to deduct home office expenses if you worked from home due to Covid 19 in 2020 for more than 50% of the time, for at least four consecutive weeks. You can choose the temporary flat rate method to deduct $2 per day for a maximum of 200 days. You don't need to keep supporting documents to claim the $400 deduction.</p>

            <h4>How do I claim my employment expenses?</h4>
            <li> If your expenses incurred to earn salary or commission income:</li>
            <li class="listNumber">You will need Form T2200 (Declaration of Conditions of Employment) completed and signed by your employer.</li>
            <li class="listNumber"> You have to complete form T777 to deduct your expenses. Expenses may include:</li>
            <li class="subList"> Food (You can deduct 50% only)</li>
            <li class="subList"> Lodging expenses</li>
            <li class="subList"> Parking</li>
            <li class="subList"> Stationary and office supplies</li>
            <li class="subList"> Telecommunications</li>
            <li class="subList"> Office rent</li>
            <li class="subList"> Motor vehicle expenses (fuel, maintenance, insurance, licence fees, capital cost allowance, interest and leasing cost)</li>
            <li class="subList"> Home office expenses</li>

            <li class="listNumber">You can claim the amount on line 22900.
<p>(Refer to guide T4044 for more details, if you earn a commission, you can deduct other expenses also).</p></li>

            <li>If you are an apprentice mechanic or a tradesperson:</li>
            <li class="subList">You will need Form T2200 (Declaration of Conditions of Employment) completed and signed by your employer.</li>
            <li class="subList">You can deduct the cost of eligible tools on line 22900. <p>(Refer to guide T4044 for the amount).</p></li>
           
            <li>If you are an employee of a transport business, such as an airline, railway, bus or trucking company:</li>
            <li class="listNumber"> You can deduct board and lodging expenses using the TL2 form signed by the employer.</li>
            <li class="listNumber"> You can deduct 50% of the cost of meals if you drive a regular truck and 80% if you drive a long-haul truck.</li>
            <li class="listNumber"> You can calculate your expenses using the detailed method or the simplified method and claim it on line 22900.</li>
            <li class="subList"> For the detailed method, you should maintain a record book with the following information: The date and time the trip started and ended as well as the location. You should also keep proof of the payments (receipts from  restaurants or hotels).</li>
            <li class="subList">  For the simplified method, you should keep trip records to support the number of meals claimed and vouchers to support any lodging claimed. The flat rate is $17 per meal in Canada and $34 in the USA, up to 3 meals per day.
            <p>(Refer to <a href="https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/t4044/employment-expenses.html" target="_blank">guide T4044</a> for more details).
            </p></li>

            <li>If you are an employed artist:</li>
            <li class="subList">You will need Form T2200 (Declaration of Conditions of Employment) completed and signed by your employer.</li>
            <li class="subList">You can deduct the cost of musical instruments on line 22900. That includes maintenance costs, rental fees and insurance costs.
            
            <p>(Refer to guide T4044 for more details).</p></li>

            <li>If you are working in forestry operations:</li>
            <li class="subList">You will need Form T2200 (Declaration of Conditions of Employment) completed and signed by your employer.</li>
            <li class="subList">You can deduct the cost of a power saw and other expenses such as fuel and repairs on line 22900.
            <p>(Refer to guide T4044 for more details).</p></li>

            <li>If you are a member of the clergy, a regular minister or a member of a religious order:</li>
            <li class="subList">You can claim the clergy residence deduction on line 23100.</li>
            <li class="subList">You need to complete parts A & C of Form T1223, and your employer must complete part B.</li>
            <p>It’s important to know what work expenses can and cannot be deducted. At Softron Tax we can help you save the most of your income!</p>
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Employment Expenses For Taxes

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            <p>A principal residence is considered the primary residence, or main residence, that a person inhabits.</p>
            <p>A principal residence can be any of these types of housing units:</p>
            <li>House</li>
            <li>Cottage</li>
            <li>Condominium</li>
            <li>Apartment in an apartment building</li>
            <li>Apartment in a duplex</li>
            <li>Trailer, mobile home, or houseboat</li>
            <p></p>
            <img src='/images/blog-images/All about Principal Residence for Taxes 2.jpeg'></img>
            <p></p>
            <p>The housing unit will qualify as a principal residence if you own the property alone or jointly with another person. Furthermore, one principal residence can be designated as long as an individual, couple, or family lives there most of the time.</p>
            <p>You can have only one principal residence at a time. However, if you sell the principal residence and buy another, or move to another property that you own in the same year, you can use the plus one rule when calculating the principal residence exemption amount. The plus one rule allows you to claim the principal residence exemption for both properties for that year, even though you can only designate one property as your principal residence.</p>
            <p>Suppose you were not a resident of Canada through any tax year during which you owned the designated property. In that case, the principal residence exemption may be reduced or eliminated based on how long you were not a resident.</p>
            
            <h4>What is the principal residence exemption?</h4>
            <p>The principal residence exemption may reduce or eliminate your capital gain. For example, if the property was solely a principal residence, you do not have to pay tax on the capital gain every year that you owned it. However, if the property was not your principal residence at any time when you owned it, you may have to report all, or part, of the capital gain.</p>
            
            <h4>What do you need to do to get the principal residence exemption?</h4>
            <p>First, you will need to report the sale of your principal residence and make the designation. You can do this by filling out the Schedule 3 form when you file your income tax. You also have to file <a href="https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t2091ind.html" target="_blank">Form T2091</a> (IND), Designation of a Property as a Principal Residence by an Individual (other than a personal Trust), which includes specific information such as the address of the property sold, the date the property was purchased, and the amount you sold it for. You can submit Form T2091 electronically or by paper</p>
            <p>If you ticked box 1 at line 17900 of Schedule 3, you only need to complete the first page of this form. You do not need to report any gain amount on Schedule 3 for this property</p>
            
            
            <h4>What happens if you don't report the sale?</h4>
            <p>If you forget to report the sale of your principal residence or don't make the designation, you need to contact the person or organization who filed the taxes and amend your income tax the year you sell the principal residence. In certain circumstances, if you are late in designation, you may have to pay a penalty.
            Your principal residence offers you shelter from taxes as well!  If you sell your principal residence, ensure that you know the exemption rules to lower your taxes on capital gain.</p>
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All about Principal Residences

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            <p>Softron has corporate clients from coast to coast and we are often asked about the pros and cons between salary and dividend. If you own a business through a corporation, you can pay yourself a salary, dividends, or a combination of both. Shareholders rely on drawings through the corporation to meet living expenses.</p>
            
            <h4>Should I pay myself a salary or dividend?</h4>
            <p><b>Salary-</b> A salary is a personal income to shareholders. A salary with Canada Pension Plan contributions (the corporation’s share) is deducted from the corporation’s total income, reducing taxable income and corresponding income-tax payable. When a salary flows to an individual, it is taxable at a higher rate than dividend. A salary to a shareholder employee must coincide with the kind of work performed. It can be paid to other family members (e.g., spouse, child etc.) who do not need to be shareholders. A corporation must pay income-tax deducted at source and CPP (both portions as employer and employee) within 15 days of month ending. At the year-end, the corporation must issue a T4. If a business has to apply for a mortgage or a line of credit, salary is a better option. Employees will also develop an RRSP limit, 18 % of earnings.</p>
            <p>Child care expenses can be deducted against salary, but not against dividend income, as dividend is treated as passive income. If a corporation’s active business income is more than the small business deduction (i.e., $ 500,000), it is always advisable to pay a salary. Payment of salary does not require retained earnings in a corporation and therefore the corporation can incur loss after deducting a salary as an expense.</p>
            
            <p><b>Dividend-</b> As long as the corporation has a surplus (i.e., positive retained earnings), dividends can be distributed in lump sum or at varying intervals before the end of the corporation’s tax year.</p>
            <p>Dividend is investment income. It is paid out of after tax profits of a corporation and hence, the corporation has no tax advantage. When it flows through  the corporation to an individual, it is taxed at a lower rate than a salary. This is because the same income cannot be taxed twice. Hence, even after the grossing up of dividends, dividend tax credit is allowed on a personal tax return and this reduces an individual’s tax liability. If dividend up to $ 29,000 is declared and distributed, personal tax liability will be zero. The assumption is that this is the only source of income. One has to pay only Ontario Health Premium, as income more than $20,000 is taxable. One  must be a shareholder to receive a dividend. A corporation will issue a T5 slip to shareholders by Feb. 28th of the next year. No income-tax is withheld at source and hence, individuals may have to pay instalments next year, if tax liability in the year of distribution is more than $3,000.</p>
            
            <h4>Example</h4>
            
            <p><b>Salary-</b> If a corporation pays a salary of $58,700  against an active business income of $100,000, it will owe $5,760 towards income-tax and $2,898 as CPP contribution (Employer’s share). On the other hand, a shareholder employee will pay $9,888 as personal tax and $2,898 as CPP contribution (Employee’s share).</p>
            <p><b>Dividend-</b> A corporation will pay tax at 15% on active business income = $100,000 = $15,000. Shareholders will pay personal tax = $5,171 on dividend distribution of  $58,700.</p>
            <p>Salary or dividend?  Choose which works best for your personal situation!</p>
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Dividend Versus Salary

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            <p>Owning rental property provides income and allows deductions that you can claim on your tax return. These deductions include expenses, such as homeowner's insurance, property taxes, maintenance fees, advertising, mortgage interest, utility costs, and property management fees.</p>
            <p>You may also qualify for capital cost allowance or CCA, which is depreciation that you can claim on your tax return. The Canada Revenue Agency has specific requirements for claiming <a href="https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/rental-income/capital-cost-allowance-rental-property.html" target="_blank">CCA on Rental Property.</a></p>
            <p>Depreciable property is subject to wear out or may become obsolete over time, and hence, you can deduct their cost over a period of several years.Due to this, you can claim CCA against depreciable rental property (e.g., real estate, computers, machinery, and office equipment).</p>
            <p>While renting a house or a condominium, you can write off the capital cost of the property; this includes the purchase price, the legal fees associated with the purchase, and any incurred cost of equipment and furniture.</p>
            <p>For tax purposes, depreciable properties are grouped into various classes. Therefore, to establish the CCA amount you can claim, you must first determine the rate applicable to each class.</p>
            <p><b>For example,</b> a 4% deduction rate applies to depreciable property in class 1, including most buildings occupied after 1987. However, the same type of property can belong to a different class, so check each class carefully before categorizing it.</p>
            <p><b>For example,</b> most buildings occupied before 1988 belong to class 3.</p>
            <p>The complete list of <a href="https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/report-business-income-expenses/claiming-capital-cost-allowance/classes.html" target="_blank">depreciable property classes</a> is posted on the CRA's website.</p>
    
             <h4>CCA Calculation Method</h4>
            <p>Your CCA is based on the type of rental property and when you rented it. To determine the amount, you may use the "declining balance method." In this case, your CCA amount is based on any depreciation (CCA) claimed in prior years subtracted from the capital cost of the property. As you claim the CCA  in subsequent years, your remaining balance declines. You can claim any amount of your allowance for the year, subject to the maximum. For this reason, you may want to hold off on claiming your CCA in a particular year where you don’t owe taxes, since taking the allowance lowers the amount you're entitled to in upcoming years.</p>
            
            <h4>Selling a Property</h4>
            <p>Selling the property may result in a "recapture" of your CCA. You would add this recaptured amount to your taxable income when preparing your tax return. Recapture may happen if the proceeds from the sale exceed the remaining undepreciated capital cost upon selling the property. </p>
            <p>Alternatively, the deduction from your income may result in a “terminal loss”.  Terminal loss is when you don't have any depreciable property in the class at the end of the year, but still have an outstanding CCA amount that you have not claimed.</p>
            <p>Upon sale, any profit you earned on the rental property over and above your initial cost will be treated as a capital gain. Capital gains are taxed at 50%, whereas recapture is 100% taxable</p>
            
            <h4>Taxes and Rental Losses</h4>
            <p>If your rental expenses exceed your gross rental income, you have incurred a loss. You may be able to deduct your rental loss from other sources of income, but you cannot use CCA to increase or produce a rental loss. For example, you own two rental properties. The net income for one property is $3,000, while the other property yielded a loss of $5,000. Therefore, you suffered a loss of $2,000. 
            You cannot claim any CCA on your rental buildings or equipment, because you cannot increase your net rental loss by claiming CCA.
            </p>

            <h4>Know the Effects</h4>
            <p>There are pros and cons to taking CCA. On the upside, the allowance lowers your taxable income, which ultimately reduces your tax liability. On the downside, all prior CCA claims are recaptured and treated as taxable income when you sell the property, which will then increase your tax liability. The decision as to whether to claim CCA should be discussed with a professional.</p>
            <p>Feeling overwhelmed?  Consider coming into the Softron Tax office and have one of our tax experts complete your return from start to finish!</p>
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Investment property - Rental

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            <h2> 
            Definition: </h2>
            <p>Assets that last longer or are held for a longer period, such as stocks, machines and buildings, are called capital assets. When you sell your capital asset, there will either be a capital loss or a capital gain. Let's hope it's a gain! Capital gain occurs when a taxpayer sells assets for more than their cost, and a capital loss occurs when they are sold for less than their cost. It is important to report capital assets as they affect your tax calculations. There are many different types of capital assets such as stocks, bonds, mutual funds, and ETFs held in non-registered investment accounts. There might be other types of capital assets held outside of a financial institution such as an investment or rental property. </p>
         
           <h4>Tax treatments:</h4>
            <p>Capital gains are subject to tax treatment that is different, and more favourable, than the treatment of other types of income. Only a portion of capital gain is taxable; the inclusion rate or taxable rate is 50% for 2021, and has been 50% for many years now. Capital gains are reported on the tax return when they are realized.</p>
            <p>The destructibility of capital losses are subject to numerous restrictions. Capital losses are deductible only against capital gains. Allowable capital losses (after inclusion rate) can be carried forward indefinitely, and carried back for three years.</p>
            <p>Capital gain realized on the disposition of a principal residence is neither taxable nor is any loss deductible.</p>
            <p><b>Example:</b> Tim bought 100 shares of Bank of Montreal at $25 per share in 2010 for a total of $2,500. He sold all of his BMO shares in 2021 at $150 per share for a total of $15,000. His profit ( i.e., capital gains) from the sale is $12,500. Tim’s taxable gains would then be $6,250 (½ the inclusion rate of $12,500 capital gains in 2021).</p>
            <p>Everyone will pay a different amount in personal income tax for their taxable gains. Their tax owing will depend on what other types of income they have for the year, and what tax bracket they fall under.</p>
            
            <h4>Tax optimization:</h4>
            <p>If you have made smart investment decisions don’t be worried about your tax bill from the capital gains. There are many optimization opportunities for you to manage the tax bill, such as contributing into your RRSP. Read our blog on RRSPs for more information. Another method of optimizing your tax on capital gains would be to crystallize your capital losses by selling your underperforming stocks (investments), that are trading below their original cost.</p>
            <p><b>Example:</b> Tim has other sources of income for the year in the amount of $150,000 and he is concerned that he will pay most of his profits in taxes from the sale of his BMO shares. In order to offset the gains, Tim decides to sell some of his underperforming stocks that he purchased for $15,000 and are currently worth $2,500. By selling the shares, he creates a $12,500 capital loss, and for tax purposes, an allowable loss of $6,250 ( ½ the inclusion rate of $12,500 capital loss * in 2021). Tim can offset all his capital gains with his capital losses.</p>
            <p>Talk to your financial advisor or Softron to see if you can benefit from capital losses. And don’t forget that you would need to sell your underperforming stocks before the year end!</p>
            
            
            
             <h4>Limitation of crystallizing your losses:</h4>
            <p>When selling your underperforming stocks,  be aware of the CRA’s tax avoidance rule called “superficial loss rules”. When you sell and trigger a capital loss, you cannot repurchase the identical security within 30 days of selling it. For example, you cannot deduct the capital loss if you sold the securities on December 20th, and immediately repurchased  them on January 5th of the following year. The CRA will consider that the purpose of this transaction was to create a capital loss for the benefit of saving income tax, and therefore it will not accept the sale.</p>
            <p>Circumstances and situations will vary from individual to individual. As the saying goes, one size doesn’t fit all! It is very important to contact your Softron advisor, or your nearest Softron office, for a consultation to see if you can benefit from crystallizing your capital losses. </p>
            <p><b>Note:</b> There are no capital gains or capital losses for registered accounts such as TFSAs, and RRSPs. These are tax sheltered accounts and have different tax treatments than non-registered accounts held at a financial institution, or an investment firm like Questrade.</p>           
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Capital Gains/Capital Losses

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            <h2> 
            Cryptocurrencies: </h2>
            <p>Cryptocurrencies are a type of digital currency created using computer algorithms. There are many cryptocurrencies, the most popular being Bitcoin.
            </p><p>Digital currency is electronic money. It is not available as bills or coins.
            </p><p>No single organization, such as a central bank, creates digital currencies. Digital currencies are based on a decentralized, peer-to-peer (P2P) network. The “peers” in this network are the people that take part in digital currency transactions, and their computers make up the network.
            </p>
            <h4>Do tax rules apply to cryptocurrency?</h4>
            <p>You bet, tax rules apply to digital currency transactions, including those made with cryptocurrencies! This means that digital currencies are subject to income tax under the Income Tax Act.</p>
    
           <h4> Basic concepts</h4>
            <p>The CRA generally treats cryptocurrency like a commodity for purposes of the Income Tax Act. Any income from transactions involving cryptocurrency is generally treated as business income, or as a capital gain, depending on the circumstance. Similarly, if earnings qualify as business income or as a capital gain, then any losses are treated as business losses or capital losses.
            </p><p>Before we can get to profit or losses, we need to understand the treatment of purchase and sale under the Income Tax Act.
            </p>
            <p></p>
            <h4>What is a disposition?</h4>
            <p>This refers to the way you get rid of something, such as gifting, selling or transferring. In general, possessing or holding a cryptocurrency is not taxable. But there could be tax consequences when you do any of the following: 
            </p>
    
            <li>Sell or make a gift of cryptocurrency</li>
            <li>Trade or exchange cryptocurrency, including disposing of one cryptocurrency to acquire another cryptocurrency</li>
            <li>Convert cryptocurrency to government-issued currency, such as Canadian dollars </li>
            <li>Use cryptocurrency to buy goods or services </li>
            <p></p>
            <h4>Capital Gains/Losses</h4>
            <p>The income you get from disposing of cryptocurrency may be considered business income or a capital gain. For the purposes of this blog we are only discussing capital gains. For more information on business income from disposition of cryptocurrency, <a href="https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/compliance/digital-currency/cryptocurrency-guide.html" target="_blank">click here</a>.
            </p><p>Capital gains from the sale of cryptocurrency are generally included in income for the year, but only half of the capital gain is subject to tax. This is called the taxable capital gain. Any capital losses resulting from the sale can only be offset against capital gains; you cannot use them to reduce income from other sources (such as employment income). You can carry forward your capital losses if you do not have any capital gains against which to offset those losses for the year, or any of the preceding three years.
             </p>
            <p><b>Example:</b> John was encouraged by friends to buy cryptocurrency as the next big thing to invest in. He decided to buy $1,000 worth of Bitcoin in 2018. In 2021 John found Bitcoin prices to be favourable and decided to convert his remaining Bitcoins back into Canadian dollars. The value of John's coins had increased by $1,000. John realized a profit of $1,000 on his purchase and sale of Bitcoins, and for tax purposes his taxable capital gains will be $500.
            </p>


           <h4> Trading cryptocurrency for another type of cryptocurrency</h4>
            <p>Generally, when you dispose of one type of cryptocurrency to acquire another cryptocurrency, the barter transaction rules apply. You have to convert the value of the cryptocurrency you received into Canadian dollars. This transaction is considered a disposition and you must report it on your income tax return.
            </p><p><b>Example:</b> On July 30, 2018, James bought 100 units of Ethereum, which had a value of $20,600. For this purchase, James exchanged his 2.5061 Bitcoins, which were trading at $8,220 per unit on that day. For tax purposes the CRA considers this a disposition of James’ Bitcoins. James originally bought those Bitcoins for $15,000 and exchanged them for 100 units of Ethereum, at a value of $20,600, resulting in a capital gain.
            </p><p>It is calculated as follows:</p>
            <li>$20,600 (fair market value of 2.5061 Bitcoins, at the time of transaction)
            </li>
            <li><b>Less:</b> $15,000 (adjusted cost base of 2.5061 Bitcoins, their original purchase price)</li>
            <li> $5,600 capital gain
            </li>
            <li>$5,600 capital gain taxed at 50% = $2,800 taxable capital gain
            </li>
            <p></p>
            <p><b>Example:</b> If, on the other hand, the original purchase price of the 2.5061 Bitcoins had  been $25,000, and at the time  James exchanged them for 100 units of Ethereum they were only worth $20,600, he would have a capital loss. It is calculated as follows:</p>

            <li>$20,600 (fair market value of 2.5061 Bitcoins, at the time of transaction)</li>
            <li> <b>Less:</b> $25,000 (adjusted cost base of 2.5061 Bitcoins, their original purchase price)
            </li>
            <li>$4,400 capital loss</li>
            <li>$4,400 capital loss × 50% = $2,200 allowable capital loss</li>
            <p></p>
            <p>
            Cryptocurrency is the future of finance!  At Softron Tax we can assist you with the tax rules of this innovative currency!   
                </p>
            </div>
            <div>

