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February 20, 2019

 

Annual Tax Update Letter – Tax Year 2018

Hello again valued clients and friends! Tax season has arrived & we want to help you be ready.

BEAT THE RUSH:

We are lucky enough to have the best of problems---our office is VERY busy during tax season! We are grateful to have this challenge but do not want to let our clients down. To date, we haven’t needed to turn clients away late in the season, but the hard tax deadline makes it a risk each year after we pass the middle of April. Since we want to be able to help all of our clients we want to take this opportunity to point out that if you have your tax information ready early, you do not need to wait. Beat the rush and come earlier if you can. REST ASSURED- we will always do our best to serve you, but bringing your taxes in earlier might make it easier for us to do so and help you rest easy knowing you are completed!

In this letter, we’ll briefly cover some tax considerations. Future versions of this letter will be posted at www.ohlmanncpa.com &/or emailed. Please advise us (at info@ohlmanncpa.com if possible) if you wish to receive a mailed copy in 2020. We hope the following information is helpful for you.

1. Tax Rates

2018 tax rates are largely unchanged from 2017. As an average example, the combined (Federal & Provincial) rate for middle income earners in B.C. ($79,353 - $91,107) is 31%, with the rate on taxable income of over $205,842 (the “top rate”) being 49.8%. High as this may be, it’s still one of the lower Canadian top rates (the highest remains 54% in Nova Scotia, followed by 53.53% in Ontario).

2. Pensioners' Income Splitting

Pensioners can still split up to 1/2 of qualifying pension income with no expected changes in this option.

3. RRSP & Tax Free Savings Account (TFSA) Limits

The maximum RRSP deduction limit is at $26,230 for the 2018 tax year ($26,500 for 2019). Contributions must be made by March 1, 2019 to deduct for 2018- but ensure you have available contribution room first. The limit for TFSA contributions held at $5,500 for 2018, increasing to $6,000 for 2019.

4. Tax on Split Income (TOSI) Rules

In late 2017, Prime Minister Trudeau and Finance Minister Morneau promoted changes to the taxation of business in Canada. Many of their original proposals were abandoned, however one that proceeded into the current tax system focused on something termed “Income Sprinkling.” In 2018 these new rules (TOSI) apply to Canadians. These rules are extremely complicated and far beyond the scope of this letter. However as a very general introduction to these rules it is reasonable to state that, in many cases to be impacted by the TOSI rules, you would need to have a small incorporated business where only one family member was active in the business- and other related people (such as spouses or children) NOT active in the business were splitting income with the “active” business person. If a self-employed person with a proprietorship split income with a spouse inactive in the business the rules could also apply- however such situations are far less common. The TOSI rules are very punitive, attributing split income back from the inactive person to the active person at high marginal tax rates. Reasonable salaries paid for work performed are not at risk, and certain exclusions exist based upon contributions of capital or risk incurred in respect of the business; income earned on property acquired due to a marital breakdown; or income being split by spouses over the age of 65 (among other exclusions). If you have concerns over the distribution of income from a family business where someone is not active, please contact us. As noted, these rules are complex and will be very hard for the tax community and Canada Revenue Agency to navigate in the years to come.

5. Public Transit Tax Credit (PTTC), Children’s Fitness (CFTC) and Arts Credit (CAC)

Unfortunately all of these credits have been eliminated.

 

6. Accelerated Investment Incentive (AII)

The AII provides an increased first-year capital cost allowance (CCA) deduction for “eligible property” acquired after November 20, 2018 and available for use before 2028. This depreciates business assets (for self employed persons) faster, which reduces taxes up front, but simply changes the timing of deductions as the overall depreciable amount remains unchanged, considerably limiting the value of this tax change.

7. Missing T Slip Penalties

If you fail to report a T slip for income in any two years out of four, you are subject to a 10% penalty (Federal and Provincial) of the income- even if no income tax is payable. Please be sure to include all slips.

8. Bitcoin and Cryptocurrency

A reminder that, when purchased and later sold, transactions in these items create a capital gain or loss. Please track these and provide them to us when you bring your tax materials to us.

9. Principal Residence

Please remember the requirement to report sales of principal residences.

10. Foreign Property (Asset) Disclosure

It is crucial to advise if you own ANY foreign property over $100K Cdn (land, US stocks, foreign bank accounts etc.). Severe penalties for failure to report exist- please contact us if you require a refresher.

