FAQ'S YOU MAY NEED TO KNOW

DIY INCORPORATING!

Many entrepreneurs are incorporating themselves these days instead of using a lawyer which we do not recommend. DIY with Corporate Online is easy and less expensive but may come back to bite you if you don't finish your Corporation properly. The Ministry of Finance allows anyone to apply for a Corporation but is not clear on the website that this is just the first step. It is not the end of the process. You must issue shares, shares certificates, prepare a register of directors, etc. PLEASE see this link if you have done your own DIY incorporation https://www.ic.gc.ca/eic/site/cd-dgc.nsf/eng/cs06646.html OR better yet have a lawyer incorporate you or you may find yourself with some problems down the road. We recommend using a lawyer as we have seen DIY Corporations run into expensive issues later on.

PUBLIC TRANSIT TAX CREDIT

As of July 1, 2017, this credit was eliminated. For this tax year, you can claim the cost of eligible public transit expenses only for travel taken from January 1 to June 30, 2017.

CANADA CAREGIVER CREDIT

This non-refundable tax credit replaces the family caregiver credit, the credit for infirm dependants age 18 or older, and the caregiver credit. It gives tax relief to eligible individuals who have a spouse or common-law partner or a dependant, with an impairment in physical or mental functions.

As of January 1, 2017, the federal education and textbook credits were eliminated. However, you can still carry forward unused amounts from previous years. Also, with certain conditions, you may now be able to claim the tuition amount for fees you paid to a post-secondary educational institution for occupational skills courses, even if they are not at a post-secondary level.

TUITION, EDUCATION & TEXTBOOKS

CHILDRENS TAX CREDIT

As of January 1, 2017, the children’s arts tax credit and children’s fitness tax credit were eliminated.

DISABILITY TAX CREDIT (DTC) CERTIFICATION

Nurse practitioners across Canada can now certify the application form for the DTC.

INSURANCE:

1) Travel Medical Insurance is considered an eligible medical expense

2) Private Insurance Premiums are considered an eligible medical expense

3) Medical Marijuana can be claimed as a medical expense IF prescribed by a Doctor

1) Cosmetic procedures are NOT eligible medical expenses unless the

services are necessary for medical or reconstructive purposes.

MEDICAL

2) If you need medical intervention to conceive a child, you may be eligible to claim certain expenses even if you do not have a medical condition. These expenses are the same as those that would generally be allowable for individuals who have a medical condition. If you had fertility-related expenses for any of the 10 previous calendar years and you have not claimed them, you can request a change to your income tax and benefit return(s) to include these eligible expenses.

SAFETY DEPOSIT BOX:

Is NOT an eligible tax deduction since 2013

SALE OF PRINCIPAL RESIDENCE:

On October 3, 2016, the Government announced an administrative change to Canada Revenue Agency's reporting requirements for the sale of a principal residence.

Starting with the 2016 tax year you will be required to report basic information (date of acquisition, proceeds of disposition and description of the property) on your income tax and benefit return when you sell your principal residence to claim the full principal residence exemption.