Cryptocurrencies

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            <div class="blog-text">
            <h2> 
            Did you know that Bed & Breakfast income may be considered business income, as opposed to rental income? 
            </h2>
            <p>You can deduct expenses which are necessary and customary for your B & B business including costs for cleaning, guest meals, cutlery, linens, utilities, dishes, maintenance, insurance premiums etc.</p>
            <p>If you are operating a Bed & Breakfast with an income of more than $30,000 for the last four calendar quarters,  you would need to register for the GST/HST number. You must also register if your taxable revenues at any time in a single calendar quarter are more than $30,000.</p>
                    
            <h4>If you are a registrant, you must collect the GST/HST in your B & B operation on amounts charged for the following taxable sales:</h4>
            <li>Accommodation of less than one month</li>
            <li>Prepared meals and  other food and beverages</li>
            <li>Parking</li>
            <p></p>

            <h4>There is a special rule for collecting HST for Bed & Breakfast businesses.</h4>
            <p>If you provide accommodation and a meal  for a single price of more than $20 per day, you must collect the GST/HST on the entire amount.  This holds true even if you consider the accommodation portion to be $20 or less. For example, if you charge a single price of $22 of which $15 is for accommodation and $7 is for breakfast, you must collect the GST/HST on the single price of $22.
            </p><p>
            The $20 threshold is based on the per room charge, not the charge per person. Therefore if you split a room rental charge that is more than $20 per day by invoicing separately, and each  individual sharing the room is not billed more than $20, you  are not relieved of the GST/HST charge. For example, if three individuals are each charged $15 for shared accommodation in a single  room, you must charge and collect the GST/HST on each of the $15 charges. On the other hand, if you are providing a non-exclusive use of a room (such as typical dormitory-type hostel accommodation) with  a "per occupancy charge" (as opposed to a "per room charge”),  you do not charge the GST/HST if your price, including meals, is $20 per day or less.
              </p><p>     
            If the total price for accommodation and a meal, or accommodation only (no meal provided) is $20 per day or less, you do not need to charge or collect GST/HST.
            </p>
            <p>
            Running a B & B will be a breeze when you realize your tax responsibilities!   
                </p>
            </div>
            <div>

Operating a Bed & Breakfast in your Home

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            <div class="blog-text">
            <h2>Do you have to pay tax on Airbnb income in Canada?</h2>
            <p>If you own any registered Airbnb properties, you must  report earnings and expenses for the year. All Canadians are required to report Airbnb income to the CRA. Accommodation sharing income, must  be reported for tax purposes.
            </p><p>
            In Canada, most Airbnb income qualifies as rental income. Rental income is money earned from renting out property (partly or fully) that you own or use for even a very short period, (e.g., 2 days/nights).
            You can deduct any reasonable rental expenses incurred to earn rental income. Make sure to keep a detailed record  that supports the expenses incurred to earn rental income, as the CRA will want to verify the income/expenses in the event of an audit.
            </p>
                    
            <h4>Categories of expenses you can claim</h4>
            <li>Advertising/marketing costs</li>
            <li>Bed sheets</li>
            <li>Gift items such as books, snacks, bottle of wine</li>
            <li>A new lock and key</li>
            <li>Kitchen items such as cups, plates, cutlery</li>
            <li>Locks for personal items</li>
            <li>Cleaning services</li>
            <li>Maintenance costs</li>
            <li>Interest on mortgage/line of credit (principal payments are not allowed)
            </li>
            <li>Home insurance</li>
            <li>Property tax</li>
            <li>Electricity/gas, water bills</li>
            <li>Statutory fees like licence fees paid to your local govt</li>
            <li>Condominium maintenance fees (if the Airbnb is Condominium unit)</li>
            <li>Referral fees</li>
            <p></p>
            These are all called Current Expenses to be written-off on an accrual basis.
            <p>You can write-off Capital Expenses (e.g., cost of buying a cooking range, refrigerator, washing machine etc.). This, however, is required to be spread over the life of that asset and based on capital cost allowance rates prescribed by the Canada Revenue Agency.</p>

            <p>Expenses you can claim will vary depending on whether you rent out your entire home or only part of it. You can only claim outlays related to the share of your home for the nights that you rented out.
                </p>
                    <p>        <b>Expenses</b>- Current and Capital must  be written-off in a pro-rata manner (e.g., if you rent for 2 months, expenses have to be divided as 2/12 = 16.67%). Again, Airbnb portion is 50% (i.e., If your total area is 2,000 sq.ft, and the rental portion is 1,000 sq.ft., you can write-off 50% of 16.67% = 8.33% of total expenses).
                        </p> Airbnb income is declared on <b>Line 12600</b>. Fill-up form <a href="https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t776.html" target="_blank">T776</a> to declare income and expenses as passive income.
                            
                            Once partly or fully rented out as Airbnb, your home is considered  as ‘change in use of property’ and the Canada Revenue Agency must be informed.
                        </p><p> If you  provide additional services such as meals, security, and cleaning, it may be considered as business income - <b>Line 13500</b>, Form <a href="https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t2125.html" target="_blank">T2125</a>. Also, if  you have more than one property as Airbnb, it can be classified under business.
                            </p>

                <h4>Do you need to charge GST/HST as an Airbnb host?</h4>

                <p>If you rent your home on a short-term basis (i.e., less than 30 continuous days), income is subject to GST/HST. Long-term residential rents are exempt. Also, if your income through short-term rental exceeds $30,000 in four consecutive quarters, you are required to register for GST/HST. The same applies to a situation where your income is treated as business income. You can claim GST/HST on expenses (e.g., advertising, referral fees etc.) and pay GST/HST on a net basis.
                If you have not  registered for GST/HST, your Airbnb is required to collect GST/HST from guests. If you are a GST/HST registrant, however, you are responsible to collect and remit GST/HST.
                Knowing all the tax rules are key, to help make the most of your Airbnb! 
                </p>
            </div>
            <div>

Taxes for Airbnb in Canada


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            <div class="blog-text">
            <h2>Want to begin saving for your child's future education endeavours?</h2><h4> Learn about starting their RESP now! 
            </h4><p>
                        An RESP is a registered savings account that allows savings for education, after high school, to grow tax-free. If you qualify, an RESP could also gain government money through the Canada Education Savings Grant (CESG) and the Canada Learning Bond (CLB). This plan helps your family to save early for a child’s education after high school. 
                     </p><p> It's a contract between an individual (other than a trust) who is the subscriber, and a person or organization, who is the promoter. The subscriber (or a person on behalf of the subscriber) makes contributions to the RESP, which then earns income. In return, the promoter of the plan agrees to pay the income as educational assistance payments to one or more beneficiaries designated in the contract. 
                       </p> 
                        <p>There is no annual limit for contributions to an RESP. The lifetime limit is $50,000. In the case of oversubscription, there will be a penalty at 1% per month and a risk of the registration getting cancelled.
                        </p>
                        Anyone can open an RESP account, e.g., parents, grandparents, friends, other relatives, and guardians.
                       <p> 
                        Contributions can be made for 31 years after the year in which the plan is initiated.
                        </p>
                        <p>An RESP does not reduce the amount eligible for <a href="https://www.ontario.ca/page/osap-ontario-student-assistance-program" target="_blank">OSAP</a>.  (Ontario Student Loan)
                        </p>
                       <p> <b>Note:</b> RESP contributions are not tax-deductible from the subscriber's income. On the withdrawal by the student (i.e., the beneficiary) it is taxable income for them. However, as students do not usually have high amounts of income while studying, it is often tax-free income.
                       </p>
                    
            <h4>Canada Education Savings Grant (CESG)</h4>		
            <p>This grant from the Government of Canada was introduced in 1998, and can help you start saving for your child's education after high school. Your child can use the money for full-time or part-time studies in an apprenticeship program, CEGEP, trade school, college or university. 
            
            It has a lifetime limit of $7,200. 
            </p>
            <p>A CESG is available up until the end of the calendar year in which the beneficiary turns 17.
            </p>
            <p>A CESG is based on contributions made to an RESP in respect of an eligible beneficiary and is comprised of two components:</p>
            <li>Basic CESG</li>
            <li class="subList">20% on the first $2,500 annual contributions = $500. (all income levels)</li>
            <li>Additional CESG</li>
             <li class="subList">20% on the first $500 annual contribution (income less than $48,536) = $100</li>
              <li class="subList">10% on the first $500 annual contribution (income between $48,536 & $97,069) = $50</li>
              <p></p>
             <h4>Canada Learning Bond (CLB)</h4>
             <p>A Canada Learning Bond (CLB) is money that the Government of Canada adds to a Registered Education Savings Plan (RESP) for children from low-income families. 
            
            A child having no RESP account is also eligible to receive a CLB.
            </p><p>
            Maximum CLB = $2,000. If a family receives a national child benefit, the initial payment = $500. Thereafter, an annual payment of $100 per year up to age 15.
            
            A CESG and a CLB do not become payable to non-resident beneficiaries.
            </p>
            <p>
            Your child will thank you tomorrow for the education savings plan you created today!
            </p>
            <p>
            For more information on CESGs and CLBs, please visit: <a href="https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/registered-education-savings-plans-resps/canada-education-savings-programs-cesp.html" target="_blank"> Learn More</a>
            </p>
            </div>
            <div>
           

Registered Education Savings Plan (RESP)

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                <h2>UNDERSTANDING YOUR RRSP CONTRIBUTION LIMIT</h2>
                    <p>Did you know that contributing to your RRSP can be claimed as a deduction on your tax return? There is, however, a limit on the amount you can contribute in the current year! </p>
                    
                <h4>How Do I Know My Contribution Limit?</h4>
                <p>The amount a person can contribute to their RRSP is based on their contribution limit. This RRSP deduction limit is reported each year at the bottom of your Notice of Assessment by the Canada Revenue Agency. Contribution limits are available online in <i>My Account and Represent a client<i>. The CRA has established a ceiling on the annual RRSP deduction limit, called the “annual dollar limit”. The CRA usually  revises this annual dollar limit. The annual maximum contribution rates will be indexed to reflect increases in the average wage growth. 
                </p>
                <p>To find out what your RRSP deduction limit is this year,  check out this  article by the CRA: <a href="https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/contributing-a-rrsp-prpp/contributions-affect-your-rrsp-prpp-deduction-limit.html#whtddctnlmt" target="_blank">Read More</a></p>
                <p> Now that you know your RRSP contribution amount is based on  a contribution limit; what is your contribution limit based on?</p>
                
                <h4>Definition-Earned Income for RRSP Purposes </h4>
                <p>The RRSP limit for a given year depends on "earned income" from the previous year. This earned income amount comes from the amount you reported on your previous year’s tax return. Generally, this includes active income such as employment earnings and business income, but it does not include most types of passive income (e.g.,  interest, dividends, and capital gains etc.).</p>
                <p>The following types of income qualify as earned income:</p>
                <li>Salaries and wages, net of employment expenses claimed, RPPs</li>
                <li>Research grants</li>
                <li>Net income from self-employment</li>
                <li>Royalties for work or inventions that the taxpayer authored</li>
                <li>Net rental income from real estate property</li>
                <li>Alimony and maintenances received</li>
                <li>Foreign employment income</li><br>
                <p></p>
                <p>Your earned income can also be reduced by the following items:</p>
                <li>Current year's business loss</li>
                <li>Current year’s rental loss</li>
                <li>Alimony and support paid</li><br>
                <p></p>
                <p>As stated, passive income does not qualify as earned income when calculating your RRSP contribution limit. This includes: </p>
                <li>Investment income</li>
                <li>Taxable capital gains</li>
                <li>Death benefits</li>
                <li>Scholarships and bursaries</li>
                <li>Employment insurance benefits</li>
                <p></p>
                <p><b>Note:</b> CPP/QPP disability is considered to be earned income. Any disability payments received under a plan, established by an employer or former employer, will be included in employment income (unless an employee contributed to the plan). If such benefits are included in employment income, they will then be included in the calculation of earned income for tax purposes. If such benefits are not taxable, they will not be included in the calculation of earned income.</p>
                <div class="footer" style="text-align: center; size: 10px; margin-top: 40px;">
                    <b>When you stay within your contribution limit, the sky’s the limit!
                </b>.
                </div>
                </div>
                <div>

RRSP - RRSP Contribution Limit

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            <div class="blog-text">
               <h2>Are you working in Canada but also want to learn something on the side?</h2><h4> Well thank your “learning” stars!  A new refundable credit started in 2019  to help  relieve those costs!</h4>
               <p>
               Effective from the 2020 and later taxation years, the Canada Training Credit is a refundable credit available to alleviate training and tuition fees for eligible individuals (those who have either employment or business income).  Half of tuition fees associated with training, qualify to be covered. 
               </p>
             
            <h4>How to Qualify?
            </h4>
            <p>Eligible individuals may accumulate $250 each year in their account to cover educational costs up to a lifetime limit of $5,000. To qualify for the <a href="https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/federal-government-budgets/budget-2019-investing-middle-class/canada-training-credit.html" target="_blank">Canada Training Credit</a> (CTC), a Canadian resident must be at least 25 years of age,  less than 65 years of age, and must file a tax return. They must also have employment or business income in the preceding taxation year of $10,000 or more up to approx. $150,000. The CTC will expire at the end of the year when the individual turns 65.</p>
            
            <h4>Where do I find my eligible CTC limit?</h4>
            <p>For 2020, your limit will appear on your 2019 notice of assessment. You can also access the limit through <i>CRA <a href="https://www.canada.ca/en/revenue-agency/services/e-services/e-services-individuals/account-individuals.html" target="_blank">MyAccount</a></i>. Each year, the CRA will let you know the limit through your notice of assessment.</p>
            <h4>How much credit can be claimed? </h4>
            <p>The amount of refundable credit that can be claimed in a taxation year is equal to the lesser of either one half of the eligible tuition and fees paid in respect of the year, or the individual’s credit limit for that tax year.
            </p><p>           For purposes of this credit, tuition and fees do not include those  paid to educational institutions outside of Canada. The refundable Canada training credit reduces the amount that qualifies as an eligible expense for the tuition tax credit on <a href="https://www.canada.ca/en/revenue-agency/services/forms-publications/tax-packages-years/general-income-tax-benefit-package/5000-s11.html" target="_blank">Schedule 11</a>. The annual accumulation in the notional account began in 2019 and the first credit can be claimed for the 2020 taxation year.
           </p> 
            <h4>Where do I enter this credit?</h4>
            <p>It will be entered on <b>Line 45350</b> of T1 return for individuals.</p>
            
            <h4>Ontario Jobs Training Tax Credit</h4>
            <p>The <a href="https://www.ontario.ca/page/ontario-jobs-training-tax-credit" target="_blank">Ontario Jobs Training Tax</a> Credit is only for 2021;  This is a refundable credit that helps workers get training that may be needed:for a career shift, for re-training, and/or to sharpen their skills.
            If they qualify for the Federal Canada Training Tax Credit, credit up to $2,000 in relief for  50% of eligible tuition fees, is provided.
            </p>
            <p>With the Canada Training Credit, you can earn an income and learn something new along the way!</p>
            
            </div>
            <div>

What is the Canada Training Credit?

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            <div class="blog-text">
               <h2>What if you have business income and you don't know about it?</h2>
               <p>Auto salespersons, construction contractors, cleaning businesses, and Uber drivers are all considered business owners. Therefore, CRA deems you a business owner if you earn income from any of those activities.</p>
               
             
            <h4> What if I only earn a little, do I need to report that income?
            </h4>
            <p>Even if you earn a little bit of money, any income is considered the same - every penny earned must be reported! If you ran your business for a short period and didn't continue, you still have business income for that year. In CRA's eyes, you are still considered a business owner even after deducting all your expenses from your income and without any profit to show.</p>
            <h4>If I earn income, do I have to register my business?</h4>
            <p>You are not required to register your business, and no business number is needed unless you are running a corporation. Most self-employed people run their business under their name as the business name. In all Canadian provinces and territories, any self-employed business is considered to be operating as a sole proprietorship.</p>
            <h4>Where do I report business income? Do I need to file a separate return?</h4>
            <p>No, you do not need to file a separate return. Like all income, you have to declare your business income on your personal income tax return. In addition, any income from your business activity, even the smallest amount, must be reported on the self-employment section of your return, using <b><a href="https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t2125.html" target="_blank">Form T2125</a> – Statement of Business or Professional Activities</b>.
            </p><p>Net business income is reported on <b>Line 13500</b> of the income tax return-<b>T1 Return</b></p>
             <h4>What should I keep track of?
            </h4>
            <p>Keep a copy of all invoices received along with any cash totals from your business. Gross income is your total income before you deduct any expenses, including those related to the goods sold. Your income records must include the date, amount, and source of the income. </p>
            <p>Supporting all income entries with original documents will include:</p>
            <li>Sales invoices</li>
            <li>Cash register tapes</li>
            <li>Receipts</li>
            <li>Bank deposit slips/bank statements</li>
            <li>Fee statements</li>
            <li>Contracts</li>
            <p></p>
            <p><b>Direct cost</b> - For many businesses, there is a direct cost to making a sale. This is also known as the cost of goods sold (COGS). For example, selling your product for $50 may have required you to buy $10 in materials and spend $20 in labour. Without spending that $30 you would not have had a product to sell. So the resulting gross profit in this example is $20.
            </p>
            <p><b>Business Expenses</b> - All businesses have operating costs that they must pay for regardless of selling any goods or services. Things such as advertising, office expenses, rent or insurance have no direct tie to your business income; these are what we call fixed expenses. So even if you earned zero income, you still have to bear these costs.
            </p>

            <p>As there is no actual sale happening, you can request the CRA to defer payment of tax until the property is finally disposed of. The CRA will require a satisfactory security deposit to allow this deferment.- <a href="https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t1244.html" target="_blank">Form T1244</a>.</p>

            <h4>Expenses- Record Keeping</h4>
            <p>Always get receipts when you purchase anything for the business. The receipts have to show the following:</p>
            <li>The date of the purchase</li>
            <li>The name and address of the seller or supplier</li>
            <li>The name and address of the buyer</li>
            <li>The full description of the goods or services</li>
            <li>The vendor's business number if they are a GST/HST registrant</li>
            <p></p>
            <h4>Important : What Type of Expenses Can You Claim?</h4>
            <p>The general rule is that you can claim any expense as long as it's related to earning income for your business. Keep all documentation to support the claim. If you have any doubt, check the <a href="https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/business-expenses.html" target="_blank">CRA website</a> for guidance. </p>
            <h4>Business Operating Expenses</h4>
            <p>Every business has its own needs that influence how you spend money to make money. If your revenue depends on the goodwill of your clients, you might buy them lunch or gifts to keep these relationships active.</p>
            <li>Expenses such as these are allowable when it’s a reasonable business practice – such as standard office expenses: stationery, file folders, staples, pens, and markers can be claimed</li>
            <li>The CRA allows you to claim only  <a href="https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/sole-proprietorships-partnerships/report-business-income-expenses/completing-form-t2125/line-8523-meals-entertainment-allowable-part-only.html" target="_blank">50 percent</a> for meals and entertainment</li>
            <p></p><p>If your business depends on delivery vehicles: fuel, parking, insurance, and repairs are reasonable expenses.
            Lawyers, accountants, and professional fees can be claimed as these costs are considered business expenses.
            </p>

            <h4>Home Office Expenses</h4>
            <p>A home office can be claimed as business use if you use the space to only earn business income and meet clients regularly. If you have an office at your shop or store and bring work home, the CRA will not allow you to claim your home office space.</p>
            <li>  You must  calculate the percentage of your home space used as your home office</li>
            <p></p><p>Use the business percentage to claim related home expenses, such as mortgage interest or rent, property tax, utilities (hydro, electricity, & water), and home insurance.</p>

            <h4>Capital Property</h4>
            <p>Business income and expenses are reported using an accrual method of accounting (i.e., reported  in the year they are earned/incurred), even though they are not received.
            Business income and expenses are generally reported on a calendar year basis.
            </p>

            <h4>I am self- employed- Can I apply for EI?</h4>
            <p>Self-employed people can now register with Service Canada to be eligible to receive Employment Insurance and special benefits such as maternity, parental, sickness and compassionate care benefits.</p>

            <h4>Instalment payments</h4>
            <p>The Canada Revenue Agency sends an instalment reminder every year. If instalments are not paid on specified dates (i.e., 15th of March, June, September and December), interest and penalty becomes payable.</p>

            <h4>Canada Pension Plan</h4>
            <p>If your net self-employment income is more than $3,500, you will have to contribute to the Canada Pension Plan (CPP).</p>

            <table>
            <tr>
                <th>Year</th>
                <th>Maximum Pensionable Earnings </th>
                <th>Rate </th>
                <th>Self- employed Maximum  CPP contribution</th>
            </tr>
            <tr>
                <td>2021</td>
                <td>$61,600</td>
                <td>10.90%</td>
                <td>$6,332.90</td>
            </tr>
            </table>
<p></p>
            <p>CPP is not paid separately. This becomes payable, on, or before, April 30th, 20xx. However, one can file a personal tax return on or before June 15th, 20xx without paying a late-filing penalty. </p>

            <h4>How do I pay the CRA?</h4>
            <p>For more information on payment to the CRA, please visit: <a href="https://www.canada.ca/en/revenue-agency/services/payments-cra/individual-payments/make-payment.html" target="_blank">Learn More</a>

            </div>
            <div>

 Self-employment for Tax Purposes

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               <h2> Have you found a new opportunity outside of Canada?  Will you be relocating soon?</h2>
               <p>  Don’t let tax troubles follow you to your new land! Read further for information on how to emigrate from Canada effortlessly. 
            </p><p>
            A Canadian resident who has left the country indefinitely to settle in another country, must declare worldwide income and pay taxes accordingly, before leaving.
             </p>  
             
