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Deceased taxpayers - Tax planning guide GTC

Deceased taxpayers

Executor's responsibilities

A deceased's legal representative is the person named in the will (executor) or a person appointed to handle the estate if there's no will or executor.

From a tax perspective, the main responsibilities of the legal representative are as follows:

File all tax returns for the deceased.

Make sure all taxes are paid.

Obtain clearance certificate or...

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What is a tax credit? - Tax planning guide GTC


What is a tax credit?

Several of the topics that follow refer to a tax credit. Although there's a substantial difference between a tax credit and a tax deduction, it's easy to get the two confused. A tax deduction reduces your taxable income, with the actual amount of tax saved depending on your personal marginal rate of tax.

A tax credit, on the other hand, is a deduction from tax owing....

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Giving up Canadian residence - Tax planning guide GTC


Giving up Canadian residence

In general, if you cease to be a resident of Canada, you'll be deemed to have disposed of and reacquired your capital property at its FMV on that date. You'll be subject to tax on any taxable capital gain resulting from this deemed disposition.

These deemed disposition rules apply to all capital property unless specifically excluded. Such excluded property...

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Be aware of penalties and interest - Tax planning guide GTC

Be aware of penalties and interest

The concept of increased penalties for repeat offenders is now firmly entrenched in the Income Tax Act.

The penalty for filing a return late is 5% of the unpaid taxes plus an additional 1% for each complete month the return is late, up to a maximum of 12 months--a maximum penalty of 17%.

Additionally, if you've been assessed this penalty for any of the three...

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Rental properties - Tax planning guide GTC


Rental properties

If you owned a rental property in 2016, any net income or loss must be reported on your 2016 income tax return. Rental income is usually reported on a calendar-year basis. Any income or loss from a rental property you own outside of Canada must also be included in your return.

What can I deduct?

All reasonable expenses incurred in operating the property can be deducted....

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Disability tax credit - Tax planning guide GTC


Disability tax credit

Individuals suffering from a severe and prolonged mental or physical impairment can claim a federal disability amount of $8,001 for 2016. If the person with a disability is a child under 18, there's an additional supplement of $4,667 for 2016, for a total disability amount of $12,668. To qualify, a doctor must certify on Form T2201 that there exists a severe and...

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Related topics : child tax credit claim / tax credits claim form / claim tax credits / tax return claim expenses / child tax return credit

Tuition fees, education and textbook credits

Tuition fees, education and textbook credits

Tuition tax credit

Tuition fees for students enrolled on a full- or part-time basis in Canada and, in certain instances, outside Canada, are eligible for a non-refundable tax credit, provided they total more than $100 per establishment. A student enrolled at a university outside Canada and taking courses over the Internet may be able to claim a tuition...

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Related topics : tuition tax credits carry forward / tuition tax credits canada 2017 / canada tax credits for students / claim tax credits 2017 / tuition tax credits 2017

The small business deduction - Tax planning guide GTC


The small business deduction

Canadian-controlled private corporations (CCPCs) are entitled to claim a small business deduction on active business income (ABI) earned in Canada.

Active business includes any business, as well as an adventure or concern in the nature of trade, but excludes: (i) a business that derives its income from property (including interest, dividends, royalties and rent)...

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Related topics : income tax rate calculator canada / income tax rate calculator / income tax calculator federal / calculator tax rate / federal tax calculator 2016

Input tax credits (ITCs) - Tax planning guide GTC

If ITCs claimed in a reporting period exceed the tax collected, the excess is refunded to the business.8

In general terms, the following chart outlines the prescribed information that needs to be included as supporting documentation for the purposes of claiming ITCs.

Information required

Total sale of $30 to $149.99

Total sale of $150 or more

Vendor's business or trading name


Total amount paid...

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Related topics : input tax credits (itcs) / input tax credits cra / input tax credits ontario / input tax credits / claim tax credits 2017