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What's New by Month

June 2024

2024 and Earlier Basic Tax Calculator

This simple calculator includes the increased inclusion rate for capital gains after June 24, 2024. Very easy to compare 2 different scenarios. Capital gains entered in the post-June 24, 2024 field use a 50% inclusion rate if the tax year is changed to 2023 or earlier.

2023/2024 Canadian Income Tax & RRSP Savings Calculator

Start your 2024 tax planning & calculate the tax that could be saved by an RRSP or FHSA contribution. This detailed calculator has been modified so that capital gains entered in the post-June 24, 2024 field are treated as 2023 capital gains if the tax year is changed to 2023. It uses the 2024 AMT calculation.

Tax Planning for Individuals - Start Early!

Plan ahead so you can file your tax return next year more easily. If you have a business or are a high-wealth individual you should seek professional tax advice from a CPA tax specialist or a tax lawyer. Tax planning should never be an afterthought.

May 2024

Life in the Tax Lane June 2024

Topics this month:

bulletFees for Services Consultation
bulletReal Estate - CRA Audit Activity
bulletCapital Gains Inclusion Rate - Budget 2024
bulletCEBA - Collection Process
bulletSpousal Income Attribution
bulletCanada Carbon Rebate for Small Businesses
bulletCanadian Dental Care Plan Update

Shareholder and Employee Loans and Their Tax Implications

The prescribed rate for these loans will be reduced from 6% to 5% effective July 1, 2024. This rate will also apply for loans to a spouse or minor child made after July 1, 2024.

Gifting a Capital Property Can be Very Taxing!

If capital property (e.g. real estate, investments) is given as a gift, the person who has given the gift will be deemed to have sold the capital property at fair market value (FMV), and will have to pay tax on any resulting capital gain.

Detailed Canadian Tax & RRSP Savings Calculator

This calculator now includes the 2024 capital gains inclusion rate change taking effect June 25th, as well as the 2024 changes for alternative minimum tax which took effect January 1, 2024. When legislation is available for the inclusion rate change, the calculator may have to be revised.

Investment Income Tax Calculator

This calculator now includes the 2024 capital gains inclusion rate change taking effect June 25th, as well as the 2024 changes for alternative minimum tax which took effect January 1, 2024. When legislation is available for the inclusion rate change, the calculator may have to be revised.

May 24, 2024 was Last Day for T+2 Settlement Dates

The settlement date for trades of stocks, bonds, mutual funds and ETFs is 1 day after trade date (T+1) for all trades made after May 24, 2024.

Renting Real Estate From a Non-Resident Landlord

A tenant is required to withhold tax on rent paid to a non-resident landlord. The Minister of National Revenue has tweeted that CRA "does not intend to collect any portion of any non-resident landlords' unpaid taxes from individual tenants." However, this is contrary to the Income Tax Act. Hopefully the plan is to change the legislation to remove this requirement for Canadian tenants.

Adjusted Cost Base (ACB), or Cost Basis

Keeping records showing the ACB of investments or property that could result in a capital gain or loss on disposition or deemed disposition is important. This includes non-registered investments, real estate (even personal use), and several other types of assets.  If investments are in a registered account such as a TFSA or RRSP, there is no need to track the ACB.

2024 Provincial/Territorial Political Contribution Tax Credits

The only change thus far for 2024 is for the Ontario thresholds, which are indexed annually.

Tax Implications of Owning a Cottage or Second Home

Topics covered: Personal-use property; Change in use of the cottage; Sale of the cottage/principal residence exemption; Selling/gifting a portion of the cottage re inclusion rate; Tracking the cost of the cottage or your principal residence.

April 2024

Life in the Tax Lane - May 2024

Topics this month:

bullet2024 Federal Budget - Capital Gains/Other Items
bulletHome Office Expenses - Multiple Employers and Clients
bulletAccessing CRA Online Portals
bulletPsychotherapy and Counselling Therapy - GST/HST - Hidden Traps
bulletAvoiding CPP by Paying Dividends

Rental Property Expenses and Issues

Learn about the denial of expenses for non-compliant short-term rentals, deductible expenses, renting below FMV, rental losses, change in use of your home, capital vs expense, motor vehicle expenses, foreign rental property, and more.

2024 Corporate Income Tax Rates

The increase in the Saskatchewan small business rate from 1% to 2% is delayed until June 30, 2025, resulting in a change to the non-eligible dividend tax credit rate. Newfoundland & Labrador's small business tax rate for 2024 is reduced from 3% to 2.5%.

Attendant Care Costs

Figuring out how to claim attendant care costs can be complicated, as they can be claimed as medical expenses, sometimes as disability supports deductions. The $10,000 limit for attendant care as medical expenses is per paying individual, not per patient, which makes cost sharing among supporting persons advantageous.  There are 2 options when claiming attendant care costs as medical expenses for a person who qualifies for the disability amount.

Voluntary Disclosure Program (VDP)

Taxpayers can voluntarily correct inaccurate, incomplete, or unreported information, and do so without penalties or prosecution, if a valid voluntary disclosure is made to Canada Revenue Agency (CRA).

Report the Sale of Your Principal Residence!

Reporting the sale of your principal residence on the tax return has been required since 2016. The maximum penalty for not filing is $8,000. If you weren't aware of this requirement and missed filing, consider filing now under the Voluntary Disclosure Program.

2024 Federal Budget April - 16, 2024

Obviously, the budget doesn't "balance itself" - there are no balanced budgets projected for the next 5 years. The federal debt is $31,000+ per person in Canada (yes, children included). The capital gains inclusion rate will increase to 2/3 from 1/2 for corporations and trusts, and for individuals with capital gains in excess of $250,000 per year. Volunteer tax credits will double.

RRSP Home Buyers' Plan (HBP)

Ahead of the 2024 Federal Budget, the government announced that the maximum withdrawal from the HBP will be increased from $35,000 to $60,000. Those who have borrowed, or will borrow, for the HBP after January 1, 2022 and before December 31, 2025 will have up to 5 years before starting repayments.

Tuition, Education and Textbook Tax Credits

The tuition tax credit can be transferred to a spouse, parent or grandparent, after the maximum is claimed by the student. Sometimes other tax credits are forfeited due to the order in which the tuition credit must be claimed. Some other tax credits that can't be used can be carried forward.

Death of a TFSA Holder - Plan Ahead

The disposition of the TFSA upon the death of its holder depends on whether the holder designated a successor holder, one or more beneficiaries, or no successor holder or beneficiary. Only a spouse or common-law partner can be named as a successor holder, and they will automatically become the new holder of the TFSA upon the death of the holder.

Manitoba 2024 Budget - April 2, 2024

The Basic Personal Amount (BPA) will be phased out over a net income range of $200,000 to $400,000 starting in 2025; 2025 Renters Tax Credit increases, Fertility Treatment Tax Credit maximum is doubled for 2024; Retail Sales Tax registration threshold increased to $30,000; New Rental Housing Construction Tax Credit for 2024; Gas Tax zero rate extended to Sep 30, 2024; changes to School Tax Rebate and Education Property Tax Credit; Data Processing Investment Tax Credits eliminated for 2025.

March 2024

PEI 2024 Budget - Tax Measures

The 2024 budget increased the 2025 amounts for the basic personal, spousal, eligible dependant, and age amount tax credits. The lowest 2 tax bracket amounts for 2025 are revised slightly, tax rates for lowest 4 brackets are reduced, and for top bracket is increased.