            <h4> Emigrant:</h4>
            <p>If you leave the country and sever your residential ties (i.e., if  you sell your house and leave the country) you are considered an emigrant.
            </p>
            <h4>Final Taxes:</h4>
            <p>You  must file taxes for the year in which you leave the country. 
            </p>
            <h4>Deemed disposition:
            </h4>
            <p>If you own any properties in Canada (including shares, art work, jewelry etc.), you  must disclose these properties immediately at their fair market value at the time  of emigration even if they have not been sold. This is referred to as  <a href="https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/leaving-canada-emigrants.html" target="_blank">deemed disposition</a> .
            </p>

            <h4>Form T1161 - List of Properties by an Emigrant of Canada
            </h4>
            <p>If the value of the property is more than $25,000 at the time you leave the country, you must  complete the Form T1161, List of Properties by an Emigrant of Canada.  In addition to Form T1161, a list of all of your properties inside and outside of Canada must be  attached  to your tax return. 
            </p>
            <p>Click to download  <a href="https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t1161.html" target="_blank">Form T1161</a> from the CRA website.
            </p>
            <h4>Form T1243 - Deemed Disposition of Property by an Emigrant of Canada
            </h4>
            <p>Form T1243- Deemed Disposition of Property by an Emigrant of Canada- must be completed in order to report calculated capital gain and/or loss  on <a href="https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-12700-capital-gains/completing-schedule-3.html" target="_blank">Schedule 3</a> of the tax return.
            Fair market value of some of the properties may be difficult to estimate. Be sure to keep all supporting documents in  the event that the Canada Revenue Agency  requests to review the valuation.
            </p>
            <p>Click to download  <a href="https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t1243.html" target="_blank"> Form T1243</a> from the CRA website.
            </p>
            <p>As there is no actual sale happening, you can request the CRA to defer payment of tax until the property is finally disposed of. The CRA will require a satisfactory security deposit to allow this deferment.- <a href="https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t1244.html" target="_blank">Form T1244</a>.</p>

            <h4>The following are excluded from being taxed:</h4>
            <li>Any personal-use property that has a value of less than $10,000;  such as clothing, cars or household goods</li>
            <li>Registered retirement savings plans, registered retirement income funds, pooled registered pension plans, registered retirement income funds, registered education savings plans, registered disability savings plans, and tax-free savings accounts. You are not allowed to contribute to these types of investments, once you leave</li>
            <li>Real estate, when used exclusively as a principal residence, will not result in income-tax as it is tax-exempt</li>
            <li>A permanently established business in Canada, business property,  and any including inventory</li>

            <p></p>
            <h4>HBP/LLP:</h4>
            <p>Repayable balance becomes part of the income or alternatively, repays the balance to your RRSP.
            </p>
            <p>
            Settling your tax responsibilities will help you settle into your new country stress free!
            </p>

            </div>
            <div>

Emigrants -deemed disposition of property

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            <div class="blog-text">
            <h2>What happens when all or part of the property changes from a principal residence to a rental (or vice versa)?</h2>
            <p>When all or part of a property goes from a principal residence to a rental (or vice versa) it is called change in use of property. When this happens, the taxpayer is deemed to have disposed of the property at the fair market value. This results in capital gain, or loss, in the year the change in use occurs. As one does not receive proceeds of deemed disposition in that year, it is always advisable to file an election to defer paying income tax on capital gains until an actual sale happens.
                </p><h4>Principal Residence to Rental</h4>
                <p>When a property goes from a principal residence to a rental, there will be no capital gain because of the Principal Residence Exemption.
                </p><p>If you make a subsection 45(2) election, do  not make the mistake of claiming  depreciation,also known as capital cost allowance (CCA), on the property;  and you must report the net rental income on your tax return. You can designate the property as your principal residence for up to four years, even if you don’t stay there, but do not designate any other property (e.g., vacation home or cottage) as your principal residence during this time frame. In the future, if you decide to move back to that unit, there is no immediate tax consequence.
                </p><p>This election must be made in the year the change in use occurs.
                </p><p>For example, if you rented for 6 out of 17 years of ownership, you will be taxed on 16/17th of the capital gain, as [11 years (principal residence exemption) + 1 (to be allowed) + 4 years = 16].
                </p>
                <h4>Rental to Principal Residence</h4>
                <p>When a property goes from a rental to a principal residence, a disposition is deemed to have occurred. However, by filing a subsection  45(3) election, the taxpayer can postpone any gain until the actual disposition of the property. Any recapture, however, must be included as income in the year of change in use. It is important to note that no other house or unit can be designated as a principal residence for the years covered under the election. For example, if a person moves out of the house and then starts renting the house, the person will only benefit from an election if, later on, this person starts living in a rented apartment themselves instead of acquiring another property for personal use.
                </p><p>This election has to be made when the property, even though exempt, is finally sold. Deemed disposition must then be reported on the tax return.
                </p>
                <h4>Partial Change of Use</h4>
                <p>The taxpayer is deemed to have changed the use of the principal residence when that person starts renting out a portion of their residence, (e.g., the basement) or using it for business purposes. 
                </p>
                <p>There are no immediate tax consequences if:</p>
                <li>The rental/business use of the property is relatively small in relation to its use as a principal residence</li>
                <li>The taxpayer does not make any structural changes to the property to make it more suitable for the rental/business purposes</li>
                <li>The taxpayer does not deduct any capital cost allowance on the rental/business statement</li>
                <p></p>
                <p>Love where you live, live where you love and save the most while doing it!</p>        
            </div>
            <div>

Change in Use of Property

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            <h2>Could you use a little  extra money to help cover the taxes on the products and services you buy?</h2>
            <p> That's what the Goods & Services Tax Credit/ Harmonized Sales-Tax (GST/HST Credit) is for! 
                        </p><p>
                        The GSTC is designed especially for individuals and families with lower or modest income. It is based on family net income for the taxation year. It is normally paid in four equal instalments over the year; in July, October, January and April (normally  due on the  5th of the respective month) However, if the amount is less than $50 per quarter, the CRA will make a one-time payment in July. The CRA will also pay GSTC amounts owed from the previous 3 years, provided the taxpayer files an income tax return and is eligible for this credit. 
                            </p><p>     
                        In the case of married or common-law couples, only one spouse can receive this credit.   The credit goes to the spouse whose return is assessed first. Regardless of who receives it, the credit will be the same  as it is based on net family income. Any changes in marital status must be reported to the CRA immediately as this will affect past and future credit amounts.(<a href="https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/rc65.html" target="_blank"> RC65</a>) 
                        </p><p>
                        Each quarterly payment is based on the taxpayer's current family situation; marital status, number of eligible children, and residency status. If the family situation changes at any time during the year, the taxpayer  must inform the CRA as soon as possible so that past/future payments can be adjusted based on the new family size, marital status, and income.
                    </p>   
            <h4>Who can apply?</h4>
            <p>Taxpayers who are residents of Canada can apply each year through the filing of income tax returns. At the beginning of each quarter, when the CRA makes payments,the taxpayer:</p>
            <li>Is 19 years of age or older</li>
            <li>If under 19 years of age, he/she is eligible only if:</li>
            <li  class="subList">The taxpayer is (or previously was) a parent</li>
            <li  class="subList">The taxpayer has (or previously had) a spouse</li>
            <p></p>
            <p><b>Note: To receive this credit</b>, an individual who is turning 19 on or before April 1, 2022 should file a 2020 tax return, even if his/her income is nil.</p>
            
            <p><b>An individual does not qualify</b> for this credit if, at the beginning of the month in which the payment is issued:<p>
            
            <li>The individual is confined to a prison (or a similar institution) and has been there for 90 days or more</li>
            <li>The individual is not required to pay tax in Canada because they are an officer or a servant of another country, such as a diplomat or they are a family member or an employee of diplomats</li>
            
            <p></p>
            <h4>Can I claim this credit for my child?</h4>
            <p>GSTC can be claimed for each dependent child:</p>
            <li>Under the age of 19</li>
            <li>Who has never had a spouse or a common-law partner</li>
            <li>Who has never been a parent</li>
            <li>Who either lived with or was claimed as a dependent by a taxpayer or a taxpayer’s spouse at the beginning of the month in which the CRA makes payments</li>
            <li>The child must also be a Canadian resident</li>
            <p></p>
            <h4>Do you work from home during COVID-19?</h4>
            <p>Many Canadians found themselves working from home in 2020  and, for some, going forward indefinitely. When preparing your tax return for the upcoming year, it is essential to consider tax implications of working from home.
            </p>
            <p>You have the option to use a flat rate method [i.e., $2 per day towards home office expenses (maximum deduction- $400) Form T777S]. This claim does not require form T2200 nor supportings required to be kept. Here, the condition is that the employee works 50% of time at home for a period of at least 4 consecutive weeks (part time or full time).
            </p>
            
            <h4>New residents</h4>
            <p>Through filing form RC151, new residents can apply for this credit, even if no tax return is filed. It is advisable to file this form at the earliest, as the CRA does not pay retroactively.
            </p>
            
            <h4>Direct Deposit</h4>
            <p>It is suggested to set up a direct deposit with the CRA in order to receive this credit on the due date and to avoid the possibility of cheque(s) getting lost, or not received, due to change of residence.
            </p><p>
             The Ontario Government provides tax relief for low income taxpayers with their own provincial tax credits called the Ontario Trillium Benefit <b>(OTB)</b>.
            </p>
            
            <p>Keep a little more in your pocket with the GST/HST credit!</p>
            <p>For additional information on GST/HST credits, please visit : <a href="https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4210/gst-hst-credit.html#P391_16177" target="_blank">Learn More</a> </p>
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GST/HST Credit

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            <h4>Do you do partial work or full time work from your home?</h4>  <p>If so, you are entitled to deduct home office expenses on your tax return!
            </p><p> 
            In Canada, both employees and the self-employed can claim expenses.  These claims are subject to specified conditions and the available deductions vary significantly.</p>
            <p>If you're self-employed or an employee, read on to find out what you can claim as home office expenses.</p>
            <p>The Canada Revenue Agency (CRA) allows self-employed taxpayers to deduct business-use-of-home. Employees, as well,  may deduct workspace-in-the-home expenses from their income. These deductions  lower the amount of taxable income being claimed, thus reducing the overall tax burden. 
            </p>
            <h4>For the self-employed, the first step  is to identify a Home Office:</h4>
            <li>The home office is the workspace where the main portion of business is conducted.  It is used exclusively and continuously for meeting customers (more than 50% of the time), and earning income during the tax year</li>
            <p></p>
            <p>All expenses claimed must be prorated based on the area  your home office represents relative to your entire home (i.e., if your home office space represents 15% of the total square footage of your home, you can only claim 15% of the eligible expenses).</p>
            <p><b>Note:</b> For employees (commission or salary), the arrangement to work from home must be a part of their contract.  Form T2200 (Declaration of Conditions of Employment), must be signed by your employer to claim the work-at-home expenses.</p>
            
            <h4>The second step  is to determine what expenses can be claimed:</h4>
            <p>Generally, a self-employed individual can claim more expenses than an employee. There are some similarities between what a salary/commission employee vs a self-employed individual can claim. Below is a table that shows which expenses are claimable by each group:</p>
            
            <img src='/images/blog-images/table.jpg'></img>
            
            <p><b>Note:</b>- For self-employed individuals, these expenses can be claimed under depreciation.
            </p><p>Commission-based employees can also claim lease of a cell phone, computer, laptop, tablet, and fax machine  if these items reasonably relate to earning a commission income.
            </p><p>Employees can claim expenses on form T777. A self- employed person uses <a href="https://www.canada.ca/en/revenue-agency/services/forms-publications/forms/t2125.html" target="_blank">Form T2125</a> to claim income/expenses of a business.
            </p><p>Employees cannot claim the part of their expenses that their employer reimburses  to them or those that are included as income on the T4 slip.
            </p>
            
            <h4>Do you work from home during COVID-19?</h4>
            <p>Many Canadians found themselves working from home in 2020  and, for some, going forward indefinitely. When preparing your tax return for the upcoming year, it is essential to consider tax implications of working from home.
            </p>
            <p>You have the option to use a flat rate method (i.e., $2 per day towards home office expenses [maximum deduction- $400] Form T777S). This claim does not require form T2200 nor supportings required to be kept. Here, the condition is that the employee works 50 % of time at home for a period of at least 4 consecutive weeks (part time or full time).
            </p>
            
            <h4>GST/HST Rebate</h4>
            <p>This rebate is claimed through filing Form GST 370 on <b>line 45700</b> of the tax return. The employer must  be a GST/HST registrant.
            It is taxable income in the year the rebate is received (e.g., if you have claimed the rebate on your 2020 tax return and received it in 2021, it is part of your 2021 taxable income- <b>Line 10400</b>)
            </p>
            <p>It is still beneficial to apply for this rebate.
            You can file the application up to 4 years from the year in which the expenses were paid.
            </p>
            <p>Now that you know, employ your maximum deductions when you work from home!</p>
            </div>
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Home Office Expenses- Deductions for Employed & Self-Employed Taxpayers


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            <h2>What is life insurance?</h2>
            
            <p>Canadian tax obligations are based on your <a href="https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/individuals-leaving-entering-canada-non-residents/non-residents-canada.html#rsdncstts" target="_blank">residential status</a>. If you are a non-resident, the requirements for filing can greatly differ from those for residents.
            </p>
            <p>Non-residency is an individual classification that is used for tax purposes by the Canada Revenue Agency. According to the CRA, individuals who normally, customarily, or routinely live in another country, and are not considered a resident of Canada, may be classified as non-residents.
            </p>
            <p>If you are classified as a non-resident of Canada, you are only obligated to pay tax on Canadian source income. Canadian source income may be subject to <a href="https://www.canada.ca/en/revenue-agency/services/tax/international-non-residents/payments-non-residents/nr4-part-xiii-tax/part-xiii-withholding-tax.html" target="_blank">Part XIII tax </a>or Part I tax.
            </p>
            <p><b>Part XIII Tax</b>: is applied to the following sources of income:
            </p>
            <li>Annuity payments</li>
            <li>CPP or QPP benefits
            </li>
            <li>Dividends
            </li>
            <li>Management fees</li>
            <li>Old Age Security pension</li>
            <li>Pension payments</li>
            <li>Rental and royalty payments</li>
            <li>Retiring allowances</li>
            <li>RRSP payments</li>
            <li>Registered Retirement Income Fund payments</li>
            <p></p>
            <p>As a non-resident, it is your responsibility to notify the Canadian payers about your residency status and country of residence to ensure that the correct portion of tax is withheld and remitted to the CRA.
            </p><p>Part XIII tax rate is 25% unless there is tax treaty between Canada and your country of residence. Normally, this is supposed to be a final tax liability and you are not required to file an income tax return. However, if you elect under section 216 of the Income Tax Act, you may pay less tax.
            </p><p><b>Election under section 216</b>: You can make an election under section 216 to report Canadian rental income from real or immovable properties or timber royalties. When you elect under section 216, you can send the Canada Revenue Agency (CRA) a separate Canadian tax return to report your rental income for the year (or part of the year) that you were a non-resident of Canada.
            </p><p><b>Election under section 217</b>: If you are a non-resident of Canada, Canadian payers have to withhold non-resident tax from qualifying Canadian income paid to you. If the correct amount of tax has been deducted, this non-resident tax is your final tax obligation to Canada on this income. As such, this income is not required to be reported on a Canadian income tax return.
            </p><p>However, you can choose to include all of your qualifying Canadian income on a Canadian return and pay tax on this income using an alternative method. If this is the case, you are then "electing under section 217 of the Income Tax Act" and may receive a refund of some, or all, of the non-resident tax withheld on this income.
            </p><p>If you emigrated from Canada during the year, the section 217 election would apply to all qualifying Canadian income received after leaving Canada.
            </p><p>If you are thinking of electing under section 217, you should first determine if doing so will be to your benefit.
            
            <h4>Part 1 Tax:</h4>
            
            <p>Even if the payer deducts tax from your income or you pay an amount of tax during the year, you may also have to file a Canadian income tax return to calculate your final tax obligation to Canada on employment, business income, capital gains or scholarship income.
            </p><p>If you stop being a resident during the year, you may also be required to file a Canadian income tax return to calculate your final tax obligations for the year that you ceased to be a resident.
            </p><p>Softron Tax has been serving Canadians since 1990. Whether or not to file a non-resident tax return can be a complicated determination. If you need advice as to whether filing a Canadian tax return may be beneficial to you as a non-resident, contact us at (905) 273-4444 or send us an email at softron@softrontax.com
            </p>
            </div>
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Non-Resident Tax filing


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            <h2>What is life insurance?</h2>
            
            <p>Life insurance plays a crucial role in  offering liquidity to your estate by  allowing the payment of funeral expenses,debts,   and money to your dependents to replace your earnings.
            </p>
            <h4>Deductibility of premium
             
            </h4>
            
            <p>Premiums paid on life insurance policies are generally not deductible. This changes, however, if  interest in a life insurance policy is assigned to a financial institution (i.e., a chartered bank, trust company or credit union) as required collateral on a loan or indebtedness. In that case, the policyholder may deduct a portion of the premiums paid, as long as the interest on the loan is deductible. The policy holder and borrower should be the same individual or corporation.
            </p><p>
            If you are self-employed or have a corporation, and you pay life insurance premiums on behalf of your employees, it is tax deductible. It then becomes a taxable benefit to employees, subject to Canada Pension Plan deduction, but not to Employment Insurance.
            </p>
            <h4>There are two basic types of life insurance:</h4>
            
            <p><b>Term policies</b>: These policies provide insurance protection for a specified period of time or up to a specified age. They typically have no explicit investment component and provide the policyholder's beneficiary with a tax-free fixed sum on their death. Term insurance policies generally have no guaranteed cash values and are usually not participating. Term insurance policies typically have a fixed premium for the duration of the policy. They may contain features such as a guaranteed right to renew the policy at the end of the term, or the right to convert  it to permanent insurance.  The latter is subject to certain conditions.
            </p><p> 
            <b>Permanent policies</b>: There are various types of permanent insurance policies. Some policies are referred to as participating policies, where the policyholder may receive benefits in the form of policy dividends.  Others, referred to as non-participating policies, do not pay policy dividends. In addition, some policies provide for significant flexibility and transparency with respect to investment options and cash value accumulation. These policies are collectively referred to as universal life policies.
             </p><p>
            Depending on the terms of the policy, premiums for permanent policies may be fixed over the policy's lifetime or may increase over time.. Generally, premiums for permanent policies are higher than premiums for term policies in recognition of the need to pay a death benefit at some point, and to accumulate savings within the policy.
            </p><p>One added benefit of permanent insurance policies is that the investment component usually has a cash surrender value, which can provide funds before death. You can borrow against or withdraw this cash surrender value to supplement your retirement income or for emergencies, but there may be an associated tax cost.
            </p>
            <h4>Adjusted cost basis (ACB) of life insurance policies for tax purposes</h4>
            
            <p>The premiums paid on a life insurance policy are added to the ACB, while money withdrawn reduces the ACB of the policy.The ACB calculation in Canada is complex and therefore Canadian insurers maintain the calculation on behalf of their policyholders, and issue a tax slip, for any taxable amounts withdrawn in the year.</p>
            
            <h4>Beneficiary designations
            </h4> 
            <p>Unlike other types of investments, life insurance policies allow the policyholder to designate beneficiaries under the policy, which may be advantageous compared to other investments. Designating beneficiaries may protect the policy from creditors and exclude the proceeds from the estate's value when calculating probate tax.
            </p><p>
            Choose the best life insurance, and grant yourself some peace of mind!
            </p>
            </div>
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Is premium paid life insurance tax deductible?

