Major changes for the 2006 tax year

We list the major changes below. For more details on these and other changes, see the areas outlined in the tax guide.

Universal Child Care Benefit (line 117 ) - Since July 2006, if you are an eligible individual responsible for the care of a child under 6 years of age, you are eligible to receive $100 per month for each qualified dependant.

Provincial parental insurance plan (lines 119 , 223 , 375 , 376 , 378 , and 450 ) - This is a new income replacement plan for residents of Quebec.

Taxable amount of dividends (eligible and other than eligible) from taxable Canadian corporations (line 120 ) - There are now two types of dividends.

Taxable capital gains (line 127 ) - After May 1, 2006, the capital gains inclusion rate for donations of publicly-listed securities and ecologically-sensitive land to qualified donees is zero. See Pamphlet P113 , Gifts and Income Tax, for details.

Other income (line 130 ) - Certain scholarships, fellowships, and bursaries are excluded from income if you are entitled to claim the education amount.

Tradesperson's tools expenses (line 229 ) - A portion of the cost of eligible tools acquired by you as an employed tradesperson after May 1, 2006, is deductible. See Guide T4044 , Employment Expenses, for details.

Non-capital losses of other years (line 252 ) - For non-capital losses incurred in tax years after December 31, 2005, the loss carry forward period has been extended to 20 years.

Capital gains deduction (line 254 ) - After May 1, 2006, a capital gain resulting from the disposition of qualified fishing property is eligible for this deduction. See Guide T4037 , Capital Gains, for details.

Age Amount (line 301 ) - The maximum amount is increased to $5,066.

Canada employment amount (line 363 ) - All employees are eligible to claim this credit.

Public transit passes amount line 364 )

Date modified:

2008-05-08