Grant Thornton Feed: Insights [smart_tax_tips] Keep informed, subscribe to our feed and get our latest updates. 2011-11-16T12:00:00-05:00 Grant Thornton Canada http://www.grantthornton.ca 2012 automobile deduction limits and expense benefit rates urn:uuid:-insights-resources-smart_tax_tips-107_201201121546.57-107_1201121547-500.xml 2012-01-12T15:54:02-05:00 When an automobile is used for business purposes, the Income Tax Act allows for a deduction of the automobile’s related expenses, subject to certain restrictions or limits. RESPs—Contribute and obtain government grants urn:uuid:-insights-resources-smart_tax_tips-107_201111091612.50-107_1111091617-656.xml 2011-11-09T16:35:21-05:00 A Registered Education Savings Plan (RESP) can be established with one or more individuals set up as beneficiaries under the plan. Although the individual subscriber cannot deduct contributions for tax purposes, any income earned within the plan is taxed in the hands of the beneficiaries, once distributions are made. There is no annual limit for contributions to RESPs but there is a lifetime limit of $50,000 for each beneficiary. Donations to municipalities—the rules are changing urn:uuid:-insights-resources-smart_tax_tips-95_201109011315.29-95_1109011315-218.xml 2011-09-01T13:35:42-05:00 Municipalities have the status of a qualified donee and can, therefore, issue charitable donation receipts. But municipalities do not have the same responsibilities in connection with the issue of donation receipts that registered charities currently have. However, this will change very soon. The new children’s arts tax credit urn:uuid:-insights-resources-smart_tax_tips-107_201107211420.34-107_1107211420-765.xml 2011-07-21T14:23:41-05:00 The 2011 federal budget introduced a new, non-refundable tax credit—the children’s arts tax credit. File your personal tax return on time, or penalties and interest may apply urn:uuid:-insights-resources-smart_tax_tips-107_201104181506.28-107_1104181506-093.xml 2011-04-18T15:29:51-05:00 The deadline for filing 2010 personal tax returns, and the payment of 2010 taxes is extended until Monday May 2, 2011 because April 30 falls on a Saturday. Universal Child Care Benefit (UCCB) – for children under 6 years old urn:uuid:-insights-resources-smart_tax_tips-107_201103291011.55-107_1103291012-171.xml 2011-03-29T10:14:43-05:00 If you have a child under 6 years of age, you may be eligible for the UCCB which is $100 per month per child. Medical expenses—don't forget to claim expenses for dependants including adult children urn:uuid:-insights-resources-smart_tax_tips-107_201103011555.56-107_1103011556-875.xml 2011-03-01T16:13:07-05:00 You may claim a credit for medical expenses that you paid for yourself, spouse, common-law partner and minor children. The right time to start CPP benefits—may be affected by some recent changes urn:uuid:-insights-resources-smart_tax_tips-107_201102011509.28-107_1102011509-703.xml 2011-03-01T15:22:36-05:00 You can start receiving your CPP benefits as early as 60 years of age. However, the amount of your CPP benefits will vary depending on when you choose to start. Maximizing the tax benefits of your capital gains and losses urn:uuid:-insights-resources-smart_tax_tips-95_201012080914.01-95_1012080914-765.xml 2010-12-08T09:17:08-05:00 If you have realized a capital gain in 2010 or in any of the last three years (2007 to 2009), consider selling investments with accrued losses before the end of the year. The CRA’s new vehicle logbook policy may save you time urn:uuid:-insights-resources-smart_tax_tips-95_201011081433.52-95_1011081434-656.xml 2010-11-08T15:07:03-05:00 If you use your vehicle for business and personal purposes, you may be able to simplify your record keeping based on the CRA’s new logbook policy. GST/HST registered suppliers – reporting the sales tax exemption for Ontario’s First Nations urn:uuid:-insights-resources-smart_tax_tips-91_201009020951.33-91_1009020951-968.xml 2010-09-02T09:57:46-05:00 With the introduction of the harmonized sales tax (HST) regime in Ontario on July 1, 2010, Ontario’s First Nations have continued to be exempt from paying the 8% provincial portion of the HST on eligible purchases off-reserve. Don’t inadvertently overcontribute to your TFSA or penalties may apply urn:uuid:-insights-resources-smart_tax_tips-95_201008100915.04-95_1008100915-171.xml 2010-08-10T09:21:11-05:00 If you withdraw money from your Tax-Free Savings Account (TFSA), you can recontribute the same amount, but beware: the contribution room is not increased until the beginning of the following year. Continued sales tax exemption for Ontario’s First Nations urn:uuid:-insights-resources-smart_tax_tips-95_201006181300.16-95_1006181300-953.xml 2010-06-18T13:04:21-05:00 The Ontario Ministry of Finance recently announced that Ontario will continue to provide a provincial exemption for First Nations under the new HST.