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            <h2>Does it pay to have an RRSP? </h2>
            
            <p>Yes it does! Read on to learn about RRSP payments and withdrawals.</p>
            <h4>Registered Retirement Savings Plan (RRSP) Income 
            </h4>
            
            <p>An RRSP is a tax-deferral plan set by an individual for themselves or their spouse. When you make an RRSP contribution, you are allowed a deduction based on the contribution limit. Funds accumulate tax-free in the plan until withdrawn. The age limit for contribution to RRSPs is 71. You must make arrangements to convert your RRSP funds to an RRIF or annuity by the end of the year in which you will turn 71; otherwise, the full value of the RRSP will be included in your next year’s income. </p>
            
            <h4>RRSP Annuity Payments</h4>
            
            <p> Annuity payments from an RRSP are paid out over several years rather than in a lump sum. You may choose to do so to minimize tax. </p>
            
            <h4>Other RRSP Payments</h4>
            
            <p>RRSP annuity is only one kind of payment made from an RRSP. RRSPs that have not matured, and which have not been converted to an annuity, could also provide income.</p>
            
            <h4>Refund of Premiums to a Spouse (Box 18)
            </h4>
            
            <p>If a plan holder dies, special rules come into play to govern the taxation of the assets in the plan. Essentially, if the plan has not matured, the assets may be left to a surviving spouse, and taxed to the surviving spouse, rather than the deceased plan holder or his or her estate. </p>
            
            
            <p>These assets paid to the spouse are referred to by definition as “refund of premiums”, and the surviving spouse may roll forward all, or any part, of the refund of premiums into their own RRSPs, tax-free.
            </p>
            
            <p>This amount appears in Box 18 of the T4RSP slip. The corresponding deduction for transfer can be claimed on <b>Line 20800</b> of the tax return. This income is declared on the surviving spouse’s tax return, not on the deceased's tax return.</p>
            
            <p>If there is no surviving spouse, any payments paid out of an RRSP to a dependent child or grandchild under age 18 are taxable in the hands of the recipient. Such amounts may be eligible for rollover to a special annuity, consisting of equal annual  payments, until the child reaches age 18.</p>
            
            <h4>Refund of Excess Contributions (Box 20)</h4>
            <p> Upon death of an RRIF annuitant, the fair market value of the plan is deemed to be received by the deceased prior to death. The amount in Box 18 of the T4RIF slip represents fair market value (FMV) of the plan at death. This amount is reported on <b>Line 13000</b> of the Income Tax and Benefit Return. However, if there is a surviving spouse, or a dependent child or grandchild under 18 years, part, or all, of the income may be reported on a beneficiary’s return.</p>
            
            <h4>Deemed Receipt on Deregistration</h4>
            <p>Refund of Excess Contributions are withdrawals of excess contributions that the taxpayer could not, or chose not, to deduct on <b>Line 20800</b> in any taxation year. This amount appears in Box 20 of the T4RSP slip.</p>
            <p>You are entitled to a corresponding deduction on <b>Line 23200</b> of the return.  As this deduction is omitted, the Canada Revenue Agency must certify that the amount allowable for withdrawal  is tax-free. </p>
            
            <h4>Withdrawal and Commutation Payments (Box 22)</h4>
            <p>These are all regular withdrawals made by individuals from an RRSP. The total amount of withdrawals made appears in Box 22 of the T4RSP slip. The financial institutions are required to withhold tax before releasing the funds at the rate specified below: </p>
            <li>Withdrawal made up to $5,000 			– 10%</li>
            <li>Withdrawal made between $5,001 and $15,000 	– 20%</li>
            <li>Withdrawal made over $15,001 			– 30%</li>
            <p></p>
            <p>This income is reported on <b>Line 12900</b> of the income tax return. You are entitled to a deduction for tax withholdings. Usually, the tax withheld from the T4RSP slip is not adequate and you may have to pay additional taxes in the year of withdrawal. These extra taxes are paid when you file your taxes.</p>
            
            <p><b>Example</b>: Lucy Loretta withdrew funds from her RRSP. The financial Institution deducted taxes from her RRSP. Lucy wants to know if she still needs to declare her RRSP withdrawals on her tax return, even though taxes were deducted, when she cashed her RRSPs.</p>
            
            <p><b>Answer</b>: Lucy must report her RRSP withdrawals. Regardless of what taxes are paid at the time of withdrawal, she  may pay additional taxes on this withdrawal based on her marginal tax rate. When she originally contributed to the RRSP, she would  have claimed that amount as a deduction on her tax return.Therefore, Lucy  must include all withdrawals from her RRSPs as income on her tax return;  she will get a credit for  tax withheld.</p>
            
            <h4>Withdrawal of Spousal RRSP Plans (Box 24)</h4>
            <p>“Spousal RRSP” means the plan from which funds are withdrawn is a spousal plan. Financial institutions specify this by putting “Yes” in Box 24.  The name and Social Insurance Number of the spouse appear in Boxes 38 and 36. </p>
            <p>If the funds are withdrawn from a spousal RRSP before the three-year period limit, the withdrawn funds are taxable in the hands of the contributor. If the funds are withdrawn after the three-year period limit, from the last contribution to the spousal plan, then the funds are taxable in the annuitant's (spouse’s) hands. </p>
            <p>As the saying goes, we reap what we sow…So reap those RRSP rewards!</p>
            </div>
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Registered Retirement Savings Plan (RRSP) Income


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            <h2>Registered Retirement Income Fund (RRIF)</h2>
            
            <p>A Registered Retirement Income Fund is a plan set up to provide income upon retirement. Seniors must withdraw a minimum amount each year.  Amounts received by a taxpayer as an annuitant under an RRIF are taxable. These plans are an alternative to annuity or lump sum payments on maturity of the RRSP. These funds are subject to the same provisions of RRSPs with respect to the acquisition of a non-qualified investment.</p>
            
            <h4>RRIF before 71?</h4>
            
            <p>You can convert an RRSP to an RRIF even before you are 71. For example, if you retire early or  take a leave from work as a result of your spouse's illness, when you resume work, you can convert an RRIF to an RRSP.</p>
            
            <h4>Minimum withdrawal percentage</h4>
            
             <li>At age 71, the minimum withdrawal percentage is 5.28 %</li>
             <li>At age 75, it is 5.82 %</li>
             <li>At age 95 and over, 20 %</li> 
             <p></p>
             <p>Although the percentage increases every year, the annual withdrawal amount will decrease over time due to previous withdrawal(s).</p>
            
            <h4>RRIF to TFSA?</h4>
            
            <p> You cannot transfer funds tax-free from an RRIF to a TFSA. You can, however, use RRIF funds to add to a TFSA (provided you have contribution room in the TFSA). This will be treated as an RRIF withdrawal and included in total income.</p>
            
            <h4>RRSP/RRIF Losses after Death </h4>
            
            <p>If the value of an unmatured RRSP or an RRIF decreases between the date of death and the date of the final distribution to the beneficiary (or estate), the decrease can be deducted on the final return of the deceased.</p>
            
            
            <p><b>Excess amount :- </b>Funds withdrawn by a taxpayer over the minimum amount is called an “excess” amount and is subject to tax at source.It is shown separately, and the total for taxable amounts (Box 16) is reported on the Income Tax and Benefit Return.
             </p>
            
            <p><b>A minimum withdrawal</b> from an RRIF is mandatory starting at the age of 72. A minimum amount is set to meet the needs of the plan holder (i.e., monthly expenses) and no tax is withheld when this amount is withdrawn. The taxpayer may withdraw more than the minimum amount. </p>
            
            <h4>Amounts Deemed received by the Annuitant on Death</h4>
            <p> Upon death of an RRIF annuitant, the fair market value of the plan is deemed to be received by the deceased prior to death. The amount in Box 18 of the T4RIF slip represents fair market value (FMV) of the plan at death. This amount is reported on <b>Line 13000</b> of the Income Tax and Benefit Return. However, if there is a surviving spouse, or a dependent child or grandchild under 18 years, part, or all, of the income may be reported on a beneficiary’s return.</p>
            
            <h4>Deemed Receipt on Deregistration</h4>
            <p> “Deregistration” means that the plan no longer meets the rule under which it was registered. The amount that equals the fair market value of the plan is deemed to be received by a taxpayer immediately before deregistration. </p>
            <p>This amount appears in Box 20 of the T4RIF slip.  The amount is reported on <b>Line 11500 or 13000</b>, according to the “Reporting Guide for Retirement Income”.
            
            Amounts in box 22 (<b>other income or deductions</b>) represent acquisition and disposition of the property in the plan. It is considered income earned after the death of the annuitant rather than the beneficiary spouse.</p>
            <p><b>If an RRIF holder dies</b>, the remaining benefits under the arrangement may pass to others under the terms of the will. If these benefits pass to the plan holder’s spouse, the yearly payments may continue, and the spouse will pay tax on the payments as they are received. If  the property in the plan passes on to a person other than the spouse, the FMV of the property must be included in the plan holder’s income immediately before his or her death.</p>
            
            <h4>Canadian Resident Working in the US</h4>
            <p> A resident of Canada who works in the U.S., and is a member of a qualifying retirement plan in the U.S., can deduct contributions on their Canadian tax return. This is applicable for 2009 and later years. Complete RC268 along with your tax return. </p>
            <p>Your RRIF will be a comfort to you in your retirement years!</p>
            </div>
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Registered Retirement Income Fund (RRIF)


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            <h2>Saving For the Future: The RRSP Edition</h2>
            
            <h5>Worried about your financial future?  At SoftronTax, we ease your fears by helping you choose your best financial options! </h5>
            
            <p>A registered retirement savings plan (RRSP) is a savings account that is arranged between an individual and an issuer (such as an insurance company, trust company or  bank). Pre-tax money is placed into an RRSP and grows tax-free until the time of withdrawal,  when it is taxed at the marginal rate.</p>
            
            
            <p>The amount that you can contribute annually is based on your RRSP deduction limit, which is calculated using the previous year’s earned income. The calculated amount is reduced further by the pension adjustment amount. The pension adjustment (PA) amount is the value of the benefits you earned under your employer's registered pension plans. You can find out your deduction limit by logging in to “My Account” or on your Notice of Assessment. </p>
            
            <p>Contributions to an RRSP can be made until the end of the year in which you turn 71, or in regards to spousal contribution, until the end of the year in which they turn 71. </p>
            
            <p>Income earned on funds within the RRSP plan are tax-free; but, like most tax shelters, the RRSP is merely a tax deferral plan. Therefore, any withdrawals from the RRSP are taxable in the year the withdrawal is made and are reported on the T4RSP slip.</p>
            
            <p>The great benefit  of RRSPs is that contributions are deductible under the Income Tax Act, so by claiming the current year's contributions, you can reduce your tax payable in your income taxes! Keep your current year's RRSP contribution receipt and claim it  to achieve a higher refund, or a lower balance owing. </p>
            <h4>TIPS on INVESTING IN RRSPs</h4>
            <p>We can provide tax saving opportunities to clients for tax optimization, but we do not provide investment advice as that  must be done through a financial advisor at a financial institution.</p>
            <li>If a taxpayer’s income fluctuates, they can achieve tax savings by contributing to their RRSP in  a year when  income is high, and collapsing the plan in a year when  income is low</li>
            <li>The total amount of annual contributions can be deducted from the gross income; thus  reducing the amount of Income tax that is otherwise payable in the year. So it's good to invest a lot into your RRSP, but  be sure not to over contribute! Please discuss with your financial advisor which contribution amount is most beneficial for you</li>
            <li>The income earned in your RRSP is not taxed on until it is withdrawn. While your investments sit in your RRSP, their growth is tax sheltered and therefore the total value may grow more quickly.  Avoid withdrawing  from the account before the money matures,  or you will be paying tax on that income you receive</li>
            <li>By the time you begin to withdraw the funds at retirement, you may be in a lower tax bracket than during your earning years. RRSP Funds withdrawn at that time will benefit from this lower tax rate</li>
            <p></p>
            <p>Choose an RRSP, for a future guarantee!</p>
            </div>
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REGISTERED RETIREMENT SAVINGS PLAN (RRSP)

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            <h2>TYPES OF RRSPs</h2>
                <p>Want to save for retirement but don't know which type of RRSP to contribute to? Keep on reading to learn more about which RRSP is the best fit for you! </p>
                <p>In this article, we will focus on three types of RRSPs:</p>
                <li>Self-Directed RRSP</li>
                <li>Regular RRSP (Individual and Group RRSPs)</li>
                <li>Spousal RRSP</li>
                <p></p>
            <h4>SELF-DIRECTED RRSP</h4>
            <p>A “self-directed RRSP” is a retirement savings plan that provides you with freedom to build and manage your own investment portfolio, by buying and selling a wide variety of different types of investments. You can purchase conservative investments such as CSBs, Government of Canada and provincial T-Bills, and GICs which are issued by a variety of financial institutions.</p>
            
            <h4>You should consider opening a self-directed RRSP only if</h4>
            <li>You have the time and knowledge to manage and own investments, or have access to professional investment advice</li>
            <li>You have a large deposit based RRSP</li>
            <li>You already hold investment securities (e.g., stocks, bonds, etc.) </li>
            <p></p>
            <p><b>Note:</b> Annual administration fees for a self-directed RRSP are not deductible for tax purposes.</p>
            
            <h4>Benefits of a Self-Directed RRSP</h4>
            <li>Self-directed RRSPs are flexible</li>
            <li>You can easily adjust your RRSP investment strategy according to the changes in the economy or your personal circumstances. This can include new investments which become more attractive, or if your personal circumstances change </li>
            <li>Self-directed RRSPs have a wide range of eligible investment choices</li>
            <li>Based on your investment objectives and personal risk tolerance, you can have a variety of combinations of investment choices like qualifying bonds, GICs, mutual funds, common and preferred shares, and/or any foreign content investments. Consolidating all of your RRSPs into one self-directed plan gives you the opportunity to maximize foreign investment</li>
            <p></p>
            
            <h4>REGULAR RRSP</h4>
            <p>A "regular RRSP" refers to a plan where contributions are made on your own behalf; however, the funds are not managed by you. Instead, financial institutions or investment consultants and planners manage the funds and investments within the plan. </p>
            <p>For more information on RRSPs, follow this link to the CRA's website: <a href="https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/registered-retirement-savings-plan-rrsp.html" target="_blank">Read More</a></p>
            
            
            <h4>SPOUSAL RRSP</h4>
            <p>RRSP contributions made to a spouse's RRSP plan are known as “spousal RRSP contributions”.This is different from a regular RRSP as a spousal plan can be set up to split income for the purpose of saving on taxes in the retirement years. </p>
            
            <h4>Benefits of Spousal RRSPs</h4>
            <li>Spousal RRSPs allow for the spouse with little or no income to save for retirement, as the contributor is usually the higher income earner. The objective of spousal RRSPs is to shift RRSP assets into the hands of a lower income earner; so, at retirement, the income from the plan is taxed at a lower marginal rate, resulting in tax savings</li>
            <li>This is effective for tax purposes as the contributor will be able to have a deduction from their income, while his/her spouse will be an annuitant</li>
            <p></p>
            <h4> Criteria for Contributing to a Spousal RRSP</h4>
            <li>The spousal contributor is allowed to contribute to the plan, all or in part, of their own contribution eligibility amount</li>
            <li>The total contribution to the regular RRSP or spousal plan cannot exceed the contribution limit of the contributor. This is based on the contributor's deduction limit which is used as a basis for calculating contributions to their own plan </li>
            <li>The official receipt of the  RRSP should mention the names of both the contributor and the annuitant</li>
            <li> If the contributor and the annuitant are the same individual, the plan is known as a regular RRSP. If the contributor and the annuitant are not the same individual, the plan is called a spousal RRSP </li>
            <p></p>
            <h4>You work hard for your money!  Plan ahead to make the most of your retirement years!</h4>
            
            <p>If you would like to learn more about how you can contribute to a spousal RRSP, click/copy the following link: <a href="https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/rrsp-options-when-you-turn-71/spousal-rrsps-common-law-partner-rrsps.html" target="_blank">Read More</a></p>
            
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RRSP - Types of RRSPs

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            <h2>UNDERSTANDING YOUR RRSP CONTRIBUTION LIMIT</h2>
                <p>Did you know that contributing to your RRSP can be claimed as a deduction on your tax return? There is, however, a limit on the amount you can contribute in the current year! </p>
                
            <h4>How Do I Know My Contribution Limit?</h4>
            <p>The amount a person can contribute to their RRSP is based on their contribution limit. This RRSP deduction limit is reported each year at the bottom of your Notice of Assessment by the Canada Revenue Agency. Contribution limits are available online in <i>My Account and Represent a client<i>. The CRA has established a ceiling on the annual RRSP deduction limit, called the “annual dollar limit”. The CRA usually  revises this annual dollar limit. The annual maximum contribution rates will be indexed to reflect increases in the average wage growth. 
            </p>
            <p>To find out what your RRSP deduction limit is this year,  check out this  article by the CRA: <a href="https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/rrsps-related-plans/contributing-a-rrsp-prpp/contributions-affect-your-rrsp-prpp-deduction-limit.html#whtddctnlmt" target="_blank">Read More</a></p>
            <p> Now that you know your RRSP contribution amount is based on  a contribution limit; what is your contribution limit based on?</p>
            
            <h4>Definition-Earned Income for RRSP Purposes </h4>
            <p>The RRSP limit for a given year depends on "earned income" from the previous year. This earned income amount comes from the amount you reported on your previous year’s tax return. Generally, this includes active income such as employment earnings and business income, but it does not include most types of passive income (e.g.,  interest, dividends, and capital gains etc.).</p>
            <p>The following types of income qualify as earned income:</p>
            <li>Salaries and wages, net of employment expenses claimed, RPPs</li>
            <li>Research grants</li>
            <li>Net income from self-employment</li>
            <li>Royalties for work or inventions that the taxpayer authored</li>
            <li>Net rental income from real estate property</li>
            <li>Alimony and maintenances received</li>
            <li>Foreign employment income</li><br>
            <p></p>
            <p>Your earned income can also be reduced by the following items:</p>
            <li>Current year's business loss</li>
            <li>Current year’s rental loss</li>
            <li>Alimony and support paid</li><br>
            <p></p>
            <p>As stated, passive income does not qualify as earned income when calculating your RRSP contribution limit. This includes: </p>
            <li>Investment income</li>
            <li>Taxable capital gains</li>
            <li>Death benefits</li>
            <li>Scholarships and bursaries</li>
            <li>Employment insurance benefits</li>
            <p></p>
            <p><b>Note:</b> CPP/QPP disability is considered to be earned income. Any disability payments received under a plan, established by an employer or former employer, will be included in employment income (unless an employee contributed to the plan). If such benefits are included in employment income, they will then be included in the calculation of earned income for tax purposes. If such benefits are not taxable, they will not be included in the calculation of earned income.</p>
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                <b>When you stay within your contribution limit, the sky’s the limit!
            </b>.
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            <h2>Pension Adjustments</h2>
                <h4>So you noticed that you received a pension adjustment from your employer, but don’t  know what that means? </h4>
            <p>A pension adjustment (PA) is income accrued to you, in your pension plan, to put everyone on equal footing in terms of the annual RRSP contribution limit. It is the value of the pension benefits that accrue to individuals who are members of employer sponsored Registered Pension Plans (RPPs), or Deferred Profit-Sharing Plans (DPSPs). A PA will reduce your RRSP contribution limit. </p>
            <p>Your PA is calculated by your employer; and you can see the exact amount in Box 52 of your T4 slip. </p>
                
            <h4>How do RRSPs and PAs relate? </h4>
            <p>The RRSP contribution deduction for a particular year will be limited to 18% of earned income from the preceding year, minus the pension adjustment from the preceding year. Generally speaking, only an employee who is enrolled in an RPP or a DPSP will have a PA. However, unregistered and foreign pension plans may, in certain circumstances, also give rise to a PA.</p>
            <p>A PA is a complex calculation performed by a pension actuary. A PA includes amounts that have accrued to an employee in the plan, even if they have not vested, thus  the person may never actually receive a pension benefit for the year. </p>
            <p><b>Note:</b> The most important thing about a PA is that they reduce your RRSP contribution room for the year, they don't affect anything else on your tax return!</]>
            
            <h4>What happens when you leave a pension or a DPSP? </h4>
            <h4>You'll receive a pension adjustment reversal (PAR)!</h4>
            <p>A pension adjustment reversal (PAR) occurs when an employee leaves a pension or a deferred profit-sharing plan before their right is fully vested. A PAR results in a reduced pension benefit for the employee. The PAR restores its RRSP deduction room to compensate for the loss of the RPP or the DPSP benefits.
            </p>
            <p>You can see the PAR in Box 2 of a T10 slip issued by the employer. </p>
            
            <h4>My pension plan got an upgrade, what happens now? </h4>
            <p>If your employer upgrades your pension plan, you will receive a past service pension adjustment (PSPA). A PSPA represents the value of a pension plan’s improvement, this is granted to an employee in a year, in respect to previous years. </p>
            <p>Unlike the PA, the PSPA is not reported on a T4 slip but instead, is reported by an employer or administrator within 60 days of the decision to improve the pension. A special slip, T215 or T10, reporting the amount of the PSPA, would be issued. </p>
            
            <h4>How does this affect your RRSP?</h4>
            <p>A PSPA reduces the RRSP contribution limit for the year. Your PSPA may  be even greater than the contribution limit for the year. This has no immediate effect other than to make your current year’s contribution nondeductible. Nondeductible contributions can be withdrawn or carried forward for future years.</p>
            <p><b>Note:</b> If your PSPA is greater than the contribution limit for the year, it can result in a negative unused contribution room, which would then reduce your contribution limit for future years.</p>
            <p><b>Luckily for you</b>,  the CRA will calculate your RRSP contribution limit  based on contributions made (T4- Box-52 and T10-Box 2 on your T215 slip) and  issue a notice of assessment or reassessment. In short, your latest notice of assessment or reassessment will reflect your RRSP limit for next year.</p>
            
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RRSP-Pension Adjustments

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                Tax instalments are taxes paid in advance, as opposed to taxes paid in one lump sum, on or before the due date.
            The due date for individuals will be April 30th every year. If April 30th is a holiday or falls on Saturday or Sunday, it will be the next working day.  Tax instalments are declared on the tax return- <b>Line 47600</b> and hence, reduces overall tax liability by the amount paid in advance.
            Individual income-taxes, Corporation taxes and GST/HST taxes are all subject to instalments.
            
