TheTaxSmith

Hi annie101. Are you filing your tax return and have your mother listed as a dependent? If not then you will see the result as you noted. Filing with your mother as a dependent will transfer her disability tax credit to you as per line 31800. The total claim for the DTC (Disability Tax Credit) can only be $8,576 in 2020. It could be shared by more than one taxpayer but can not exceed $8,576 for all. Take a look at this excerpt: You may be able to claim all or part of your dependent's (other than your spouse or common-law partner) disability amount if they were resident in Canada at any time in 2020 and were dependent on you for all or some of the basic necessities of life (food, shelter, or clothing). In addition, one of the following situations has to apply: You claimed an amount on line 30400 for that dependent, or you could have if you did not have a spouse or common-law partner and if the dependent did not have any income. The dependent was your or your spouse's or common-law partner's parent, grandparent, child, grandchild, brother, sister, aunt, uncle, niece, or nephew, and you claimed an amount on line 30450 for that dependent, or you could have if they had no income and had been 18 years of age or older in 2020. https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/deductions-credits-expenses/line-31800-disability-amount-transferred-a-dependant.html

Hello vacatia. Not exactly sure of how your employer is handling the matching contributions to the RPP based on what you are stating. It appears however that your employer may have a group pension plan for the employees. Technically those RPP amounts are included in your gross income at Box 14 and I am assuming the employer is directly paying them to the RPP trustee (administrator). Are you having an amount deducted each pay for the RPP and also contributing separately to an RRSP? If you are also contributing separately to an RRSP (with Sun Life) that will result in RRSP slips issued by Sun Life and are a deduction as an RRSP on your return. To follow up with your comments about a DPSP. You don't contribute to a DPSP.

Hi Maggie007. I used the commercial DtMax (the very big brother of Ufile) software for about 30 years. Since I retired from practice but still have some self-employed income I wanted a tax software that was resident on my computer to prepare a few family files. I chose the Ufile Windows 12 package as I needed at least 8 files to be completed but also due to the fact that I was familiar with Ufile via my use of DtMax. My cost was around $25 with taxes. So far I am impressed with what is in the software and the number of files I can do for that price. I have helped people that use Turbo Tax and I found it cumbersome. That said familiarity with the software has an affect on what you view as cumbersome. For you I would actually suggest purchasing the Ufile package for windows. It can easily handle your business and your file and you do not need to constantly log in to a cloud server to access it. Make sure you back up your computer daily, or continuously however so as to not lose the files and data. If you were going to be offering the service as a tax preparer you might want to look at the Pro version. Again I would suggest to have Nawal confirm your question about which software includes that specific area you need. Trust the above is helpful.

Hello Maggie007. The section you are looking for appears to be available in the Windows version of Ufile (software downloaded and files resident on your own computer) in the Personal Use Property area for capital gains. I do not know if it is available in the Online system but would be surprised if it is not. Nawal, of course, can confirm that. Just as a point of caution or added information consider this Election ITA 45(2) [QITA 284] - Rental property remains a principal residence You can designate the property under certain conditions for up to 4 years as your principal residence when you switch from personal to rental. Take a look at the article as per this link: https://www.thomsonreuters.ca/en/dtprofessionalsuite/blog/principal-residence-disposition-special-topics.html

Pension splitting may result in adding income to a higher income spouse but look carefully at the credits and the net family tax paid. The goal is to achieve a lower family (couples) tax paid amount. If one spouse does not have a pension then a pension split can provide an extra pension deduction/credit by allocating pension income to them. The pension split takes into account medical expenses, OAS clawbacks and other items. On the surface it may appear to increase one spouse's income but overall it can lower the combined tax paid. Make sure you test the difference before you opt to not split the pension.

Hi Graeme and all. I had no issues with downloading and installing the Windows version. I am not a tech person at Ufile but maybe I could help, maybe not. After the download was finished did you direct the install to be within the "Program Files (x86)" folder? Also is your firewall set to allow the program to be installed? It is always best to do the install as an Administrator. I use Google Chrome and the install was seamless. Sometimes there is a window popup that appears that requires consent based on various browsers. It appears that the majority of users have no issues so it may be related to settings that are specific to individual users systems. Not sure if that can help, however please don't shoot the messenger. LOL