Filing Your Tax Return

bulletDealing with Canada Revenue Agency
bulletThe Tax Return - Due Dates, Forms, Basics
bulletPaying Your Tax / Getting a Refund
bulletReporting Income
bulletDeductions From Income
bulletNon-Refundable Tax Credits
bulletRefundable Tax Credits

Life in the Tax Lane April 2024

Topics this month: Bare Trusts - Penalty Relief | T2200 - Employer Requirement? | Reliance on CRA's My Account | Canada Carbon Rebate | Short-Term Property Rentals - Denial of Expenses | UHT - CRA Commentary on Excluded Owner Proposals.

Bare Trusts Exempt From Trust Filing Requirements for 2023

On the last business day before the filing due date, CRA announced that bare trusts are now exempt from the trust filing requirements for 2023.

Ontario 2024 Budget - March 26, 2024

Projected 2023/2024 deficit has more than doubled, later projected surpluses have become very large deficits. No personal or corporate income tax changes except for simplifying the OCASE tax credit. Temporary gas/fuel tax rate cuts extended to December 31, 2024.

GST Credit - File a Tax Return to Receive it!

The GST credit is a quarterly tax-free payment low/moderate income individuals and couples. It is paid automatically based on the tax return filed for the previous year. For this reason, a tax return should be filed even if there is no tax payable. A child should file a tax return in the year they turn 18, so that the GST credit will be paid automatically starting the first payment date after their 19th birthday.

Newfoundland & Labrador 2024 Budget - March 21, 2024

No personal income tax changes were announced, but the small business corporate income tax rate is reduced from 3% to 2.5% effective January 1, 2024. There is no mention of whether the non-eligible dividend tax credit will be reduced as a result of this change.

Saskatchewan 2024 Budget - March 20, 2024

The small business corporate income tax rate of 1% will not increase to 2% until June 30, 2025, an extension of 1 year. Non-eligible dividend tax credit rates are revised for 2024 and later years. Three new business incentives were introduced, and changes were made to expand four others. Increased penalties for non-compliance with tax programs will take effect October 1, 2024.

Pension Income Splitting

Certain types of pension income can be split with a spouse, including pension income eligible for the pension tax credit, in order to save tax by transferring amounts to a lower income spouse. The election to do this can be amended within a certain time period. Quebec pension splitting is only available for taxpayers age 65+.

New Brunswick 2024 Budget - March 19, 2024

No personal or corporate income tax changes were announced; 2024 Low-income seniors' benefit will be permanently increased to $600 per year, and indexed for inflation starting in 2025; New non-refundable tax credits for volunteer firefighters and search and rescue workers; NB will enter into a vaping product taxation agreement with the federal government.

Tax Treatment of Income From Investments in Exchange-Traded Funds (ETFs)

ETFs are a good way to diversify your investments among many different countries and industries. The management expense ratio (MER) for ETFs is usually much lower than that of mutual funds. Income from Canadian ETFs can consist of eligible dividends, capital gains, return of capital (ROC), reinvested capital gains, and other income.

Child Care Costs Deduction

There are limits on the amount of costs that can be deducted for child care, and the deduction must usually be made by the lower income spouse. The higher income spouse can only claim the deduction in certain circumstances.

Quebec 2024 Budget - March 12, 2024

Announced: elimination of retirement pension reduction for seniors with disabilities, effective 2025; Review of tax/budgetary expenditures; Cigarette price increases; Optimizing tax assistance measures for businesses; Enhancing tax credit for film/tv production; Abolishing tax credit for businesses re experienced workers.

Moving Expenses Deduction

If you moved at least 40km to be closer to a current or new job, to run a business, or to attend a post-secondary educational institute full time, then you may deduct the cost of moving expenses paid, up to the amount you earn at the new location, or up to the amount of award or scholarship income received in the year.

2023 Penalty Relief For Late T3 Returns For Bare Trusts

For bare trusts, not other trusts, CRA has clarified that there will be no penalty for 2023 late filing for reasons other than gross negligence. This is because this is the first year that bare trusts are required to file the T3 return.

Employment Expenses

Expenses that are paid to earn employment income are sometimes deductible, including any GST/HST that was paid on them.  This can only be done if your employer requires you to pay the expenses, and either you didn't receive reimbursement for the expenses, or the amount you did receive is included in your income.

Upcoming 2024 Provincial Budgets

bulletQuebec - Tuesday, March 12
bulletNew Brunswick - Tuesday, March 19
bulletSaskatchewan - Wednesday, March 20
bulletOntario - Tuesday, March 26
bulletManitoba - Tuesday, April 2
bulletNewfoundland - TBD
bulletNorthwest Territories - sometime in June or late May

Yukon 2024 Budget - March 7, 2024

No income tax changes were announced in the budget. The Fiscal and Economic Outlook is forecasting surpluses for each year, up to the 2028-29 fiscal year.

2024 Federal Budget

The 2024 Federal Budget is to be tabled on Tuesday, April 16, 2024.

First-Time Home Buyer Incentive (FTHBI) - Discontinued

The deadline for new or updated submissions is midnight ET on March 21, 2024

February 2024

Prince Edward Island 2024 Budget - February 29, 2024

For 2025: basic personal amount increases to $14,250, tax bracket thresholds raised and tax rates lowered for first 4 tax brackets, new monthly Children's Benefit. Tax rebates builders of newly constructed multi-unit residential buildings.

Tax Treatment of Income From Investments in Mutual Funds

Mutual fund distributions can be made up of eligible dividends, capital gains, reinvested distributions, return of capital, other income, foreign income, foreign tax withheld, and management fee rebates.  These affect your income tax differently, and may affect your adjusted cost base (ACB).

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.

Underused Housing Tax Return 2023

Specified Canadian corporations, trusts and partnerships ARE NO LONGER required to file the UHT return for 2023 (still due for 2022), as CRA has modified the definition of excluded owner in the UHT-2900 form.

Alberta 2024 Budget - February 29, 2024

Surplus budgets in the forecast. A new tax bracket for income up to $60,000 will be introduced for 2026, with a 9% tax rate, with the rate being reduced to 8% in 2027. New Attraction Bonus of $5K refundable tax credit to entice workers in eligible occupations to Alberta.

Nova Scotia 2024 Budget - February 29, 2024

Deficit of $0.5B forecast. For 2025, NS will begin indexing personal income tax brackets, the basic personal amount, and certain non-refundable tax credits to the NS inflation rate.

March 2024 Life in the Tax Lane

Topics this month:

bulletT1 Tax Season - What's New
bulletWorking From Home Expenses
bulletCCA - Retroactive Adjustment
bulletGST/HST Electronic Filing Reminder
bulletMulti-Factor Authentication - Authenticator App
bulletCryptocurrency Losses
bulletFHSA - Constructing a Home

BC 2024 Budget - February 22, 2024

No balanced budget in the forecast. New home flipping tax, even on principal residence, if sold within 2 years; Exemption thresholds increased for Employer Health Tax, First Time Home Buyers' Exemption, Newly Built Home Exemption; New Purpose-Built Rental Exemption; increases to BC Family Benefit and Climate Action Tax Credit.

How To File Your Personal Tax Return

You can prepare your own tax return using tax software, and either NETFILE the return, or print and mail it. If your return is complicated, consider using a tax professional, but don't leave this too late!

Disability Tax Credit (DTC) - Non-Refundable

The federal DTC is $9,428 for 2023. Doctors or nurse practitioners can complete the application online. The credit can be transferred to a supporting taxpayer. Retroactive claims can be made back to when the disability began.

Auto-Fill of Tax Return - Must Be Checked!

Each year there are many reports of tax slips missing from auto-fill. This must be checked by the taxpayer, or costly interest and penalties can result if income is not reported. T5008 investment transactions are always incorrect.

Maybe You're Not A BC Resident, Even If You Are!

You won't be eligible for the exemption for principal residence re the BC Speculation and Vacancy Tax if you are not a Canadian citizen or permanent resident, even if your BC home is where you always live.

