Client Communication

Pre-Authorized Debit for Personal Tax Owing (PAD):

CRA now has the ability to withdraw a specified amount from your bank account on the date you specify (April 30th most likely).

To do this, you need to complete in Part G of the T183 form - pre-authorized debit agreement.

You can specify the account for which you prefer the pre-authorized debit to come from on the T183 or select an account the CRA may already have on file for your for direct deposit.

Please note that the CRA requires at least 5 business days to process the PAD. Therefore, if you choose to have your PAD taken from your bank account on April 30th, your return MUST be filed no later than April 24, 2019.

New to Personal Tax - effective in 2018

1) The Medical expense tax credit has been expanded to allow expenses related to service animals who are specially trained to perform specific tasks for a patient with a severe mental impairment that helps the patient cope with the impairment. Eligible expenses paid in 2018 include the cost of the animal, the care and maintenance of the animal (food and veterinary care), reasonable travel expenses paid for the patient to attend a school, institution, or other facility that trains in the handling of these animals, and reasonable board and lodging expenses paid for the patient's full-time attendance at a school, institution, or other facility that trains in the handling of such animals.

2) The Climate Action Incentive (CAI) payment can be claimed by eligible individuals who are residents of Saskatchewan, Manitoba, Ontario or New Brunswick. A new Schedule 14 will be included with the T1 package for these jurisdictions; simply complete the new schedule to claim the amounts you may be entitled to based on your family composition, and indicate the amount on line 449 of your income tax and benefit return. The CAI payment will first reduce any balance owing, and may create or increase your refund. A 10% CAI supplement is available to residents of small and rural communities who live outside a Census Metropolitan Area (CMA), as defined by Statistics Canada.

Updates to Personal Tax in Recent Years

1) The 2018 cumulative lifetime capital gains exemption is $848,252.

2) Starting with the 2016 taxation year, individuals who sell their principle residence will have to report the sale on their tax return. Reporting will be required for sales that occur on or after January 1, 2016 but there is likely no tax implications.

Tax Planning

We haven't changed for a while but there are some tax planning tips over here: