Welcome to Yvonne Sulentic, Inc.

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Sincerely,

Yvonne Sulentic, Inc.

#200 - 4411 Hastings St.

Burnaby, BC

V5C 2K1


Phone: 604-299-7132

Fax: 604-298-7111

Email:

Tax Talk for 2018 »
January 2018 »
  • More information on how the government plans to move forward with measure to limit tax deferral opportunities of private corporations will be included in the 2018 Budget and will be retroactive to January 1, 2018.
  • Given the uncertainty of the government's plans for corporations, if you own a business, you may want to consider an Individual Pension Plan (IPP) as a method of saving for retirement. An IPP is most suitable for those business owners who have significant T4 income and are at least 40 years old.
  • If you set up an interest bearing spousal loan or loaned funds to a family trust with a prescribed rate of interest, the interest owing should be paid by January 30, 2018.
  • TFSA contribution limit for 2018 is $5,500. Starting in 2009, TFSA contribution room accumulated every year. The total accumulated amount up to 2018 is $57,500. Your TFSA contribution room information is available on CRA My Account portal, or by calling the TIPS at 1-800-267-6999.
  • As of January 1, 2017, the following non-refundable tax credits have been eliminated:
  • Children's arts amount
  • Children's fitness tax credit
  • The federal education and textbook amounts. The eligibility criteria for the tuition amount has been enhanced under certain conditions to include fees paid to occupational skills courses that are not at the post-secondary level.
  • Individuals who need medical intervention to conceive a child are eligible to claim the expenses as eligible medical expenses on their 2017 personal tax return as individuals with medical infertility. You can also request an adjustment to claim such medical expenses on any income tax return for the 10 previous calendar years.
Tax Talk for 2017 »
December 2017 »
  • Government backs off initial proposals to address unfair tax planning and reduces federal corporate tax rate to 10% for 2018 on active business income and further reduction to 9% in 2019.
July 2017 »
  • Government releases a consultation paper to address unfair tax planning strategies using private corporations.
  • Budget 2017 proposes to eliminate the non-refundable public transit credit for amounts paid for eligible transit passes for the use of public transit services after June 2017.
January 2017 »
  • Effective January 1, 2017, both the education and textbook credits will be eliminated. Unused education and textbook credit amounts carried forward from years prior to 2017 will remain available to be claimed in 2017 and subsequent years. The tuition tax credit is not affected.
Tax Talk for 2016 »
October 2016 »
  • On October 3, 2016, the Government announced an administrative change to CRA's reporting requirements for the sale of principal residence. Starting with the 2016 tax year, you will be required to report basic information (date of acquisition, proceeds of disposition and description of the property) on Schedule 3, Capital Gains of your T1 tax return when you sell your principal residence to claim the full principal residence exemption. Form T2091 (IND), Designation of a property as a principal residence by an individual, will be required for the designation in the case the property was not your principal residence for all of the years that you owned it.
  • The above new rules apply for deemed disposition of property as well. A deemed disposition occurs when you are considered to have disposed of property, even though you did not actually sell it. For example, a deemed disposition will occur if there is a change in use of the property:
  • You change all or part of your principal residence to a rental or business operation.
  • You change your rental or business operation to a principal residence.
July 2016 »
  • As of July 1, 2016, the CCB (Canada Child Benefit) replaced the Canada Child Tax Benefit and the taxable Universal Child Care Benefit. The new CCB is a monthly tax-free payment for families with children under the age of 18. Families benefitting will see an average increase in child benefits of almost $2,300 in the 2016-2017 benefit year.
  • The 2015 Federal budget had proposed to reduce the small business tax rate from the 2015 rate of 11% to a 2019 rate of 9% by 0.5% increments per year from 2016 to 2019. However, the 2016 budget caps the small business tax rate at 10.5%.
  • Consistent with the cap, the 2016 budget maintains the current gross-up factor for non-eligible dividends at 17% and the corresponding dividend tax credit rate at 21/29 of the gross-up amount. Depending on the taxpayer's income level, the taxpayer may have to pay higher tax on the non-eligible dividends 2016 than in 2015 and previous years.
  • The 2016 Federal Budget eliminates the family income splitting amount beginning with the 2016 year. In effect the amount was only available for the 2014 and 2015 years.
  • Beginning in 2016, the maximum eligible amount per child for the children's fitness tax credit will be reduced to $500 from $1,000 (which will remain refundable for 2016); and for the children's arts tax credit the amount will be reduced to $250 from $500. Effective for the 2017 and subsequent taxation years, both credits will be eliminated.
January 2016 »
  • British Columbia introduced a temporary tax rate increase in 2014 and 2015. For individuals earning more than $150,000 in a taxation year, the new highest marginal tax rate was 16.80%. This two-year temporary measure expired December 31, 2015.
  • The children's fitness tax credit is refundable effective for the 2015 and subsequent tax years. You can claim a maximum of $1,000 of eligible fees per child. The refundable portion of the credit is 15% of the total eligible fee.
  • On December 7, 2015, the new federal government announced two tax rate changes for individuals, starting January 1, 2016:
  • The federal tax rate for income between $45,283 and $90,563 will be reduced from 22.0% to 20.5%.
  • The federal tax rate for income over $200,000 will increase by 4% to 33% (from 29%).
  • The government also announced that the contribution limit for TFSA will be reduced to $5,500 per year, starting in 2016.
April 2015 »
  • The small-business deduction currently reduces the federal income tax rate from 15% to 11% on the first $500,000 per year of qualifying active business income of a Canadian-controlled private corporation. Budget 2015 proposes to reduce the 11% rate by one half of one percent per year, commencing 1 January 2016, over the next four years to a 9% rate effective 1 January 2019.
  • In conjunction with this reduction in the small-business tax rate, the personal gross-up factor and dividend tax credit for non-eligible dividends will be adjusted to result in a phased-in increase in personal tax on all non-eligible dividends paid out over the next four years.