Canada Carbon Rebate (CCR) / Climate Action Incentive Payments 2024-25

The amounts of the quarterly non-taxable payments starting April 15, 2024 have been announced. Taxpayers must file their returns by March 15, 2024 to receive the April 15th payment.

Determining Province of Employment (POE) for Employees

Effective January 1, 2024, CRA's policy has changed regarding the POE for employees who are working remotely. The POE will depend upon whether the employee can be reasonably considered "attached to an establishment of the employer". This will change the tax deductions for some employees who are working remotely.

Underused Housing Tax (UHT) - So Far, Still Affects Canadians!

As of February 14, 2024, there is no Bill tabled in the House of Parliament to enact the proposed changes that would mean specified Canadian corporations, partnerships and trusts do not have to file the UHT return for 2023. Thus, it is uncertain if these "affected owners" will or will not have to file for 2023.

Provincial / Territorial 2024-2025 Budgets

Budget dates known so far: BC February 22nd, Alberta February 28th or 29th, Saskatchewan March 20th. Consultations are still open for Manitoba and New Brunswick. Many thanks to those who help to keep us up to date on this!

A Basic Guide on Bare Trusts for Canadian Taxpayers

MANY MANY Canadians aren't aware that they are in a bare trust situation related to an asset they hold - which could be real estate, bank or investment accounts, or some other assets. Tax Lawyer Anna Malazhavaya of Advotax Law has created A Basic Guide on Bare Trusts for Canadian Taxpayers which helps to explain how to determine if a bare trust exists.

2023/2024 Canadian Tax and RRSP Savings Calculator

This detailed calculator now includes the non-business foreign tax credit, adoption tax credit, BC renter's tax credit and NS children's sports and arts refundable tax credit, as well as all the other most common tax credits already included. Check your 2023 tax return, do your 2024 tax planning!

Selling Capital Property Non-Arm's Length Could Result in Double Taxation

If capital property is sold non-arm's length for proceeds less than FMV, the selling taxpayer will have deemed proceeds of FMV while the acquiring taxpayer may have to use the lower actual proceeds as their cost.

Employee Work Space In Home Expenses

For 2023, the detailed method must be used for calculating home office expenses - the temporary flat rate method no longer applies. Having a formal telework arrangement with their employer will mean the employee is considered to have been required to work from home. Form T2200 has been updated for 2023.

TaxTips February 2024 Newsletter

T3 trust returns - new reporting requirements - This may affect you, and you may not even be aware that a trust exists in your situation!! Short-Term Rentals Crackdown; Calculators; RESP EAPs - timing; RRSPs; Vacant home taxes; Deadlines; and much more!

January 2024

Life in the Tax Lane February 2024

Topics in this month's 10-minute video for Canadian Tax and Financial Professionals:

bulletUHT - Assessment Statistics
bulletClearance Certificate Obtained after Distribution
bulletCPP Survivor - Common-Law Partner
bulletEmployee vs. Independent Contractor
bulletShort-Term Rental - Denial of Expenses
bulletFHSA - Income Splitting

Toronto Proposed Non-Resident Speculation Tax (Foreign Buyers Tax)

Toronto is proposing a tax of 10% on residential property purchases by foreign buyers, starting January 1, 2025, to help address their financial crisis.

Educational Assistance Payments (EAPs) From RESPs

It may be advantageous for a student to receive taxable EAPs while they have sufficient tax credits (personal & tuition) to offset the income.

BC Speculation and Vacancy Tax Declarations Due March 31, 2024

This tax was expanded to many more communities for 2023, to be reported in 2024. Letters have started going out. File online as soon as you get your letter, to avoid missing the deadline and paying penalties! An interactive location map shows affected areas, and can be searched by address.

Quebec One-Time Refundable Cost of Living Tax Credit

Quebecers who have not yet filed their 2021 tax returns should do so, to receive a one-time tax-free payment of up to $600. The deadline for filing the 2021 return to receive this payment has been extended to June 30, 2024.

Probate Fees by Province/Territory

All probate fee amounts are now current to January 22, 2024. The only 2024 change is Quebec, which indexes their amounts every year.

Quebec Removal of LIF Maximum Withdrawals - Consultation

Draft regulations have been published for consultation regarding the removal of the maximum amount for LIF withdrawals for those age 55+, as of July 1, 2024, as well as new calculation rules of temporary and life income related to LIFs for persons under age 55, as of January 1, 2025. Comments must be submitted before February 10, 2024.

2023 RRSP Contribution Deadline Feb 29, 2024

The contribution deadline for 2023 is Thursday, February 29, 2024. Contributions made after Dec 31/23 can be used as a 2023 or 2024 contribution, and will not be included as an overcontribution for 2023.  Make sure you'll have enough 2024 contribution room before doing a 2024 contribution!

Trade Date vs Settlement Date - Settlement Date Changing

The settlement date, which is the date on which the purchaser of an investment takes ownership, will be changing in May 2024, from T+2 to T+1 (1 day after trade date).

Ontario Municipal Vacant Home Taxes

Due dates for declarations are Feb 29/24 for Toronto (tax increased from 1% to 3%), and Mar 21/24 for Ottawa. Hamilton and Peel Vacant Home Taxes did not proceed.

City of Vancouver Empty Homes Tax Declarations Due Feb 2, 2024

Owners of residential properties in Vancouver must submit a declaration to determine if the Empty Homes Tax is payable, 3% of the 2023 assessed value.

Historical Returns on Investments - Stocks, Bonds, T-Bills

We've updated the returns for the Consumer Price Index. We previously used the November CPI of 158.8. As usually happens, the CPI dropped in December, to 158.3. This makes little difference to the previously reported results.

Quebec Pre-Budget Consultations 2024-2025

Provide your input up to February 2, 2024. Complete the questionnaire, or send your thoughts by email.

BC Home Owner Grant

The 2024 threshold for the BC home owner grant is $2,150,000. 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.

Investment Return Calculator

Use our calculator to determine your returns for 2023 or any time period for a particular investment, investment account, or your entire investment portfolio.

Deadline to Appeal BC Property Assessments

If you disagree with your assessment, either the value of your property or the classification (has your farm status been revoked?), you have until January 31st to file an appeal (complaint).

Transfer Shares to a Registered Account, But Not at a Loss!

You can make your RRSP, TFSA, or FHSA 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.

Record Your Year End Odometer Reading!

If you haven't been keeping a trip log for the business use of your vehicle, start now! This is essential for business owners as well as for employees driving a company vehicle.

Personal Tax Return Due Date

The due date for 2023 tax returns and payments is Tuesday, April 30, 2024. Self-employed have until Monday, June 17, 2024 (since June 15th is a Saturday to file their 2023 tax returns, but any amounts owing must still be paid by April 30th.

December 2023

Reporting Foreign Transactions on Your Tax Return

All amounts are reported in Canadian$; Converting foreign amounts; T5008 not accurate for foreign ACB, may not include deemed dispositions; 2023 average exchange rate; When to use the average rate.

Historical Returns on Investments - Stocks, Bonds, T-Bills

2023 was a great year for stocks. See returns for 1, 5, 10, 20, and 50 years. $1,000 Cdn invested in the S&P 500 50 years ago would be worth $266,182 Cdn today.  Invested in Cdn 3-month T-bills it would be worth $13,868.

Life in the Tax Lane January 2024

Topics in this month's 10-minute video for Canadian Tax and Financial Professionals:

bulletPre-Budget Consultations
bulletCanada Dental Care Plan
bulletElectronic Distribution - T-slips
bulletCryptocurrency and NFTs
bulletWorking From Home Expenses - Employees
bulletExpanded Trust Reporting - CRA Guidance

Are Your Tax Credits Changing for 2024?

