Lethbridge Herald, The (Newspaper) - January 22, 1973, Lethbridge, Alberta
JO THE irtHBRIDGE HERALD Monday, January 'Don't let volume of paper snow you' professional tax filing consultant explains the forms arriving this week zr.-l district residents should '-he '.a.1! envelopes con'-ais reams d :OHT.S Kges in sil'. a booiiel TO :o the remrr. srA card u eDclose k's DOC goi.-g 10 he as tai 25 L-e Everage migh: To say C-.ere have IT.any chi2gss in Lie Income Tax Act ior 1372 be a gross Bu: the big bead- aches ror By JiM MAYBIE Herald Staff Writer There no iocge- are i-r L-esers! and 7-1 short bcraae tas The individ- ual "JLX reiurr. ir. this year's envelope covers xtr. ice previously-used tax forms. nf :rs 7113 is a dJferett ccoe r.uir.bcr "h_cb bis to ce to :he sei-'-ac'creised rsrjm if the taxpayer is a reftr.c. The form vril take care c: about SO per cent oi the Individual papers, said Roy Aldous. sarajer cf tbe Le'.hb.-ldge oper- ations of K and R tecorr.e Tax Co.. a firm '.vhich prepares Individual irccne return. haiarce '.he taxpayers sril] K :o pans c: the ine of scheduies. Indicative ci az anticipated Lacrease in e oi business is K aad R Block's move Lhis vear rsLabLsh a second office a> J-.4 S: X o-i M. Mr .Vde.-s said Lhere :s no way this yea.- increase- can be fore- L-. the b'jsLiess could be expec'cd 10 per rent a year, he said, but the changes ir. tax law last >ear. an projection canox be made The tax are fairiy yean. Alcove said, and if a person '.irr.e and watches what he is to- shouidn't have tec n-jch trouble. !et the volurre of psper you." He advised that several government pub- '.icsti-cs en the various 1S72 changes are a-. ai'.-Vo. chirge, from Lhe Dismict Taxatic-r. Of "tee. Caigany Balding. Ciiea-- and other locations including bdi-.-icuais seeimg profes- year be prepared t-1 furnish the information to their copy of their IPT1 tax T-3 siips etc.: for tnica ohies. secical recebs fer o'jt-of-poc- se: and prtvaie bea-th p-'.an pre- cnar'.tarie cocta_n ch.'.o care have socai ar.ce :f issuer ho b'jrr.p inf.? .5 '-h-i -tar crrr-rlf.'jtn thetn tax rerjms are ar- n? c-.tr'act the DLstrl" Taxation CT'- .ce or any cue of a number of tax profes- e income tax returns Cor 1971 and sho'-v that in some the tax- payer pay more tax in 19rJ and in other cases uii] pay less tax. For example, in 1972 a married man a wife earned S3.COO from employ- ment and SW.i in insurance ior total earnings of SS.5XI. Deductions, including S130 emplojTccnl ex- pense. SSS CO Canada Pension Plan contri- b'-ticr-o. S7o.rO for unemployment insurance premiums. S4W for a registered pension plan and 575 tuition. left Perscnai exemptions of Sr.500 basic. KOO for a iC-year-old child. S550 for a 16-year-old and Sl'.X) standard medical deduction, left S5.-S.UO of taxable income on which 3o9.56 tax was Under similar circumstances in the lax payable was 51.290.10. almost S100 less. The vote's Lncoxe H.OOO less S120 expense 'three per cent of in- come up to SIM S43 y> for Canada Pension Plan contributions, for mempioynient premiums. 5500 for child care ex- penses for the iC-year-old, basic per- sooai eAetnption. SiW medical deduction for taxable income of on which tax is due in 1972. The paid in Lax in 1971 under sim-lar realizing a saving of about in Tne v.-Je's tax VEJ 51W less, the 'mis- band's SIX1 more, so the famiiy paid S30 le.ss "han not much of L difference despite the many changes. is a on the basic ed- .