What’s new for this tax-filing season? 2014 Edition
Below are a list of the major income tax changes that are effective for the 2014 taxation year.
No more safety deposit box – The deduction for amounts paid for the use of a safety deposit box of a financial institution will no longer be allowed.
Family Tax Cut – For eligible couples with minor children, a $2,000 non-refundable tax cut will be available. The Family Tax Cut is calculated based on the reduction to you and your spouse’s combined federal taxes if up to $50,000 of taxable income was transferred from the high income spouse to the lower income spouse.
Temporary Provincial Tax Rate Increase – For residents of British Columbia, for 2014 and 2015, there is a temporary tax bracket and rate. For taxpayers earning more than $151,050, they would be subject to a provincial tax rate of 16.80%.
Child Fitness Tax Credits – In 2014, the maximum amount of eligible fees for each child has increased to $1,000 ($500 in previous year).
Lifetime capital gains exemption – For dispositions of a qualified small business corporation, qualified farm property or qualified fishing property, the lifetime capital gains exemption has been increased to $800,000 ($750,000 in previous year).