Turning 65 in 2024? Other tax credits changing? Complete 2024 TD1 forms to give to your employer.  Your TD1 forms determine your tax withholdings. Working part time = maybe no tax withholdings.

2024 Automobile Operating Cost Benefit

The taxable operating cost benefit for an employer-owned vehicle used by an employee is unchanged from $0.33 per km, based on kms of personal use by the employee.  The rate for automobile sales people is unchanged from $0.30 per km.

2024 Passenger Vehicle Expense Limitations

The ceilings for capital cost allowances are being increased to $37,000 for Class 10.1 and will remain unchanged at $61,000 for Class 54. Deductible leasing costs are increased to $1,050 per month for new leases in 2024. The maximum interest deduction for new automobile loans is increased to $350 per month.

2024 Tax-Free Motor Vehicle Allowances

The per km rates that can be paid tax-free to employees and deducted by employers are increased by $0.02 for 2024 to $0.70 per km for first 5,000 km and then $0.64 per km, $0.74 and $0.68 for employees in the Territories.

Canada Caregiver Amount Tax Credits

If you support an infirm spouse, eligible dependant or other dependant, you may be able to claim a non-refundable tax credit, even if they are not eligible for the disability tax credit. To claim the Line 30450 credit, the dependant does not have to be financially dependent on you.

Interest and Other Investment Expenses

Topics: Deductible interest and investment expenses; joint lines of credit / joint investment accounts; Investments no income; Interest paid to non-resident; Paper trail; Disappearing source; Non-deductible investment expenses - so much to know!

Federal 2024 Budget - Pre-Budget Consultations

2024 Budget consultations opened today. Share your ideas and priorities until February 9, 2024. Have your say!

2024 Maximum Lifetime Capital Gains Exemption (LCGE)

The 2024 LCGE maximum is $1,016,836 for qualified small business corporation shares, farming or fishing property. Planning ahead is required to be able to claim this exemption.

Informal Trust Accounts and New Reporting Requirements

Did you set up an in-trust account for your minor child or grandchild? If so, you will likely have to apply for a Trust account number and file a T3 trust return for 2023, by April 2, 2024. This also applies to other trusts that previously did not have to file T3 returns.

November 2023

Life in the Tax Lane December 2023

Topics in this month's 10-minute video for Canadian Tax and Financial Professionals:

bulletFall Economic Statement - Short Term Rentals, Employee Ownership Trusts, Underused Housing Tax
bulletT3 Trust Filing Issues
bullet2024 Personal Indexation Amounts
bulletCanada Pension Plan
bulletT4/T4A Filing Requirements - Dental Benefits
bulletOverlooked Capital losses

Taxpayer Relief Deadline December 31, 2023

Time's running out to file requests under the taxpayer relief provisions for the 2013 tax year and any reporting period that ended in the 2013 calendar year. If a tax debt arose from an earlier tax year, penalties/interest accumulated from 2013 to 2023 could still be reduced as a result of a 2023 request for leniency.

Converting RRSPs to RRIFs

If you turned 71 in 2023, your RRSP must be converted to a RRIF, or used to purchase an annuity, by Sunday, Dec 31, 2023. If you turned 65, you may want to convert some of your RRSP to a RRIF to take advantage of the pension income tax credit, and perhaps pension splitting with your spouse.

Tax-Free Savings Account (TFSA) Withdrawals

A TFSA withdrawal in any year increases the TFSA room in the following calendar year. If you are thinking of making a withdrawal soon, make it before Sunday, Dec 31st so that your TFSA room will increase by the 2023 withdrawal amount on Jan 1, 2024.

Quebec Refundable Work Premium Tax Credit

Persons with employment or self-employment income may be eligible for a refundable credit. The 2023 amounts vary from $1,095.27 for a single person to $3,684.50 for a couple with children, with 2024 amounts increasing by approximately 5%.

Prince Edward Island 2024 Budget Consulation

Complete a survey, email your submission, or attend virtual Zoom event on December 4th. The deadline for the survey and for submissions is December 22, 2023.

Newfoundland and Labrador 2024 Budget Consultation

Residents are invited to take part in a pre-budget questionnaire. Written comments can also be submitted. The deadline to provide feedback is December 15, 2023.

Ontario 2024 Budget Consultation

Take the survey, send a written submission, or attend an in-person consultation in your area.  Deadline for submissions is January 31, 2024.

Alberta 2024 Budget Consultation

Take the survey, send a written submission, or attend a telephone town hall December 11 or 12. Deadline for submissions is January 19, 2024.

Last Trading Date for 2023 Gains & Losses to be Recorded in 2023

The last trading date for 2023 for Canadian and US publicly traded stocks that settle 2 days after trading date is Wednesday, December 27th.  Stocks purchased or sold after this date are settled in 2024, so any capital gains or losses on sale apply to the 2024 tax year.

Expansion of BC Speculation and Vacancy Tax to 13 More BC Communities

6 municipalities were previously added for the 2023 tax year (reporting in 2024), and 13 more will be added for the 2024 tax year (reporting in 2025).

2023/2024 Investment Income Tax Calculators

These calculators for all provinces show the big difference in taxes payable on different types of investment income.  Even when the age credit and OAS are clawed back, Canadian dividends/capital gains result in the least taxes payable when compared to other types of income such as foreign dividends and interest.

Crackdown on Short-Term Rentals

It is proposed that, effective Jan 1, 2024, no expense deductions will be allowed for short-term rentals in areas that have prohibited short-term rentals, or when the rental operators are not compliant with applicable provincial or municipal licensing, permitting or registration requirements.

Underused Housing Tax Changes Proposed - Fall Economic Statement

For the 2023 calendar year, specified Canadian corporations, partnerships and trusts will be considered excluded owners, not required to file the UHT return. It must still be filed by them for the 2022 calendar year. Minimum penalties for all calendar years are reduced to $1,000 per individual per failure and $2,000 per non-individual.

2024 Detailed Tax and RRSP Savings Calculators

The 2023/2024 calculators are now available, for all provinces and territories, with a separate Quebec calculator. Great planning tool, and it's never too early for tax planning!

Attention Employers - Additional T4 and T4A Slip Reporting

For 2023 and subsequent years, there are new Boxes on T4 and T4A slips to indicate whether the employee or pensioner has dental insurance coverage available to them by the employer/payer.

Medical Expense Tax Credit (METC)

Topics: What expenses can be claimed? Who can claim them? 12-month time period; Claims for deceased persons; Other eligible dependents; METC calculation; Documentation required, and more!

Late Tax Returns and Tax Payments - Penalties and 10% Interest

The interest rate for late instalment payments and tax balance due payments is going up to 10% on January 1, 2024. Best to always make payments on time!

2024 Basic Tax Calculator

Great for tax pros and financial planners! Quick and easy! Lots of different comparisons can be done, see taxes and marginal tax rates for all types of income, for all provinces and territories, for 2019 to 2024.

Quebec Tax Amounts Subject to Indexation

Our table of tax credits and deductions has been updated for 2024 amounts, which have been confirmed to Revenu Quebec amounts.

2024 Non-Refundable Tax Credits Except Quebec

We've published the tables of non-refundable tax credits for 2024 for Canada and all provinces and territories except Quebec. These amounts have not yet been confirmed to CRA or provincial/territorial amounts.

Prescribed Factors For RRIF Minimum Annual Withdrawals

Either the annuitant's age or the age of a spouse can be used to calculate RRIF minimum annual withdrawals, if an election is made prior to the first RRIF withdrawal. Before age 71, a factor of 1/(90 - age) is used to calculate the factor for minimum withdrawals. The factors for age 71+ are prescribed, set out in the Income Tax Regulations. Use our RRSP/RRIF Withdrawal Calculator to determine your minimum withdrawals and get an estimate of how long your funds will last.

