Important Changes to the Principal Residence Exemption

Important Changes to the Principal Residence Exemption

On October 3, 2016, Finance Minister Morneau announced new measures to address the housing market, with the intention of improving fairness and integrity of the tax system as it relates to the principal residence exemption.  The changes include new reporting requirements, modifications to the calculation of the tax-free amount for individuals based on a residency requirements, and an extension to the period in which a reassessment may occur.

Pension Income Splitting

Pension Income Splitting

Yes, you can still split your pension income. The income splitting credit that the new Federal Government vowed to abolish in their 2015 election campaign was the Family Tax Cut. The opportunity for pensioners to split their qualified pension income with their spouses is still alive and well.

Canada Pension Plan Maximums January to December 2016

Canada Pension Plan Maximums January to December 2016

With few exceptions, Canadians over 18 who work in Canada and earn more than the minimum amount ($3,500) must contribute to the Canada Pension Plan.  Your contributory period starts at  the time you begin work and ends at retirement.