            <h4>When are tax instalments required?</h4>
                <p>If your employer does not withhold income tax (i.e., if you have more than one employer or are earning income through self-employment, rental income, investment income, pensions etc.) tax installment payments may have to be paid.
            </p>
            <p>Installment payments must  be paid if the<b> net tax owing exceeds $3000 ($1800 for Quebec residents). </b></p>
            <p>If you expect more income this year, compared to prior years, instalment amounts can be increased. However, if you expect lower income this year, you can ignore the instalment reminder(s) through the CRA or lower the instalment amount.
            </p>
                
            <h4>When are instalments due?</h4>
            <p>Installments are due on the 15th each year for everyone. The CRA will send <a href="https://www.canada.ca/en/revenue-agency/services/payments-cra/individual-payments/income-tax-instalments/who-pays-instalments.html#nstlmntrmndr" target="_blank">notices</a> twice a year to remind you to pay the installments. A February reminder for March and June payments, and an August reminder for September and December payments.
            </p>
            <img src="/images/blog-images/date.jpg" alt="Image Not Found">
            <p> Non-payment on stipulated date(s) will attract interest on a daily compounding basis and in some cases, a penalty, if the installment interest exceeds $1,000.
             </P>
                
            <h4>How to pay?</h4>
            There are many options to pay including: online, in-person, and through mail.
            <li><a href="https://www.canada.ca/en/revenue-agency/services/payments-cra/individual-payments/make-payment.html#toc0" target="_blank">Pay online</a>:  You can pay online by setting up an e-transfer  or by using the CRA My Payment Service (which accepts Interac, Visa, and Mastercard). You can also set up <a href="https://www.canada.ca/en/revenue-agency/services/about-canada-revenue-agency-cra/pay-authorized-debit.html" target="_blank">Pre-authorized debits </a>(PAD) to schedule future payments at predetermined dates </li>
            <li><a href="https://www.canada.ca/en/revenue-agency/services/payments-cra/individual-payments/make-payment.html#toc1" target="_blank">Pay in-person</a>:  You can pay at your Canadian bank, financial institution or credit union using a <a href="https://www.canada.ca/en/revenue-agency/services/forms-publications/request-payment-forms-remittance-vouchers.html" target="_blank"> personal remittance voucher</a></li><a href="" target="_blank">
            <li><a href="https://www.canada.ca/en/revenue-agency/services/payments-cra/individual-payments/make-payment.html#toc2" target="_blank">Pay by-mail</a>:  You can pay by cheque along with the personal remittance voucher</li>
            <p></p>
            <h4>How to enter  instalments on the Taxtron Web?</h4>
            
                <p>On the Taxtron Web, please go to the Deduction page. Click “Benefits” and answer questions with reference to the Canada Working Benefit (CWB) and the Climate Action Incentive(CAI).  When answering CAI questions, please click “next” and you will find the section to enter installment payments.</p>
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                <p></p>
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                <p></p>
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What are tax instalment payments and how do I enter them on the Taxtron Web?

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                <h2>What is HST?</h2>
                HST, or harmonized sales tax, is a sales tax applied in certain provinces. It’s a combination of the GST and the province’s provincial sales tax (PST). However, Not all provinces have HST; . Ssome charge GST and PST separately, while others charge only GST..
            
            <h4>Where is  HST Charged in Canada?</h4>
                HST applies in five of Canada’s provinces:
                <li>Ontario—:13%;, Prince Edward Island, Newfoudland/Labrador, New Bruinswick and Nova Scotia - :15 %</li>
                <li>Alberta, Northwest Territories, Nunavut:- only GST at 5 %</li>
                <li>Quebec:- GST- 5% and QST- 9.975 %</li>
                <li>Other Provinces:- GST and PST</li>
                <p></p>
            <h4>When do I have to register?</h4>
                If you’re a business owner in one of these provinces and your annual sales/ or income are/is  $30,000 or more, you must register for GST/HST. Once you have a GST/ HST number, you collect the GST/HST and remit it to the CRA based on your reporting period.[(we suggest reporting-  annually]). You can claim GST/HST paid on expenses , known as  Input Tax Credit (ITC), and pay the difference.
            
            <p>Consecutive calendar quarters need not be in the same calendar year. For example, If your gross income was $20,000 in December and went down to $10,000 in January of the next year, you have crossed the threshold and need to register immediately.
             </P>
                <h4>Taxi /Uber Drivers</h4>
            
                <p>If you are a self-employed taxi driver or a commercial ride-sharing driver (e.g., Uber driver), you must register for a GST/ HST number from the date you start your business.</p>
            
            <h4>Zero-rated/ Exempt sales/services</h4>
            
                <p>There are some  businesses with zero-rated sales-tax (e.g., basic groceries and certain medical devices or exempt products/services such as legal aid services, music lessons, child care services or financial services). Zero rated services  can register for a GST/ HST number. They do not collect GST/HST, but they can still register for GST/HST if their income is less than $30,000. They pay GST/HST on expenses and claim them as input tax credit, resulting in a refund situation.</p>
            <p>Businesses under the exempt category can not claim GST/HST paid on goods/services and thus are, not required to register.</P>
            
            <h4>How to register?</h4>
            <p>You can call the CRA’s business inquiries number- 1 800 959 5525 to register for GST/HST. However, it is suggested to contact a professional at Softron Tax for better guidance on what to do after registration is done.</P>
            
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                <b>Let us advise you when registering for your GST/HST number! </b>.
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Do I need to register for a GST/HST number?


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                <p>
                Donations are a great way to give back to your community and can make a difference in your federal tax return. The following article will not only help you understand significant ways to give back to your community, but also help you to realize if your donations are eligible for qualifying.
            
                A taxpayer can claim donations made in the proposed year plus carry forward any donations from the previous five years. Generally, a taxpayer can claim part or the entire eligible limit of the gift, up to the limit of 75% of net income for the year. The limit is increased to 100% in the year of death and preceding year. The taxpayer can claim the donation made by his or her spouse. Donations should be combined to derive the maximum benefit.
                <br><br>
            </p>
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                <h2>US Based Charities</h2><p>
                Donations made to US based charities can only be claimed against the income from that country. For instance, if Mr X made a donation to an organization of the US and he does not have any income from US sources, he cannot claim the donation against the income from Canadian sources.
            
                </p><h4>Donation credit is as follows:</h4>
            
                <li><b>15% on the first $200</b> of total donations<br></li>
                <li><b>33%</b> on whichever of the following amount is <b>Less:</b><br></li>
               <li  class="subList">The amount of the donations for the year <b>above the first $200</b><br></li>
               <li  class="subList">The amount of the taxable income that is <b>over $210,371 (2019) or $214,368</b>
                (2020)</li>
                <li>29% on the total donations for the year above the first $200, which are not eligible for the 33%
                rate above<br></li><p></p>
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                <h4>Qualifying Donations are made to:</h4>
                <li>A registered <a href="https://www.canada.ca/en/services/taxes/charities.html" target="_blank">Canadian charity</a></li>
                <li>A registered Canadian amateur athletic association</li>
                <li>A tax-exempt housing corporation residing in Canada that only provides low-cost housing for
                seniors</li>
                <li>a Canadian municipality</li>
                <li>The United Nations or an agency thereof</li>
                <li>A prescribed university outside of Canada</li>
                <li>A charitable organization outside of Canada to which the Government of Canada has made a
                donation in the tax year, or the previous tax year</li> 
                <li>
                The Government of Canada, a province, or a territory</li>
            <br>
                <h4>Non-Qualifying Donations:</h4>
                <li>Lottery tickets purchased from Hospitals</li>
                <li>Charity tournaments</li>
                <li>Shriners circus</li>
                <li>Donations made to Provincial police</li>
                <li>Political contributions made to Federal and Provincial governments</li>
                <li>
                Donations of blood</li> <br>
            
                <h4>Common Mistakes:</h4>
            
                <li>Claiming donations made to a non-registered charity. Check out if the charity is registered with the CRA</li>
                <li> Charities and giving - Canada.ca</li>
                <li>Claiming donations made overseas as donations</li>
                <li>Claiming hospital lottery tickets as charitable or medical expenses</li>
                <li>Claiming political contributions as charitable donations</li>
                
                <h4>Documents Needed:</h4>
                Official receipts (name of the charity, charity registration number and name of the donor) are required by
                the CRA. The taxpayer can simply claim a donation made within 5 years on the tax return.</div>
               
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                <h2>Capital Properties: </h2>
                Capital property includes depreciable property, and any property which, if sold, would result in a capital
                gain or a capital loss. The taxpayer usually buys it for investment purposes or to earn income. Capital
                property does not include the trading assets of a business, such as inventory.
                <br><br>
                    <img src="/images/blog-images/decblog_3.png">
                    <br><br>
                    <h4>  Some common types of capital property include:</h4>
                <li>Cottages</li>
                <li>Securities, such as stocks, bonds, and units of a mutual fund trust </li>
                <li>Land, buildings, and equipment used in a business or a rental operation</li>
                <p></p>
                If the taxpayer donates capital property, the CRA considers the property disposed of for proceeds equal to
                the fair market value (FMV) of the property. <br>
            
                The taxpayer has to report any capital gain in the year the property is donated. In some cases, the taxpayer
                may be able to claim a capital loss in the year they donated the property at the time of donation.
            
                However, if a gift of capital property was made to a registered charity or other qualified donee, to Canada,
                a province, or a territory, and the FMV of the donated capital property, otherwise determined, is more
                than its adjusted cost base (ACB), the taxpayer may designate an amount that is less than the FMV to be
                proceeds of the disposition.</div>


            </div>
          
            
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                You can always email us  at <b>softron@softrontax.com</b> or call us <b>1-877-763-8766</b> or at <b>(905) 273-4444</b>.
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Charitable Donations

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            <h2>Could you use a little bit of extra money to help cover the taxes on the products and services you buy? </h2><h4>Well, That's what the Goods & Services Tax Credit (GSTC) is for! Here's everything you need to know, starting with some definitions.</h4>
            <p >Want to begin saving for your child's future education endeavours? Learn about starting their RESP now!  </p>
            <p>An RESP is a registered savings account by the Government of Canada that allows savings for education, after high school, to grow tax-free. If you qualify, An RESP could also gain government money through the Canada Education Savings Grant and the Canada Learning Bond. It helps your family to save early for a child’s education after high school. It's a contract between an individual (other than a trust) who is the subscriber, and a person or organization, who is the promoter. The subscriber (or a person on behalf of the subscriber) makes contributions to the RESP, which then earns income. In return, the promoter of the plan agrees to pay the income as educational assistance payments to one or more beneficiaries designated in the contract. </p>
            <p><b>Note:</b> RESP contributions are not tax-deductible from the subscriber's income.
            </p>
           
            <h4>Canada Education Savings Grant</h4>

            <p>This grant from the Government of Canada was introduced in 1998, and can help you start saving for your child's education after high school. Your child can use the money for full-time or part-time studies in an apprenticeship program, CEGEP, trade school, college or university. </p>
            <p>The CESG is based on contributions made to an RESP in respect of an eligible beneficiary and is comprised of two components:</p>
            
            <li> The Basic CESG</li>
            <li> The Additional CESG </li>
            
            <p></p>
            <h4>What is the Basic CESG?</h4>
            <p>Basic CESG is a payment of 20% on RESP contributions made in respect of an eligible beneficiary, up until the end of the calendar year in which the beneficiary turns 17.</p>
           
            <h4>What is the Additional CESG?</h4>

            <p>The Additional Canada Education Savings Grant (A-CESG) is extra money from the Government of Canada available to help you save for your child's education after high school. This grant is in addition to the basic Canada Education Grant that you may already be receiving in your child's RESP.</p>
           
            <h4>Canada Learning Bond</h4>

            <p>The Canada Learning Bond (CLB) is money that the Government adds to a Registered Education Savings Plan (RESP) for children from low-income families. This money helps to pay the costs of a child’s full-time or part-time studies after high school at: </p>
            
            <li> Apprenticeship programs</li>
            <li> CEGEPs </li>
            <li> Trade Schools</li>
            <li> Colleges</li>
            <li> Universities</li>
            
            <p></p>
            For more information on CESG and CLB, please visit: 
            <a href="https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/registered-education-savings-plans-resps/canada-education-savings-programs-cesp.html" target="_blank">Lear More</a>
           
            </div>
            </div>
            

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            <h2>Could you use a little bit of extra money to help cover the taxes on the products and services you buy?</h2>
            
            <h4> Well, That's what the Goods & Services Tax Credit (GSTC) is for! Here's everything you need to know, starting with some definitions.</h4>
            
            <li>To perform the duties of an office or employment</li>
            <li>To carry on a business either alone, or as a partner actively engaged in the business</li>
            <li>To carry on research, or any similar work, for which the taxpayer or supporting person received a grant</li>
            <p></p>
            <p>The cost of caring for children is allowed as a deduction for tax purposes from the income of a working parent. Form T778 must be completed and attached with the tax return to claim child care expenses. 
            </p>
            <h4>WHAT IS GST?  </h4>
            <p>The Goods & Services Tax (GST) is a tax that applies on most supplies of goods and services made in Canada. It also applies to supplies of real property (e.g., land, buildings, and interests in such property) and intangible property such as trademarks, rights to use a patent, and digitized products downloaded from the Internet and paid for individually.</p>
            
            
            <h4>The Federal GST portion of the Sales Tax is 5%.</h4>
            
            
            <p>The participating provinces (New Brunswick, Newfoundland and Labrador, Nova Scotia, PEI and Ontario) harmonized their provincial sales tax with the GST to implement the Harmonized Sales Tax (HST) as of July 1, 2010. The combined harmonized rate is 13% for Ontario.</p>
            
            <h4>INTRODUCING THE GSTC </h4>
            <p>The Goods & Services Tax Credit is designed especially for individuals and families with a lower income. It is based on net income for the taxation year. Furthermore, It is normally paid in four equal instalments over the year; in July, October, January and April. However, if the GSTC payment is less than $50 per quarter, the CRA makes one payment for the GST credit in July. The CRA also mails one cheque for GSTC amounts owed from previous years. A taxpayer must file an income tax return to receive the GST credit.</p>
            
            
            <p>In the case of married or common-law couples, only one spouse can receive the GST Credit. Regardless of which spouse receives it, the credit will be the same since it is based on the combined net family income. Due to this, any changes in marital status must be reported to the CRA immediately as this will affect the GST credit.</p>
            
            
            <p>The GST credit is calculated based on the family net income (including worldwide income) and size of the family. World income is the income from all sources inside and outside of Canada. 
            Each quarterly payment is based on the taxpayer's current family situation: marital status, number of eligible children, and residency status. If the family situation changes at any time during the year, the taxpayer has to inform the CRA as soon as possible so that the payments can be adjusted based on the new family size and income.
            </p>
            
            <p>Do note that the Ontario government provides tax relief for low income taxpayers with their own provincial tax credits called the Ontario Trillium Benefit (OTB)</p>
            

            <h4>WHO CAN APPLY?</h4>
            <p>Individuals can apply for the GST credit, for income tax purposes, if they are a resident of Canada. This should occur at the beginning of the month when the CRA makes payments, and if at least one of the following applies:</p>
            
            <li>They are 19 years of age or older </li>
            <li>If they are under 19 years of age, then they are eligible only if:</li>
            <li class="subList"> A day camp or day sports school</li>
            <li class="subList"> the taxpayer has (or previously had) a spouse</li>
            <p></p>
            <p>In the case of married or common-law couples, only one spouse can receive the GST Credit. Regardless of which spouse receives it, the credit will be the same since it is based on the combined net family income. Due to this, any changes in marital status must be reported to the CRA immediately as this will affect the GST credit.</p>
            
            
            <p><b>Note</b>: An individual who is turning 19 before April 1, 2022 should file a 2020 tax return even if their income is nil to receive the GST credit.</p>
            

            <h4>Individuals do not qualify for the GST credit if, at the beginning of the month in which the payment is issued:</h4>
            
            <li> The individual is confined to a prison or similar institution and has been there for 90 days or more</li>

            <li> The individual is not required to pay tax in Canada because they are an officer or servant of another country, such as a diplomat their family members or employees of diplomats</li>
            <p></p>
            <p>In the case of married or common-law couples, only one spouse can receive the GST Credit. Regardless of which spouse receives it, the credit will be the same since it is based on the combined net family income. Due to this, any changes in marital status must be reported to the CRA immediately as this will affect the GST credit.</p>
           
            <h4>GST/HST CREDIT FOR DEPENDENT CHILDREN </h4>
            <p>We all know that raising children is no easy task for you, or your back account. Luckily, it entitles you to additional GST credits!</p>
            <p>The GST credit can be claimed for each dependent child:</p>
            
            <li> Under the age of 19</li>
            <li> Who has never had a spouse or a common-law partner</li>
            <li> Who has never been a parent</li>
            <li> Who either lived with or was claimed as a dependent by a taxpayer or a taxpayer’s spouse at the beginning of the month in which the CRA makes payments</li>
            <li> The child must be a Canadian resident</li>
            <p></p>

   For additional information on GST/HST credits, please visit : 
   <a href="https://www.canada.ca/en/revenue-agency/services/forms-publications/publications/rc4210/gst-hst-credit.html#P391_16177" target="_blank">Learn More</a>
            </div>
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GOODS & SERVICES TAX CREDIT (GSTC)


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            <p>Child Care expenses are an incurred expense for services rendered in the taxation year, to provide childcare services for any eligible families with children 16 and under. 
            These services were provided to enable families, or the person supporting the child, for the year:</p>

            <li>  To perform the duties of an office or employment</li>
            <li> To carry on a business either alone, or as a partner actively engaged in the business</li>
            <li>To carry on research, or any similar work, for which the taxpayer or supporting person received a grant</li>
            
            <p>The cost of caring for children is allowed as a deduction for tax purposes from the income of a working parent. Form T778 must be completed and attached with the tax return to claim child care expenses. 
            </p>
            <h4 >Who is an Eligible Child for T778? </h4>

            An eligible child includes: 
            
            <li>A child of the taxpayer and spouse</li>
            <li> A child under 16 years at some point during the year</li>
            <li>A child who was dependant on the taxpayer due to disability, for whom there is a signed form; T2201 Disability Tax Credit Certificate</li>
            <li> A child’s net income must not exceed the basic personal amount</li>
            
            <p>It is required that an eligible child must be in the custody of the person claiming the child care deduction. Child care expenses qualify for a deduction by a taxpayer in any case where the expenses are related to any eligible child.
            </p>
            <h4 >Eligible and Non-Eligible Payments To claim child care expenses as deductions, the child care payments must be made to:
            </h4>
          
            <li> An eligible person providing the child care services</li>
            <li> A day nursery school or day-care centre</li>
            <li> A day camp or day sports school</li>
            <li> A boarding school or camp (including a sports school where lodging is involved)</li>
            <li> An educational institution that provides child care services. When an educational institution offers child care as well as an educational program, only the portion of the fees paid to the institution relating to child care (i.e., supervision before and after classes or during the lunch period) may qualify as child care expenses. However, when the payment made is for a child under the compulsory school age, the services being provided are generally considered child care rather than education unless the facts indicate otherwise</li>
            <li> Payments must be made to a resident of Canada</li>
            <li> The individual must be 18 or over when payments are made to a related person</li>
            <li> Fees paid to the placement agency to find a suitable nanny</li>
            
            <p></p>
            <h4>Child care expenses are not deductible when payments are made to:</h4>
            
            <li> A father/mother of the child or a supporting person</li>
            <li> A person for whom the taxpayer or another supporting person claimed an amount on <b>line 30425, 30400 or 30450 or 30500</b> of Part A Federal non-refundable tax credits</li>
            <li> Payments made to a person under 18 who is related to the taxpayer or supporting person</li>
           <p></p>
            <p> For more information on how much you can deduct for tax purposes, please continue to the next blog!</p>

            </div>
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Child care expenses

<div>
            <div>
            <p><strong>Covid Benefits:</strong> During the year, you may have received government COVID-19 support payments such as the Canada Emergency Response benefits. If these amounts are taxable, you will have received an information slip, such as a T4A or T4E, with instructions for how to report these<br>
            amounts.<br>
            If you are self-employed, you may have received government COVID-19 assistance, such as the Canada Emergency Wage Subsidy. You have to either include these amounts in income or reduce your expenses by the amounts that you received. You may also have received a government loan.<br>
            The loan itself is not taxable, but you have to include in your income any portion of the loan that is forgiven.</p>
            </div>
            <p><strong>Basic personal amount (<b>line 30000</b> of the return):</strong> This amount has increased for most taxpayers.</p>
            <p><strong>Spouse or common-law partner amount (<b>line 30300</b> of the return):</strong> This amount has increased for most taxpayers.</p>
            <p><strong>Amount for an eligible dependant (<b>line 30400</b> of the return)</strong>: This amount has increased for most taxpayers</p>
            <p><strong>Digital news subscription tax credit (<b>line 31350</b> of the return):</strong> For 2020 – 2024, you may be able to claim expenses you paid in the year for a digital news subscription with a qualified Canadian journalism organization.</p>
            <p><strong>Tuition tax credit (<b>line 32300</b> of the return):</strong> The Canada training credit that the student claims for the year reduces the tuition tax credit that the student can claim, transfer to a supporting individual, or carry forward to a later year.</p>
            <p><strong>Donations and gifts (<b>line 34900</b> of the return):</strong> We have simplified the calculation on schedule 9 for most individuals. Also, for 2020 and later tax years, you may be able to claim a non-refundable tax credit for donations made to registered journalism organizations.</p>
            <p><strong>Canada training credit (<b>line 45350</b> of the return):</strong> If you meet certain conditions, you will be able to claim a Canada Training Credit, a new refundable tax credit that is available for 2020 and future years.</p>
            <p><strong>Mineral exploration tax credit for flow-through share investors:</strong> This investment tax credit is extended for an additional 5 years to March 31, 2024.</p>
            <p><strong>Manitoba:&nbsp;</strong>A new one-time refundable Manitoba seniors economic recovery credit has been introduced for eligible seniors. Manitoba Finance mailed an advance payment of $200 to seniors in May or June of 2020. Seniors who did not receive the $200 advance payment may claim this credit on their 2020 income tax return.</p>
            </div>

