What's New - 2008 Form T1

What's new for 2008

We list the major changes below, including income tax changes that have been announced but have not become law at this time. If they become law as proposed, they will be effective for 2008 or as the dates indicated.

Tax-Free savings account (TFSA)

Beginning in 2009, a TFSA, a registered savings account, has been introduced and will allow individuals (other than trusts) to earn investment income tax free. Click here for more details.

Registered disability savings plan (RDSP)

Income from an RDSP is reported on line 125 and repayments on line 232.

Taxable capital gains

You may be entitled to an inclusion rate of zero on a capital gain realized from the exchange of certain types of capital property that are donated to a registered charity or other qualified donee. Special tax treatment may also apply in cases where the exchanged property is a partnership interest (other than a prescribed interest in a partnership).

Northern residents deductions

The residency deduction has increased to $8.25 per day if you are entitled to only the basic residency amount, or $16.50 per day if you are entitled to both the basic and the additional residency amounts.

Medical expenses

You can claim certain additional medical expenses for yourself, your spouse or common-law partner, and your dependent children born in 1991 or later or other dependants.

Investment tax credit

You can claim the investment tax credit on qualifying expenses if they were renounced under flow-through share agreements entered into before April 1, 2009.

The expenditure limit formula for scientific research and experimental development expenditures has changed.

Working Income Tax Benefit advance payments

Mark T. Serbinski Certified Public Accountants and Serbinski Partners PC, Chartered Accountants specialize in situations involving the taxation of U.S. citizens living abroad and Canadians living or working in the United States.  Please contact us for a complimentary initial review of your particular situation on a confidential basis. ^{(Click here for details of our Complimentary services.)}

Last Update: Jan 31, 2010    Copyright ©2009 by Serbinski & Associates, Inc., - ALL RIGHTS RESERVED Unauthorized reproduction prohibited. Although we strive to provide accurate and timely information on this site, the information contained herein deals with complex issues in a concise manner, which may cause unintended results if taken out of context, and is therefore intended for general information purposes only. No action should be taken without obtaining prior legal, accounting or other appropriate professional consultation. To ensure compliance with requirements imposed by the Internal Revenue Service, we inform you that any tax advice contained on this web site was not intended or written to be used, and cannot be used, by the recipient (a) for the purpose of avoiding penalties that may be imposed under the Internal Revenue Code or applicable state or local tax law provisions and (b) for the purpose of promoting, marketing, or recommending any tax-related matters addressed within to another party.