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ASK
OUR EXPERTS...
I heard another mother at hockey practice talking about the new
“Children’s Fitness Tax Credit”. When does it start?
By Debbie Patterson of Odessey Business Services
She was probably referring to the “proposed” Children’s Fitness Credit.
This is still being passed and will not be available until the 2007 tax
year. Receipts are necessary and the details as we know them thus far are
below. Please note, this is preliminary and the finer details may very well
change before it is finalized.
The tax credit available will be up to $500 per child in registration and
membership fees, starting on January 1, 2007.
The credit will apply to an ongoing, supervised program, suitable for
children under the age of 16, in which substantially all of the activities
undertaken include a significant amount of physical activity that contribute
to cardio-respiratory endurance, plus one or more of:
1) muscular strength
2) muscular endurance
3) flexibility
4) balance
A wide variety of supervised children’s programs will be eligible for the
tax credit including hockey, soccer, karate, football, basketball, folk
dancing, swimming, hiking, horseback riding, personal training, gymnastics
and many sailing activities. If your child is involved in an activity not
listed above, ask a tax professional closer to the end of 2007 if the
activity or program will qualify. Keep all receipts for any activities to be
sure.
Parents can apply for the credit when filling out their 2007 tax return. A
receipt is required to claim the credit.
For children under 10, at least 30 minutes of sustained moderate to vigorous
activity per session is required.
For children 10-16, at least 60 minutes of sustained moderate to vigorous
activity per session is required.
The fitness program must be at least eight weeks, with a minimum 1 session
per week. Or it can include club facility memberships of two or more months,
providing that more than 50 percent is activity, such as extracurricular.
Sport camps may also be considered providing that the program runs at least
a minimum of five days.
This is still very new and many changes are bound to be made before it is
finalized.
For more tax advice, contact Debbie Patterson of Odessey Business
Services at odesseybus@shaw.ca
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