2024 CPP and QPP Maximum Pensionable Earnings

The year's maximum pensionable earnings (YMPE) increases to $68,500 for 2024, and the year's additional maximum pensionable earnings (YAMPE) is introduced. It is 107% x YMPE, or $73,200. The maximum contribution for those earning up to $68,500 is $3,867.50 (QC $4,384), and those earning up to $73,200 will pay a maximum of $4,055.50 (QC $4,572). The 2023 maximum was $3,754.45 (QC $4,038.40).

Climate Action Supplement for Rural Areas to Increase

The 10% supplement for residents of small and rural communities will be increasing to 20% starting April 2024.

October 2023

Underused Housing Tax (UHT) Return Deadline Extended Again

On October 31, 2023, the government announced that owners affected by the UHT would have until April 30, 2024 to file their 2022 UHT returns. It appears they finally realized that millions of Canadians are unaware of their filing requirement.

Immediate Expensing for CCPCs

Time is running out for CCPC immediate expensing - the eligible property must be acquired and available for use before 2024.

2024 Old Age Security (OAS) Clawback

The 2024 threshold for the OAS clawback will be $90,997. When 2024 tax returns are filed, if net income before adjustments exceeds this amount, you will have to repay 15% of the excess, to a maximum of the total amount of OAS received in 2024.

Life in the Tax Lane November 2023

Topics in this month's 10-minute video for Canadian Tax and Financial Professionals:

bulletMandatory Tips - GST/HST/QST
bulletExpanded Trust Reporting - Bare Trust Arrangements
bulletUHT - Penalties, Interest and Relief
bulletSources of Income
bulletEI Insurable Earnings - Control of Shares
bulletPartial Change in Use - Rental to Personal

2024 Tax Rate Tables

Our 2024 tax rate tables show combined federal and provincial/territorial marginal tax rates for capital gains, both types of Canadian dividends, and other income.  Federal indexation for 2024 is 4.7%.

2024 Tax Free Savings Account Contribution Limit

The 2024 limit for contributions to a TFSA will be $7,000. Any person who was born in 1991 or earlier and has never contributed to a TFSA will have $95,000 contribution room in 2024.

BC Fair PharmaCare

The BC PharmaCare program depends on income, and covers prescriptions (many contraceptives are free), medical devices and supplies (diabetes, prostheses). If your expected income for the year is at least 10% less than income from 2 years ago, PharmaCare deductibles may be reduced.

September 2023

Underused Housing Tax (UHT) - Canadian Joint Owners

UHT return may be required if:

bulletparent adds adult child to title for estate planning purposes,
bulletadult child adds parent to title for financing purposes, or
bullettrustee of family trust holds residential property for beneficiaries.

$5,000 penalty per individual per property for not filing by October 31, 2023.

Life in the Tax Lane October 2023

Topics in this month's 10-minute video for Canadian Tax and Financial Professionals:

bulletExtended CEBA Repayment Deadline
bulletEnhanced GST Rental Rebate
bulletHome Accessibility Tax Credit - Nature of Impairment (re mental functions)
bulletEnhanced CCA - Phase-Out After December 31, 2023
bulletMileage Allowance - Common Starting Location
bulletCorporate Beneficial Ownership Registry

Donating Shares or Other Capital Property Can Eliminate Capital Gains

Capital gains can be eliminated by donating certain types of capital property to qualified donees. Some high-income individuals may want to donate more in 2023 re the alternative minimum tax changes for 2024. Best to donate by the end of November!

Capital Gains and Losses

Learn about capital gains and losses; personal-use property (cottages, cars, etc); listed personal property; business investment losses; transfers to spouse; joint ownership; CCPC/capital dividends; and 1994 Capital Gains Election.

Caveats Re CEBA Loan Deadline Extension to January 18, 2024

5% interest applies as of Jan 19/24, which must be paid by Mar 28/24 (if refinancing obtained) in order to get forgiveness. If both $40,000 and $20,000 loans were obtained, both must be repaid or no forgiveness is allowed.

GST Rental Rebate Increased

Legislation has been tabled to temporarily increase the GST rental rebate for residential housing from 36% to 100%, for projects started after September 13, 2023. Not all projects eligible for the current rental rebate will qualify.

Underused Housing Tax (UHT) Return Due by October 31st!

Canadians who operate a farm or business partnership on residential property, hold property as a trustee, or own shares in a private corporation owning residential property, most likely have to file an underused housing tax return, as do non-residents owning residential property in Canada.

Joint Ownership, Legal vs Beneficial Ownership

If a person on title to a residential property is not one of the "real" (beneficial) owners, there can be many issues, including the need to file an Underused Housing Tax (UHT) return every year. There can also be income tax issues, so professional advice on this is strongly advised!!

Disability Tax Credit (DTC) - Non-refundable

Many medical practitioners can certify eligibility for the DTC, and this can be done via an online form. Some disabilities are not visible, and some people may not even realize they qualify. Help is available to find a qualified practitioner to review your records and certify your application.

2024 Employment Insurance Rates Canada Except Quebec

The maximum premiums payable by employers and employees will increase 4.66% in 2024. Maximum insurable earnings is up 2.76% to $63,200. The employee maximum for 2024 is $1,049.12 and the employer maximum is $1,468.77.

2024 Employment Insurance Rates Quebec

The Quebec employee maximum for 2024 is $834.24, and the employer maximum is $1,167.94. Quebec EI rates are lower because they provide their own parental benefits.

CEBA Loan Repayment Deadline Extended Again

The deadline for repayment of CEBA loans, in order to qualify for partial forgiveness, has been extended by 18 days, to January 18, 2024. The deadline is extended to March 28, 2024 if a refinancing application is submitted prior to January 18, 2024.

August 2023

Farmers and the Underused Housing Tax Return

Most farms across Canada must file a UHT return, because most are either partnerships or corporations, and they usually own land which includes housing units. National farm organizations are requesting an exemption to filing the UHT return due to unintended consequences.

Life in the Tax Lane September 2023

Topics in this month's 10-minute video for Canadian Tax and Financial Professionals:

bulletSurcharge to Accept Payment Via Credit Card - GST/HST?
bulletRevival of a Corporation
bulletMultigenerational Home Renovation Tax Credit - New Dwelling
bulletIdentifying Simplified Registrants - New CRA Numbers
bulletEmployee vs. Independent Contractor - Differing Legislation Income Tax Act vs BC Employment Standards Act
bulletLate Payments to CRA
bulletReplacement Property Rules

Guaranteed Income Supplement (GIS)

Low-income seniors who receive the Old Age Security (OAS) pension may be eligible to receive the tax-free GIS.

When Are Gifts or Inheritances Taxable?

Although there is no gift tax in Canada, gifting or receiving some items may have tax consequences, including gifts to employees, or gifts from a tax debtor.

Filing T4 Slips - Electronic Filing Required for 6 or More Slips

Beginning January 1, 2024, penalties will be applied to businesses that paper-file more than 5 information returns (slips + summaries). This also applies to T3, T4A and T5 slips.

Federal Government Consultation on Budget 2023 Proposed Measures

Canadians are invited to provide feedback on draft legislative proposals (clean energy tax credits, AMT, GAAR, share buybacks, digital services tax, global minimum tax, etc), by Sep 8, 2023. They continue to invite feedback re the Substantive CCPC proposal announced in Budget 2022.

Joint Ownership, Estate Planning, Probate

Joint ownership of assets can avoid probate fees, but can also result in costly court cases when intentions are not properly documented. A recent case involves bank and investment accounts held jointly with a common-law spouse.