11. Direct Deposit of Income Tax/GST Refunds & Child Care Benefits

To enroll go to www.directdeposit.gc.ca, or bring a VOID cheque with your taxes and we’ll enroll you!

TAX TIP: Make collecting medical expenses easier and (more importantly) more accurate for 2018!

Medical practitioners you visit regularly (such as Pharmacists, Dentists, Orthodontists, Podiatrists, Registered Massage Therapists, Physiotherapists and Chiropractors) will usually provide you an annual summary of payments made for use in completing your taxes if you ask (a phone call to them will often be all it takes). You save significant time as opposed to looking for multiple receipts and will have the confidence of knowing all expenses are included. Please note also that extended health insurance providers can generate summaries that show total expenses made on medical items and the amount that insurance reimbursed- making clear the tax deductible amount. We strongly encourage clients to use these tools!

U.S. citizens who have not been filing taxes with the IRS while resident in Canada should be aware of ongoing initiatives that could affect them. These programs can have significant consequences.

Thanks folks, this has been a very brief summary. We encourage you to contact us with any questions.

As always we want to THANK you for your business and trust. We’ll continue working hard to do the best that we can. If you are happy, please let others know, but if you’re not, please tell us.

The Ohlmann & Associates Team

 

February 9, 2018

 

Annual Tax Update Letter – Tax Year 2017 

Hello again valued clients and friends! 2017 flew by and now it’s time to start thinking about the coming tax season.We want to help you get ready. Please remember that in order to make deductions for your 2017 taxes, payment (ie. for donations, medical, professional dues, carrying charges) must have been made before December 31. In this letter, we’ll briefly mention some new tax items, remind you of others, and we encourage you to visit www.ohlmanncpa.com & our Facebook page for additional updates (a link is on the top banner of our website at the far right, click on the “f”- call us if you need help finding it).

BUT FIRST…DID YOU KNOW YOU CAN MAKE YOUR MEDICAL EXPENSE INFORMATION EASIER TO COLLECT & (MORE IMPORTANTLY) MORE ACCURATE & COMPLETE THIS TAX SEASON?

Medical practitioners you visit regularly (such as Pharmacists, Dentists, Orthodontists, Podiatrists, Registered Massage Therapists, Physiotherapists and Chiropractors) will usually provide you with an annual summary of payments made for use in completing your taxes if you ask. A phone call to request this annual statement of payments you made (not of appointments or insurance payments, but of your payments) could save significant time vs. looking for multiple receipts and gives you confidence that all expenses are included. This is especially the case for prescription receipts- an annual tax summary of Jan. 1 - Dec. 31 prescription expenses is much more efficient and accurate than including dozens of individual receipts. We encourage everyone to use the same pharmacist through the year, and then request an annual summary from that regular pharmacist. Please also note that extended health insurance providers can generate summaries that show total claims made on medical items through the year, and the amount that they reimbursed (leaving as the remainder the amount you have paid “out-of-pocket” and can claim on your tax return). We STRONGLY encourage clients to explore these tools!

*It is crucial to advise if you own ANY foreign property over $100K Cdn (land, US stocks, foreign bank accts).  Severe penalties for failure to report exist- please contact us if you require a refresher.*

1 - Principal Residence

Please remember the significant change to tax reporting made in 2016- the requirement to report sales of principal residences. Despite an exemption from any tax, this is now required (penalties for incomplete tax returns can be applied if this information is excluded).  If in 2017 you sold your home, we require the address, proceeds of sale (gross selling price), original amount paid (cost) and date of purchase.

2 - Pensioners' Income Splitting 

Pensioners can still split up to 1/2 of qualifying pension income. We do not expect changes in this option.

3 - Missing T Slip Penalties

Failing to report a T slip for income in any two years out of four results in a penalty of 10% of that income.

4 - Tax Rates

2017 tax rates are largely unchanged from 2016. As an average example, the combined (Fed & Prov) rate for middle income earners in B.C. ($77,798 - $89,320) is 31%, with the rate on taxable income of over $202,800 (the “top rate”) being 47.7% for income over this limit.  High as this may be, it’s still one of the lower Canadian top rates (the highest remains 54% in Nova Scotia, followed by 53.53% in Ontario and 53.31% in Quebec).  Our AB neighbours rates are very similar overall to B.C. - higher on both lowest and highest level incomes, and with tax rates 0.5-2% lower on middle income on average.

