Tuesday, November 21, 2006

Commuters line up with questions on transit tax credit

The CRA is apparently getting a lot of questions about the new tax credit for transit passes. If you more or less do a cut and paste job, a picture emerges. The answers are based on draft legislation which has not as yet been passed. Q Does a daily or weekly pass, including a limited round-trip pass, qualify for the transit pass credit? A No. The draft legislation indicates that an "eligible public transit pass" must provide the individual with the right to use public commuter transit services of a qualified Canadian transit organization on an unlimited number of occasions and on any day on which the public commuter transit services are offered during an uninterrupted period of at least 28 days. Q How is tax assistance received under the new transit pass credit initiative? A Under the draft legislation an individual can claim a non-refundable tax credit for the cost of an eligible public transit pass used on or after July 1, 2006.

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