Faizal Valli is an independent tax advisor with 13 years experience in tax planning. He has previously worked with small accounting firms as well as an international tax firm and a boutique practice in taxes over a wide variety of experience. In this presentation, we discuss the top 10 changes introduced in the federal budget which was presented on Tuesday, March 22nd. We review what you need to know about these tax changes that will affect you in 2016 and going forward. Next we’ll switch gears and talk about some tax tips and traps to be aware of for the 2015 filing season as well as generally.

1. Your Taxes: Top 10 Things to Know
& Tax Filing Tips and Traps
Presented by:
Faizal Valli

2. Top 10 Things to Know
The new federal budget was released on March 22nd,
confirming:
1. New top federal personal tax bracket of 33% for taxable
income over $200,000 (increase from 29%)
2. Reduction in federal personal tax bracket for middle
income earners – approx. $45,000 to $90,000; reduction from
22% to 20.5%
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3. Top 10 Things to Know
3. Canada Child Benefit is now replacing the CCTB and UCCB.
New benefit is phased out for higher income families.
Check out the government’s CCB Calculator here:
http://www.budget.gc.ca/2016/tool-outil/ccb-ace-en.html
4. Family Tax Cut, a tax credit announced by the Conservative
government for 2014 and 2015, has been repealed effective
2016.
5. Northern Residents Deduction is increased
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4. Top 10 Things to Know
6. New Teacher and Early Childhood Educator School
Supply Credit - 15% refundable tax credit on up to $1,000 in
expenditures made by an employee for eligible supplies
7. Mineral Exploration Tax Credit for Flow Through Share
Investors - extended until 2017
8. Education and Textbook Tax Credit; this is a fixed tax credit
based on the number of full-time and part-time months in
school. This credit is eliminated after 2016. Existing unused
credits will still be able to be carried forward
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5. Top 10 Things to Know
9. Children’s Fitness and Arts Credits - halved for 2016, so
$500 for fitness and $250 for arts. Eliminated in 2017
10.Mutual fund corporation switches - after September 2016,
switches between mutual fund corporations will now be
considered dispositions at market value
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6. TIPS AND TRAPS
Filingyourpersonaltaxes
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7. Foreign Reporting
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• T1135 expanded foreign reporting. Form T1135 is used to report
“specified foreign property” with a cost greater than CAD $100,000 at
any time in the year
• Common examples:
• Shares of non-resident corporations held in non-registered
accounts, either private or public;
• Real estate property (excluding personal property, e.g. vacation
property);
• Debts such as bonds owed by non-residents, etc. etc.
• Effective 2015 there is a simplified reporting method for a taxpayer
who owned held specified foreign property with cost less than
$250,000 throughout the year
• Brokerage accounts are capable of providing information for non-
registered accounts to be inputted into the T1135

8. Tips and Traps - Investments
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Return of Capital
• ROC reduces the ACB of the investment, which may result in
capital gains when the investment is eventually sold
TFSA
• It’s not a chequing account!
• Be careful of re-contributions in the same year
• Did you know that you can contribute to your spouse’s
account?
• Be careful of day traders who use TFSA accounts - can get
audited
RRSPs
• Balancing between your RRSP and TFSA

9. Lesser-known Tax Credits and Rules
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• First time home buyers credit
• Fun fact – become a volunteer firefighter and get a tax
credit
• Children’s Fitness Tax Credit
• Refundable - money in your pocket. (In BC, that’s $0.20
on the dollar. Spend $500 and get $100 back)
• Halved for 2016, so $500 for fitness and $250 for arts.
• Eliminated in 2017
• RRIF withdrawals
• Effective 2015, minimum withdrawal rates reduced by
approx. 2% for individuals aged 71-94

10. Manage Your Taxes Online
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Using CRA’s My Account for:
• Individuals
• Returns and assessments
• RRSP & TFSA Contribution
room
• Copies of slips
• Statement of accounts (taxes
owing or refundable) and
direct deposit information
• Businesses and self-employed
people
• GST / HST
Keep up with the latest from CRA (Search for: 2015 T1 Guide, etc.)

11. Tips and Traps – Real Estate
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Change in use
• From principal residence to rental property and vice versa
• Deemed disposition
• What is Fair Market Value? Your realtor can get this info for
you
• Get a comparative when selling a condo
Lifetime capital gains exemption
• Only for the sale of certain things (Qualified Small Business
Corporation shares, Qualified Farm or Fishing Property)
• Principal residence exemption is different
• Example: If you have a cottage, may choose to claim principal
residence exemption on sale

12. FAIZAL VALLI CPA, CA
HTTPS://CA.LINKEDIN.COM/IN/FAIZALVALLI
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