Category: Uncategorized

February Newsletter

Monthly Newsletter – February 2017 Issue

It’s tax season. Visit my web site for your tax checklist, important dates, and to sign up for the monthly newsletter.   A few things to consider today.

2016 Tax Receipts 

February is generally the month you start receiving your tax receipts such as T4’s from work, T5’s from banks, T3’s for investments, etc.  Make sure you put these in an envelope marked taxes to ensure they get to your accountant before they get lost.

Tax Free Savings Account vs. Registered Retirement Savings Plan

Simply put, a TFSA earns interest tax free on contributions (max $5500 for 2017) but there is no tax deduction for the contribution. An RRSP contribution will give you a tax deduction now and gets taxed when you withdraw funds from the RRSP. 

Registered Retirement Savings Plan (RRSP)

Check your notice of assessment for your contribution limit and talk to your accountant to see if a contribution is right for you. The higher your income, the greater the tax savings on contributions.  Deadline for contributions is Mar.1st.

Medical Expenses

The list of things that qualify as medical expenses for tax is more than you think. You can visit the CRA website for a complete list.

Prescription Receipts 

Good idea to visit the pharmacies you dealt with and ask for a medical receipts summary for 2016. It is much easier for tax filing and ensures you do not miss any.

Children’s Fitness and Arts Tax Credit

$1,000 Fitness and $500 Arts credit available for kids under 16 at start of 2016. Organizations will determine and provide receipts to programs that are eligible.

Tuition Receipts

Remind your kids to go on the university web sites to print their tuition receipts, form T2202, in order to claim the tuition and education tax credit. Some Tuition credit can be transferred to parents if not required by the student.

Rental Property Mortgage Statement

Interest expense on rental properties is deductible but the principle is not. Check your annual mortgage statement to ensure you pick up the right amount.

T4’s and T4 Summary

February 28th, 2017 is the deadline for companies to file T4’s and T4 Summary with CRA and to distribute the T4’s to employees.

T5’s and T5 Summary

T5’s also due February 28th for any dividends paid to shareholders in 2016.

I hope you find this general information helpful. Please consult with your accountant or myself if you have any questions.

This material is provided for general information and is subject to change without notice. Please consult with your professional advisor before you act on any of the above information to ensure it’s right for you.