July 2023

Life in the Tax Lane August 2023

Topics in this month's 10-minute video for Canadian Tax and Financial Professionals:

bulletFirst Home Savings Account - Timing of Opening an Account
bulletMandatory Disclosure Rules
bulletAlternative Minimum Tax - Proposed Changes
bulletObjection Deadline - One-Year Limitation Period
bulletExpanded Trust Reporting Rules

Canada Workers Benefit (CWB) Automatic Advance Payments

The first automatic advance payments went out on Jul 28/23, equal to 1/6th of the CWB entitlement calculated on the 2022 tax return. Any excess over actual 2023 entitlement will not have to be repaid when the 2023 tax return is filed.

Personal Services Business (PSB)

An incorporated contractor who is considered an "incorporated employee" is a PSB, and is subject to higher corporate income tax rates and limited expense deductions.

First Home Savings Accounts (FHSAs)

Contributions of up to $8,000 per year provide a tax deduction. Withdrawals to buy a home are not taxed, nor are income or gains earned within the FHSA! This is not necessarily only for "first homes". Funds gifted can be used as FHSA contributions,  without attribution to the person doing the gifting. Some might want to delay opening an account due to the requirement to liquidate the account within 15 years.

Transfer Shares to Your Registered Account - But Not at a Loss!

If you transfer shares or other investments on which you have a loss to a registered account, the loss will not be deductible.

If you transfer shares or other investments on which you have a gain to a registered account (or to someone else's account), you will have a taxable capital gain.

BC Speculation and Vacancy Tax

Form FIN 563, Request to Waive Penalties, can be used to request waiving speculation and vacancy tax penalties and interest if you were not able to make a payment due to a circumstance beyond your control.

2023 Quebec Tax and RRSP Savings Calculator

The 2022/2023 calculator now includes calculation of the QC refundable tax credit for childcare expenses, which can result in significant tax refunds or reductions.

BC Provincial Sales Tax on Cloud Services

Subsequent to a court decision, the government intends to introduce retroactive legislation next year in order to collect PST on remote access to software, cloud computing services, online support services and other associated services.

Taxation of Low-Interest Government Loans and SR&ED Tax Credits

As confirmed in a May 2023 Supreme Court judgment, some low-interest government loans are considered government assistance, effectively reducing SR&ED qualified expenditure amounts.

City of Vancouver Empty Homes Tax Late Declarations

Late declarations for the 2022 tax year are due July 3, 2024.  Late declarations for the 2021 tax year can be made until December 31, 2026, by submitting a Notice of Complaint.

June 2023

Life in the Tax Lane July 2023

Valuable info re CPP Benefits Late Applications; First Home Savings Accounts; CRB eligibility re Airbnb Income; Multigenerational Home Reno Tax Credit; Residential property developers & GST/HST; and Intergenerational Business Transfer Proposals.

Topics and Resources for Persons with Disabilities

Learn about provincial & federal disability benefits and supports, refundable and non-refundable tax credits, deductions from income, and why a tax return should be filed.

2023 Tax Comparison of Canadian Dividends vs Interest

Taxes paid at varying levels of eligible and non-eligible dividends and interest for all provinces and territories.  The lowest-tax provinces for $70K of eligible dividends are again AB and BC.

2023 Seniors Tax Comparisons Canadian Dividends vs Interest

Compare taxes paid in each province/territory by a senior with eligible dividends vs other income (foreign dividends, interest, etc.) - see how the taxes (including OAS clawback) are significantly lower with eligible dividends. BC is the lowest tax province in these analyses.

2023 Top Marginal Tax Rates by Province/Territory

There are 2 provinces (AB and SK) with a top marginal tax rate under 50%. NL has the highest rate, followed by NS, then ON and BC. The highest provincial average rate at $100k of other income is 28.46% for NS, and the lowest is 21.45% for BC.

Canadian Dividends No Tax

How much can be earned in Canadian dividends in 2023 (when there is no other income) before regular income taxes are payable, and before alternative minimum tax applies?

Rebates For Fuel-Efficient Vehicles and EV Chargers

Know what's available if you plan to buy an EV. The BC Hydro charger rebates for homes and condos is ending June 15, 2023.

2023 Tax Comparisons Employment Income

BC, ON, and AB are again the lowest tax provinces for a single person earning $80,000. AB, SK and BC are the lowest for a couple with 1 income and 2 children. We compare 4 different income levels.

Disability Tax Credit (DTC)

Do you qualify? All type 1 diabetics now qualify automatically. A digital application form is now available. Qualified but haven't claimed? You can claim retroactively for up to 10 years.

Capital vs Expense

Whether you're a landlord or a business owner, there can be a lot of uncertainty when it comes to deciding what is capital and what is expense.  CRA has general guidelines, but the courts often decide that costs are repair expenditures instead of capital, contrary to those guidelines.

May 2023

Life in the Tax Lane June 2023

Topics in this month's 10-minute video for Canadian Tax and Financial Professionals:

bulletRRSP vs. TFSA vs. Tax-Free First Home Savings Account (FHSA)
bulletDonation Planning - Life Insurance Product
bulletCPP Enhancement
bulletWithholdings on Rent to Non-Residents
bulletEI Parental Benefits - Change of Extended Benefits Election
bulletCOVID-19 Collections - CRA holding back refunds
bulletEmployee vs. Independent Contractor - Truck Drivers

Estate Planning Tools and Challenges

Two highly experienced professionals discuss tools such as multiple wills, beneficiary designations, intent, segregated funds and other tools, as well as their challenges.

Information For Business Owners

See our Business page for articles for self-employed people and incorporated businesses - taxes, expenses, employees, payroll, keeping records, whether to incorporate, and many other topics.

Which is Better - TFSA or RRSP - or FHSA?

Generally, if you're in the lowest tax bracket TFSAs are a better option. The First Home Savings Account (FHSA) may be a better choice than RRSPs for some people.

2018-2023 Basic Canadian Income Tax Calculator

Great for tax practitioners and financial planners, super-quick calculator displays taxes/marginal tax rates for every province/territory, allows comparisons between 2 versions.

2022/2023 Investment Income Tax Calculator

Based on the detailed calculator, displays the big difference in taxes payable on different types of investment income. See how you can save tax using Cdn dividends!

2022/2023 Detailed Canadian Tax & RRSP Savings Calculator

Time to start 2023 tax planning! The calculator has been updated for the PEI 2023 budget changes.

Prince Edward Island 2023 Budget - May 25, 2023

Personal, spousal and age amounts increased for 2023 and 2024, new tax brackets for 2024 with revised tax rates, 10% surtax eliminated for 2024 and later years, low income tax reduction threshold increased for 2023 and 2024.

Registered Disability Savings Plans (RDSPs)

Their purpose is to ensure financial security for a child or adult with a disability, when parents are no longer able to provide support.  An RDSP can also be set up by an adult eligible for the disability tax credit themselves, to help ensure their future financial security.

RRSP vs Mortgage Calculator

Is it better to increase your monthly mortgage payment, or contribute the extra amount to an RRSP? Our calculator may help with this, but unless your RRSP returns are going to be consistently higher than the rate on your debt, it is better to pay down your debt.

Provincial Political Contribution Tax Credit

The only change for 2023 is Ontario, which is indexed for inflation. The tax credit is refundable in Ontario and Nunavut.

Borrowing to Invest - NOT for Novice Investors

In most cases, the interest on the debt is only tax deductible as long as you own the investments. The interest rate, the dividend yield and your marginal tax rate will all be considerations for your decision on whether to use this strategy. Use our calculator to help with your decision.

Your Principal Residence Sale May Not Be Tax Free

The principal residence exemption depends on your intent when you purchased the property, how long you've owned the property, and the size of the property. A US citizen selling their home in Canada will most likely be subject to US tax on any gain.

