So the CRA has reviewed your tax return, do you know what happens after? Read our blog today to know all about what… https://t.co/Tc5VRhDPS4
Highlights of the Federal 2014 Budget: Personal Tax Measures Part 1in Canadian Government News and Updates
The following are the personal tax measures proposed in the Federal 2014 Budget.
Adoption Expense Tax Credit
This is a 15% non-refundable tax credit for adoptive parents to claim eligible adoption expenses relating to the completed adoption of a child under the age of 18 (up to a maximum of $11,774 in expenses per child for 2014). Budget 2014 proposes to increase the maximum amount of eligible expenses to $15,000 per child for 2014. This amount will be indexed to inflation for taxation years after 2014.
Medical Expense Tax C redit
This provides federal income tax relief equal to 15% of eligible medical and disability-related expenses in excess of a threshold that is the lesser of 3% of the taxpayer’s net income and an indexed dollar amount ($2,171 in 2014). Budget 2014 proposes that amounts paid to public funding for specialized therapy plan be eligible for the METC if the cost of the therapy itself would be eligible for the METC and the following conditions are met:
- An individualized therapy plan is required to access public funding for specialized therapy or a medical doctor or occupational therapist prescribes an individualized therapy plan;
- The plan is designed for an individual with a severe or prolonged mental or physical impairment who is, because of the impairment, eligible for the disability tax credit;
- The amounts are paid to person ordinarily engaged in the business of providing such services to unrelated individuals.
Budget 2014 also proposes to add to the list of expenditures eligible under the METC expense for service animals specially trained to assist an individual in managing their severe diabetes.
Search and Rescue Volunteers Tax Credit
Budget 2014 proposes a Search and Rescue Volunteers Tax Credit to allow eligible ground, air and marine search and rescue volunteers to claim a 15% non-refundable tax credit based on an amount of $3,000.
Extension of the Mineral Exploration
Budget 2014 proposes to extend eligibility for the Mineral Exploration Tax Credit for one year, to flow-through share agreements entered into on or before March 31, 2015.
Farming and Fishing
Budget 2014 proposes to simplify the tax rules relating to the intergenerational rollover and the Lifetime Capital Gains Exemption to better accommodate taxpayers involved in a combination of farming and fishing.
Tax Deferral for Farmers
Farmers who dispose of breeding livestock due to drought, flood or excess moisture conditions existing in prescribed regions in a given year are permitted to defer up to 90% of the sale proceeds from inclusion in their taxable income until the year following the sale. Budget 2014 proposes to extend this tax deferral to bees and to all types of horses that are over 12 months of age.