2016 Tax Updates
Category : blog
As you prepare your 2016 tax documents, We wanted to identify some of the tax changes for the 2016 tax filing period. Please email firstname.lastname@example.org or call 905-629-7720 with any questions.
Individuals and families
Canada child benefit (CCB) – As of July 2016, the CCB has replaced the Canada child tax benefit (CCTB), the national child benefit supplement (NCBS), and the universal child care benefit (UCCB).
Children’s arts amount – The maximum eligible fees per child (excluding the supplement for children with disabilities) has been reduced to $250. Both will be eliminated for 2017 and later years
Home accessibility expenses (if 65+ or claiming disability tax credit) – You can claim a maximum of $10,000 for eligible expenses you incurred for work done or goods acquired for an eligible dwelling.
Family tax cut – The family tax cut has been eliminated for 2016 and later years.
Children’s fitness tax credit – The maximum eligible fees per child (excluding the supplement for children with disabilities) has been reduced to $500. Both will be eliminated for 2017 and later tax years.
Eligible educator school supply tax credit – If you were an eligible educator, you can claim up to $1,000 for eligible teaching supplies expenses.
Interest and investments
Tax-free savings account (TFSA) – The amount that you can contribute to your TFSA every year has been reduced to $5,500.
Dividend tax credit (DTC) – The rate that applies to “other than eligible dividends” has changed for 2016 and later tax years.
Investment tax credit – Eligibility for the mineral exploration tax credit has been extended for flow-through share agreements entered into before April 2017.
Labour-sponsored funds tax credit – The tax credit for the purchase of shares of provincially or territorially registered labour-sponsored venture capital corporations has been restored to 15% for 2016 and later tax years. The tax credit for the purchase of shares of federally registered labour-sponsored venture capital corporations has decreased to 5% and will be eliminated for 2017 and later tax years.
Sale of principal residence – The sale of a principal residence must now be reported, along with any principal residence designation, on Schedule 3. Under proposed changes, the CRA will be able to accept a late designation in certain circumstances, but a penalty may apply.
Reassessment period – Under proposed legislation, for tax years that end after October 2, 2016, the CRA may at any time reassess your income tax return if you fail to report a sale or other disposition of real estate.