We welcome our returning clients and give greetings to our new clients!
2016 was an exciting year for Smith & West: In September, we moved down the hall to our
larger premises in Suite #206, and on November 1st, our long-time colleague and friend, John Lunn Chartered Accountant merged his practice with ours. We welcome John and his experienced staff, Chris, Xin, Marc, and Albert, to Smith & West Professional Corporation.
This year, there are a number of minor tax changes, and the most significant is a new reporting requirement for the Sale of your Principal Residence. Previously, CRA did not require any special reporting when you sold your principal residence (if the property was your principal residence for every year you owned it). Starting with the 2016 tax year, we have to report basic information (when was it bought, how much did it sell for and the address) on your tax return if you want to claim the full exemption. This applies to deemed dispositions as well. If you forget to report, you should ask CRA to amend your income tax return for that year.
For our U.S./Canadian dual filing taxpayers, you are aware that CRA has tightened up on the processing of the ‘foreign tax credit’ for taxes withheld in other countries, typically the US. CRA now requires the equivalent of a Notice of Assessment from the I.R.S. The US tax filer has suggested that on your behalf, he asks the I.R.S. for a ‘tax transcript’ at the time when he submits your US1040. If e-filed, it takes 2 – 4 weeks before a transcript becomes available, and about 6 weeks if the return is mailed. There will be a nominal extra charge for this service. We will need that transcript for the inevitable inquiry letter from CRA.
There has been an important change in the Canadian Investment Industry. The new regulatory reform called Client Relationship Model II (CRM2) means that in the coming weeks, you will be provided with an Annual Report on Charges and Compensation, and an Annual Report on Investment Performance. This will allow you to better see how your investments have performed, and how much you paid in fees. It will also disclose which fees are tax deductible on your ‘open’ accounts.
If you have any questions, or would like to set up an appointment to get started on your 2016 personal tax return please feel free to call our office. Kelsey would be happy to help you!
Smith & West, CPA PC