Wildfires: Apply for Taxpayer Relief Provisions

It may not be the first concern, but Canadians affected by wildfires may worry at some point about the tax consequences of lost records or missed filing deadlines – the next one on June 16 for those filing T1 returns with proprietorship income. Fortunately, the CRA offers Taxpayer Relief Provisions when there are circumstances beyond a taxpayer’s control, including natural disasters, serious illness or death in the family, or errors made by the CRA, which may trigger penalties and interest due to late or incomplete tax filings. Here’s what you need to know.

“No one’s happiness but my own is in my power to achieve or to destroy.” Ayn Rand

This year, new immigrants include more refugees who need to come up to speed on how to benefit from the many refundable and non-refundable tax credits and deductions available in Canada.   You may wish to take a new family under your wing and help them navigate this task.

On Tuesday, the Loonie was worth $0.7657 US.  This is the highest value we’ve seen since September 23, 2016.  Sadly the dollar is still more than 30 down from January of 2013 when it was last on par with the US Dollar.  So what are the tax implications for investors of exchange rate fluctuations?

In communities where rental accommodation is scarce, more and more homeowners are building a second dwelling on their lot and renting out that “coach house” or “carriage house”.  Many have not thought about the tax consequences, though, and they could be complicated.  The key question:  will your tax exempt principal residence status be affected by this second dwelling?

It’s time to take note of the tax filing requirements and investment opportunities that arise in the first quarter of 2017:  January, February and March.  Investors making TFSA and RRSP contributions, as well as interest payments on inter-spousal loans are affected.  So are taxpayers who are making quarterly instalment tax remittances.

Submit your answer to the monthly DAC Canada150 financial trivia question to win a free registration to the Distinguished Advisor Conference in spectacular Kelowna, B.C., November 5 to 8.  At the end of each month one lucky person’s name will be entered to win the grand prize.