2022 Personal Taxes – Part 5

Details on the disposition of your principal residence or other real property

Please provide

• proceeds of disposition
• a description of the property, and the year the property was acquired.
• If disposing of other real property, please provide the cost of the property in addition to the requirements listed above. This is required even if there is no gain on the disposition of the property. Please also provide details of assignment sales (where the purchase contract is sold/assigned to another party).

Change of use of property

In addition, please indicate if you have a change-in-use of your property. This could include, for example, converting some or all of your principal residence into an income-earning property, such as a rental suite. It could also include converting a property used for short-term rentals, such as Airbnb or VRBO, to long-term rentals.

Personal information

Name, address, date of birth, social insurance number (SIN), and province of residence on December 31, 2022, if changed in the year.

• Personal status single, married, common-law, separated, divorced or widowed. If there has been a status change in the year, please provide the date of the change.
• List of dependants/children including their income, birth date and SIN.
• Details regarding residence in a prescribed area which qualifies for the northern residents deduction.
• Details on 2022 income tax instalments or payments of tax.
• 2021 notice of assessment/reassessment and any other correspondence from CRA (including correspondence received after filing this personal tax return).
• Details of foreign property owned at any time in 2022 including cash, stocks, digital currency (such as Bitcoin), trusts, partnerships, real estate, tangible and intangible property, contingent interests, convertible property, etc. Required details include: description of the property, related country, maximum cost in the year, cost at year-end, income, and capital gain/loss for each particular property.
• For property held in an account with a Canadian securities dealer or Canadian trust company, please provide the country for each investment, fair market value of the investments at each month-end, income or loss on the property, and gain/loss on disposition of the property.
• Details of income from, or distributions to, foreign entities such as foreign affiliates and trusts.
• Copy of any foreign tax returns filed and any associated tax assessments.
• If we are not preparing your spouse or common-law partner’s tax return, please provide their return for review and tax planning.

Internet business activities

• If you have business, professional, farming, or fishing income, please indicate whether you have Internet business activities. According to CRA, Internet business activities include any activity where you earn income from your web pages, websites, or apps. Information-only webpages and websites like directories or ads will not generally trigger this information requirement.
• If you have Internet business activities, please provide:
• the number and address of webpages or websites that your business generates income from. If you have more than 5, provide the 5 that generate the most income, and
• the percentage of income generated from the Internet (if you do not know the exact percentage, provide an estimate).

The preceding information is for educational purposes only. As it is impossible to include all situations, circumstances, and exceptions in a newsletter such as this, a further review should be done by a qualified professional. No individual or organization involved in either the preparation or distribution of this letter accepts any contractual, tortious, or any other form of liability for its contents.

If you have any questions contact us at Blasetti Broyles LLP, give us a call! 403-277-0511