Will you save as much as you could this tax season? The professionals at Vernon’s Liberty Tax Service offer seven essential points to ensure you do just that!
1. Moving Expenses: Did you move more than 40km to start a new job or to attend post-secondary schooling? You may qualify to claim moving expenses as a tax deduction (including real estate fees, movers, land transfer tax and legal fees). Some moving expenses can be claimed even without receipts (e.g. mileage rate or simplified meal claims).
2. First Time Home Buyer’s tax credit: If you just purchased your very first home, you may qualify for a credit worth $750 off your tax bill. This must be the first home you (or your spouse) has owned within the last five years.
3. Home Accessibility Tax Credit: Anyone over 65 years old who makes repairs or renovations to their homes can claim a federal tax credit if those renovations/repairs were to make the home more accessible (e.g. ramps, increased lighting, more accessible bathroom fixtures, etc.) Keep those receipts to claim if you are over 65 years old or if you share your home with anyone over 65.
4. Home Buyer’s Plan participant: If you participated in the Home Buyer’s Plan, you withdrew money from your RRSP for the purchase of your first home and you didn’t have to pay income tax on this withdrawal. Those who created the rules realized that people who just bought a house might want a year’s grace period. So you get a year off after you buy your home, and then you repay your own RRSP over the next 15 years.
5. Capital Property: Do you own any other property, in addition to your new house? Perhaps you moved out of your old house, and instead of selling, it’s now an income property? You’re only allowed a capital gains exemption on the sale of your primary residence. If you now have two properties for the first time, your tax professionals can explain how capital gains/losses work, and what you can do to prepare and reduce the capital gains taxes you’ll owe later. You can also ask for help with claiming your rental income and expenses on your tax return each year.
6. Address and information change with CRA: Don’t forget to change your address with the Canada Revenue Agency. Call the Canada Revenue Agency at 1-800-959-8281, and you can change your address with the tax department, GST credits, and Child Tax Benefit departments in one phone call. If your marital status has changed recently, don’t wait for tax time to update. If you have any trouble getting through to the CRA, drop in to Liberty Tax for help to get things sorted out!
7. Reporting the sale of your Principle Residence: If you sold your principle residence in 2017, the CRA now requires tax payers to report it on their tax return. Call or stop in to Liberty Tax for more information.
Serving clients since 1997, Liberty Tax Service’s trained and certified tax professionals will help you get more for your money.