TAX BREAKS
FOR YOUTH RUGBY
11th January 2007A
fitness tax benefit that kicked in January 1 will allow parents
to claim up to $500 in registration fees per child under 16 on
their 2007 taxes
Parents who plan to enroll their children in Rugby and other physical
activities this year should be able to
claim
a non--refundable
tax credit on eligible amounts
up
to $ 500.00 a year in registration fees, per child under 16, on their
2007 taxes.
The
credit is 15.5 per cent for 2007, which on $ 500.00 will save a parent
$77.50 per child in taxes, when they file their tax return in Spring of
2008.
Eligibility is restricted to each child who will be under age 16 at some
time during the taxation year, and only for amounts paid during the
taxation year -- hockey registration fees paid last October will not
count.
The guidelines have not so far named Rugby, or any other activity, as
qualifying for the children's fitness tax break, but the best advice so
far seems to come from Calgary lawyer Francis Taman who told CBC that
parents should consider the “sweat factor.” "I think the average
individual can go into this saying, if this is a mainstream sport and my
kid is out there and they are sweating and working their little hearts
out, that there is a very good chance this will qualify." Rugby fits
this description well.
Guidelines released in December stipulate that the activity must occur
at least once a week over at least eight weeks, or in the case of camps,
five consecutive days, with half the time dedicated to physical
activity. Memberships in Brampton Rugby Club, or other associations and
organizations could also count.
Parents
are being told to ask organizations to provide a receipt, which breaks
down the amount that may be claimed for the tax credit.
Activities that contribute to cardio-respiratory endurance will be
eligible, but the activity also has to contribute to either muscular
strength, endurance strength, flexibility or balance.
Extracurricular sports at school count, but not regular phys-ed.
Activities involving automobiles, motorcycles, power boats, airplanes
and snowmobiles also do not qualify.