5 - Public Transit Tax Credit (PTTC), Children’s Fitness (CFTC) and Arts Credit (CAC)

As of July 1, 2017, the PTTC was eliminated.  However, monthly transit passes from January 1 – June 30, 2017 are still eligible. Riding the bus still has many benefits, but a tax credit is no longer one of them. In addition, the CFTC and CAC have been eliminated Federally for 2017 and beyond with no replacement credits announced. However, B.C. is retaining a small version of the CFTC & CAC ($500 claimable maximum for a total of $50.60 tax relief- double if the child happens to be disabled) for 2017 only.

6 - Elimination of Education and Textbook Credits

As of January 2017, tuition remains deductible/transferrable at $5,000 Federally and Provincially.  However, the credit based on months of school attended (for textbooks and other student expenses) has been eliminated (though much like the CFTC & CAC a small Provincial credit remains). If your child plans to transfer tuition to you, please ensure that they receive a T2202, claim the tuition on their tax return, and ensure they can (and do) transfer the credit to you first, and then provide you a copy of that T2202 (with the transfer signed by the student).  Please call with any questions.

7 - RRSP & Tax Free Savings Account (TFSA) Limits

The maximum RRSP deduction limit is at $26,010 for the 2017 tax year ($26,230 for 2018). Contributions must be made by February 28, 2018 to deduct for 2017- please ensure you have available contribution room first and remember that we require the receipts for contributions made in the first 60 days of 2018 as well. The limit for TFSA contributions holds at $5,500 for 2017, 2018 and beyond. If you expect a middle to higher level income in retirement, TFSA’s may be preferred for retirement planning vs. RRSP’s.

8 - Medical Expense Tax Credit for Reproductive Expenses

Previously couples had to be declared medically infertile to claim reproductive expenses, a process that eliminated some couples seeking assistance in achieving a pregnancy and excluded single mothers and same sex couples.  However changes for 2017 eliminate these restrictions.  Expenses related to the use of surrogate mothers are not yet eligible.  In a surprising move, these changes are retroactive, meaning that anyone who was subject to these very expensive procedures can now go back 10 years to claim them on a previously filed tax return, resulting in a great opportunity to anyone affected by hardships in conceiving in the past decade. Please call us if you, or a loved one, needs help with claiming these medical expenses.

9 - Direct Deposit of Income Tax/GST Refunds & Child Care Benefits

To enroll go to www.directdeposit.gc.ca, or bring a VOID cheque with your taxes and we’ll enroll you!

10 - Bitcoin and Cryptocurrency

The stunning rises and fall of Bitcoin in 2017 has brought renewed attention to this item by CRA.  This article outlines some issues: https://ca.finance.yahoo.com/news/sold-used-bitcoin-last-cra-150004538.html 

The important things to keep in mind are:

to track what amount you buy and sell cryptocurrency for (when “trading” it), as the amounts of gains are taxable (and losses are capital losses deductible against other capital gains); and

to track what the fair market value of something you purchase vs. what the cost of the cryptocurrency used to buy it originally was (as this difference is also taxable)

Track these details as documentation and support on these matters is important to maintain. Then provide them to us with your other income tax information so we can assist you.  Please call us with any questions.

Thanks folks, this has been a very brief summary.  We encourage you to contact us with any questions.

Once again, we want to THANK you for your business, and your trust. We’ll continue working hard to do the best that we can. If you are happy, please let others know… but if you’re not, please tell us.

The Ohlmann & Associates Team

March 21, 2017

 

Tax Accounting For Your Rental Property

by Robert Ohlmann

Regularly we receive calls from taxpayers who have previously handled their own taxes, but this year purchased a rental property and seek help.  We hope this information helps you get started.

Form T776 is the area of your T1 personal tax return used to report rental income and expenses to Canada Revenue Agency (CRA). Gross rental income is the total rent received from tenants, minus prepaid rent or damage deposits. Net rental income is the total remaining after removing deductible expenses incurred to earn rental income.  Tax is paid on net rental income.

Examples of deductible expenses include: property insurance, property taxes, utilities (gas, electric, water, sewer, garbage & recycling), advertising, landscaping, and ongoing maintenance and repairs.  Often, the largest deduction is mortgage interest on any mortgage acquired to purchase the property (interest on additional mortgages, or equity take out borrowings, are generally not deductible). Only interest is deductible, not the principal portion of mortgage payments.

While there’s a significant list of allowable expenses, another notable list of items which aren’t deductible exists. Examples include: tax penalties of any kind and the value of your labor on your rental (cleaning/repair fees to third parties are deductible, but amounts compensating for your time is not).  

