It’s tax season! This does not have to be a scary or stressful thing. To help make it feel less of a chore, we thought we’d provide you with some reminders/tips. Hopefully this will alleviate some of the stress around this time of year so you can start getting excited for the summer.
Bring all the proper forms to your accountant
- Everyone will need all “T” forms they have (T4, T5, etc) and CRA notice of assessment or CRA notice of reassessment
- Depending on your situation you may also need a number of other forms and information. Do your research, speak to your accountant before filing if you have any questions, and make note of all financial changes that occurred in your life over the past year
There are hundreds of credits and deductions Canadians can take advantage of
- Remember that charitable donations can be deducted
- If you own rental property, many costs associated with it can be deducted including costs associated with advertising, insurance, repairs and maintenance, travel, office and administrative costs, etc
- You can deduct home office expenses with the temporary flat rate method. This allows you to claim $2 a day up to a maximum of $400 without the need to keep supporting documents
- If you purchased a new home this year (or did substantial renovations) you may qualify for the GST/HST new housing rebate
Report any capital gains you made over the past year
- A capital gain occurs when you sold capital property (real estate, investments, equipment, etc) for more than what you bought it for. In Canada, we are fortunate enough to only get taxed on 50% of our capital gains. Paying the taxes on these gains far outweighs the risk of not reporting this gain, so be sure to report it
- Capital losses (selling capital property for less than what you paid for it) are automatically subtracted from your capital gains, so be sure to report these as well, as they may save you some money
In summary, be sure to have all the info you need, research what deductions you may be eligible to receive, report everything that needs to be reported and you should be just fine!