April 2015 Update – New Budget Tax Changes

By November 24, 2015Uncategorized

Neil

The deadline to file personal tax returns is April 30th. If you have not yet done so, please contact me as it is not too late. If you are self-employed, the deadline to file is June 15th, but any amounts owing on your tax return must be paid by April 30th to avoid interest charges.

Earlier today, the Finance Minister released the government’s 2015 federal budget.

Some of the major tax changes are highlighted as follows:

1)The annual TFSA contribution limit will be increased to $10,000 (from $5,500) beginning in 2015.

2)The small business tax rate (for people who operate business within a corporation) will be reduced gradually to 9% from 11% over four years.

a.The amounts of the gross up and dividend tax credit will be modified accordingly.

3)The Employment Insurance (EI) compassionate care benefits will be increased to six months (from six weeks) for the care of parents and elderly relatives.

4)The minimum amount that seniors must withdraw each year from their Registered Retirement Income Funds (RRIF) is being reduced starting in 2015.

5)Starting in 2016, a new 15% non-refundable tax credit is being introduced to seniors and persons with disabilities for costs of improvements to safety, access and functionality of a dwelling. This will apply to up to $10,000 of home renovations (wheelchair ramps, walk-in bathtubs, wheel-in showers, and grab bars).

6)Beginning in 2015, a new T1135 form will be released for those who own foreign property between $100,000 and $250,000 in order to reduce the burden of the current T1135 form.

Please feel free to contact me at neal@winokur.ca or 416-722-1543 with any questions or if you would like to discuss in further detail.

For further reading:

http://www.thestar.com/life/2015/04/21/7-budget-items-that-may-impact-you.html

http://www.thestar.com/business/personal_finance/2015/04/21/budget-targets-young-families-seniors-roseman.html

http://news.nationalpost.com/news/canada/canadian-politics/federal-budget-2015-highlights-by-the-numbers-from-a-small-surplus-to-more-cash-for-parliament-hill-security

http://business.financialpost.com/personal-finance/tfsa/federal-budget-2015-ottawa-boosts-tfsa-account-limits-by-82-to-10000-a-year?__lsa=2d43-fab0