Other Deductions - Personal

Question 1

Common deductions

Answer 1

• CPP contributions
• Enhanced CPP contributions
• legal and accounting on objection or appeal
• OAS and EI repayments
• Moving expenses
• Childcare costs

Question 2

Moving expenses: criteria to be deductible

Answer 2

• deductible if incurred to:
  1) earn business or employment income in Canada
  2) attend post secondary school full time

Question 3

Moving expenses: conditions

Answer 3

• residence must be at least 40km closer to new work/school location
• expenses that exceeds income for new work or school location may be carried forward
• expenses must be paid by taxpayer (not reimbursed)

Question 4

Moving Expenses: deductible expenses

Answer 4

• travelling costs
• transportation and storage
• costs and meals and accommodations for 15 days
• lease cancellation on old place
• selling costs of old place
• legal fees and title transfer of new place (if old sold)
• Travel for house hunting is NOT DEDUCTIBLE

Question 5

Simplified method for meals and motor vehicle costs when moving

Answer 5

• flat rate = $23/day to a max of $69/day
• for motor vehicle expenses: there is a flat per km rate that varies per province

Question 6

Disability support deductions

Answer 6

• you can deduct expenses that allow you to engage in work, school or research (cost of sign language interpretor)
• deduct amounts paid to attendants/care aids (not family)
• Deduction: lesser of…
  1) total disability support claims made
  2) total of: total income + if they attended school- the least of: $15k, $375 x # of weeks at school, the amount that net income is greater than total income

Question 7

Childcare expenses

Answer 7

• deductible to lower income spouse

Question 8

Childcare expenses: Conditions for higher income spouse to deduct

Answer 8

• FT/PT at educational institution
• in prison for at least 2 weeks
• incapable of caring for the children for at least 2 weeks
• living apart for at least 90 days and child rests with higher income spouse

Question 9

Child care expenses: Limits

Answer 9

• Under 7: $8000/kid
• 7-16: $5000/kid
• 16+ with disability: $5000/kid
• Any age with disability: $11,000/kid
• All limited to 2/3 of taxpayer earned income