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Published : Feb 1, 2019

Update from CRA for February 2019

RRSP Contribution Deadline for 2018 is Friday, March 1, 2019.

Ontario Low-income Individual and Families (LIFT) Credit

The non-refundable LIFT credit will be in effect for 2019 and subsequent years, and will provide a provincial income tax reduction of up to $850 for an individual and $1,700 for a couple.  There is no LIFT credit if the individual has no employment (T4) income.  This credit is included in the Detailed Canadian Tax Calculator.

 

Reporting Foreign Income and Expenses on the Tax Return

 

All income and expenses must be reported on your tax return in Canadian dollars, converted either at the transaction date exchange rate, or the average exchange rate for the year.  The average US exchange rate for 2018 is 1.2957.

 

Writing Off Interest Expense Related to Investments

 

If you incur interest expense related to investments, make sure you keep a clear record of it.  Interest expense is claimed on line 221 of the personal income tax return.

 

Transfer Shares to a Registered Account, But Not at a Loss!

 

You can transfer shares from a non-registered account to a registered account such as an RRSP.  However, if you transfer shares on which there is a loss,  the loss will not be deductible .  If you transfer shares on which there is a gain,  you will have a taxable capital gain .

 

GST/HST Invoicing Requirements

 

It's amazing how some large companies who are GST/HST registrants do not provide proper invoices.  Proper invoicing is required so that the customers of the business can properly claim their input tax credits. GST/HST must be shown separately on an invoice. Federal and provincial HST parts are not shown separately. Provincial retail sales tax (PST, RST, etc) is shown separately from the GST.  The seller's business number must be shown if the total sale is $30 or more.

Your tax specialists at Copetti & Co. are ready to assist you in all your tax planning and reporting needs.

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