LOOKING OVER INDIAN arm from Cates Park in North Vancouver, the view fs

advantage of the easy accessibility to the popular park.

TAX TALK”

Rent can s

Prepared by the. Institute
of Chartered Accountants of
British Columbia.

The British Columbj
Renters’ Tax Credit takes
into consideration personal
living expenses and the wise
taxpayer should make the
most of it. >

Let's cxamine a family
preparing TIC schedules for
this credit -- grandfather,
father and mother and their
son and daughter.

Grandfather is in a senior
Citizens’ home where the
rent (not including board) is
$5,000 a year. But, being
rich, his taxable income for
the year is $100,000.

Grandfather figures out he
is entitled to the lesser of:

—_

(A) 10 per cent of his rent,
or $500. Y

(B) $100 minus one per
cent of taxable income, or
$100 minus $1,000 equalling
zero.

Thus, he concludes that he
is not entitled to a credit. He
remembers, however, that
since he was over 65 years he
was entitled to a minimum
credit of $80 in 1977. But for
1978 aud subsequent years
that $80 minimum is not
available, \

i}

\

He also discovers that
application for assistance
under the “Shelter Aid For
Elderly Renters’ Act" is
available for seniors. If: it's

.

ave you money

granted, the amount of the
assistance reduces any B.C.
Renters’ Tax Credit that is

=, available. .

Let's move on now to
father and mother. Last year
father made’ $10,000 and
mother $1,000.

Mother figures she can
claim a tax credit of $100
minus one per cent of
$1,000, equalling $90.

Well, it was a noble try but
it won't work because the
rules stipulate that the tax
credit must be claimed by
the spouse with the higher
taxable income. So, in turn,
father’s computation is: $100
minus one per cent of
$10,000, aqualling zero.

The daughter, however, is
25 and until recently has
lived outside British
Columbia, resident in this
province for only six menths
of the taxation year.

a

Her taxable income was

zero. But she paid $1,000 in:

rent outside B.C. and $900 in
rent. in the rovince.
Therefore, the tax credit
available to her is $90, or 10
per cent of the rent paid in

For further information,
contact Renters’ Tax Credit
Information, Ministry of
Municipal Affairs and
Housing, Parliament
Buildings, Victoria, B.C.
V8V 1X4, or your District
Taxation Office.

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