US Federal Estate Tax Calculator For Canadians

Whether or not US estate tax is payable will depend on the person's total worldwide estate as well as their U.S.-situated assets.  This calculator is for a Canadian who is not a US citizen

US Estate Tax For Canadians

A U.S. federal estate tax return must be filed if a deceased Canadian resident who is not an American citizen owned U.S.-situated assets exceeding $60,000 US in fair market value at the time of death.

Grocery Rebate

This one-time additional GST/HST credit will be delivered to eligible Canadians on July 5, 2023.  Bill C-46 included the legislation for the payment, and received Royal Assent on May 11, 2023.  The payment is based on 2021 tax returns.

Can CRA Withhold My Tax Refund and Benefits or Garnish My Wages?

Yes, they can.  If you can't pay all your tax on time, pay as much as you can on a regular basis. Interest will continue to be charged.

April 2023

Life in the Tax Lane May 2023

Topics in this month's 10-minute video for Canadian Tax and Financial Professionals:

bulletShrinkflation - GST/HST Issues
bulletMandatory Disclosure Rules
bulletIntergenerational Business Transfers
bulletUnderused Housing Tax (UHT) - Various Issues
bulletAlternative Minimum Tax (AMT) - Budget 2023

What If I Can't Afford to Pay the Tax I Owe?

File your tax return on time even if you can't afford to pay the balance owing, to avoid penalties! Then contact Canada Revenue Agency as soon as possible to discuss your options.

2023 Corporate Income Tax Rates

General, small business (CCPC), and CCPC investment income tax rates for 2023 have not changed from 2022 thus far except for the SK small business rate increase to 1% for July 1, 2023.

Canada's Underused Housing Tax (UHT) - Do You Have to File a Return?

This is complicated. Are you a Canadian who co-owns property in/on which you reside as well as operate a farm or other business? Do you co-own rental property and file your T776 or T2125 as a partnership? Does your Cdn corporation own property on which there is a "housing unit"? Are you Trustee of a Trust owning a "housing unit"? Not all accountants are familiar enough with the UHT to determine if individuals or organizations are required to file, even though they may not owe tax.

With minimum penalties of $5,000 per individual per property and $10,000 per non-individual per property, don't rely on someone else's opinion that you don't need to file, unless they indicate in writing that they'll pay the penalty if they're incorrect.

April 2023 Climate Action Incentive Payments Delayed For Many

Taxpayers whose 2022 personal income tax returns were not assessed on or before March 24th did not receive their April 14, 2023 climate action incentive payments. Those eligible will receive their April payments in July.

Filing Your Personal Income Tax Return

Make sure you didn't miss any deductions or tax credits! Check your results with our calculator. Know your due dates, check the status of your tax return, dealing with CRA.

Ontario Municipal Vacant Homes Taxes - Buyers Beware!

Toronto, Ottawa and Hamilton have vacant home taxes, and one is probably coming soon to Peel. Buyers of new homes may find themselves on the hook for unfiled declarations or unpaid taxes from before they purchased their new home.

Rental Property Expenses and Issues

Learn about deductible expenses, renting below FMV, rental losses, change in use of your home, capital vs expense, motor vehicle expenses, foreign rental property, and more.

Tax Treatment of Income From Investments in Mutual Funds

Mutual fund distributions can be made up of eligible dividends, capital gains, reinvested distributions, return of capital, other income, foreign income, foreign tax withheld, and management fee rebates.  These affect your income tax differently, and may affect your adjusted cost base (ACB).

Attendant Care Costs

Figuring out how to claim attendant care costs can be complicated, as they can be claimed as medical expenses, sometimes as disability supports deductions. The $10,000 limit for attendant care as medical expenses is per paying individual, not per patient, which makes cost sharing among supporting persons advantageous.  There are 2 options when claiming attendant care costs as medical expenses for a person who qualifies for the disability amount.

Federal and Provincial Home Renovation Tax Credits

Renos done to your home in 2022? Check to see if you're eligible for a tax credit. BC, NB & ON credits are refundable. SK credit available to all SK homeowners.

March 2023

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.

Life in the Tax Lane April 2023

Topics in this month's 10-minute video for Canadian Tax and Financial Professionals:

bulletRelationship Status - Common Law or Not?
bulletUnderused Housing Tax - Updates
bulletTFSA - Carrying on a Business
bulletEmployment Expenses - Sponsorship
bulletLegislation vs. CRA Interpretation - re CERB and re Medical Expenses
bulletUS FBAR Penalties - $10,000 Per Form or Account?

Basic Income Tax Calculator

This very simple calculator for 2023 and earlier years displays taxes and marginal tax rates for all provinces & territories, and allows you to easily compare 2 different scenarios. Helpful for everyone, including tax pros and financial planners.

2022/23 Detailed Canadian Tax and RRSP Savings Calculator

For all provinces & territories except Quebec, updated with 2023 provincial budget changes. Now includes ON Seniors Care at Home Refundable Tax Credit for 2022 and 2023.  Good for checking against your tax software!

2022/23 Detailed Quebec Tax and RRSP Savings Calculator

Updated with 2023 Quebec budget changes. Good for checking against your tax software!

Federal 2023 Budget - March 28, 2023

No plans to balance the budget in the next 5 years; Several personal tax measures; Many #business tax measures; See our summary info with links to the detailed info in the budget.

Federal Underused Housing Tax (UHT) - This Affects Canadians Also

Our article now has more information on interpreting the UHT and filing the form. CRA has announced penalties and interest will be waived if returns filed/tax paid by Oct 31, 2023.

BC Refundable Home Reno Tax Credit

For seniors, and persons with disabilities or family they live with, up to $1,000 refund for eligible expenditures to enable access, improve mobility, or reduce the risk of harm.

Ontario 2023 Budget - March 23, 2023

No personal or corporate income tax changes; New 10% Ontario Made Manufacturing Investment Tax Credit; Gas and fuel tax cuts extended; GAINS program to be expanded, indexed for inflation; and a few other changes.

Nova Scotia 2023 Budget - March 23, 2023

No personal or corporate income tax changes, other than expansion of the More Opportunity for Skill Trades (MOST) program to include registered nurses, licensed practical nurses, and nurse practitioners who work for publicly funded employers.

Newfoundland & Labrador 2023 Budget - March 23, 2023

Physical Activity Refundable Tax Credit doubling; Senior's Benefit and Income Supplement increasing; no tax or fee increases, and a few other changes.

Saskatchewan 2023 Budget - March 22, 2023

No personal income tax changes; Manufacturing and Processing Exporter Tax Incentive extended until Dec 31, 2023; Mineral Exploration Tax Credit increased from 10% to 30%.

Quebec 2023 Budget - March 21, 2023

2023 tax rates reduced for bottom 2 tax brackets; Tax rate for tax credits reduced, but some amounts increased to compensate; Volunteer firefighter/search and rescue tax credit increased; New corporate tax holiday for large investment projects; and more.

New Brunswick 2023 Budget - March 21, 2023

No personal or corporate income tax changes were announced.  NB will be adopting the federal "backstop" for carbon tax, which will result in NB residents seeing climate action incentive rebates from the federal government.

Ontario Seniors' Care At Home Refundable Tax Credit

Based on medical expenses, for those age 70+, available whether senior lives in their own home or elsewhere.  Reduced by 5% of family net income over $35,000.

Manitoba 2023 Budget - March 7, 2023

The Basic Personal Amount is increased to $15,000 for 2023; Personal income tax brackets for 2024 will be $47,000 and $100,000; Health and Post-Secondary Education Tax Levy exemption threshold raised; Mineral and Green Energy Equipment tax credits are made permanent.

