Major changes for the 2005 tax year

Marital status - The proposed amendments to the Income Tax Act regarding same-sex relationships have now become law.

Child Disability Benefit – The maximum amount for the supplement has increased to $2,000.

Eligibility of new home construction or home renovations or alterations for disabled persons (lines 330 and 331) – The rules for these expenses have been clarified.

Foreign property rule – The 30% limit in respect of foreign property that may be held by pension funds and other deferred income plans has been eliminated.

Registered retirement savings plans (RRSP) and certain deferred income plans – New investments have been added to the list of qualified investments.

German pensions – Changes were made to the taxation of social security pensions received from Germany since January 1, 2005.

Schedule 3 – line 195 (Capital gains reduction on flow-through entities) has been removed.

Disability supports deduction (line 215) – You can now claim certain additional expenses.

Adoption amount (line 313) – Certain expenses are now allowable as a non-refundable tax credit to individuals who adopt a child under the age of 18 years.

Disability amount (line 316) – Certain conditions for this non-refundable tax credit have changed.

Medical expenses (lines 330 and 331) – You can now claim certain additional medical expenses for you, your spouse or common-law partner and your dependent children born in 1988 or later, or other dependants.

Allowable amount of medical expenses for other dependants (line 331) – The maximum amount has been increased to $10,000.

Refundable medical expense supplement (line 452) – The maximum amount has increased to $750.

Federal tax rate – The lowest personal tax rate has been reduced from 16 % to 15 %.

Basic personal amount (line 300) – The amount has increased to $8,648.

Spouse or common-law partner amount (line 303) – The maximum amount has changed.

Amount for an eligible dependant (line 305) – The maximum amount has changed.

Date modified:

2008-03-06