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What's New by Month
June 2022
Bill C-19, Budget Implementation Act, 2022, No. 1 Royal Assent
This bill includes the increase in the Home Accessibility Tax Credit, luxury tax on cars, boats and aircraft, making assignment sales of residential housing GST/HST taxable, and many other measures.
2022 Sales Tax Rates PST RST QST GST HST
There have been no changes to sales tax rates so far for 2022, but NL and SK have made some changes to what is taxable or exempt.
Bill C-8 Receives Royal Assent
This bill includes the 1% Underused Housing Tax, enhanced School Supply tax credit, extended Northern Residents Deduction and other measures.
Selling Capital Property Non-Arm's Length For Less than Market Value
This could result in deemed proceeds of FMV to the seller while the recipient must use actual transaction amount as their cost, resulting in double taxation of the difference between FMV and transaction amount.
You have until Friday June 24, 2022 at 3 pm Pacific time to share your views on the 2023 Budget.
GST/HST on Assignment Sales of Residential Housing
Canada Revenue Agency issued GST/HST Notice 323 re GST/HST Treatment of Assignment Sales, proposed by the 2022 Budget.
2022 Provincial Political Contribution Tax Credits
The only change for 2022 is the Ontario refundable political contribution tax credit, as it is the only province that increases its tax credit for inflation.
May 2022
Life in the Tax Lane June 2022
Topics in this 10-minute video include:
 | Ban on Residential Real Estate Purchases by Non-Residents |
| Underused Housing Tax - Traps |
| Retrofit Loans for Homeowners |
| Sale of Home |
| Late Wage & Rent Subsidy Claims - CRA discretion |
| CRA Collections Related to COVID-19 Programs - CEBA |
| CRB - Not Working Due to COVID-19? |
Do you know your rights and responsibilities as an employee or employer? Learn about labour laws, including minimum wages rates, vacation and statutory holiday entitlement.
Late Filing Penalties and Interest
How to file a late tax return, learn what your exposure is to interest and penalties.
Federal & Provincial/Territorial Rebates for Fuel-Efficient Vehicles
Maximum MSRPs have increased for the Federal and Quebec rebate programs. Rebates are also available for BC, NB, NL, NS, PEI, QC and YT. ON has no rebates, but has other benefits for "green" vehicles.
Nunavut 2022 Budget - May 26, 2022
The Nunavut Budget did not have any new tax measures.
BC Increased Rebates for Charging Stations
For a limited time, rebates for EV charging stations will be increased from 50% to 75% of eligible purchase and installation costs.
Changing/Amending Your Tax Return
Discovered a missed tax slip? Missed expenses? It's not difficult to change your tax return, and can be done with the tax software you used to NetFile your return.
Start Your Tax Planning for 2022
Plan ahead so that you are prepared to file your 2022 tax return next year without too much difficulty. Most important to do during the year: store all tax-related documents in one place. If your tax situation is getting more complicated, find a tax professional now, not next tax season!
Unlocking Your Locked-in Pension Accounts
Our article includes links to provincial and federal pension regulators. Contact your pension plan regulator to determine the options for your locked-in account - don't rely solely on your financial institution.
2022 Corporate Income Tax Rates
The only changes for 2022 are the small business (CCPC) rates for PEI, reduced to 1% on Jan 1/22, and SK, reduced to 1% on July 1/22.
Nova Scotia Non-Resident Property Tax Scrapped
The NS Premier announced on May 5th that this tax would be removed but the non-resident deed transfer tax would proceed as planned.
Immediate Expensing of Capital Assets
Bill C-19 tabled April 28, 2022 includes this provision, so claims can be included when you file T2 returns. Returns already filed must wait for Royal Assent before requesting adjustments.
April 2022
Ontario 2022 Budget - April 28, 2022
Deficits in the billions for at least another few years; LIFT Credit enhancement; New Seniors Care at Home Refundable Tax Credit; Cultural Media Tax Credits modernized.
