Life changes that can affect your 2010 taxes

Selling the family home?

Give thought to how to deal with the proceeds of the sale of a personal residence to go into a rental or care facility situation.

1) Consider the implications of additional investment income – loss of benefit programs (GIS, free MSP, etc.) and increased cost of health care (prescription costs, public care)

2) Financial & Estate Planning – Consider things like joint ownership to eliminate having to probate a will.  Consider gifting proceeds to adult children and have them pay health costs (transferring the tax benefit of claiming medical expenses.

Moved??

Don’t forget to contact all parties who will be issuing tax slips.  Just because you are still having funds direct deposited to the bank doesn’t mean that they know you have moved.  Canada Post will usually only redirect your mail for 6 months.

Do you “support” a dependant adult (child over 18, parent, etc.)?

Support means that you contribute financially towards their basic needs (food, clothing, shelter). Direct financial support is the easiest to prove a dependent relationship.

If so, you might be eligible to claim certain of their unused personal credits (eg medical expenses or Disability Amount) and save up to $3,500.00 per year on your own tax return.

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