You also cannot deduct capital expenditures (except for capital cost allowance). This leads to one of the trickiest areas of tax reporting for rentals.

For tax purposes, expenses are divided into two categories: current and capital.  Current expenses are fully deducted from gross rental income when incurred.   Current expenses include deductible items listed above and don’t provide a long-term benefit, or improve the property.  

Capital expenses provide long term benefit, and are also known as improvements or betterments.  Replacing a roof, “upgrading” or “renovating”, building a suite, HVAC systems are all capital in nature. Unlike current expenses, capital items aren’t deduced all at once, they are gradually expensed (depreciated) over a long time, with only a percentage of the cost deducted annually. This is known as "Capital Cost Allowance,” and may not always be prudent to claim. 

To properly support your tax return, you must be able to supply expense documentation. This includes invoices, receipts, contracts, and other documents. Till tape receipts for credit/debit cards by themselves are not generally deemed sufficient. Itemized/dated receipts showing payment made are required.  Also note that if someone provides services or supplies for less if you pay “in cash,” they likely won’t provide a receipt, thus the expense isn’t deductible.

March 1, 2017

Teacher & Early Childhood Educator School Supply Tax Credit

Teachers! Early Childhood Educators!

Do you spend your own money purchasing supplies for your classroom?                                                                                           Games, art supplies, containers and  items for science experiments? 

Did you know these expenses might be deductible on your 2016 tax return? 

If you are an eligible educator, you may be able to claim up to $1000 of the expenses you paid for supplies for your classroom.  This is a refundable tax credit calculated as 15% of the amount you spent, with the maximum tax credit being $150.  This credit gets applied to the tax you owe and will reduce your tax bill!

You must be an eligible educator, and the expenses must be eligible expenses. 

Not sure if you qualify or if your expenses qualify for this credit?

Call us, we’d love to help you! 

 

February 15, 2017

Children's Fitness & Art Tax Credit

Children’s Fitness and Arts Tax Credit reduced by 50% - 2016 final year to claim! 

The Children’s Fitness tax credit will be reduced to $500 (per child) from $1000 

The Children’s Arts tax credit will be reduced to $250 (per child) from $500

These credits will be eliminated in 2017, so make sure you claim on your tax return this year.  Call us, we can help!

 

January 27, 2017

Annual Tax Update Letter – Tax Year 2016

Welcome to 2017 valued clients and friends! We hope 2016 was great and 2017 will be even better! We’re thinking about the tax season that is nearly upon us, and wanted to tell you about some changes. We’ll briefly mention some new items, remind of others, and encourage you to visit our website at www.ohlmanncpa.com and our Facebook page for additional information and updates. Let’s get started!!!

Please know that in order to deduct amounts (donations, medical, professional dues, carrying charges, public transit, children's fitness etc.), payment must be made and receipted before Dec. 31 of the tax year.

 

Tax Rates

As noted last year, the Family Tax Cut income splitting measure has been eliminated and replaced with a reduced (Federal) middle income tax bracket of 20.5% (from 22%). For reference, the combined (Fed & Prov) rate for middle income earners in B.C. ($76,422 - $87,741) is 31%. However, Canadians with taxable income of over $200,000 are subject to a new tax bracket and combined Federal and Provincial tax on incomes over $200K (the “top rate”) is 47.7%. High as this may be, only Nunavut and the N.W.T. have a lower top rate in Canada (the highest top rate is 54% in Nova Scotia, followed by 53.53% in Ontario).

The maximum RRSP deduction limit increased to $25,370 for the 2016 tax year ($26,010 for 2017). Contributions must be made by February 28, 2017 to deduct for 2016- but please ensure you have available contribution room first (RRSP overcontributions are unfortunately very expensive and time consuming).

 

Tax Free Savings Account (TFSA) Limit

The limit for TFSA contributions currently stands at $5,500 for 2016 and beyond. For those expecting a middle to higher level income in retirement, TFSA’s may be preferred for retirement planning vs. RRSP’s.

 

Principal Residence

A significant change for 2016 is the requirement to report sales of principal residences. Long viewed as optional, due to the principal residence exemption from any tax, this is now required. Capital gains on sales remains tax exempt, but failing to report renders a tax return incomplete (and subject to penalty). If in 2016 you sold your home, we require the address, proceeds of sale (gross selling price), original amount paid for the home (cost) and date of purchase. If you owned more than one house and split time living between them over the years, it’s extremely important to advise us for both 2016 tax reporting and the implications on future years now being tracked.