Topics in this 10-minute video include:
| Federal Budget 2022 |
| Property Flipping / Tax-Free First Home Savings Account |
| Budget Draft Legislation |
| Principal Residence Exemption & Multigenerational Home |
Joint Ownership Avoids Probate
Unfortunately, joint ownership can cause major problems if intentions are not properly documented, leaving questions as to beneficial vs legal ownership. The latest court case involves a BC $3 million lottery winner.
Gift to Spouse for TFSA Contribution - Attribution Rules
When an individual gives funds for their spouse to contribute to a TFSA, once the funds are withdrawn from the TFSA, income and capital gains from those funds will be taxed in the hands of the individual, not the spouse.
Spouse or Common-Law Partner Tax Credit
If your spouse has low income, you may be able to claim a spousal amount tax credit, even if the spouse is a non-resident. If you separated or divorced during the year, this credit may still be available.
RRIF Withdrawals Withholding Tax
There is no tax withheld from the minimum withdrawal amount. Tax is withheld from the amount withdrawn in excess of the minimum amount.
Lending to a Spouse or Child for Investments
Funds loaned to a lower-income spouse or a child can be used to purchase investments, and tax on the investment income will be paid by the lower-income spouse or child at a lower marginal rate. The prescribed rate is currently 1% but will go up to 2% starting July 1, 2022.
Tax issues for students and/or parents: eligibility for tuition, education and student loan interest tax credits, private school tuition fees, deducting moving expenses, child care expenses.
If you've rented out your principal residence, or moved into your former rental property, this change in use causes a deemed disposition, which may result in a capital gain.
Manitoba 2022 Budget - April 12, 2022
New Renters Tax Credit; Increased Education Property Tax Rebate; Exemption and threshold increased for Health and Post-Secondary Education Tax Levy; Community Enterprise Development and Small Business Venture Capital tax credits made permanent.
Attendant care costs can be claimed for persons who are eligible for the disability amount, and in some situations for persons who do not qualify for the disability amount. A limit on attendant care expenses applies if the taxpayer claims the disability amount.
Filing With a Spouse / Marital Status
Joint investment income; tax credits and deductions; how to report your marital status and when to update CRA on a change in your marital status.
What If I Can't Afford to Pay the Tax I Owe?
Always file your tax return on time, even if you can't afford the tax, in order to avoid late filing penalties!! Then talk to Canada Revenue Agency.
Canadian residents may split certain pension income with their resident spouse or common-law partner, if certain conditions are met. This may allow the spouse to claim the pension income tax credit.
Tuition is claimed for the year in which the courses are taken. Some provinces no longer provide this credit. Other credits can be "lost" due to the order in which tax credits must be taken.
2022 Federal Budget - April 7, 2022
Tax-Free First Home Savings Account; Increased Home Buyers' and Home Accessibility Credits; New home reno credit; Property flipping rule; Business tax incentives; Flow-through share changes; Bill C-208 fix; CCPC changes, and much more.
Newfoundland and Labrador 2022 Budget - April 7, 2022
No personal tax or fee increases; elimination of 15% tax on home insurance for 1 year; 3 new business tax credits.
Accessing Former Spouse's Tax Information
Video Tax News provides information on a recent Federal Court case which addressed a taxpayer's request to access her ex-spouse's income tax information.
RRSP MPP and DPSP Contribution Limits
The RRSP contribution limit for 2022 is $29,210 and for 2023 will be $30,780.
How Are RRSPs and RRIFs Taxed at Death?
Tax is normally payable on the value of the RRSP or RRIF at death, but sometimes can be deferred depending on the beneficiary of the plan.
CRA Dedicated Telephone Service (DTS) for Income Tax Service Providers
The DTS provides free technical help from experienced CRA officers for small and medium income tax service providers.
Canada Pension Plan Retirement Benefits
Retirement benefits can start as early as age 60, with reduced benefits, or as late as 70, with increased benefits. Those receiving the pension before age 70 and still working will continue to pay into CPP, and will receive post-retirement benefits starting the following year.
