Tax Tip: The More Obscure Medical Expenses
Are you claiming all the medical expenses you or your clients might be entitled to?The Limits of Tax Planning – Intention is Not Everything
Did you really intend to make that claim on your tax return? Intention is an important consideration when filing a tax return, especially if your client transacted in what is known as “grey areas”. In other words, it’s not good enough just to report the numbers on the return; you’ll want to document the reasons for them too, especially if you are a small business owner. Here’s why that’s important to your clients’ appeal rights down the line and why you need to get their help to document the facts properly.
Return of Fuel Charge Proceeds to Farmers
In the 2021 Federal Budget, the government promised to return fuel charges to farmers in Ontario, Manitoba, Saskatchewan, and Alberta. The form to apply for this credit (T2043) has just been released, and the government has indicated that the refundable credit should be claimed on the new line 47556.
Rates for Distance Claims Using the Simplified Method Released
We were spot on! The simplified per kilometer rates for medical and moving expenses for each province were announced by the CRA mid-February, and they jive with what we taught attendees a month earlier during the Advanced Tax Updated at the January CE Summits. Here they are and details on when you would use them. Although, you do not need to keep detailed receipts for actual expenses if you choose to use the simplified method, the CRA may still ask for documentation to support your claim. Keep track of the number of kilometres driven during the tax year for your trips relating to medical travel (that is, when you must leave your home to receive medical treatments at least 80 kilometres away). You can also use this method in claiming travel expenses relating to your moving expense claim and for the purposes of the northern residents’ deductions.
You’re Invited: Lesson 1 - Introduction to Real Wealth Management
Are you interested in enhancing your value proposition and broadening your client service offering? Amplifying your referrals? Becoming a more holistic wealth advisor? Then you may be interested in learning more about the Real Wealth Managers RWM™ Designation – a new designation that differentiates collaborative financial leaders in the marketplace. RSVP now for a complementary virtual Lunch & Learn on March 2 at 12 PM CST!
Need Fast Answers to Tax Questions? Choose Evergreen Explanatory Notes
Do you have complex tax questions difficult to find on the CRA website? Are you too busy for long wait times on the phone with the CRA? At Knowledge Bureau we have a great solution to help you save time and money and answer more tax questions from your clients with confidence. It’s called Evergreen Explanatory Notes, your fast guide to issues, answers, explanations, client interview guides case studies, tax court cases, plus a fast way to link directly to all pertinent CRA forms, guides, folios, the Income Tax Act and much more!
Update on Family Business Transfers
What is the current word on using the Lifetime Capital Gains Exemption when you transfer the family farming, fishing or small business corporation to your child or grandchild? Is this possible or not? There is good reason to feel unsure, as the tax law around this lifecycle event has not yet been clarified, 9 months after Royal Assent was give to legislation intended to change it. Here’s the background to this story:
