VANCOUVER, April 19, 2017 – The deadline for filing your personal tax return and paying any taxes owing for the 2016 tax year is Monday, May 1, 2017. If you owe taxes and your return is late, you will be assessed a penalty and interest on the unpaid balance of your tax return.
Still haven’t done your taxes and need some help? Speak to a chartered professional accountant today. The Chartered Professional Accountants of British Columbia’s (CPABC) annual RRSP and Tax Tips has the answers to some common questions about income tax returns.
Here are the top three questions CPAs are asked about income tax returns.
1. How much tax do I have to pay?
The amount of tax you have to pay is based on your annual income. For the 2016 tax year, the federal income tax brackets have changed. Be sure to check them out before filing your income tax return. To reduce your taxes, check to see if you are eligible for any tax credits or tax deduction measures.
2. I sold my home in 2016, do I have to pay any tax on the capital gains I’ve made on the sale of my house?
Canadian residents are exempt for any capital gains realized on the sale of a principal residence. As simple as this may sound, the rules can be complex. Your house may not be considered a principal residence if you own more than one property, if you have previously used the property as a rental property, or if the sale of your home result in business income. Consult a Chartered Professional Accountant to better understand any tax implications on the sale of your home.
3. What can I do with my unused tax credits?
If you were unable to use certain deductions or tax credits from a previous tax year, you may be able to use them for the 2016 tax year. Some common “carry-forward” items include:
Learn more about filing your income tax return with CPABC’s RRSP and Tax Tips at www.rrspandtaxtips.com.
NOTE TO JOURNALISTS: Local CPAs are available for interview. Infographic is available for reprint.
Please credit Chartered Professional Accountants of British Columbia (CPABC) for use of the content and include the following disclaimer: Tax rules relating to these tax tips are complex. This is not intended as tax advice and you should not make tax decisions based solely on the information presented in these tips. You should seek the advice of a chartered professional accountant before implementing a tax plan or taking a tax filing position.
About CPA British Columbia
The Chartered Professional Accountants of British Columbia (CPABC) is the training, governing, and regulatory body for almost 35,000 CPA members and 5,500 CPA students and candidates. CPABC carries out its primary mission to protect the public by enforcing the highest professional and ethical standards and contributing to the advancement of public policy. CPAs are recognized internationally for bringing superior financial expertise, strategic thinking, business insight, and leadership to organizations.
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For more information or to arrange an interview, contact:
Vivian Tse, Public Affairs Specialist