Trade Wars: Why Income Tax Filings Matter More Now

It’s hard not to get caught up in the trade wars saga, and of course it has serious economic repercussions. In times like these, our tax system can help. The federal government has indicated three pillars of support will be enacted, details of which are to come shortly:

Seventy-one per cent (71%) of Knowledge Bureau Report readers feel that do-it-yourself tax filers using tax software and NetFiling can’t lose by investing in a relationship with a tax professional.

While there were few personal tax changes in last month’s Federal Budget, many seniors and their families may be affected to some degree by the adjustments made to GST/HST Canada. The paper burden has also been reduced for businesses who offer Pension Plans, including Pooled Retirement Pension Plans, or deal with the Governor General. 

Tax changes for asset purchases will be introduced for 2013 and beyond – allowing taxpayers a more significant Capital Cost Allowance deduction in some cases – in an attempt by the federal government to stimulate the manufacturing sector.

I held 200 shares of Kraft Foods in my non-registered investment account. Kraft split into Kraft Foods and Mondelez International. I now have 66 shares of Kraft and 200 of Mondelez. I noticed that my T5 slip is indicated that I received a foreign dividend of over $3,000. Is this a taxable dividend? I didn't receive any cash and the value of the two shares together were more or less the same. Please advise as this is a nasty shock. 

For owners of small businesses who pay themselves with dividends, the changes to the gross-up and dividend tax credit rates for 2013 will mean that the tax-free zone will decrease from its current level of about $42,500 for single taxpayers in 2013 to about $35,000 in 2014. 

Home office expenses are common for the self-employed; some employees may claim them too, when their employer signs Form T2200 to confirm this requirement. These claims are often audited so be sure to know the rules.