March 2022
Life in the Tax Lane April 2022
Recovery of CERB overpayments; COVID-19 protocol costs; Canada Digital Adoption Program; Money received from offshore accounts; Underused Housing Tax (can affect Canadians); Accessing former spouse's tax information.
The federal budget will be tabled on April 7, at approximately 4 pm EDT.
Nova Scotia 2022 Budget - March 29, 2022
New refundable tax credits for children's sports and arts, and for fertility and surrogacy costs; tax exemption for employment income earned by eligible skilled trades; new deed transfer tax and property tax for non-residents.
Auto-Fill My Return - Always Reconcile to Your Own Records!
The Auto-fill feature allows tax return software to automatically fill in the tax slips in the income tax return. There are reports of some 2021 tax slips missing, so make sure you check this.
Foreign Spin-Offs - Tax Deferral for Distributions
Eligible spin-offs of foreign corporations can be done on a tax-free basis by filing an election with your tax return. CRA provides a list of spin-offs that have been approved for tax deferral.
2022 Climate Action Incentive (CAI) Amounts
The 2022 CAI amounts, which will be paid in quarterly instalments, were announced on March 23, 2022 by the Department of Finance.
Eligible Dependant/Equivalent to Spouse Tax Credit
Eligibility; When can it not be claimed; Only 1 credit per household; Child not resident in Canada; Shared custody; Spouse deceased during year; Additional caregiver amount for infirm dependant.
Saskatchewan 2022 Budget - March 23, 2022
Small business corporate tax rate returns to 1% Jul 1/22 and to 2% Jul 1/23; tobacco tax increases; PST will be on additional items but removed from audiobooks; changes to education property tax, VLT commissions; proposal to take over the carbon tax charges.
Quebec 2022 Budget - March 22, 2022
No personal or corporate income tax changes; $500 one-time cost of living support payment to adults earning up to $100,000; $3 billion deficit for fiscal 2022-23 followed by surpluses in subsequent years.
New Brunswick 2022 Budget - March 22, 2022
Increases for basic personal amount and low-income tax reduction threshold; 3-year phased-in provincial property tax rate reductions; 1-year cap on allowable rent increase.
Internet and Cell Phone Use Expenses
Both can affect business deductions, employee taxable benefits, employment expenses, and GST/HST ITCs. It's important to have business/personal cell phone usage documented to have it accepted by CRA.
New Enhanced Basic Income Tax Calculator
Need to do a quick estimate of taxes payable, and compare 2 different cases? Compare 2 provinces same year, 1 province different income for the same year, or 1 province same income for 2 different years.
Reinvested Distributions From Canadian Exchange Traded Funds (ETFs)
These are reinvested, not paid to you, requiring an increase to your ACB, reducing future capital gains. 2021 final amounts for iShares are now available.
Bookmark this page of links to resources on CRA; Service Canada; Courts and court decisions; Legislation; Foreign exchange, interest rates and CPI; Statistics Canada; Investment resources and more!
Deductible and Non-Deductible Investment Expenses
Besides interest expense, some other expenses can be deducted. Tax return preparation can be deducted in certain circumstances.
Political Contribution Tax Credits
There are separate tax credits for federal and provincial or territorial political contributions. Small political contributions are encouraged by the high tax credit rate on the first part of the contribution. Only the Ontario credit is refundable.
Principal Residence Exemption (PRE) Education Letters
Did you receive a letter from CRA suggesting that you review the exemption you claimed, and adjust if necessary?
Medical Expense Tax Credit (METC)
Medical expenses can be claimed by either spouse, or can be shared; How to determine the 12-month period for expenses; Medical expenses of a deceased person; Have both a spouse and a common-law partner?; Expenses for other eligible dependants.
Yukon 2022 Budget - March 3, 2022
No changes to personal or corporate income taxes were announced.
