Tax season is once again upon us, and there are some changes that you will need to consider when bringing us your 2016 tax documentation.
Starting in 2016, you are required to report the sale of your principal residence. It is important to note that there has been no changes to the taxability of the sale of your principal residence. If your home qualified as you principal residence for the entire period of ownership, you will not have to pay income tax on the sale of the property. If you have sold your principal residence, the only information that you need to provide to us will be the address, the year you purchased the home, and the proceeds from the sale of the property. You do not have to provide any information on the original cost of the property.
If you are a teacher or an early educator, you can now qualify for the Eligible School Supply Credit. This credit allows eligible teachers and early childhood educators to claim up to $1,000 of eligible supplies used in the classroom. Eligible supplies must have been purchased in 2016. These would include most consumable items, such as pens, paper, and art supplies. Durable goods such as books, computer software, and bankers boxes, would also be eligible. Computers will not qualify for this credit. The Canada Revenue Agency may ask to see that your receipts have been certified by a principal at your school. Please bring this certification with you when you bring us your eligible receipts.
Children’s arts and fitness credits can still be used for 2016, although the amount of the credit will be one half of what it was in 2015. You can receive a credit for up to $500 of eligible fitness expenditures for children under 16, and up to $250 for eligible arts credit expenditures. The federal potion of these credits have been eliminated for 2017.
If you qualified for the disability tax credit in 2016, you will now be eligible for the home Accessibility Tax Credit. A similar provincial credit has existed for Seniors in previous years. This credit will allow you to claim $10,000 of eligible expenditures. In order for the expenditure to qualify for the credit , it must be a renovation or alteration that is of an enduring nature.
The family tax cut has been removed for 2016. There have been no changes to pension splitting for 2016.