2017 Personal Tax takeaways
- Auto benefit– you are eligible for a taxable benefit if you use an automobile owned or leased by your employer for your personal use. You can reduce the taxable benefit by reimbursing the employer the amount paid for your personal use. If you used the automobile in 2017, the deadline for reimbursement is February 14, 2018.
- Interest benefit– you are subject to an interest benefit if your employer gave you an interest-free loan or at an interest lower than that prescribed by the CRA. You can reduce the interest benefit by paying the employer at the prescribed interest rate of 1% and ensure you make your payments January 30, 2018.
Capital gains exemption– Capital gains for small business in 2017 rose from $824,177 to $835,175. The exemption was indexed on inflation on the subsequent years. However, the capital gains for farm and fishing property remained at $1,000,000.
Charitable donations– al first-time donors who made $1,000 donations were given the super credit with an increased tax credit of 25%. This tax credit, however, is only eligible for cash donations only and only limited to individuals who neither their spouses have made donation tax credit in the last five years.
Canada caregiver credit – The 2017 Federal Budget consolidated the three caregiver credits; the Family Caregiver, Infirm Dependent Credit, and the Caregiver Credit, and came up with the Canada Caregiver Credit. The credit was made effective in 2017 and is availed in respect to an eligible relative, minor child, spouse or common-law partner who is dependent on the individual to either physical or mental disability.