 

Elimination of Education and Textbook Credits

This surprised us, given the Govt’s commitments to the middle class. As of January, 2017 (NOT the 2016 tax return), tuition remains deductible/transferrable at $5,000 Federally and Provincially. However, the credit based on months of school attended (for textbooks and other student expenses) has been eliminated.

 

Teacher and Early Childhood Educator (ECE) School Supply Credit

Starting with the 2016 tax return, teachers and ECEs working and certified in B.C. who purchase supplies (stationary, art or science supplies, books, educational software etc.) can claim up to $1,000 of qualifying expenses for a 15% credit. Computers/Tablets or classroom fixtures aren’t eligible. Supplies must be purchased during the tax year to be claimable (receipts required). Certification from your employer (or a delegated official) is also needed if CRA request it (thus obtaining such a letter at filing is recommended).

 

Internet Businesses and Websites

For self-employed people (including those earning their business income from farming and fishing), CRA requires information to be included on tax returns including listing any website connected to the business (including farms), and information on the percentage of gross revenue generated by the website(s). If actual percentages are unknown, a reasonable estimate is acceptable. Info-only websites are exempted, but sales through online marketplaces (ie. Castanet, Craigslist) are required. Please call with any questions.

 

Restoring the OAS Eligibility Age

Previously announced plans to raise the ages of eligibility for OAS and Guaranteed Income Supplement (GIS) have been cancelled. Eligibility will remain at their current levels: OAS – 65 and GIS – 60.

 

Children’s Fitness (CFTC) and Arts Credit (CAC)

In 2016, the CFTC has been lowered (per child) to $500 and the CAC to $250, and eliminated for 2017.

 

Universal Child Care Benefit (UCCB)

The UCCB was eliminated in July 2016, as an additional part of the replacement of the Child Tax Benefit (CTB) with the new Canada Child Benefit (CCB). No additional forms or filings are required to receive the CCB. A RC62 slip for reporting income will be sent to those who received UCCB from Jan-June 2016.

 

Pensioners' Income Splitting

Pensioners can still split up to 1/2 of qualifying pension income. We do not expect changes in this option.

 

Direct Deposit

Canada Revenue Agency (CRA) continue to make direct deposit mandatory. To enroll for direct deposit,go to www.directdeposit.gc.ca, or please bring a VOID cheque with your tax papers and we’ll enroll you!

 

Missing T Slip Penalties

If you fail to report a T slip for income in any two years out of four, you are subject to a penalty of 10% (both federal and provincial) of that income. This hurts as it is applied even if no income tax is payable.

*It is crucial to advise if you own ANY foreign property over $100K Cdn (land, US stocks, foreign bank accts). Severe penalties for failure to report exist- please contact us if you require a refresher.*

Remember, investment in certain U.S. foreign property (such as real estate) can create significant linkages to the American tax system that Canadians would be best to consult on first. Please talk to us if you are thinking of making any such purchases or have concerns about your situation. In addition, Snowbirds should determine whether they must file the IRS Form 8840 – Closer Connection Exception Statement.

U.S. citizens who have not been filing taxes with the IRS while resident in Canada should be aware of ongoing initiatives that could affect them. These programs can have significant consequences.

 

Thanks folks, this has been a very brief summary. We encourage you to contact us with any questions.

Once again, we want to THANK you for your business, and your trust. We’ll continue working hard to do the best that we can. If you are happy, please let others know, but if you’re not, please tell us.

 

The Ohlmann & Associates Team

February 8, 2016

Annual Tax Update Letter – Tax Year 2015

Welcome to 2016 valued clients and friends! The Ohlmann & Associates team (formerly Schneider Sample Ohlmann) is gearing up for tax season and wanted to tell you there have been some tax changes for 2016.  We will briefly mention some of them, as well as reminding of other items from previous years. Please visit our website at www.ohlmanncpa.com throughout the year for tax information and updates.

We recommend filing a return if you are 18 or older as there are benefits even if you aren’t taxable. Please also note that in order to deduct amounts (donations, medical, professional dues, carrying charges, public transit, children's fitness or receipts), payment must be made and receipted before Dec. 31 of the tax year.

The maximum annual RRSP deduction limit has increased to $24,930 for the 2015 tax year and $25,370 for 2016. This will affect amounts available for RRSP contributions depending on existing RRSP room.  RRSP contributions (up to the $24,930 max.) must be made by February 29, 2016 to deduct for 2015.