  • The budget introduces a new non-refundable tax credit "Home Accessibility Tax Credit" for seniors, persons with disability and other qualifying individuals. This credit will provide tax relief of 15% on up to $10,000 of "eligible" expenditures incurred in renovation or alteration of the qualifying individual's home. The renovation or alternation must allow a greater access to, provide more mobility or functionality within the home or reduce the risks of harm to the qualifying individual. The credit applies to eligible expenditures for work performed and paid for on or after January 1, 2016.
Tax Talk for 2015 »
January 2015 »
  • The Government is proposing a new Family Tax Cut, a federal non-refundable tax credit worth up to $2,000 for couples with children under the age of 18. The Family Tax Cut would allow a spouse to, in effect, transfer up to $50,000 of taxable income to a spouse in a lower tax bracket, providing tax relief up to a maximum of $2,000. Tax relief is calculated on the basis of a difference in federal tax before and after the effective transfer of income. The Family Tax Cut would take effect starting in the 2014 tax year. Couples would be able to claim the credit when they file their 2014 tax returns. To benefit from the credit, each spouse must file a tax return. Either spouse may claim the credit.
  • The Lifetime capital gains exemption limit has increased to $800,000 for dispositions of qualified small business corporation shares and qualified farm and fishing property made after 2013. If you incorporated your business and expect to sell the business at a gain, you may benefit from significant tax savings by utilizing this exemption. For more information, please contact our office.
Tax Talk for 2014 »
December 2013 »
  • Starting in 2014, the Federal dividend tax credit granted on "non-eligible" dividends will decrease. For BC individuals earning greater than $150,000 of taxable income for 2014 and 2015, a BC "temporary" tax rate increase will apply. Together these changes will substantially increase the tax rate to BC Individuals on non-eligible dividends from private Canadian corporations as follows:

    In order to avoid the higher tax rates proposed for 2014 and 2015, BC resident shareholders who plan to pay non-eligible dividends from their private Canadian corporations should consider paying these dividends in 2013 which will result in locking in the lower tax rates.
  • Currently, a testamentary trust (i.e. usually a trust that is established on death by will) is subject to tax at graduated tax rates. The Government issued a discussion paper in June of 2013 containing proposed tax changes that if enacted, would take away this and other advantages currently granted to testamentary trusts. In particular beginning in 2016, new and existing testamentary trusts (other than estates during a 36 month period of administration) will pay tax at the highest marginal tax rate. If you have a testamentary trust, you should be aware of the proposed changes.
Tax Talk for 2013 »
January 2013 »
  • CRA has announced the maximum pensionable earnings for 2013 will be $51,100. The basic exemption remains at $3,500.00. The maximum employer and employee contributions for 2012 are $2,356.20. EI insurable earnings was increased to $47,400. The maximum employee premium is now $891.12.
  • The Tax Free Savings Account limit has been increased to $5,500 for 2013.
  • New staff: Colleen Poeta has joined the firm. Colleen has just finished her CGA courses and should be receiving her designation in the near future. You can read more about Colleen on our About Us page.
Tax Talk for 2012 »
February 2012 »
  • The CRA introduced a Children's Arts Tax Credit allowing parents to claim a 15% non-refundable tax credit based on the amount paid up to $500.00 of eligible expenses per child under the age of 16. Eligible programs include artistic, cultural, recreational or developmental activities.
  • The CRA is conducting its Letter Campaign Initiative for the third year in a row commencing early 2012. Some taxpayers will receive letters explaining 'Eligibility Criteria' for certain deductions they have claimed in the past. Others will receive letters with the same information but the letter will also inform them their tax returns 'MAY' be selected for audit.
January 2012 » Canada Pension Post Retirement Benefit
  • The CRA introduces the Canada Pension Post Retirement Benefit (PRB). If you are between the ages of 65 & 70 and are earning employment income, you are eligible for this benefit. For more information please check out this website.