What's New For 2020

<h2><strong>Individuals : Federal &amp; Quebec<strong></h2>
            <div>Filing Deadline: May 02, 2022</div>
            <div>Payment Due Date: May 02, 2022</div>
            <div></div>
            <h2><strong>Self-employed</strong></h2>
            <div>Filing Deadline: June 15, 2022</div>
            <div>Payment Due Date: September 1, 2022</div>
            <div></div>
            <h2><strong>Trusts with a tax year end of Dec 31, 2021</strong></h2>
            <div>Filing Deadline: May 1, 2022</div>
            <div>Payment Due Date: September&nbsp;1, 2022</div>
            <div></div>
            <h2><strong>Corporations</strong></h2>
            <div><em>Federal &amp; Quebec with a filing due date after March 18 and before June 1</em></div>
            <div>Filing Deadline: June 1, 2022</div>
            <div>Payment Due Date: September 1, 2022</div>
            <div></div>
            <div><em>Alberta</em></div>
            <div>6 months after year-end</div>
            <div>Payment Due Date: August 31</div>
            <div></div>
            <h2><strong>Canadians with US tax filing</strong></h2>
            <div>Filing Deadline: July 15</div></div></div>

Here Are The Important Dates You Need To Know Regarding Recent Changes

<p>Some locations days and hours of operation may have changed due to the cornavirus.</p>
            <p>Please call ahead to verify the location’s hours.</p>
            <p>Some locations are offering a drop off service, where you can drop off your taxes and pick them up at a later time.</p>

COVID-19 Update

<h2>Enhanced Canada Pension Plan/Quebec Pension Plan</h2>
            <p>Individuals and families Enhanced Canada Pension Plan/Quebec Pension Plan – Starting in 2019, the Canada Pension Plan (CPP) and the Quebec Pension Plan (QPP) are being gradually enhanced. This means that if you contribute to either the CPP or the QPP, you will receive improved benefits in exchange for making higher contributions. You can claim a deduction for your enhanced contributions to the CPP or QPP.</p><h2>Canada Training Credit Limit</h2>
            <p>As of January 1, 2019, if you meet certain conditions, you will be able to accumulate $250 per year, to a maximum over your lifetime of $5,000, to be used in calculating your Canada Training Credit, a new refundable tax credit that will be available for 2020 and future years. Based on information from your return, the CRA will determine your Canada Training Credit Limit for the 2020 tax year and provide it to you on your Notice of Assessment for 2019. For 2020 and future years, you may be able to claim a Canada Training Credit equal to your Canada Training Credit Limit for the year or 50% of your eligible tuition and fees paid to an educational institution in Canada, whichever is less.</p>
            <h2>Canada Workers Benefit</h2>
            <p>For 2019, the Canada workers benefit (CWB) replaces and strengthens the working income tax benefit (WITB). The CWB is an enhanced, more accessible, refundable tax credit.</p>
            <h2>Income exempt under the Indian Act</h2>
            <p>A new section called “Indian Act – Exempt income” has been added to page 2 of the Income Tax and Benefit Return, and a new form has been created, Form T90, Income exempt under the Indian Act. The information provided on the return and form will allow the CRA to calculate your Canada Training Credit Limit for the 2020 tax year and may also be used to calculate your CWB for the 2019 tax year, if applicable.</p>
            <h2>Communal organizations</h2>
            <p>For 2014 and later tax years, income from a business earned by the trust that is then allocated to a member of the congregation is deemed to be income from a business carried on by that member. This may allow members of a communal organization to claim the CWB for 2019 and later years, and the WITB for the 2014 to 2018 tax years.</p>
            <h2>Kinship Care Providers</h2>
            <p>For 2009 and later years, for the CWB and the former WITB, a care provider may be considered to be the parent of a child in their care, regardless of whether they receive financial assistance from a government under a kinship care program. As a result, the care provider may be entitled to claim the child as an eligible dependent for purposes of claiming the benefit. Also, for these years, financial assistance payments received by care providers under a kinship care program are not included in income and not included when determining entitlement to benefits and credits based on income.</p>
            <h2>Home Buyers’ Plan</h2>
            <p>The maximum amount you can withdraw from your registered retirement savings plan (RRSP) under the Home Buyers’ Plan (HBP) increased from $25,000 to $35,000 for withdrawals made after March 19, 2019. If you are not considered a first-time home buyer for the purposes of the HBP, and you experience a breakdown in your marriage or common-law partnership, you may be able to participate in the HBP after 2019 under certain conditions.</p>
            <h2>Medical Expenses Tax Credit</h2>
            <p>For expenses incurred after October 16, 2018, certain cannabis products purchased for a patient for medical purposes will be considered eligible medical expenses for the medical expense tax credit, once they become permitted for legal sale under the Cannabis Act. For more information, see Guide RC4065, Medical Expenses.</p>
            <h2>Donations and gifts (<b>line 34900</b> of the return)</h2>
            <p>For donations made after March 18, 2019, in order to qualify for the enhanced tax incentives for donations of cultural property, the property no longer needs to be of national importance.</p>
            <h2>Allowances for members of legislative assemblies and certain municipal officers</h2>
            <p>For 2019 and later tax years, non-accountable allowances paid to elected members of legislative assemblies, certain municipal officers, and members of public or separate school boards are required to be fully included in income.</p>
            <h2>Zero-emission vehicles</h2>
            <p>If you are self-employed or claiming employment expenses, you may be able to claim capital cost allowance on zero-emission vehicles. Starting in 2019, there is a temporary enhanced first-year capital cost allowance of 100% for eligible zero-emission vehicles. Eligible vehicles must be acquired after March 18, 2019, and become available for use before 2024. The enhanced allowance decreases if the vehicle becomes available for use after 2023 and before 2028.</p>
            <h2>Other Changes</h2>
            <ul>
            <li style="list-style: disc; margin-left: 45px;">Removal of Direct Deposit enrolment information from the T1 return: You will no longer see data on the last page of the Tax Return</li>
            <li style="list-style: disc; margin-left: 45px;">In 2019, Schedule 1 is part of the T1 General</li>
            <li style="list-style: disc; margin-left: 45px;">The T1013 2D Barcode process is being discontinued for the 2019 tax year</li>
            <li style="list-style: disc; margin-left: 45px;">T1013 service is now called Authorizing a Representative Web service</li>
            <li style="list-style: disc; margin-left: 45px;">CRA now aaccepts prior year returns for the 2016, 2017 and 2018 tax years</li>
            </ul>

Tax Changes and Other Changes

<p>With taxes due on April 30th at midnight, many Canadians have already filed their taxes and are ready to make any payments for balances owing to the CRA for the 2018 tax year. Here is some information that you need to know if you have already filed your return.</p>
            <h2>Getting a Refund</h2>
            <p>If you overpaid your taxes, you will be entitled to a refund! If you are receiving a refund then you can expect it in 2 weeks when you file online and 8 weeks when you file through mail. If you are set up for direct deposit you can receive your refund faster. If you have overpaid your taxes and have not received your refund 31 days after the date you paid, you may be entitled to interest on your refund!</p>
            <h2>Notice of Assessment or Reassessment</h2>
            <p>Your notice of assessment indicates whether you have any balance owing, refund, or zero balance. The notice of assessment also indicate You can receive your notice of assessment after your file your return. If you are filing online, you can receive your Notice of Assessment online in two weeks. If you are filing your return by mail, you can expect your Notice of Assessment in eight weeks. </p>
            <p>If you are receiving a Notice of Reassessment, do not panic. A Notice of Reassessment simply states that changes were made by the CRA to your return. You may also receive a notice of reassessment if you have made an adjustment to your return after filing. If you receive a Notice of Reassessment, you will have 90 days to file a Notice of Objection. </p>
            <h2>Request for Information</h2>
            <p>A request for information is when the CRA asks for information regarding something that has appeared on your return. This is not an audit, but a simple record check. Remember to keep records for returns for up to six years after filing the return so that you have the proof to provide for this request. You can submit receipts online through your My Account if you have electronic copies of your records.</p>
            <h2>Paying Your Taxes</h2>
            <p>When you have to pay a balance owing, you have several options as to how you can pay that amount. You can set up online payments to the CRA with any major financial institution. Here are the options you have to pay your balance owing.</p>
            <ul>
            <h3>Paying in Person</h3>
            <p><em>You can pay in person by visiting a Canada Post location and paying using a Quick-Response code. You can also hand in a copy of your return to your closest tax centre. Information about your closest Tax Centre can be found on the Canada Revenue Agency website. </em></p>
            <h3>Cheque or Money Order</h3>
            <p><em>These forms of payments can be made out to the Receiver General of Canada. The cheque should be mailed to the address on the back of your remittance voucher and sent with the remittance voucher alongside the cheque or money order. If you do not have a remittance voucher, you can find details on where to send your cheque from the Canada Revenue Agency website.</em></p>
            <h3>Debit or Credit</h3>
            <p><em>Individuals who are using a Debit Mastercard, VISA debit, or interac can use My Payment to pay their amount owing. My Payment is a service that allows you to directly pay amounts owing to the CRA directly to them using your bank access card.</em></p>
            <h3>Pre-Authorized Debit</h3>
            <p><em>Pre-authorized debit or PAD allows you to set up a payment amount and give the CRA permission to withdraw the amount from your bank account on a predetermined date. Be aware that to use this option, the payment date must be five business days from the day you create the agreement. Therefore, taxpayers attempting to use PAD will not be able to get their payment in on time unless the agreement was created before April 24th.</em></p>
            <h3>Trouble Paying?</h3>
            <p><em>If you are unable to pay your return in full, you can arrange to make payments to the CRA over time to pay your balance owing. In certain circumstances, you may also request relief from interest or penalties from the CRA. It is advised that you contact the CRA as soon as possible in order to inform them of your situation and avoid increasing the interest and penalties on your balance owing. </em></p>
            </ul>
            <h2>File On Time!</h2>
            <p>It is important to remember that payment through third parties is not immediate and therefore may require a certain number of business days for the CRA to receive the payment. Therefore, ensure that your payment will make it to the CRA before the deadline or you may be liable for a late filing penalty.</p>
            <p>Haven’t filed your taxes yet? Visit one of <a href="https://www.softrontax.com/location/">our locations</a> and have a professional file your return before April 30th. Our professionals will ensure that you claim all the necessary credits and deductions so you pay the least amount of tax. You can also download our <a href="https://www.taxtron.ca/buy-online/download/">TaxTron software</a> to file your return online!</p>

Filed Your Return? Here’s What You Need to Know

<p>Premier Doug Ford’s government released their first provincial budget today along with a new license plate and slogan for Ontario citing “A PLACE TO GROW”. The government has offered new tax credits, less regulations, cuts to government programs, and a new transit plan. Here’s some of the main points discussed in Ontario’s 2019 budget. </p>
            <h4>CARE Tax Credit</h4>
            <p><em>The Childcare Access and Relief from Expenses (CARE) tax credit will be introduced in Ontario to provide support for low income families in paying their childcare expenses. Families can receive up to $6000 per child under age 7, up to $3750 per child between the ages of 7 and 16, and up to $8250 for a child with a severe disability. Although the tax credit would primarily help low income households, the credit will also provide relief for households with income up to $150,000. The government is also allocating $1 billion over five years to increasing childcare spaces in Ontario. </em></p>
            <h4>Business Tax Credit</h4>
            <p><em>The government has offered a tax credit to businesses to allow them to write their capital expenses off immediately. The credit comes as an alternative to their plan to reduce the corporate tax rate. The purpose of this offering is to give companies an incentive to spend money as opposed to keeping profits.  </em></p>
            <h4>Transit</h4>
            <p><em>$28.5 million will be allocated to a transit plan for the Greater Toronto Area which will include an increase in subway lines and regional rail transit. The plan includes the “Ontario Line”, which will be the new subway line connecting the Ontario Science Centre to Ontario Place. </em></p>
            <h4>Auto Insurance</h4>
            <p><em>The government is also proposing to reduce auto insurance rates by providing flexible options for providing insurance to drivers. The government is planning on implementing these changes over several years so that rates are more entwined with the driver’s history. They are also looking to allow electronic proof of insurance along with a new “Driver Care Card” for receiving benefits from claims. The province is also increasing the maximum benefit which can be claimed from $1 million to $2 million. </em></p>
            <h4>Dental Care for Seniors</h4>
            <p><em>$90 million will be allocated to assist low income seniors in getting dental care. Seniors with annual income below $19,300 or couples with combined income less than $32,300 will qualify for dental care this summer. This initiative will be implemented to give seniors greater access to dental care. According to the report, seniors were one of the most under represented groups to make regular dental check-ups. </em></p>
            <h4>Alcohol and Gambling</h4>
            <p><em>The government has also outlined it’s plans to decrease regulation in regards to gambling and alcohol sales. The government is proposing legislation to allow for drinking in parks, tailgating events, and to allow liquor sales in restaurants at 9am, 7 days a week. The government also is looking to allow private companies to participate in online casino style gambling. </em></p>
            <p>The government is also planning on gradually decreasing the deficit and leading up to a surplus by 2024. The approach will involve reducing the amount of debt year by year and increasing the province’s debt to GDP ratio. The Finance Minister has stated that the approach is a “Goldilocks Approach” because the changes have to be just right in their implementation. </p>
            <p>Overall, the changes introduced in the budget are of a large scope and are appealing to a large demographic. Seniors to millennials, low-income earners to high-income earners, and all people in between can expect one of these offerings to affect them in one way or another in the upcoming year.</p>

Ontario Budget 2019

<h5>Did you know that between 2006 and 2017, 75 tax scheme promoters were convicted of crimes relating to tax schemes. The total of fines resulting from these prosecutions amounted to a total of 7.15 million and resulted in a total of 936 months of jail time for those convicted.</h5>
            <h5>Tax schemes are promoted heavily during tax season and taxpayers need to have the facts regarding tax schemes in order to avoid them.</h5>
            <h2>What is a Tax Scheme?</h2>
            <p>A tax scheme can be an individual or an organization that is deceiving a taxpayer into believing that they will be able to pay less taxes through unreasonably large deductions or that they will be able to receive an unusually large refund. Tax schemes often use illegal methods to get clients larger refunds and. When faced with a tax preparer who is promising an unusually large refund, be cautious.</p>
            <h2>What Should You Look Out For?</h2>
            <p>Beware of tax promoters that are promoting a return that is much higher than the initial investment towards it. Returns that are grossly disproportionate to the amount of money that is actually paid should be a red flag that there is something suspicious going on. You should also be cautious if the promoter is discouraging you from speaking to the CRA or getting a second opinion from another tax professional. </p>
            <h2>Common Schemes</h2>
            <p>A common scheme which resulted in billions of dollars in deductions being cancelled was the Charity Tax Shelter scheme which convinced Canadians that they could claim an amount equal to or greater than their charitable donation when filing their tax return. Donations paid to charities are only eligible to have a portion of the amount deducted. Charities must be registered with the CRA in order to issue official donation receipts and the CRA closely monitors charities and tax shelters to detect abuse of privileges. As a rule of thumb, donations for the purpose of only deducting taxable income are looked down upon by authorities and should be avoided. </p>
            <p>Another common scheme involves promoters convincing unemployed individuals that they are eligible for the working income tax benefit(WITB) even if they have not worked during the year. The WITB is only available to low income individuals and families that have worked during the tax year. Schemes of these sorts take valuable tax dollars away from social programs and facilities for Canadians. The CRA takes participation in these schemes very seriously and invests large amounts of money towards preventing these schemes. </p>
            <h2>You Can Be Held Liable</h2>
            <p>Being a willing participant in a tax scheme can lead to serious consequences. If you knowingly participate in a tax scheme you can be prosecuted or penalized by the CRA to pay additional fees on top of the fees paid to a tax scheme. </p>
            <p>Taxpayers that have knowingly participated in a tax scheme can visit the<a href="https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/voluntary-disclosures-program-overview.html"> Voluntary Disclosures Program</a> in order to disclose their information and fix their tax return. Disclosing involvement through the Voluntary Disclosures Program would allow for relief from prosecution in certain cases and limit the amount of penalties. </p>
            <h5>Be cautious of promoters that promise outrageous claims and practice due diligence in choosing a tax representative. Softron Tax has been a trusted tax preparation company for over 40 years. Visit one of <a href="https://www.softrontax.com/location/">our locations</a> and have one of our friendly staff file your return for you today!</h5>

Sounds Too Good to Be True? It May Be a Tax Scheme

<p>The 2019 federal budget has been released and the federal government is targeting investment in the middle class through many of the programs it is introducing. The expenditures in the budget aim to help young Canadians in gaining skills and purchasing homes. The total spending under the 2019 budget totals to $22.8 billion dollars. Here are some of the main areas the government will be targeting with the 2019 budget. </p>
            <h2>Skills Training</h2>
            <p>The government is introducing the Canada Training Benefit to help Canadians upgrade their skills in order to become more valuable to employers and competitive in today’s workforce. The Canada Training Benefit will allow for Canadians to receive a credit of $250 a year up to a lifetime maximum of $5000 which can be used against half the amount of training. The government is also dedicating a portion of the budget to helping young Canadians secure stable employment. The budget proposes to invest $49.5 million dollars over five years towards a modern Youth Employment Strategy. The government is also investing in the Canada Summer Jobs program as well as the Futurpreneur Canada program in order to assist future entrepreneurs and help students gain experience.</p>
            <h2>Affordable Housing</h2>
            <p>The First Time Home Buyers Incentive will allow eligible home buyers to finance a portion of their mortgage through the Canadian Mortgage Housing Corporation(CMHC) in order to reduce the amount of payments for their mortgage. The government is also increasing the Home Buyers’ Plan withdrawal limit from 25,000 to 35,000. The budget has also proposed to invest 300 million towards building new homes.</p>
            <h2>Pharmacare Initiatives</h2>
            <p>The budget is proposing to invest $35 million dollars over four years toward a “Canadian Drug Agency” in order to reduce spending on drugs. There will also be an investment of $1 billion over two years for increasing accessibility to high-cost drugs for rare diseases. These initiatives will assist in decreasing the burden Canadians face in paying for expensive drugs. </p>
            <h2>Seniors and Pension</h2>
            <p>The government is also introducing initiatives that will benefit seniors in retirement. The government plans to proactively enroll Canadians that are age 70 or over to receive benefits if they have not yet enrolled for benefits but are eligible to receive them. The budget will also enhance the Guaranteed Income Supplement(GIS) earnings exemptions to assist seniors with low income. </p>
            <p><strong>The Federal budget for 2019 promises to build a more secure future for young Canadians by targeting the areas which they are affected by significantly. Increased housing and initiatives to help home-buyers purchase their home and providing financing for greater employment will significantly help young Canadians. For more information on the 2019 budget, you can visit the <a href="https://budget.gc.ca/2019/docs/plan/toc-tdm-en.html">government of Canada site.</a></strong></p><a href="https://budget.gc.ca/2019/docs/plan/toc-tdm-en.html">

Federal Budget 2019

<h4>The deadline to contribute to your RRSP for the 2018 tax year is March 1, 2019, and with the deadline nearly here, we at Softron are sharing our expertise regarding what you need to know about RRSPs.</h4>
            <h2>What is an RRSP?</h2>
            <p>RRSP stands for Registered Retirement Savings Plan. An RRSP can be a valuable vehicle to save one’s money for their golden years. The RRSP allows for individuals to contribute parts of their income into the plan tax-free. Contributors are allowed to deduct a portion of their contributions from their taxable income as well, resulting in less tax paid during the year.</p>
            <h2>Home Buyers’ Plan</h2>
            <p>Thinking of buying a home in the near future? You can withdraw up to $25,000 from your RRSP in order to purchase or build a home under the Home Buyers’ Plan. To qualify for this option you must be a first time home buyer and the funds must be repaid to the RRSP within 15 years.</p>
            <h2>Lifelong Learning Plan</h2>
            <p>Want to go back to school to pursue your dream job? The Lifelong Learning Plan allows you to withdraw from your RRSP in order to finance full-time education for you or your partner. The Lifelong Learning Plan cannot be used to finance your children’s education and you must repay one tenth of the amount that you withdrew every year until the amount is placed back into the RRSP.</p>
            <h2>Turning 71</h2>
            <p>The year you turn 71 is the last year in which you can contribute to your RRSP. During this year you must choose to either withdraw your funds, transfer them to an RRIF, or use them to purchase an annuity.</p>
            <h3>Contribute to your RRSP before March 1, 2019 in order to be eligible for the tax deduction for the 2018 tax year. Our tax experts at one of our locations are always happy to help with preparing your return or download our TaxTron software to file your return online!</h3>