Northwest Territories 2022 Budget - Feb 22, 2022
No changes to personal or corporate income tax rates; Property mill rates and some fees increase by inflation.
In Kind Withdrawals from RRSP or RRIF
If shares are withdrawn from your RRIF their ACB will be the market value in C$ at the time of withdrawal. This is averaged with existing shares of the same stock in your non-registered accounts. The average ACB is the cost used for an in kind deposit to your TFSA.
CEBA Loan Repayment Extended Repayment Date
The extended repayment date will apply to "eligible CEBA loan holders in good standing", and if you qualify, your financial institution will contact you to provide details. If they don't contact you within a reasonable time, you should contact them.
February 2022
Life In The Tax Lane March 2022
CRA processing issues - tax credits; Principal residence exemption letters from CRA; Working from home extended relief; Proposed changes CRA admin processes and reporting requirements trusts; Immediate expensing capital assets.
PEI 2022 Budget - February 24, 2022
Basic personal amount increase for 2023, new tax on vaping products, increased tobacco taxes, carbon tax increase as per plan.
Provincial/Territorial 2022 Budgets
The only confirmed future budget dates we have are Saskatchewan March 16th and New Brunswick March 22nd. We have probable timing for other provinces, but not even an estimate for the territories.
RRSP Deadline Tuesday, March 1, 2022
March 1, 2022 is the deadline for making your RRSP contributions for the 2021 taxation year. RRSPs are one of the best tax-saving tools available to Canadians, but if you're currently low income, TFSAs would likely be better for you.
There are a few different ways of splitting income, either with a spouse or child. Some methods of splitting income with a spouse are done only on the tax return, such as pension splitting.
Eligible Dependent / Equivalent to Spouse Tax Credit
Are you a single parent? Or, are you supporting a parent or other dependent relative? The equivalent to spouse tax credit may be available.
2021 OAS One-Time Payment of $500 Taxable
The one-time $500 payment made to OAS recipients aged 75+ is taxable, reported on line 13000 other income. The T4A for this may not be available online yet.
Filing Your Personal Tax Return
There are several ways to file your tax return, including NetFILE and EFILE, File My Return (by telephone), or printing and mailing your return.
The due date for 2021 tax returns & payments is May 2, 2022. Self-employed have until June 15th to file, but payment is due May 2nd.
Community organizations will complete and file your taxes for free if you have a simple tax situation and modest income. Another free option is to use the File My Return service by telephone.
Alberta 2022 Budget - February 24, 2022
No changes to personal/corporate income tax rates; Some education property tax rates increase; Lower tobacco tax rate for smokeless products; Online marketplaces to collect Tourism Levy.
BC 2022 Budget - February 22, 2022
No changes to personal/corporate income tax rates. New "clean buildings" and "clean technology" tax credits; PST exemptions for used ZEVs and heat pumps; PST on private vehicle sales based on greater of reported purchase price and average wholesale value.
BC PST Rebate on Select Machinery and Equipment
Most incorporated businesses can apply for a rebate of PST paid on capital assets purchased between Sep 17, 2020 and Mar 31, 2022. The deadline for applications is Sep 30, 2022.
Has CRA Rejected Your Claim for Home Office Expenses?
Tax expert Jamie Golombek had his 2020 claim for home office expenses for working from home during the pandemic rejected. Learn the steps he's taken to fight the reassessment.
TD1 Forms Determine Your Tax Withholdings
Know how to complete the TD1 when you have multiple jobs or low income, or other situations where you might pay too much or too little tax.
Draft Legislation Released for Consultation - Feb 4, 2022
Draft legislation includes many Budget 2021 proposals. The deadline for submissions for most items is March 7, 2022.
Immediate Expensing of Capital Assets
Draft legislation released for consultation provides for expanded eligibility, to individuals and partnerships as well as CCPCs. Submissions will be accepted on this measure until March 7, 2022.
