Ask an Accountant: Personal tax receipts – Week 2

Francesca Giroux, CPA
For the Lakeside Leader

This is the second week in our series on receipts and documentation required to support income and expense claims on your 2017 personal income tax return.
Individuals with box 32 filled out on their T4 slip from their employer are able to claim the Northern Residents Travel Deduction.
The amount indicated in Box 32 is the maximum that can be claimed for the year, and two trips per individual may be claimed.
Supporting documents should be kept such as receipts for flights, hotels, and other incidentals. A simplified calculation is also available for travel and meal expenses, using this calculation means that you do not need to keep receipts for meals and fuel expenses.
The calculation allows for $17/meal for three meals a day for each individual travelling, and the per kilometer rate for vehicle expense of $0.45.
In addition to the documents supporting travel expenses, CRA may ask for documents to prove your residency in a northern zone such as rent receipts, municipal tax bills, and utility bills.
Individuals who sold shares during the year will need to locate documents to determine if they have incurred a capital gain or loss in the year on the sale of shares.
Supporting documents should indicate the date the shares were purchased and the date sold, along with the number, type and cost of shares when originally purchased and the proceeds received from the shares on the date of sale.
If you wish for your accountant to contact the Canada Revenue Agency (CRA) with regards to your personal income tax matters you should fill out and sign form T1013 Authorizing or Cancelling a Representative. Be sure to fill out the section de-authorizing any previous representatives if you do not want them to have access to your information. After signing this form return it to your accountant so they can fill in their information and return the form to the CRA.
The form can be found on the CRA (www.canada.gc.ca) by typing in T1013 into the search box and clicking on the first search result.

Please e-mail your questions to [email protected]girouxllp.ca.
Information provided is of a general nature. As each individual or company’s situation is unique, you may wish to consult with your CPA for information specific to your own needs.

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