Major changes for the 2007 tax year

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

Pension income splitting (lines 115, 116, 129, and 210)
- A taxpayer, or his or her spouse or common-law partner, who received pension income that is eligible for the pension income amount, may be eligible to split it for income tax purposes.

Taxable capital gains (line 127)
- Under proposed legislation, for donations of publicly listed securities made after March 18, 2007, to a private foundation, the capital gains inclusion rate is zero.

Other income (line 130)
- Elementary and secondary school scholarships and bursaries are no longer taxable. If a taxpayer received an apprenticeship incentive grant, he or she must include this amount on line 130.

Self-employment income (lines 135 to 143)
- Under proposed legislation, the deductible part of certain meal and beverage expenses for long-haul truck drivers, incurred during an eligible travel period after March 18, 2007, has increased.

Registered retirement savings plan
- The age limit for contributing to an RRSP is increased from 69 to 71. Also, after March 18, 2007, new investments have been added to the list of qualified investments.

Universal Child Care Benefit repayment (line 213)
- In 2007, a taxpayer or his/her spouse or common-law partner may have repaid an amount that was included in his/her income or in his/her spouse or common-law partner's income for 2006. The person who reported the UCCB income in 2006 may deduct this amount on line 213.

Exploration and development expenses (line 224)
- Effective January 2007, resource allowances can no longer be deducted.

Other employment expenses (line 229)
- Under proposed legislation, the deductible part of certain meal and beverage expenses for long-haul truck drivers, incurred during an eligible travel period after March 18, 2007, has increased.

Security options deductions (line 249)
- Under proposed changes, gifts to private foundations that are made after March 18, 2007, will also be eligible for the additional deduction.

Capital gains deduction (line 254)
- Under proposed legislation, the lifetime capital gains exemption limit has increased for capital gains arising on the disposition of qualified farm and fishing property and qualified small business corporation shares made after March 18, 2007.

Northern residents deductions (line 255)
- Under proposed legislation, the District Municipality of Mackenzie in British Columbia has been added to the list of prescribed intermediate zones.

Spouse or common-law partner amount (line 303)
- A taxpayer can claim this amount if, at any time in the year, he or she supported his or her spouse or common-law partner and his or her net income (line 236 of his or her return, or the amount that it would be if he or she filed a return) was less than $9,600.

Amount for an eligible dependant (line 305)
- A taxpayer can claim this amount if his or her dependant's net income (line 236 of his or her return, or the amount that it would be if he or she filed a return) was less than $9,600.

Amount for children born in 1990 or later (line 367)
- A taxpayer can claim $2,000 for each child who is under 18 years of age at the end of the year. Also, he or she may be able to transfer this amount to his or her spouse or common-law partner or to claim his or her amount.

Canada employment amount (line 363)
- Employees are eligible to claim an employment amount that is the lesser of:

• $1,000; and
• the total of the employment income he or she reported on line 101 and line 104 of his or her return.

Public transit amount (line 364)
- Under proposed legislation, a taxpayer can also claim the cost of shorter duration passes if each pass entitles him or her to unlimited travel for an uninterrupted period of at least 5 days.
Under proposed legislation, a taxpayer can claim the cost of electronic payment cards when used to make at least 32 one-way trips during an uninterrupted period not exceeding 31 days.

Children's fitness amount (line 365)
- A taxpayer can claim an amount for fees paid for registering his or her child in a prescribed program of physical activity.

Investment tax credit (line 412)
- Under proposed legislation, the deadline to claim a tax credit for renounced Canadian exploration expenses concerning flow-through share agreements has been extended. Under proposed legislation, a taxpayer can claim an investment tax credit if he or she carry on a business and create one or more new child care spaces for children of his or her employees and other children.

Date modified:

2009-06-26