Federal Climate Action Incentive (CAI) Payments

CAI payments are currently received by residents of AB, MB, ON, and SK. Starting July 1, 2023 they will also be received by residents of NL, NS and PE.  File your tax return on time to receive these quarterly payments!

US-Canadian Foreign Exchange Rate History

See our table of year-end and annual average US exchange rates for the years 1997 to 2022.  Links are included to sites where more rates can be found.

Foreign Asset Reporting - Form T1135

If a Canadian resident individual, corporation or trust holds foreign investment property with a cost exceeding $100,000 Canadian at any time in the year, form T1135 must be filed with the tax return.  Make sure you file this form if needed, as the penalties can be onerous.

Yukon 2023 Budget - March 2, 2023

There were no income tax changes announced in the Yukon budget.

February 2023

Alberta 2023 Budget - February 28, 2023

New Agri-Processing Investment Tax Credit; Increase in the donation tax credit rate; Cap on tuition, reducing student loan interest rates; Increasing Alberta adoption expense tax credit.

BC 2023 Budget - February 28, 2023

Increased BC Family Benefit; Home Owner Grant threshold increase; New renter's tax credit; PST exemption for AEDs; Partial property transfer tax exemption for new purpose-built rental buildings.

Partnerships and the Underused Housing Tax(UHT)

It seems likely that Canadian citizens who are joint owners of their home, who are conducting a business from their home, will have to file the UHT return even though they will not be subject to the tax.

Life in the Tax Lane March 2023

Topics in this month's 10-minute video for Canadian Tax and Financial Professionals:

bulletUnderused Housing Tax
bulletUnreported Capital Trades Included on a T5008
bulletRecurring Conversion Between Personal and Income Earning Use
bulletUpdates to CRA Online Portals
bulletForeign Tax Credit Verification

Nunavut 2023 Budget - February 23, 2023

The Nunavut budget had no income tax changes, but proposes a new Carbon Credit and one-time heating fuel subsidy. New liquor tax to be implemented in 2023.

BC Speculation and Vacancy Tax Due Date March 31, 2023

Many homeowners in BC must file a declaration, even if they are exempt from the tax.  You should receive your declaration letter by the end of February. Complete your declaration right away so as not to miss the due date!

2023 Donation Tax Credit Rates

There is one possible change to 2023 donation tax credit rates so far. Alberta has passed a bill to increase the rate on the first $200 from 10% to 60%, but the date it will be effective has not yet been announced.

Frequent Speculative Trading in a TFSA Can be Very Costly!

If a taxpayer is deemed to be carrying on a business (e.g., day-trading), tax is payable at the highest personal tax rate, and the gains will be income gains (100% of gain is taxed), not capital gains (50% is taxed).  This has been confirmed by the Tax Court of Canada.

First Home Savings Account (FHSA) - Tax-Free

EVERYONE planning to buy a home should open a First Home Savings Account! Tax-deductible contributions and tax-free withdrawals - the best of RRSPs and TFSAs.  Use with the Home Buyers' Plan for a bigger down payment. Available April 1, 2023.

RRSP Deadline Tuesday, March 1, 2023

March 1, 2023 is the deadline for making your RRSP contributions for the 2022 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.

Northwest Territories 2023 Budget

No changes to personal or corporate income tax rates; Property mill rates and some fees increase by inflation; carbon tax rates start to increase annually by $15/tonne on April 1, 2023 until they reach $170/tonne on April 1, 2030.

Employee Taxable and Non-Taxable Benefits

CRA announced new/updated administrative policies in late 2022 related to employee parking benefits, social events provided by an employer, and gifts and awards provided by an employer.  

CPP, OAS and EI Tax Slips Available Online

Official PDF versions of your tax slips for CPP, OAS and EI are available now in your "My Service Canada" account.  The tax slips are also available through your CRA My Account, but not the "official" ones. There are links in your online accounts to make it easy to move from CRA to Service Canada and back again.

January 2023

Life in the Tax Lane February 2023

Topics in this month's 10-minute video for Canadian Tax and Financial Professionals:

bulletUnderused Housing Tax
bulletStatute-Barred Corporate Returns
bulletWage and Rent Subsidies - Partnership Income and Reviews
bulletRelationship Breakdown - Written Separation Agreement
bulletCanada Child Benefit - Shared-Custody Arrangement

Quebec Tax Credit For Childcare Expenses

RL-24 slips MUST be provided to claim childcare expenses for 2022 and later years. This is a change from prior years in which childcare receipts were sufficient.

Canada's Underused Housing Tax (UHT) - Canadians Are Also Affected!

If a Canadian trust, partnership or corporation owns a "housing unit" (doesn't have to be on residentially zoned property) in Canada, then the Underused Housing Tax return will have to be filed by May 1st, even if no tax is payable.  Those who fail to file by May 1, 2023 will pay large penalties (minimum $5,000 for individuals, $10,000 for non-individuals) even if they are exempt from the tax.

More resources are now available to help Canadians, non-resident non-Canadians, and accounting and tax professionals navigate this complicated legislation.

Which is Better - TFSAs or RRSPs?

If you're in the lowest tax bracket, use TFSAs first!  If not, read our article and then make use of the TFSA vs RRSP calculator to help you decide.

Provincial/Territorial 2023-24 Budget Consultations

There's still time for taxpayer input into 2023 budget for many provinces, but the deadline has passed for Alberta, BC and PEI.  AB, NB and SK have set dates for their 2023 budgets.

Prescribed Rate Loans to Spouses or Minor Children

The interest on a prescribed rate loan to spouses/children is always calculated at the rate in effect when the loan is created. The rate increased to 4% Jan 1/23, and will increase to 5% on Apr 1/23.

Shareholder Loans and Their Tax Implications

A shareholder can be deemed to receive taxable benefits related to s/h loans, either if insufficient interest is paid on the loan (even if not outstanding at year-end), or if the loan is not repaid within a certain time.

T1135 Foreign Asset Reporting

Did you own foreign assets (securities, real estate, life insurance policies, etc.) with total cost over $100,000 Cdn at any time in 2022? You must file form T1135, and penalties for not filing are high. Learn what's included, how to find the country code (even for ADRs), how to complete the form.

Making a Spousal RRSP Contribution Online

If you plan to make a spousal RRSP contribution online, BE CAREFUL!  Your spouse probably has to be logged into their RRSP account online to do this, and indicate it is a spousal contribution.  If you're not sure about what you're doing, don't do the contribution online.

Was Your Status as a BC Developing Farm Revoked?

If it was revoked because you didn't follow your development plan or meet your expected harvest date, but you did meet all requirements of the Farm Regulation, then your farm status was revoked in error.  Time to "file a complaint", by Jan 31st.

Alberta Donation Tax Credit Rate

A Private Members' Bill received Royal Assent in December, increasing the tax credit rate for the first $200 of charitable donations from 10% to 60%.  The change to the rate is not yet in effect.

2023 Non-Refundable Personal Tax Credits

We've published the tables of non-refundable tax credits for 2023 for Canada and all provinces and territories.

Historical Returns on Stocks, Bonds, T-Bills

2022 was not a good year for stock markets. However, over the past 5 or more years one would be far ahead by investing in most stock markets rather than T-bills or bonds. See returns for up to 72 years, and growth of $1,000 invested.

Investment Return Calculator

Use our calculator to determine your returns for 2022 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 2022 is 1.3013, which can be used for dividends and proceeds of sale, but not for adjusted cost basis.

Prior Years:

What's New 2022

What's New 2021

What's New 2020

What's New 2019

What's New 2018

What's New 2017

What's New 2016

What's New 2015

What's New 2014

What's New 2013

What's New 2012

What's New 2011

What's New 2010

What's New 2009

What's New 2008

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Revised: June 16, 2024


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