2012 Medical Travel Rates


January 3rd, 2013

Here are the medical expense travel rates that can be used on your 2012 tax return, if you choose to use the simplified rate.

Province or territory Cents/kilometre
Alberta 50.0
British Columbia 49.5
Manitoba 47.0
New Brunswick 49.0
Newfoundland and Labrador 52.0
Northwest Territories 58.0
Nova Scotia 50.5
Nunavut 58.0
Ontario 55.0
Prince Edward Island 49.5
Quebec 57.0
Saskatchewan 45.0
Yukon 61.5 

www.cra-arc.gc.ca/tx/ndvdls/tpcs/ncm-tx/rtrn/cmpltng/ddctns/lns248-260/255/rts-eng.html

The meal rates didn’t change at all; it’s still a flat $17.00 per meal.

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2013 Mileage Rates


December 28th, 2012

Mileage rates increased by 1 cent per kilometre, for 2013.   The new mileage rates are $0.54 / kilometre for the first 5,000 kms driven, and $0.48 / kilometre for each additional km.

Here’s the official announcement, along with other rates.

If you receive a tax free travel allowance, be sure your employer is aware of this change.

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Reminder!! CPP election


December 21st, 2012

This is just a friendly reminder:  if you are turning 65 soon (or if you have employees who are turning 65), you need to file form CPT30 if you wish to stop paying into the Canada Pension Plan.

Under the old rules, you were automatically able to stop paying into CPP once you began to collect CPP benefits.  Under the new rules that came into effect in 2012, you need to continue paying into CPP at least until age 65, at which point you can choose to stop paying into CPP, but ONLY if you file CPT30.

Employers, don’t get caught. ¬†If you have employees aged 65 to 70, be sure to review whether or not this form has been filed.

 

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Going down South?


December 13th, 2012

It is the time of season when a number of people do what Canadians do best. ¬†Travel south for the winter. ¬†Since I’m stuck in my office for the entire winter, I will at least bid you a fond farewell and remember to come home in the spring.

I’m also going to take it one step further and remind you of your potential tax requirements. ¬†I hate to ruin a winter vacation for anyone, but if you don’t want a nasty tax surprise it might be wise to plan ahead.

First, take a look at the Canada Revenue Agency’s P151, Canadian Residents Going Down South. ¬†It’s written in good plain English. ¬†Here’s a quick snapshot of some of the points covered.

1.  Foreign property.  Do you own property (land, properties, investments, cash accounts, etc) with a total value of more than $100,000?  If yes, you may be required to file the T1135 form with your tax return.  Some exceptions apply; for example, a property used primarily for personal use.

2. ¬†Income. ¬†If you earn or receive income while outside Canada, you will almost certainly need to declare this as income on your Canadian tax return…….. Canadian residents are taxed on their world income.+

3.  Certain tax credits.  Medical costs in the US, donations to US charities, etc. are discussed in the P151.

4.  US Taxes.  Are you Resident Alien?  A Non-Resident Alien?  The P151 does a good job of introducing the subject, but this is another tax maze where only the brave will enter.  If you are concerned you may be required to file a US tax return, consider talking it over with a US tax professional.

 

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