-httnra! items cf l-corne which must he cleclairec ir-7T. changes in decuctions, aiiditter.ai de-ductions aiio'-vable and some musce'.aneous notes as prepared by Mr. Al.rixts for The Herald to help individuals prepare their 177: returns. New declarations; personal exemptions increased Under the r.e-s- Lxrorne iax Act there ars several items of income which have to be declared on the 1972 individual income tax return which were not required the pre- vious year. They irxhide: Jobless benefits Ail imemraoymert insurance benefits; re- ceived b 1S72 must be declared as income. T-4 slips indicating the amount of received should be mailed to recipients by the end cf February by the Unemployment Insurance Commission. Medicare Employees rxr.v cave to pay tax on their employer's eonrnhuriocs to public medical health" care but net en their portion of the premium. Previously the employer's portion of medicare premiums; was a tax- tree benefit. The employer's contribution TV-ill be included in "total eamir-gs'1 on the employee's T-4 siir Company vehicles Capital gains Canadian residents are required row to pay tax en capita: riins. The sale oi "capital" propc-rly in 157': must be reported on the tax rearm ar.d the individual must pav his tax rate on the capita! giin A capital gain or loss under the nc-'-v act results on the sale of a capital asset. Winnings en raffles, sweepstake tickets, settlements out of an accident and others are cot capital gains cf the taxable type. Also exempt from lax is the capital gain on "principal residence" provided that the residence or any part of the residence 15 not used to produce income. For example. if a person's house was valued at tbe first of tho >ecr arri he sold it for SS.fffl later in the >ear, he would not have lo pay tai on the 55.000 capital gain or any port of it. Valuation Day f.iir rn.irknt is re- quired v.hen the properly is sold or the !.u- paycr dies. Valuation Day was Dec. :2. V972 for all corporate slu.-cs that are listed in a book- let available from any district taxation of- fice ar.d Iicr. 31, 1371 for all other proper- ties and corporate shares not listed in tho booklet. The subject of capital gril-.i and proof of evaluation i.': a complex p sons who have or wMi.d be advised to professional advice. r.mpluyees who have had a company car mir'.' fcr thsir persona! use. -r.ctner tltey acrualiy made p-ersona: use of that '.ehicle. an increase .n "total eami-.js on their T-; slip. L'-der the nr-- a.- a taxable bsr-et'it" for p-rrsonal use of an employ- er's vehicle is a taxable benefit. ens per cent cf the employer's cost cf the -.ehicle month cr a trurd of the lease rental if the employer leases the vehicle. Fcr example, the minimum taxable ber.e- !it to tie emplcyee wcu-d be a month L' tile car cost emr.lcyer or the monthly t-er.eflt v.-uld h-e 55-11 k' ire employer rents the vc-rucle tor a monm. Uncer certain circumstances the taxable benefit coulo h-s higher than the above- mentlcned "minimums." InclucGi among c'.her items that must te declared this ;-ear are trunlns bene- fits, research pants, income maintenance and paid by z Cana- employer to r.cn residents. Details are in the special that acfromna-.v tlte Exemptions of DO.-50-X an f T.-.e nov: -.5 31.3.50 t.i This z'.i'.l de i: _r.e a ret incon-.e, in cf TVe mar- rictl calculate 10 nil once ;he 5po'_sc-'s incoiTiC reaches at 'ArJcri tirr.e a be fil'cd. Tr.e o: c-xorr, priori :or 15 years and ?o-50 for children. l-j over. I: Lit- ha.1; r.e' ir.coTr.c o'-f-r re-daces. V.'hen 'he r.d rea" f. ;.nr. 'o r.'.'. r.; the civile! file ;...s married exemption is stil! :cr hut t--o ti-.a1. ;he riepon- ;n '.he s I'.onio hrri-.hcrs, f-'r- rcmain.s r i 'J -1 ?nn'.c ox: o; vrn aniOvLnL o[ Lo Lhc dn1'.-. r.ri, incoinr-. IT.o oxrrr.piion rnlcul- In r..l rr.cc [.ho ncL On Mey 3. the firaoce nbister pro- posed in hi; budget ihs.: the old age esem> tion be to Sl.OCO. Ke also proposed deduction of 550 a morih for bill, C-222. r.o; passed through anc i_- peiiding. Snce bill is rerosccve to Jas. 1972. a The :S.T ceparunent has printed the forms si. COD deduc'-on. If till C-222 is r.c; pasted by Parliamect only 5650 will h-e aJowsble ar.d the mdi'viduaJ vill be hiUed additional tax or have hJ3 adjusted bv depart- SlCv rr.edical ard chsri- table ced-'jcucn has been retained but thg has several new roles. Melicsl chsri'ab'.e receipts will no Icr-ger :e eaclosec ith '-he reurc. InsieaJ Lhe rectipLi nuit h-e by the iial for a" four years in case the dis> trie: shoiiid require them for ELidii a: 2 The r.e-v a form for list- Irig necical arc receipts b ce- Th-e -ijipaycr car. hia "out oi prc- ker. experjses. plus preouiiins for rr.riiical iziurar.ce plans. Medicare amo'jr.'