The new Family Tax Cut

Tax Tips with Lana Laskovic, Armour Mountain Office Services

Under Canada’s tax system, federal personal income tax rates increase with the level of taxable income of the individual.

As a result, a couple in which one individual has a higher taxable income than the other often pays more federal income tax than a couple where both individuals have equal taxable income.

The October 30, 2014 announcement included a proposal to introduce the Family Tax Cut, a new non-refundable tax credit of up to $2,000 for eligible couples with minor children based on the net reduction of federal tax that would be realized if up to $50,000 of an individual’s taxable income was transferred to the individual’s eligible spouse or common-law partner.

This would take advantage of a spouse’s lower income tax bracket.

This new tax credit will be effective for the 2014 and subsequent tax years.

Lifetime Capital Gains Exemption

For dispositions of qualified small business corporation shares and qualified farm and fishing property made after 2013, the lifetime capital gains exemption limit has increased to $800,000.00.

If you have any questions about the Family Tax Cut or Lifetime Capital Gains Exemption please contact us at:  Armour Mountain Office Services, #1 – 4353 Connor Road, Barriere, B.C., V0E 1E0.  Or call 250-672-9994, or email: ambats@live.ca