Hi Brenda, I may have been too quick to reply thinking you still had employment as well as self-employment income. It appears that for all of 2020 you had only self-employment income that would require CPP contributions. You should in this case be able to opt out for the month of December. In Box 50372 on Schedule 8 you will need to enter "12" for the month. That should prorate your CPP contributions on the self-employed income effectively requiring you to pay CPP on 11 of the 12 months income. Look again at Nawal's post above. From a previous post by Nawal “3- On the section, "If you had self-employment income (see help?)", go to question "Did you want to stop contributing to the CPP on self-employment income?".” “4- For the question, "If you answered Yes to the question above, enter the election date (01-mm- 2020 ) to stop contributing to the CPP (Schedule 8 L.50372) or to revoke an election made in a prior year to stop contributing to the CPP (Schedule 8 L.50374) ", click on the drop down menu and select "Elect to stop contributing to the CPP"and in the box to your right enter the date "(dd-mm-yyyy).” Also as per CRA From CRA Schedule 8 “If you had only self-employment income for 2020 and elect in 2020 to stop paying CPP contributions on your self-employment earnings, enter the month in 2020 for which you choose to start this election in box 50372 on the next page. The date cannot be earlier than the month you turn 65 and you are receiving a CPP or QPP retirement pension. For example, if you turn 65 in June, you can choose any month from June to December. If you choose the month of June, enter 06 in box 50372 because June is the sixth month of the year.” In your case you would select December and as mentioned you would enter "12" in box 50372

Hi BLSM. You have to wait till next year. The reason is that the self-employment/work income requires a CPP contribution up until the month after you turn 65. If you were in Quebec you could not opt out like the rest of Canada. So in the rest of Canada self-employed people should opt out after they turn 65. But if you were an employee and still working it might be better to not opt out as your employer will be required to contribute 50% of the total towards your CPP.

Hi BLSM. It appears you turned 65 in December 2020. CPP starts the month after you turn 65, so that would place the start date as January 2021. You can not elect to opt out of CPP payments until year 2021.

Hi Szoke. Rental statements with respect to CCA are not the same as Business statements. For a business (active income) the CCA is deducted first to arrive at net income which is then allocated to the partners/co-owners. With respect to Rental income (passive to an extent) CCA can be taken after the net income split and allocated to the partners/co-owners in any amount they want. For instance in your case you and your spouse can have different amounts of CCA taken on your proportionate ownership of the asset. Why would you do this? Let's say one partner has no other income while the other has significant income. The no income spouse can choose to not deduct CCA keeping the rental income for them higher but still low enough so as to not incur any tax. Down the road upon disposition that owner will have none or little recapture of CCA which could elevate their income and actually end up paying tax when it could have been avoided. That is a simple explanation. There are other factors that come into play in terms of planning and basically predicting the future tax situation. Another consideration which is not well known is that rental income is earned income for purposes of the RRSP eligibility. The higher the rental income the more eligibility for RRSP is earned. Reducing rental income using CCA should be considered in light of that.

Hi Szoke. I looked at the choices for "To whom the CCA should be allocated" and you might try and switch the drop down selection to the first item "Business at 100%". This should allocate the CCA to both co-owners at 50%. You will need to do that for all the assets on the CCA schedule for rental income.

Hello Alison. If you had an unused contribution from your 2019 file you should make sure that your 2019 NOA (Notice of Assessment) from CRA agrees with that. The unused contribution from 2019 should appear on Line 1 on Part A of Schedule 7. It would then be added to your 2020 contributions from Line 2 with the total appearing on Line 5. The total on Line 5 will correctly carry to Line 10 on Part B. You should have entered your 2020 RRSP eligibility as per the 2019 NOA and that will appear on Line 11 on Part B. Your deduction as per Line 17 will be the lower of Line 10 or Line 11. Have you entered the unused from 2019 at Line 1 correctly as well as your 2020 eligibility at Line 11 correctly? I entered my data several weeks ago and upon review it was correct. I use the Windows version of Ufile resident on my computer (not the online version).

Hi YLWGuy. For the carry back you don't file a T1-ADJ. The T1A schedule will be transmitted with your return and that is usually all you need to do. But as a suggestion consider printing it out and mailing it in. I have noticed over the years that at times the eflied T1A gets ignored. Usually however CRA is very quick at reassessing the prior year for the loss carryback. For the carryforward there is nothing else to do. The software will bring that into the 2021 file automatically. That said you need to review your return and the CRA Notice of Assessment to make sure they have the carry forward stated correctly. You can check online for the carryforward as well prior to completing your 2021 return just to make sure all is OK. In fact is always prudent to check your online file prior to starting the subsequent year to make sure you can reconcile to things like loss carry forwards, RRSP balances, CNIL, etc..

Hi YLWGuy, In the Interview section scroll down to the bottom and look for the carryforward section and tick off Losses of Prior Years. That will provide you with the data entry section. Then scroll down in the list of form (Index) look in the new section added under Losses or prior years, carrybacks. You will need to add form T1A - Request for Loss Carryback. If you had no capital gains in the last three years other than 2019 then all is straightforward. But if you had gains in either 2017 or 2018 you might want to consider comparing the benefit of taking the 2020 losses back further.