Changes

Tax Update (2016)

Here is a summary of changes that may affect you in 2015 & 2016:

Child care expenses (2015)
For children under the age of seven: $8,000
For children aged seven through 16: $5,000

Children’s Fitness Tax Credit (2015) – $1,000

Tax Free Savings Account (2016) – $5,500. The cumulative maximum is now $42,000.

Home Accessibility Tax Credit (2016) – a 15% credit on up to $10,000 of home renovations that allow individuals to be more mobile or functional within the dwelling. You must be 65 or older or eligible for the disability tax credit.

Lifetime Capital Gains Exemption (2015) – $813,600

Trusts and Estates (2016) – the graduated tax rates on a trust created by an individual’s death will be replaced with the highest personal tax rates, if the trust has been in existence for more than 36 months.

Reporting of Internet Business Activities (2015) – a corporation that earns income from a website or a web page is required to file a new schedule with its corporate tax return.

Ontario Retirement Pension Plan (ORPP) – planned starting dates:
500 or more employees – January 1, 2017
50-499 employees – January 1, 2018
49 or fewer employees) – January 1, 2019