January 2022
CPP, OAS and EI Tax Slips Online
Your 2021 CPP OAS and EI tax slips will be available in your My Service Canada Account on February 1st.
For 2021, as it was for 2020, "earned income" includes COVID-19 relief payments for which you receive a T4A or T4E, as well as EI benefits and QPIP benefits.
Working From Home Expenses Calculators
Both CRA and Revenue Quebec have calculators to help you determine the best method to use for claiming home office expenses.
NetFILE, EFILE and ReFILE available Feb 21, 2022
These services will be available starting Monday Feb 21, 2022 for filing 2018 to 2021 tax returns. If doing your own taxes, we recommend using tax software to NetFILE the return.
Life in the Tax Lane February 2022
Case for deferring CPP benefits | COVID treatment employment benefits and WFH expenses | Worker's Comp. re accident at home | Income-splitting loans | CRA focus areas | Expanded trust reporting rules.
Age Amount Tax Credit and Clawback
There are federal and provincial/territorial age amount tax credits for those aged 65+, which are reduced when income exceeds a certain threshold.
Why You Should File a Tax Return Even if You Don't Owe Tax
Filing a tax return allows you to receive refundable tax credits, GST/HST credit, and to establish eligibility for government benefits. The sale of a principal residence must be reported on a tax return.
Filing Your Tax Return - Income, Deductions, Tax Credits
Make sure you take advantage of available deductions and tax credits! See our info on this as well as reporting investment and other income, tax return due dates, filing with a spouse, dealing with CRA and more.
RRSP/RRIF Withdrawal Calculator
Use our calculator to determine your 2022 minimum annual withdrawal, and to estimate your earnings and withdrawals for the next 40 years. Works for non-registered also!
If your status as a "developing farm" has been revoked, it's important to know that there is no deadline for achieving gross annual value requirements for a developing farm, despite the "projected" date for doing this. Jan 31st is the deadline to appeal your assessment.
Ontario 2022 Budget Consultations
The deadline for submissions for Ontario's 2022 Budget consultations is February 11, 2022. Manitoba's consultations deadline is January 31, 2022.
CEBA Loan Repayment Deadline Extended
The repayment deadline is now Dec 31, 2023, for all eligible borrowers in good standing.
Old Age Security (OAS) Clawback
Your OAS is taxable, and if your net income before adjustments (which also means before deducting loss carry-forwards) exceeded $79,845 in 2021 you will have to repay 15% of your income over that amount, to a maximum of the total OAS you received.
Web Forms are now available for employers to file up to 100 T4 slips. Wages paid in Jan 2022 re Dec 2021 do NOT go on the 2021 T4 slip.
The 2022 threshold for the BC home owner grant is $1,975,000. Grant amounts have not changed. If there are multiple residences on 1 property, the assessed value may be able to be "partitioned" if it exceeds the threshold.
Record the Year End Mileage From Your Odometer!
If you haven't been keeping a trip log for the business use of your vehicle, best to start now. This is important for business owners as well as employees driving a company vehicle.
Transfer Shares to a Registered Account, But Not at a Loss!
You can make your RRSP contribution with an in kind transfer of shares. However, if you transfer shares on which there is a loss, the loss will not be deductible. If you transfer shares on which there is a gain, you will have a taxable capital gain.
Historical Returns on Investments - Stocks, Bonds, T-Bills
2021 was an amazing year for stocks. See returns for up to 72 years, and growth of $1,000 invested. Over the past 20 years one would lose money after inflation by investing in Cdn 3-month T-bills or Cdn government 1-3 year bonds.
Use our calculator to determine your returns for 2021 or any time period for a particular investment or investment account, or your entire portfolio.
Reporting Foreign Income and Expenses on the Tax Return
All income and expenses must be reported on your tax return in Canadian dollars. The average US exchange rate for 2021 is 1.2535, which can be used for dividends, but not for purchases and sales.
See also Prior Years:
Revised: June 24, 2022