Mark Your Calendar: Critical Deadlines for May and June
Tax season never truly ends, it seems, as there are many more upcoming tax filing, investment planning and education milestones to discuss with your clients over the next six months. Check out our handy checklist below and then test yourself – what are the conversation openers you’ll use and with which clients? It’s your opportunity to shine with every member of the household:Retroactive Lump Sums: You May Qualify for Income Averaging
CRA has just issued a revision to Form T1198 Statement of Qualifying Retroactive Lump-Sum Payments, which is completed by the payer of qualifying amounts.
Year-End Planning: Determine Residency Now
Residents of Canada must file tax returns to report world income in Canadian funds. That means taxpayers will need to gather documentation to report offshore earnings — and new for 2013, more specific information about income earned by offshore assets with a cost of $100,000 or more.
Evelyn Jacks: Minimize Tax on Severance
Retirement planning may begin for you–quite unexpectedly–with the receipt of a retiring allowance or severance package from your employer.
Year-End Planning: Verify Charitable Status
Year-end is charitable giving time, but remembering to verify the tax status of any organization that you intend to donate a considerable sum to is very important as not all benevolent oriented organizations will allow a tax credit under the Income Tax Act. Last month, a hopeless appeal was lost in the Tax Court of Canada, for example.
Tax Free Savings Accounts at Death
If a surviving spouse or common-law partner is designated as a successor holder of the TFSA either in the TFSA contract or in the deceased taxpayer’s will, the successor becomes the owner of the TFSA.
What is a Principal Residence for Tax Purposes?
With the Senate scandal dominating the news, the issue of what is a principal residence for tax purposes seems an appropriate question.