-s, paid by medicare T-.C is reduced by three per cer.r c: r.et income, as LI the past, If the rrryi'ca: exper.se. less three per ccr.: n" r.c-: than SiOO, the taxpayer shouid cla_n tre star.dard SKO c-r. r.c... be resiatered a? charitable thus rral-nr.s donations ce Tho deduc'.ible for charitable c'or.ati-'rji ha? hce.i increased from 10 per ront: ci r.c: "o 20 per cent of net ir.com e. The maximum cecix-ble for register- ed perkier, f'jr.rls has been increased from S'-.vX1 :n ?'2 and the rr.axirnur; for regis- plans has been frorr: S2.5.'-) T.-.e cf "1 r-cr cent of "earned'1 Additional deductions 'I r.erir ,i. -i.p. p-xv r.c-m.s which !.o frorr. .r.L'omc in calculating :rc> L.7J r-1 UIC premiums The ;3Ter rate applies tn employ- ees v.ere exempt from VIC azd yuch a5 school teacherrj. tovemrr.er.: seasonal ".a 0 36 per cent raic v.-.H early ur.til ii reaches the 0.? per cer.t to all others. The taxpayer will be able to a re- fiir-d o: any c: LTC premium by tre applies tier. over- Moving expense The j to the Cazcria ippliCG-crj for re- of overDSvrzer.t, Employee expenses AT. employ IT. ez: ced'jcticn now is allo'-ved fcr r.early ail employees to cover eiTeriSes s'jc'r. as tools ar.d uniforms. No receipt or is required. The cec-jrJoT. is iirrJted to three per cent o: bccrr.e up 10 a coduction c: salesne- clalmi- are nor. elii.blc to :his deduction. Entertainment Child 7-j In i the flir.our.t from The I-'1 insurance f..r 1D72. Tl'.c I 1C pron'iium cosl at. Lho rate of 0.9 per cent or 0.36 per cent. ho deducted Tr.o of :r.e bo rap- oy rixeir-s t.-.at carry the baby- jitler's social irjurance The receipt a'.uc-.fr: T.'.c children :-o ur.der H years of ace and the rioducLon i" to the least cf the follovir.T por lo r: Lho -vr'.or pay or tcif- pm ployed invomc. An i.- to Lhi3 lii tho i1 l.m.u- A married man can make the claim if his is infirm ar.d l hereby incapable of at- to hor children nr if is confined to or prison for a of two r..rc !i- i t .if board- S'iHXil nr c.'iiv.p up lo a week. cost of a family and house- ro a new "job jocaiio Canada, ny.v is a expense. 10 certain deductible C051S rr.ecls cr. ihe rccd. mo'.el or ve'Tc'e experee a: rcsstbly :0 CCDLS a rr_Le. selling expenses cf the old residenca i feet; or cos: can- ceUi.g a are to cocked from the Lv rorr.e received a: the r.e-." ioo A may r.o: be ciairte-1 The unclaimed portion o; cxpe-nse te c'airr.ed in the follo'.vL-g ye2.r from 125 rc'-v job eaminz5. For exaniple. a rr.o-. ed iron; to job B b December a: a cost o: KIs earr.inss job E only alo'.veo him ;o claim Sc-j? of tho mc'-i." expense Li Or his he nil; be able lo claim the mcvi-.c pro- h? rerr.ai.t5 a: ;cb B If ;.e ce-cidec at ij.e eixi c: December he iikod his old job better ard to it. be be eligible ihe rimairdng Si.500 moving expend A '.o lob E. Moving to or out- side Car.sc3 r-e exce-pc in the case of certain There aro cr. th? !he to A arc '.IM-.; i" for r..--: r-? '.-.f rtrvcd The re-.v V-c1 a: 25 mile? closer than the former resicer.cc- to rhe job No mpvir.r, paid by a p. employer rr frr ;he uidi.iduel i> such as through Marpouer, may be claimed. are to re-ih receipts for all Special work site A "lax free arcc" nov. is provided to cover to, and room ?.M brard .r. a w.ir's file." A uork .--.Li1 '.'.vulJ inci'jdo a tern- si'i1 a? jobs end oil c: ti.'-.s '.'o'.: Tais free henciii is to .1 for cous true tion workers only tin? old ncl. It is irici.iilo iiy :r.- diudual required lo a; ijvcial iiles. rndividual-s quoflions on olhor rio- riuclions or r.ny of thr cliar.s1'-" 1U' ccme filirij; (Miitacl Lhc ofi'in1 or oiJior professional advice.