What’s new about your taxes in 2015

Effective for 2014 Tax year, the following changes apply to individual and family.

1. New changes to T1135 “Foreign Income Verification Statement

a) Canadian resident individuals, corporations, and trusts that, at any time during the year, own specified foreign property costing more than $100,000 has to file an expanded T1135 form since 2013;

b) For 2014, the form has once again revised. Under Category 7 on newly created table, “Property held in an account with a Canadian registered securities dealer or a Canadian trust company”, foreign assets have to be disclosed.

c) Taxpayer who held specified foreign property in an account with a Canadian registered securities dealer or Canadian trust company may report the aggregate value of all such property, but on a country by country basis. The total value to be reported is the highest fair market value at the end of any month during the year in addition to the fair market value at year end. The aggregate income (loss) earned in the year, and the gain (loss) realized from all dispositions must also be reported.

d) The reporting exception that excludes certain property from the detailed reporting requirement where the taxpayer has received a T3, Statement of Trust Income Allocations and Designations or a T5, Statement of Investment Income from a Canadian issuer is eliminated.

2. Safety deposit box fees
Fees paid will no longer be disallowed.

3. Tax Free Savings Account
Contribution limit for 2014 is $5,500 and the aggregate contribution limit since 2009 is $31,000.

4. Child fitness tax credit
The amount eligible for credit is $1,000 (increase from $500). The maximum savings would be $150 (up from $75). Moreover, the credit would be made refundable beginning in the 2015 tax year

5. Adoption tax credit.
The amount eligible for credit applies to costs has increased to a maximum of $15,000. The maximum savings would be $2,250 (up from $1,776). This change will apply to adoptions finalized after 2013. For 2015 and future years, the credit will be indexed to inflation.

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