Direct Deposit

Canada Revenue Agency (CRA) is making direct deposit mandatory.  They will be phasing out cheques for tax refunds, Old Age Security, Canada Pension Plan & all benefits by April 2016.  To enroll for direct deposit, go to www.directdeposit.gc.ca, or bring a VOID cheque with your tax papers and we’ll enroll you!

Family Tax Cut (FTC) vs. Middle Class Tax Cut

2015’s Family Tax Cut income splitting measure has been eliminated.  As was promoted during the Federal election, it has been replaced with a reduced middle income tax bracket to 20.5 percent (from 22). Canadians with taxable income between $45,283 and $90,563 will experience tax relief to a max. of $679 per person. Savings under this measure have a lower maximum per household, but impact more taxpayers (the FTC excluded many people including singles, single parents, and those without dependent children).

Pensioners' Income Splitting 

Pensioners can still allocate up to one-half of qualifying pension income to their spouses for splitting.

New Tax Rates

A new federal tax bracket has been added for individuals making more than $200,000.  In BC, individuals making in excess of $200K face a combined rate of 47.7%.  While this is high, it is the lowest in Canada.

Option to defer OAS Pension

Effective July 1, 2013, individuals are allowed to voluntarily defer their Old Age Security (OAS) pension for up to five years.  These individuals will then receive a higher actuarially adjusted annual pension.

Internet Businesses and Websites

For self-employed people (including those earning their business income from farming and fishing), CRA requires information regarding business websites to be included on all business income tax returns.  This information must list any website connected to the business involved (including farms), and requires information on revenue generated by the website(s).  In addition to listing all websites that can allow online ordering, the schedule requests the percentage of gross revenue earned by these sites.  If actual percentages are unknown, a reasonable estimate is acceptable.  Info-only websites are exempted from reporting, but sales through online marketplaces (such as Castanet) is required.  Please call with any questions you have.

OAS Eligibility Age

Eligibility for OAS and Guaranteed Income Supplement (GIS) will gradually move from 65 to 67, starting April 2023 (full implementation by 2029).  This won’t affect anyone aged 54 or older on March 31, 2012.

Tax Free Savings Account (TFSA) Limit

As reported during the election, the new government has rolled the limit for TFSA contributions back to $5,500 for the years 2016 and beyond.  This is important for those expecting to experience middle to high level incomes in retirement. For such individuals, TFSA’s may be preferred for tax planning than RRSP’s.

Universal Child Care Benefit (UCCB)

Previously, the January 1, 2015 budget proposed an increase in the UCCB as follows:

Children under 6:  increased to $160 per month/ Children aged 6 to 17:  $60 per month

This amount is taxable in the hands of the lower income spouse (or of a dependent child for single parents).  However, the government has promised changes by replacing the UCCB with a new program in July 2016.  

Children’s Fitness and Arts Credit

The children’s fitness tax credit remains at $1000 per child, the children’s arts credit is $500 per child.

Adoption Expenses Tax Credit

The Adoption expenses tax credit for 2015 has increased to $15,255 per child.

Missing T Slip Penalties

If you fail to report a T slip for income in any two years out of four, you are subject to a penalty of 10% (both federal and provincial) of that income.  This hurts as it is applied even if no income tax is payable.

**As we’ve mentioned the past few years, it is crucial to advise us if you own foreign property of any kind over $100K Canadian (land, US stocks, foreign bank accounts).  There are severe penalties for failure to report this information to Canada Revenue Agency.  If you require a refresher on this matter, please contact us and we can discuss or send you an info sheet on this important item.**

Similarly, it remains worth reminding that investment in certain U.S. foreign property (such as real estate) can create significant linkages to the American tax system that Canadians would be best to consult on first.  Please talk to us if you are thinking of making any such purchases or have concerns about your situation.

Snowbirds should determine whether they must file the IRS Form 8840 - Closer Connection Exception Statement.  For most snowbirds, there is usually no problem establishing a closer connection to Canada.

U.S. citizens who have not been filing taxes with the IRS while resident in Canada should be aware of ongoing initiatives that could affect them.  These programs can have significant consequences.

This has been a very brief summary.  We encourage you to contact us if you have any questions.

Most importantly, we want to thank you for your business and your trust. We will continue working to provide you with the best service and advice that we can. If you are happy with our service, please let others know, but if you are not, please tell us. We wish you a safe and prosperous 2016!

The Ohlmann & Associates Team