RRSP: What You Need to Know

<p>It’s that time of the year again. While everybody is starting to get their paperwork ready for the 2018 tax return, we at Softron are ready to do our best to save you tax dollars. This year is a mixed bag when it comes to tax credits.</p>
            <p>The tax changes that will impact your tax returns are discussed as follows:</p>
            <h1>Climate action incentive payments:</h1>
            <p>Everybody gets a refund and it’s good for the environment too! Well, everybody may not get a refund, but this non-refundable tax credit will definitely lower your tax owing. A family of two adults and two children is qualified for a tax incentive of $307.00. &nbsp;So even if you had no income in 2018 and paid no taxes, you will qualify for a tax refund this year.</p>
            <h1>TOSI Rules</h1>
            <p>The government has changed tax laws around income sprinkling. A tax on split income may be applicable in some cases for children under 18 years at the highest rate of 33%. So, if you child receives any income from your business, partnership, rental property or trusts, it is highly recommended that you should discuss your tax situation with an expert at Softron to ensure that your taxes are filed accurately, and you are best advised on your case.</p>
            <h1>Expanded Medical Tax Credit:</h1>
            <p>The medical tax credit has expanded. Patients can now claim any money they spent on prescribed medical marijuana. Keyword here being “prescribed”. Also, couples that are undergoing fertility treatments and spending money on treatments like IVF, can now claim all their expenses under the medical tax credit.</p>
            <h1>Credits that got the Axe:</h1>
            <ul>
            <li style="list-style: disc; margin-left: 45px;">Public Transit Tax Deduction is no longer applicable. It will make a big difference in for people living in Greater Toronto Area as public transit costs can be very high depending on the type of commute</li>
            <li style="list-style: disc; margin-left: 45px;">No fitness or arts tax credit for money spent for arts and fitness activities of children</li>
            <li style="list-style: disc; margin-left: 45px;">No education and text book credits for students. Recently Ontario government also announced scrapping of free tuition for children from lower income families. So, increasing education costs combined with reduced tax credits will put financial pressure on students</li>
            </ul>
            <p></p>
            <p>As I said, it’s a mixed bad and some tax rules can be complicated and confusing. Therefore, prepare yourself by asking your tax accountant all the questions that seem relevant to your case and we at Softron will advise you to ensure you save money on taxes.</p>

2019 Tax Changes: It's a mixed bag

<p>It’s that time of the year again. While everybody is starting to get their paperwork ready for the 2018 tax return, we at Softron are ready to do our best to save you tax dollars. This year is a mixed bag when it comes to tax credits.</p>
                <p>The tax changes that will impact your tax returns are discussed as follows:</p>
                <h1>Climate action incentive payments:</h1>
                <p>Everybody gets a refund and it’s good for the environment too! Well, everybody may not get a refund, but this non-refundable tax credit will definitely lower your tax owing. A family of two adults and two children is qualified for a tax incentive of $307.00. &nbsp;So even if you had no income in 2018 and paid no taxes, you will qualify for a tax refund this year.</p>
                <h1>TOSI Rules</h1>
                <p>The government has changed tax laws around income sprinkling. A tax on split income may be applicable in some cases for children under 18 years at the highest rate of 33%. So, if you child receives any income from your business, partnership, rental property or trusts, it is highly recommended that you should discuss your tax situation with an expert at Softron to ensure that your taxes are filed accurately, and you are best advised on your case.</p>
                <h1>Expanded Medical Tax Credit:</h1>
                <p>The medical tax credit has expanded. Patients can now claim any money they spent on prescribed medical marijuana. Keyword here being “prescribed”. Also, couples that are undergoing fertility treatments and spending money on treatments like IVF, can now claim all their expenses under the medical tax credit.</p>
                <h1>Credits that got the Axe:</h1>
                <ul>
                <li style="list-style: disc; margin-left: 45px;">Public Transit Tax Deduction is no longer applicable. It will make a big difference in for people living in Greater Toronto Area as public transit costs can be very high depending on the type of commute</li>
                <li style="list-style: disc; margin-left: 45px;">No fitness or arts tax credit for money spent for arts and fitness activities of children</li>
                <li style="list-style: disc; margin-left: 45px;">No education and text book credits for students. Recently Ontario government also announced scrapping of free tuition for children from lower income families. So, increasing education costs combined with reduced tax credits will put financial pressure on students</li>
                </ul>
                <p></p>
                <p>As I said, it’s a mixed bad and some tax rules can be com</p>

Dealing With Fraudulent Phone Calls

<p>This has been ongoing hot topic for discussion with different financial experts coming up with different opinions. So, what’s the answer?</p>
            <p>Well the clear answer is: It depends.</p>
            <p>Financial Planning is not a one size fits all thing. Both the plans have unique tax benefits and depending on the income level and financial goals of an individual, one plan may be better than the other.</p>
            <p>So, let’s see what does it depend on?</p>
            <h1>Income</h1>
            <ul >
            <li style="list-style: disc; margin-left: 45px;">If you are working part time, have some savings and make less than $12,000, only use TFSA as RRSP deduction will not benefit you. Also, any RRSP contributions will hurt your GIS (Guaranteed Income Supplement) payments in retirement</li>
            <li style="list-style: disc; margin-left: 45px;">If you are working full time and making less than $35,000, have no pension plan, TFSA is still a preferred choice as you do not want to hurt your GIS payments in retirement</li>
            <li style="list-style: disc; margin-left: 45px;">If you are making more than $50,000 have no pension plan, RRSP becomes a good option and tax deduction will save you taxes and considering your income level at this time, there is little chance that you will qualify for a GIS payment</li>
            </ul>
            <h1>Other Factors</h1>
            <ul>
            <li style="list-style: disc; margin-left: 45px;">Long Term Savings Vs Short Term Savings: If you are saving for short term and will be withdrawing the saving in near future, TFSA should always be preferred irrespective of any other factor</li>
            <li style="list-style: disc; margin-left: 45px;">Saving for a House: If you have already not saved $25,000 for a house, you can put your house savings in RRSP, get a tax deduction and then withdraw the savings under the Home Buyers’ Plan</li>
            <li style="list-style: disc; margin-left: 45px;">Saving for Education: If you are saving for higher education, you can use RRSP account to do that and get tax deduction benefits. The money can be withdrawn under the Lifelong Learning Plan</li>
            <li style="list-style: disc; margin-left: 45px;">Employer Pension Plans: RRSPs are primarily an investment tool for retirement planning. If you have generous retirement plan, then it is advised that TFSA should be preferred RRSPs so as o avoid huge tax liabilities in retirement years</li>
            </ul>
            <p></p>
            <p><br/>Financial and Tax Planning can be complex. At Softron, we have experts who can guide you on benefitting from Home Buyers’ Plan, Lifelong Learning Plan, Managing RRSP contributions and help you get the value out of your investments.</p>
            <p>Call 905-273-4444 today and let the best handle your taxes!</p>

The TFSA Vs. RRSP Debate. Which one’s better?

<p>Are you renting your property or part of it on AirBnB, VRBO or HomeAway? Well, the income you earned is taxable and has to be reported on your tax return.</p>
            <p>Short Term Renting is renting of residential property to a guest for a short length of time. Let’s discuss how this works:</p>
            <h2>Rental Income:</h2>
            <p>Any income generated through short term rentals constitutes rental income. Just like conventional rental income, a “Statement of Real Estate Rental” – T778 needs to be completed with the tax return to be compliant with Canada Revenue Agency. But that’s not all. There are other requirements unique to Short Term Rentals</p>
            <h2>GST/HST Requirements-</h2>
            <p>Short term rentals started out as a part time renting of the extra room to generate some cash. They have evolved as a business today. Some people have gone on to purchase properties for the sole purpose of short term renting. While it depends how good the occupancy rate you have and what is the average cost you charge for your property, numbers can add up quickly, and short-term rental owners are required to have a GST number and be GST compliant if they generate a revenue greater than $30,000. This includes the gross amount of rental income generated and includes all fees and other charges that home owners are required to pay to the AirBNB and HomeAway for their services.</p>
            <h2>City Requirements</h2>
            <p>Housing affordability is a major issue in major Canadian cities and short-term rentals don’t help the cause. They take away from the housing supply that could have catered to long term rentals for individuals and families. So, all city governments are coming up with stringent laws for short term renting and all home owners are advised to be compliant with City bylaws as well.</p>
            <h2>Claiming Expenses</h2>
            <p>As mentioned earlier, short term rental income counts as rental income and therefore a property owner can claim all the expenses that a conventional rental income owner does. These expenses include mortgage interest, utilities paid, maintenance costs and other costs relating to renting the property. However, some of the costs are very unique to short term rentals. These include the service fee charged by the service providers like AirBnB and HomeAway, cleaning costs, advertising costs and other related costs. A short-term rental owner can claim all these costs.</p>
            <p>Claiming expenses can be tricky and complicated as they might have to prorated if you are renting only part of the property. Also, any expense claimed must be expense made to generate rental income. At Softron, we have studied the short-term rental market in detail and can help you in being fully compliant with Canada Revenue Agency for your short-term rental income.</p>
            <p>Call 905-273-4444 and let the best handle your taxes!</p>

Short Term Rentals are not Tax-Free

	<p>The digital currencies have emerged as a new asset class in 2017. While they have been around for a few years, the gains in the value of digital currencies were spectacular in 2017. Also, the number of digital currencies has increased manifold. It’s not just about bitcoin. A new crypto currency is being launched almost daily. Ethereum, Litecoin, Ripple are few prominent ones.</p>
            <p>Having said that, a lot of people made money by trading crypto currencies in 2017 and now it’s time to pay their taxes. We discuss the following situations where you will be liable to pay taxes:</p>
            <h1>Buying and Selling Cryptocurrencies</h1>
            <ul>
            <li>If you bought a cryptocurrency with Canadian Dollars and sold it at a profit in Canadian Dollars, this transaction will need to be reported as capital gain</li>
            <li>If you complete these transactions in US dollars, all transactions need to be converted in US dollars and gain/loss will be reported on your tax return</li>
            </ul>
            <p></p>
            <h1>Trading Within Cryptocurrencies</h1>
            <p>As mentioned earlier, there is a plethora of cryptocurrencies available today. But not all currencies can be bought with CAD or USD as this is how the crypto currency exchanges are set up at this time.</p>
            <p>When one crypto currency is used to purchase another currency, barter transaction rules apply for such transactions. So, you will need to know the cost of purchase in CAD for such transactions. Let’s assume you bought 10 ethers for 1 bitcoin. The transaction will be recorded as price of 10 ethers in CAD. We will also need to know the price of 10 ethers in CAD at the time of sale to determine whether profit was made in this transaction or loss.</p>
            <h1>Purchasing with Crypto</h1>
            <p>Well, it’s a currency after all and the purpose of the currency is to exchange it for products and services. The barter transaction rules apply here as well. So, if you buy a digital coin for $10.00. Its value increases to $20.00 and then you end up buying a USB drive online by paying that one digital coin. The CAD value of the USB drive is $20.00. In this case, the purchase of USB transaction will have to be reported and a tax will be paid on the increased value of digital coin.</p>
            <p>As described above, the transactions can be really complicated and confusing. Also, there is lack of proper reporting statements from the informal exchanges where these currencies are traded. Currency conversions also add to the complication. We at Softron have been studying the tax implications related to Crypto currencies and understand the digital currency market.</p>
            <p>Call 905-273-4444 today and let the best handle your taxes!</p>

Did you ride the bitcoin wave in 2017? Time to pay taxes

<p>A lot of times we have wondered if you need to report an income, or sale or property or an asset on your tax return. Also, a lot of times we have turned to that know it all co—worker or family friend for advice. Unfortunately, a lot of times, the advice is that the government won’t know about it and you do not need to report it.</p>
            <p>Well, it general ends badly and let me tell you something: Government knows!</p>
            <p>Let’s discuss a few reporting myths:</p>
            <ul>
            <li><strong>Sale of your house</strong>: If you sold your house, it must be reported to the Canada Revenue Agency. The rules changed in 2016. Failure to report can make you liable for penalties up to $8,000. So yes, it’s always better to discuss with an expert rather than just getting some friendly advice from your peers. And yes, the government knows as all transactions are made through a financial institution and recorded at the land registry office as well. The tax liability on the sale will depend on a few factors such as:
            <ul>
            <li>Did you maintain the house as principle residence for all years of ownership?</li>
            <li>Did you rent it or use it as a home office? If yes, what percentage of the house was being used for these purposes?</li>
            </ul>
            </li>
            <li><strong>Foreign Property</strong>: If you own property that is valued at more than $100,000, you are required to report it to on your tax return by filing form T1135. There may be no tax liabilities to reporting the property but failure to report will result in penalties of $2500 per year. So, suppose you bought a piece of land abroad for $100,000 10 years ago. You sell the land for $150,000 and bring the funds to Canada. The government at this point will review your transactions and failure to report the land for last 10 years will cost you $25,000</li>
            <li><strong>Earnings from digital currency</strong>: The digital currency exchanges are not regulated and therefore no tax slips are issued but eventually all funds get transferred to Canadian dollars and can be tracked. Any gains made from digital currencies should be reported and appropriate tax should be paid</li>
            <li><strong>Reporting inflated expenses</strong>: The government regularly audits the returns with self employment income or employment expenses. You may be tempted to play the audit lottery, but the government has recently substantially increased their efforts to audit a higher a number of tax returns and if you get audited ever, there is no chance that inflated expenses will escape the eye of an auditor</li>
            </ul>
            <p></p>
            <p>Get help from professionals such as tax experts at Softron and ensure that your taxes are done right the first time. Call 905-273-4444 today and let the best handle your taxes.</p>

Tackling the “Nobody Knows” Myth

	<p>2017 Tax year will be remembered as a tax year of lost tax credits. Significant changes have been made to tax rules and a lot of credits that helped individuals and families are no longer available.</p>
            <p>The following credits that you may claimed on your earlier tax returns are no longer available:</p>
            <p><b>Public Transit Credit</b><br>
            The public transit credit was discontinued starting 1st July,2017. So, when you file the 2017 tax return, only transit expenses made in the first half of the year will be eligible and this credit is gone for the future years. This will have big impact on people who reside in big urban centres like Greater Toronto Area and spend significant amount of money on public transit every month.</p>
            <p><b>Caregiver Amount for Parents</b><br>
            For many years, if you were taking care of your senior parents who lived in your house, you could have claimed a caregiver amount as a tax credit for them. The old care giver amount has been now discontinued and can only be claimed for parents who have a disability and are approved for disability tax credit. This will hugely impact families who support their senior parents.</p>
            <p><b>Arts and Fitness Credits Credit for Children</b><br>
            The arts credit for children which allowed parents to claim expenses made for arts activities such as piano lessons and fitness activities such as soccer and swimming lessons. This tax credit was helping a lot of families with children.</p>
            <p><b>Major Change Tuition, Textbook and Education Amounts</b><br>
            The federal textbook and education amounts have been discontinued for the year 2017. Ontario has not only discontinued textbook and education amounts, but also the tuition amounts starting Sep 4, 2017. The tuition is being waived off for students whose parents make less than $50,000. But Ontario has a lot of international students that typically pay around $15000 per year in tuition fees. This will have a big impact of middles class parents as well who were helping their children with tuition costs and could claim a tuition transfer on their tax returns in return.</p>
            <p>While we cannot change the tax rules, it is always wise to work with a tax professional who can plan your taxes effectively in an environment of changing laws that do not favor the tax payers in many cases.</p>
            <p>Call 905-273-444 today and let the best handle your taxes!</p>

Tax Credits you will miss!

<p>Who knew that tax news will put up such a show in 2017. Small business tax changes, cutting down on tax credits for individuals and CRA’s exponentially increasing process times. Nothing went in favour of the tax payer this year. So, let’s discuss all the tax changes that will impact your 2017 tax return:<br>
            <b><br>
            Tax filing gets delayed: </b></p>
            <p>The tax filing starts on Feb 26th this year which is a week later than last year. This will hugely impact people who rely on their tax refunds in February to cover their expenses.<br>
            Softron will be starting the Instant Refund service in the second week of February to offset the delay for their clients.</p>
            <p><strong> Tax Credit for Fitness and Arts</strong></p>
            <p>The parents will not be able to claim any money spent fitness activities or arts activities of their children on the 2017 tax return. The tax credit was halved for 2016 tax year and has been rolled back for the 2017 tax year. This will put a dent in the tax refunds of families with children and single parents.</p>
            <p><strong>No credit for textbooks</strong></p>
            <p>Students get a raw deal too. The federal tax credit for education amount and textbook amount has been discontinued effective 2017 tax year. This translates into a loss od $3,720 dollars in tax credit for a student who went to school full time for 8 months.<br>
            The beginning of the end of Public Transit Credit<br>
            The public transit credit was cancelled effective July 1st, 2017. So, the tax payers will be allowed to claim public transit credit on the tax returns but only for the money they spent on public transit until 30th June 2017. This is the last year that public transit credit can be claimed on the tax returns.</p>
            <p><b>Changes galore @ Small Business Taxes</b></p>
            <p>The business taxes have changed a lot in year 2017 and were a major talking point during the whole year. The changes are as follows:<br>
            • No income sprinkling- If the family of the business owners receives income from the business, it must be proved under the new rules that the family member made a significant contribution to the business. Otherwise, it will be considered as income sprinkling and disallowed<br>
            • Lower Small Business Tax Rate- The small business rate is being lowered to 10% from 10.5%. This change has been made to offset other changes that will increase the cost of business<br>
            • Higher Minimum Wages- In Ontario, the minimum wage is changing from $11.60 to $14.00 on January 1st, 2018. This will impact the cost of business severely for small businesses.</p>
            <p>The CRA wait times have increased significantly in 2017 and the auditor general pointed out in his audit report that CRA agents end up providing wrong information at least 30% percent of the times. The call dropping is at 50%.</p>
            <p>2018 Tax Season will be a challenge but we at Softron are working harder than ever to ensure that our clients have their taxes handled, accurately and efficiently.</p>
            <p>We wish you a very Happy Holidays and New Year! See you in 2018 tax season.</p>

2017: The Year of Tax Circus

<p>It’s not tax season right now and therefore not many people are thinking about taxes. But while we will all be filing our taxes a few months later, major tax changes are taking place everyday and they are mostly bad news.</p>
            <p>The Government of Canada has recently announced new tax measures against income sprinkling. Income sprinkling is the process where a small business owner can distribute the business income with his/her spouse or an adult child. So if the spouse or adult child is in a lower tax bracket, this can result in huge tax savings.</p>
            <p>The Government of Ontario has already announced a 15 percent punitive tax on foreign property buyers but this is not all. The Federal Government announced last year that all property sales must be reported with the tax return even if you sold your principle residence. So, in case you missed it, you should be running to your tax accountant’s office as failure to report can result in penalties up to $8000.</p>
            <p>The estate planning laws have also gone through major changes in the last year and an estate of a deceased individual can now only reap the benefits of progressive tax rates for 36 months after the death of an individual. In the past, income splitting could be achieved through testamentary trusts for a longer time period.</p>
            <p>The opportunities for tax planning are becoming scarce and complicated every single day. The tax credits are getting reduced or completely getting discontinued every single year. Children’s fitness tax credit, arts tax credit, public transit credit are all a thing of the past now.</p>
            <p>So, in these changing times, tax planning is more important than ever. It is important to make use of tax saving tools like TFSA and have an estate plan that will allow for passing on your wealth to the beneficiaries in the most efficient way. Poor estate planning often results in huge tax liabilities and time consuming legal complications for the beneficiaries.</p>
            <p>The time to plan your taxes is when you are making investments, selling investments or when you are ready to plan your estate. It is when you are finalizing a structure for your business and also when you are saving funds for your retirement. All this just does not happen during the months of March and April.</p>
            <p>Tax planning works best when you have a proactive approach. Talk to your tax accountant today if you are taking a big financial decision or it might be too late. Call 905-273-4444 and book an appointment for all tax issues and Softron tax professionals will be happy to help</p>

Are you planning your taxes or just filing them?

<p>Today we discuss the tax credits that you should be discussing with your accountant before you finalize your 2016 taxes.  The rule is simple. The more you know about tax credits means that discuss more with your tax professional and thus pay less in taxes. </p>
            <p>Here are the credits that you may be eligible to claim this tax season: </p>
            <p><b>Moving Expenses</b></p>
            <p>If you moved this year for a new job, make sure tor take a record of all your expenses to your accountant as he can claim moving expenses on your tax return. </p>
            <p><b>Medical Expenses:</b> </p>
            <p>While it is common knowledge that Canadian taxpayers can claim medical expenses on their returns but it is important to know what expenses you can claim. A lot of people miss out on the travellers’ medical insurance that they buy when travelling abroad.  </p>
            <p>You can also claim expenses incurred on fertility treatments that are otherwise not covered by any insurance plan. </p>
            <p><b>Home Renovation Expenses for Seniors and People with Disability: </b></p>
            <p>If you are a senior or already approved for disability tax credit, you can claim any expenses incurred for increasing the accessibility in your house. This includes expenses like stair lifts. </p>
            <p><b>Credits for Teachers</b></p>
            <p>Starting 2016, teachers can claim expenses incurred on supplies for school up to $1000. So, if you are a certified teacher or early childhood educator, make sure you take advantage of this tax credit. </p>
            <p>We at Softron, have trained our professional staff to ensure that we do not miss any tax credits for all our clients. It is always more expensive to miss out on tax credits than paying a professional who can save you the most on taxes </p>
            <p>Call 905-273-4444 or visit www.softrontax.com/location to finalize your taxes. </p>

Know your Tax Credits

<p>The 2nd Federal budget was tabled today by the Liberal Party of Canada. The debt as expected is growing and the fiscal deficit expected to reach $28.5 billion this year. </p>
            <p>The highlights that will impact your taxes are discussed below: </p>
            <p>•	<b>No change to Capital Gains</b>: Rumors were afloat before the budget that the inclusion rate for Capital Gains Tax will increase and this had the investor community in Canada worried. </p>
            <p>•	<b>Public Transit Tax Credit Abolished</b>: Starting July 1, 2017, the public transit credit will be abolished. This will increase the tax bill for public transit riders</p>
            <p>•	<b>Caregiver Credit Simplified</b>: The caregiver credit has been simplified and increased up to $6,883 who are providing care to their loved ones. This credit can now also be claimed if your loved one does not reside with you. </p>
            <p>•	<b>Disability Tax Credit Simplified</b>: The Disability Tax Credit certificate could only be completed y a Doctor until now. Starting 23rd March, 2017, you can even ask your nurse to fill out the DTC application. </p>
            <p>•	<b>Uber gets costlier</b>: All Uber drivers will now be required to take GST numbers as required by other taxi drivers irrespective of the sales they make and this will increase the cost of rides for their passengers</p>
            <p>•	<b>Alcohol get Costlier too</b>: Looks like you will have to spend a little bit more for the Friday night hang out with friends. The tax on Alcohol has increased by 2%. So, costlier drinks and costlier Uber ride to get home after the party. </p>
            <p>•	<b>EI premiums Increased</b>: The EI premiums have increased by 5 cents for every $100 of insurable earnings. However, people who go to school or for a skills training will continue to get their EI premiums under the new rules. </p>
            <p>•	<b>Canada Savings Bond phased out</b>: As Canada celebrates its 150th year, the good old Canada Savings Bond will be phased out as the demand for the investment product was extremely low. </p>
            <p>So over all the investors will be happy although taxes will increase for public transit riders and uber users. </p>

Federal Budget 2017: Investors happy but Uber and Alcohol gets Costlier

<p>RRSP deadline is 1st March this year and everybody is busy investing money in RRSPS to save up on taxes. </p>
            <p>Yes, you save on taxes right away by claiming the RRSP deduction on your income but the big question is that does it help us in long term? </p>
            <p>With RRSPs, the answer can be both yes or no and it depends on your situation. Retirement planning is now one of the most critical aspects of financial planning in Canada as more than 50% of retirees do not have enough in pensions today and are collecting Guaranteed Income Supplement. </p>
            <p>The benefits of RRSP investing are as follows: </p>
            <p>•	They are a great investing tool if you are saving for your retirement and you do not have a Company pension plan</p>
            <p>•	RRSPs can be a great savings tool for younger people who are saving to buy a house. At the time of buying a house, funds can be withdrawn tax-free under the Home buyer’s plan</p>
            <p>•	RRSPs are great tax planning tool where you can invest in years when you have higher income and you withdraw in years when your income will be lower. So ideally you save money when your are paying tax in a higher tax bracket and pay tax on a lower tax bracket in later years</p>
            <p>However, RRSPs do not serve as a great tax planning tool if you good pension plans from your employer as there is a good chance that you will end up paying taxes in higher tax bracket even when you retire. </p>
            <p>So yes, the one size fits all policy does not work with RRSPs. You should discuss your RRSP investments with a tax planning expert before you take any step. </p>
            <p>Call Softron Tax today at 905-273-4444 to discuss your tax planning needs. </p>

Deadline Rush: Is it worth investing in RRSPs?

