Investigative Tax Prep:  Top Ten Changes to Probe

Tax season 2025 has started with a focus on the increased income levels some taxpayers may report due to proposed changes in capital gains tax laws.  But aside from this there are new questions to probe with clients to ensure the family’s tax returns are filed to their very best benefit, given change in their life and financial events as well.  Here are top 10 queries to add to your interview checklist:

Dental care appointments are just one of those annual “back to school” events most parents sign up for.  This can have immediate tax advantages. Recall, the Canada Dental Benefit was introduced a year ago.  Yet, many parents may not know about it and may not be taking advantage of this opportunity to supplement dental costs incurred for their children. Here are some talking points to re-engage your clients with families this fall:

If you own a residential rental property as an investment or in business with another person, it is important to consider whether it’s necessary to file a new tax return in Canada: the UHT-2900, which is due on  October 31, 2023.  This is particularly important news for younger real estate investors and therefore, an opportunity for tax and financial advisors to be of help. Here’s how the numbers tell a new story, and why tax compliance is a new issue:

Based on CRA income tax filing statistics to August 13, 2023, just under 60% of all the 30.8 million tax returns filed in Canada this year were E-filed, which means the vast majority of Canadians are using the services of a professional EFILER to get their tax returns filed.   That’s good news for the industry, which has the opportunity to grow even more, especially if receiving referrals from other financial advisors, always on the look-out for trusted, knowledgeable and highly skilled tax talent.  Common question:  are tax accounting and legal fees tax deductible?  There are some specific rules to know:

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Now is the time to get ready for tax season 2024 by adding Distinguished Master Advisor (DMA™) to your own Specialized Credentials, or expand the talent in your office to grow your firm. Choose from 3 recommended Designation Programs, and as a special bonus when you register by September 15, you can come to the September 20 Virtual CE Summit on Real Estate Audit Defence free!

Is it reasonable to expect Canadians to spend 2 hours or more on hold to get answers to their tax questions at CRA or even change their address?  Taxpayers and their advisors are increasingly frustrated with long wait times for service.  The CRA Ombudsman is looking into it, according to a CBC report, but the ombudsman’s office, too, is behind on  complaint processing; backed up to the last week of June.   It’s a big problem, as taxpayers are bound to strict deadlines for compliance or face expensive penalties and interest costs.  So, what can be done?