@Nezzer Here’s what it looks like in my latest version:
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Wonderful! Thanks!
In Quebec the lot number of a principal; resident when sold must be entered.
@tiffany For this year, since not all users of the checklist will also want to use TaxFolder, I suggest one of the following two options:
- Clone the checklist and add a paragraph with a link to the TaxFolder Portal for your client. In order to ensure you receive the upload notifications an engagement for the current year would need to be opened first so they have an engagement “In Progress” they can upload to.
OR
- Send the checklist using the “Share documents” option in TaxFolder. This will create the engagement and you can send the request to upload documents at the same time. You may need to direct your client in the email message on where to find the checklist and to let them know you would like them to upload the completed form to the client documents section along with their slips and other source documents.
Longer term, we do have plans to create an online checklist / onboarding interview that can be completed in TaxFolder directly. Hopefully we will be able to work on that as part of next year’s summer projects.
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How are others distributing this letter. Always liked this letter, but mail was way to expensive. Is there a bulk e-mail method yet from tax cycle? Discussed this a few years ago but there seemed to be spamming concerns. A couple of work arounds back then, but seemed messy.
@nick Concerns remain about spam and privacy when using bulk. However, with TaxFolder, people are sending and requesting the signatures at the same time.
Hi Elizabeth,
So how are others distributing the letter outside of TaxFolder? Is it e-mailable if you open each client and send it? Sorry if I’m missing something here. I think Marc (or maybe it was you) came up with a method a few years ago as sort of a work around through client manager.
We make any small changes we want to the letter and then we email it to our clients that we have emails for and mail it to the remaining ones.
Would it be possible to re-word the principal residence section? I have found that clients do not fill this in when they sell “the cottage” as they do not see it as a possible principal residence.
Could it be structured in such a way as to ask whether they sold any “real property”? After that, the principal residence discussion can take place.
Great suggestion. I am still not sure why homeowners need to give the information on the sale of their principal residences.
This should only pertain to secondary residence only.
My understanding is that homeowners need to provide information on the sale of their principal residences in order to perform the calculation outlined in paragraph 40(2)(b) of the Canadian Income Tax Act.
Thanks @gil I’ll idea the change and take another look. My first round of changes are already over to QA, so you may not see it in the same release as the bulk of the changes we talked about here.
It is the threat that if you do not declare an exemption, then it must not be a principal residence, and therefore would be subject to CG tax. This is the electronic formalization of the ITA declaration requirement.
In the past, individuals were supposed to make the declaration, but it was an additional doc that needed to be submitted. As well, it was CRA’s position that they would assume, by default, that any disposition was a principal residence, which is clearly not always correct. The onus is now (always has been) on the taxpayer.
Personally, I would like the client to not unilaterally decide if the property sold was their principal residence or not, until a discussion takes place. Having said that, people generally recognize “principal residence” as their home.
Suggestion:
Title change: … or Other Real Property
Question 1 - remove reference “… or other real property …”
Question 2 - Add - Did you sell or dispose of any other real property (cottage, vacant land, etc)?
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I like this - do our clients know what we mean by “real property”?
It does say “cottage, vacant land, etc”
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I am also concerned that many people don’t know what “real property” is. Giving a few examples should help get this conversation going.
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The examples will help, and while the terms real estate and real property are not synonymous, the subtle differences may not matter much for the checklist. Therefore, would using the term real estate work?
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