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Published : Sep 28, 2018

Update from CRA – October 2018

October 2018

 

Important Dates

 

NetFile is available until January 25, 2019 for filing 2014 to 2017 personal tax returns. EFile is available for the same period, for filing 2014 to 2017 personal tax returns and for filing 2015 to 2017 amended personal tax returns.

 

Donating Shares or Other Capital Property Can Eliminate Capital Gains

 

Capital gains can be eliminated by donating certain types of capital property (qualified investments, prescribed debt obligations, or ecologically sensitive land) to qualified donees. If you were planning to make a donation of cash but could donate property instead, you can save some tax money. Best to do this by the end of November for shares, or possibly months earlier for mutual funds.

 

Transferring Capital Losses to a Spouse

 

Capital losses can be transferred to a spouse by utilizing the superficial loss rules. Your spouse must hold the shares for more than 30 days after your disposition before selling the shares.

 

Financial Planning / Registered Plans / Investing

Making a Spousal RRSP Contribution Online

 

If you plan to make a spousal RRSP contribution online, BE CAREFUL! You probably have to be logged into your spouse's RRSP account online to do this, and indicate it is a spousal contribution. If you're not sure about what you're doing, don't do the contribution online.

 

What Happens to Unmatured Fixed Term Investments Upon Death?

 

Most fixed term investments are not cashable or redeemable except on the death of the owner, and sometimes in the case of financial hardship. This refers to investments in a registered account, but the same would apply in a non-registered account. To be sure, terms and conditions of the investment should be reviewed before purchase, if this is a concern

 

Business, Employers, Employees

 

2019 Employment Insurance (EI) Rates

 

The 2019 employee EI rate is reduced to 1.62% from the 2018 rate of 1.66%. The employer rate is 2.268%, down from 2.324%. The maximum insurable earnings (MIE) is increased to $53,100 from the 2018 rate of $51,700. The resulting maximum annual contribution per employee for 2019 is increased to $860.22 from the 2018 maximum of $858.22, an increase of 0.2%.

 

Federal Legislation

 

Taxation of Cannabis

 

On September 17th, the federal government posted Regulatory and Legislative Proposals Relating to the Taxation of Cannabis, and Explanatory Notes. This relates to excise duties on cannabis.

 

Draft Legislation Released For Comments - Respond by October 13, 2018

 

Federal draft legislation would allow charities to pursue their charitable purposes by engaging in non-partisan political activities and in the development of public policy. These changes also affect amateur athletic associations.

 

 

 

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