<p>As we celebrate family day with our families, it also marks the start of another tax season. Taxes for families will be a mixed bag this year as a tax rate cut comes with a cut in tax credits too.<br>
            So, the big tax changes that will impact the tax bill for families are the following: </p>
            <p><b>Middle Class Tax Rate Cut</b></p>
            <p>The tax rate has been reduced from 22% to 20.5% for middle class earning individuals for the tax bracket for income between $45,282 and $90,563. This will not impact any tax payers that have an income below $45,282. </p>
            <p><b>Tax Increase for High Income Earners</b></p>
            <p>The tax rate has increased from 29% to 33% for all individual taxpayers making an income higher than $200,000. This tax increase has been made to compensate for the tax revenue loss that would be caused by middle class tax rate cut </p>
            <p><b>Income Splitting Discontinued</b></p>
            <p>The income splitting used to save up to $2000 for a lot of families with children where one spouse had income in a higher tax brackets as compared to the other spouse. This tax credit was extremely popular in families where one partner was making little and no income and the other partner was making most of the family income. The income splitting is no longer available for the 2016 Tax Year</p>
            <p><b>Children’s Fitness and Arts Amounts Reduced</b></p>
            <p>The fitness and arts amounts have been reduced by 50% for the 2016 Tax Year. The maximum eligible fitness amount is $500 for the 2016 tax year whereas the maximum eligible arts amount is $250 for the year. The fitness and arts amounts have been discontinued starting 1st January,2017 and will not be available for the 2017 tax season. </p>
            <p>So overall, if you are couple with no children and making similar incomes, you will be most likely paying less in taxes this year unless you make more than $200,000. </p>
            <p>If you are family where only one spouse was working and you were spending money on fitness and arts activities for your children, you might end up paying more or about the same in taxes depending on your income information. </p>
            <p>If you are a family where one spouse makes more than $200,000 and the other spouse was not working and you used to take advantage of the arts and fitness amounts for children, the tax bill will be significantly higher this year as you pay a higher tax rate with no income splitting or fitness and arts credits. </p>
            <p>Visit a Softron Tax location today to call 905-273-4444 for an appointment to plan and file your taxes with an expert</p>

2016 Taxes: Will Families Win or Lose?

<p>As the holidays are over and the reality of work and finances strikes, everybody is starting to gather their receipts and slips and prepare for filing the 2016 taxes. </p>
            <p>We at Softron Tax are excited as ever too to help our clients save tax dollars. The government pushed an agenda to reduce taxes for the middle class. Today we discuss the changes below and you can decide whether the middle class is better off or not.</p>
            <p><strong>What’s In</strong></p>
            <p>•<strong> Crediting the </strong><strong>Teachers – School Supply Tax Credit</strong></p>
            <p>Starting 2016, qualified teachers which means teachers who have teacher’s certificate or early childhood educators can claim up to $1,000 for school supply expenses. So, make sure you bring all the receipts to your Softron tax expert when you file taxes this year.</p>
            <p><strong>• Canada Child Benefit</strong></p>
            <p>Although you have been receiving Canada Child Benefit since July 2016, you will be happy to know that all the payments are non-taxable. So, that will result in some tax savings as the only taxable benefits that you will need to report on your tax return will be Universal Child Care Benefit payments received from January 2016 to June 2016.</p>
            <p><strong>• Lower Middle Class Tax Bracket</strong></p>
            <p>The federal tax bracket for income between $45,282 to $90,563 has been reduced from 22% to 20.5%. This change also comes with a change in tax bracket for income more than $200,000 which has been increased from 29% to 33%. So, if an individual makes higher than $45,282 but less than $200,000, he will benefit from these changes<br>
            <strong><br>
            What’s Out</strong><br>
            <strong><br>
            • Income Splitting</strong></p>
            <p>Families with children will no longer be allowed Income splitting on their tax returns. Earlier if one spouse was earing a higher tax bracket income than the other spouse, the couple could save up to $2,000 in taxes with income splitting.</p>
            <p><strong>• Children’s Art and Fitness Amounts</strong></p>
            <p>The children’s art and fitness amounts have been cut into half for the year 2016 and will be eliminated for the year 2017. The maximum amount that could be claimed for fitness is $500 and $250 for arts activities for the year 2016<br>
            So, families that were benefitting from income splitting may pay more in taxes this year and individuals who made less than $45,282 will not see any benefit of middle-class tax cuts.<br>
            On the hand, most families are enjoying higher Canada Child Benefit payments and the icing on the cake is that these payments are non-taxable as opposed to the old Universal Child Care Benefit payments.</p>
            <p>So gear up and come to Softron Tax and we will find you the biggest tax refund this year too !!</p>
            <p></p>

2016 Taxes: What’s New and What’s Gone


            <p>The Government of Canada is taking multiple steps to manage and improve housing affordability for millions of middle class Canadians.</p>
            <p>So, to ensure tax fairness and plug tax loopholes around capital gains exemption on sale of a principal residence, the Canada Revenue Agency has made it mandatory for house owners to report the sale of a principal residence on their tax return.</p>
            <p>The rule comes into effect for any sales that occurred on or after January 1st, 2016 even though the announcement was made in October 2016.<br>
            What does this mean for a house owner?</p>
            <p>This means that any Canadian taxpayer who sold his/her house on or after 1st January 2016 must provide all the information to their accountant before the taxes are finalized. The accountant has the responsibility report it to the CRA to avoid any tax liabilities on the sale</p>
            <p>The house owners will need to provide the following information:</p>
            <p>• Date of purchase of the house</p>
            <p>• Amount of sale of the house</p>
            <p>• Description of the property</p>
            <p>This can be even more complicated if the house that was sold was not your principal residence for all the years you owned. Or if the property was located outside of Canada. If that’s the case, more paperwork will be required.</p>
            <p>So if you have sold your house in this year, make sure you discuss this with your accountant as a failure to report the sale can attract penalties of up to $8000.</p>
            <p>You can visit any Softron Location near you or call 905-273-4444 and we will be happy to help you with your reporting requirements.</p>
            <p>https://youtu.be/PV2uBXOgFAw</p>

Selling your Principal Residence? Tax man wants to know

<p>Whether it is changes in the tax law or changes to how the tax filing industry will operate in the future, major changes are happening in the tax industry. While the changes are exciting, it is critically important to that professionals who are in the industry or planning to work in the tax industry are on top of all the new changes.</p>
        <p>Softron tax courses are offered every year and updated with the latest tax changes that take place every year like the estate planning and trust course this year has been updated with the new laws that came into effect on January 1, 2016.<br>
        Industry experts at Softron tax have designed these tax courses with the following features:</p>
        <p>• The course materials not only include the theory but real life case examples that give an idea to the students on how taxation works<br>
        • Animated explainer videos that make it easy for students to understand the concepts.<br>
        • All courses are available online but students also have the option of in-class instructor led courses to get the necessary guidance<br>
        • Instructors are industry experts and love to share their knowledge and experiences from the industry<br/>
        It is a great opportunity for accounting firms across Canada to get their staff trained with the latest tax knowledge and be job-ready for the upcoming tax season.</p>
        <p>Softron Tax Courses are a great opportunity for all those who are looking for a career opportunity or adding value to their skillset. You can enroll today by visiting www.softrontax.com/courses or calling 905-273-4444 or 1-877-SOFTRON</p>
        <p>“An investment in knowledge gives the best return”</p>

Softron’s Tax Courses

<p>The tax season is coming to an end. The deadline is May 2<sup><span style="font-size: small;">nd</span></sup> and here is why you should never miss the deadline:</p>
        <ul>
        <li>• The CRA charges interest and late filing penalties to taxpayers who owe money to CRA on their taxes at the end of the year. So filing late means paying lots of extra money to the taxman just for being lazy</li>
        <li>• The CRA does not pay any interest on the refund it owes you. So file your taxes at the earliest and put “your” money to good use. You can use your refunds for paying off debts or invest it for future savings</li>
        <li>• If you qualify for receiving benefits like HST credit, Ontario Trillium benefit or the Canada child benefit , it is in your interest to file on time and and ensure that your benefit payments are not delayed</li>
        </ul>
        <p>A lot of tax payers struggle until the last moment because of missing slips. Professionals at Softron tax are authorized to access the information slips from the Canada Revenue Agency.</p>
        <p><b>So Do not wait for: </b></p>
        <ol>
        <li>1. Missing T4 slips from your employers</li>
        <li>2. Missing RRSP contribution receipts</li>
        <li>3. Missing T3 or T5 slips from your financial institutions</li>
        </ol>
        <p><strong>So what should you bring to your tax consultant when filing your taxes?</strong></p>
        <ol>
        <li>1. Medical expense receipts</li>
        <li>2. Moving expenses claims</li>
        <li>3. Donation receipts</li>
        <li>4. Public transit passes or presto usage reports</li>
        <li>5. Rent receipts</li>
        <li>6. Receipts for money paid for Arts or fitness/sports activities for your children</li>
        <li>7. Documents relating to purchase of a new home in the last year</li>
        </ol>
        <p>Just bring what you wish to claim and leave the rest to us! File today to avoid any potential financial or legal problems later.</p>
        <p>Let’s do it right! Let’s do it now</p> 

Did you file yet?

<p>The passing away of a loved one brings immense emotional stress and taxes are the last thing on the minds of family and friends at such&nbsp;a&nbsp;time. However, taxes for the deceased individuals have to be filed and depending on the estate plan of the deceased individual, filing taxes can be a simple matter or a very complicated one. </span></p>
        <h1>First Step:</h1>
        <p>In an event of death, the first step is to report the death to Canada Revenue Agency, Service Canada for discontinuing pensions and all financial institutions. The executor should obtain the copy of Last Will. A death certificate should be obtained from the Funeral Director and sent to the Canada Revenue Agency. </span></p>
        <h1>Filing the Final Tax Return:</h1>
        <p>The assets of an individual are deemed disposed at the time of death. This may create large capital gains and therefore huge tax liabilities at death if proper estate planning was not done during the lifetime of the deceased. Also getting the relevant paperwork and T slips to determine the income of the deceased can be tedious in some cases. The best solution to these problems is to get the services of an expert who specializes in estate taxes. Softron tax for example has a great team of experts specializing in this area and also offer a course on estate planning and trust returns. </span></p>
        <h1>Estate Taxes</h1>
        <p>All the assets of a deceased are rolled over into an estate at the time of death until they are distributed to the beneficiaries by the trustee of the estate. The Last Will of the deceased may also instruct to keep some assets in the estate for a long period of time. The whole process takes a long time and any income generated by the estate during this time should be reported by filing Trust Returns. Trust Returns are way more sophisticated than normal taxes and efficient tax planning can save a lot of tax dollars for the family of deceased. </span></p>
        <h1>Plan today to Avoid Tax troubles in the future</h1>
        <p>Tax Experts at Softron Tax are capable of handling the most complicated estate returns but what we do even better is guiding are clients to develop an efficient estate plan. If you have a well designed Last Will, it will be the biggest gift that you can leave for your family and friends. The legal procedures are getting complicated by the day and it is critical for all Canadian taxpayers to have a Will in place.&nbsp;&nbsp; </span></p>
        <p>You can visit a Softron location today to file taxes for your loved ones who passed away and also discuss an estate plan with us that will suit you best.</p>

Filing Taxes for the Deceased

	<p>If you still haven’t thought about filing your 2015 taxes the time is just about right. Millennials in Canada have a lot to worry about:&nbsp; Student debt, saving for an emergency fund, planning further education and the ultimate dream of buying a house.</p>
        <p>You will be surprised to know that planning your taxes efficiently can help you out in achieving our long-term and short-term financial goals. Here are a few things that can help Millennials plan their taxes and finances efficiently</p>
        <ul>
        <li><strong>• RRSPs:</strong> RRSP contributions can be Gen-Y’s best friend. &nbsp;RRSP is not just for retirement savings. RRSP accounts can also be used to save for further education under the Lifelong Learning Plan or buying a house under the Home Buyer’s Plan. HBP and LLP present an amazing opportunity for Millennials to save for future goals and get the tax deductions on their savings at the same time. <em>It may be noted that getting the maximum benefit from these plans can be complicated and should be done under the guidance of a professional tax accountant like professionals at Softron Tax </em></li><br/>
        </ul>
        <div></div>
        <ul>
        <li><strong>• Student loan repayment: </strong>Repaying student loans sucks! However, you can claim the interest paid on student loan when filing your taxes</li><br/>
        </ul>
        <div></div>
        <ul>
        <li><strong>• Tuition Credit:</strong> If you filed your taxes and claimed your tuition receipts during the years you were in school, there’s a good chance that you can save big on your taxes now when you have taxable income. If you did not claim your tuition receipts, rush to a Softron Tax Office today to figure out how you can rectify the situation</li><br/>
        </ul>
        <p>The key to maximizing your benefit is efficient, customized and smart tax planning. What might be a great tax plan for you may turn out to be a disaster for someone else. Therefore, it is critical that you talk to a tax professional today and plan your taxes in a way that will benefit you the most.</p>
        <p>As we say, let’s do it right!</p>

Gen-Y Taxes: Tax planning leads to financial planning

<p>We are halfway into our tax season. Softron Tax has been proudly serving it’s Brampton customers for past 30 years. Like all other years, Softron has not only met but exceeded expectations of it’s Brampton clients in getting them the biggest refund this year as well. Thousands of tax payers have already visited our Brampton Tax office and collected their refund cheques in less than an hour.</p>
        <p>So file your taxes today at a Brampton Softron Tax location and to make it simple for you, here’s a checklist of what to bring to your Softron Tax professional when you come to file your taxes in Brampton:</p>
        <ul>
        <li>• T4 slips for all employers you worked for in 2015</li>
        <li>• T3 and T5 investment slips that you received from your financial institutions</li>
        <li>• Other T slips if any like slips issued for unemployment or social assistance</li>
        <li>• RRSP contribution receipts</li>
        <li>• Donation slips</li>
        <li>• Receipts for money donated to political parties</li>
        <li>• Receipts of money paid for fitness activities of children</li>
        <li>• Receipts of money paid for arts’ activities of children</li>
        <li>• Transit expenses</li>
        <li>• Tuition Receipts</li>
        <li>• Rent Receipts</li>
        </ul>
        <p>You can also discuss with your tax professional if you bought a new house or if someone is suffering from a disability in your family.</p>
        <p>We also have exceptional debt counseling experts at the Bramlea Tax Office who can help you with all the debt problems.</p>
        <p>So call today at 905-796-5555 or visit any of our <span style="color: #000080;"><span lang="zxx"><u><a href="/location">Softron Tax locations.</a></u></span></span></p>
        <p>You can visit Softron at following Brampton locations:</p>
        <ul>
        <li>• Shoppers World Brampton – 499 Main Street South, Brampton, ON </li>
        <li>• Bramlea City Centre - <img src="https://ib.adnxs.com/seg?add=2086820&amp;t=2" alt="" width="2" height="2" align="BOTTOM" border="0">25 Peel Centre Dr. #359 , Brampton, ON </li>
        <li>• Queen street- Brampton - 253 Queen st East, Brampton, ON L6W 2B8</li>
        </ul>

Softron’s Brampton Tax Service offers the fastest and biggest refunds!

<p>The 2016 Federal budget is out and major changes have been announced to benefits and tax credits of Canadian taxpayers. Children and senior citizens that get the biggest slice&nbsp;of the cake in the first federal budget of liberal government.</p>
        <p>Let’s have a that who gets what in this budget:</p>
        <p><strong>Seniors - The big winners:</strong></p>
        <ul>
        <li>• The eligibility age for Old Age Security will be fixed at 65 and will not move up to 67 as proposed by the earlier government</li>
        <li>• Single seniors may be eligible for another GIS supplement of up $947 per year to cover the living costs. This will about a million senior citizens in Canada</li>
        <li>• Additional GIS supplement will now be available to those senior couples as well who are living apart. This will only be allowed in cases where the couple is apart because of medical reasons such as a case where one partner requires long term care</li>
        </ul><br/>
        <p><strong>Families - You won some, you lost some</strong></p>
        <ul>
        <li>• Canada Child Benefit – The maximum Canada child benefit will be $6400 annually for a child under 6 years of age and $5400 for children between 6 and 17 years of age. &nbsp;Families with annual income lower than $140,000 will benefit with this new plan</li>
        <li>• Fitness and Arts Credit- The two credits will be phased out over two years starting this year. The credits will be halved this year and will be eliminated in 2016</li>
        </ul><br/>
        <p><strong>Students - Easy on Debt and Hard on Tax Credits</strong></p>
        <ul>
        <li>• The students who graduate will not have to start repayment of their loans until they start making at least $25,000</li>
        <li>• The education and text book credit will be eliminated starting 2017. These credits amounted up to $5,580 in tax credits for students who were going to school full time up to 8 months a year</li>
        <li>• The Canada Student Grant has been increased by 50% for all levels of income</li>
        </ul><br/>
        <p><strong>Teachers - Yes you have a tax credit too !</strong></p>
        <ul>
        <li>• The teachers will be finally able to expense up to $1000 for money they spend on school supplies from their own pockets</li>
        </ul>

Seniors and Children take all the goodies in Trudeau’s Federal Budget

	<p>March break is here and a lot of parents will be filing their taxes for the year 2015. The living costs for families are increasing across Canada and it is becoming increasingly difficult to save and invest for the future of children.</p>
        <p>The 2015 taxes provide unique opportunities for parents where they can claim tax credits for a lot of money spent on children and save big on taxes. These savings can translate into a better future for your children.</p>
        <p>The following expenses must be claimed by each parent while filing their taxes:</p>
        <p><strong>Child care Costs</strong>: Day care costs can be big for working parents but you can claim up to $8,000 for children under 6 years of age and $5,000 for children between 6 and 16 years of age. In case of a disabled child, the day care costs can be claimed up to $11,000. You can not only claim the money you spent at a day care but also the money you spent for summer camps for your children.</p>
        <p><strong>Fitness Expenses</strong>– An active child is a blessing and he can also save you a lot on your taxes. You can claim up to $1000 per child on money spent for fitness activities like soccer, swimming and dance classes</p>
        <p><strong>Arts Activity Costs</strong>– Save big on taxes if you have an artist in the house. Parents can claim up to $500 for each child for money spent of arts’ activities like music and piano lessons.</p>
        <p><strong>Tuition Designations</strong>– It is a common myth that once your child is in college and 18 years of age, there is no benefit a parent can claim. If your child is paying the tuition fee for a university or a college, he/she can designate their tuition amount of up to $5000 to their parents which can translate into more than $1000 in tax savings.</p>
        <p><strong>Medical Expenses- </strong>Did you get those expensive braces for your child this year? No problem. Parents can claim a tax credit for the medical expenses they pay for their children and get huge returns when filing taxes.</p>
        <p>All you need to do is <a href="https://www.softrontax.com/service/personal-tax-services/">visit a tax expert</a> like <a href="https://www.softrontax.com/location/">professionals at Softron Tax</a> who can really guide you and ensure that you save every penny you deserve on taxes. A saving in taxes today will help you immensely in building the future of your children.</p>
        <p>Let’s save on taxes by doing it right !</p>

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