MARRIAGE BREAKDOWN
LIVING SEPARATE AND APART
In the case of a marriage separation, you do not have to live in separate accommodations in order to apply for the GST credit. You just need to not be living as a couple. And you do need a written separation agreement.

EQUIVALENT-TO-SPOUSE CREDIT
You cannot claim for the equivalent to spouse credit for a child where the individual is required to pay a support amount for that person.

CAPITAL GAINS AND LOSSES
PRINCIPAL RESIDENCE
When a taxpayer converts a principal residence to an income-producing use, the taxpayer may, within limits, elect to defer recognition of any gain to a later year.

PRIVATE HEALTH SERVICES PLAN
Where an employer enters into a PHSP for an employee, the expenses are generally deductible to the employer and not taxable to the employee.  This deductible/non-taxable status may not apply if the PHSP is only available to shareholders.

BUSINESS PROPERTY INCOME
SALARIES PAID TO CHILDREN – may be disallowed if:
(i)    The amounts were either not paid to them or, upon being paid, were then deposited in bank accounts of either the business or the parents.
(ii)    There was not sufficient documentation and,
(iii)    The children did not declare any amounts on their tax returns.

EDUCATIONAL EXPENSES
Employer-paid tuition and related costs, may not be a taxable benefit to the employee.  This includes courses in a field related to the employee’s responsibilities as well as courses not directly related to the employer’s business such as stress management, employment equity, first aid and language skills.

MOTOR VEHICLE EXPENSE DEDUCTION
Where an employee receives a reasonable per kilometer reimbursement for the use of his/her personal motor vehicle in connection with employment duties, the reimbursement is generally excluded from employment income.

CAPITAL COST ALLOWANCE
If a tax payer buys new vehicles and retains the old fleet, the tax payer can apply capital cost allowance.

RRSP –
HOME BUYERS’ PLAN
The HBP permits an individual to borrow up to $20,000 from his/her RRSP to purchase a home in Canada.  To qualify, the borrower, or his/her spouse, cannot have an owner-occupied home in the four preceding years.  Each spouse may withdraw up to $20,000 from their RRSPs to jointly purchase a home.

ESTATE PLANNING
ELDERLY TAXPAYERS

1.    Sign a Power of Attorney for management of property and personal care matters.
2.    Avoid probate fees by naming beneficiaries to life insurance policies and pension plans, joint ownership and by multiple wills.

FARMING
FARM LOSSES
There is a question that CRA has the right to restrict farm losses as a business loss. Get good advice here.

GST
LAWYERS DISBURSEMENTS
A lawyers disbursements are taxed for GST/HST purposes.

SALES BY INDIVIDUALS OF OWNER-OCCUPIED HOMES
Resale homes by owner occupants are not subject to GST.
Vacant land not used for business purposes or as an investment may be GST exempt. Be sure to double check to see if this fits your circumstances.