Personal Taxes

Federal Budget 2024: Canada Hikes Capital Gains Tax to 66.6% for High Earners, Starting June 25

The federal government is raising the inclusion rate to two-thirds from one-half on capital gains above $250,000 realized annually by individuals and on all capital gains realized by corporations and trusts. The proposed higher new rate kicks in June 25, 2024, the government announced in Budget 2024. Right now, only 50 percent of capital gains

Is Your Car Lease Payment a Tax Write-Off?

Individuals who lease a passenger vehicle for work-related purposes can deduct part of their leasing costs on their tax return. That being said, there is a limit on the amount you can claim. This limit is based on a calculation involving your lease payments and the value of your car. How to calculate your car

Bare Trust Tax Reporting Requirements for Calendar 2023

On December 15, 2022, the government passed Bill C-32 bringing into effect new trust reporting rules that apply to trusts with tax years ending December 31, 2023. Included in these new rules are the reporting requirements for Bare Trusts. What is a Bare Trust? A bare trust, also known as a simple trust or nominee

Saving for Your First Home? Open Your FHSA Now

In Canada, the struggle to find affordable housing is no secret. Prices seem to continue to rise post-pandemic and more and more people continue to get priced out of the housing market. To combat the housing market crisis, the federal government introduced First Home Savings Account (FHSA) as part of its 2022-23 budget. As of April

2024 RRSPs – How Much Should You Contribute?

What is RRSP? An RRSP, or a Registered Retirement Savings Plan, is a savings plan that you can contribute to over the course of your working life. When you retire, you can convert your account to a Registered Retirement Income Fund (RRIF) and withdraw an income. In the meantime, you can treat your RRSP like a regular

Getting CRA to Waive or Cancel Penalties & Interest

Canada Revenue Agency (CRA), under provisions of the Income Tax Act that are usually referred to as “Taxpayer Relief”, has the discretion to waive any or all amount of penalties and interest. The provisions can protect a taxpayer who is unable to meet their tax obligations due to circumstances beyond their control. However, this comes

Government of Canada Extends Deadline for Homeowners to File their Underused Housing Tax Return

The Federal Government of Canada has extended the deadline for homeowners to file their Underused Housing Tax (UHT) return until April 30, 2024. Homeowners affected by the Underused Housing Tax (UHT) will have until April 30, 2024 to file their returns for the 2022 calendar year without being charged penalties or interest. Penalties and interest were previously

Canada’s Underused Housing Tax – What You Need to Know

Canada’s Underused Housing Tax – What You Need to Know Underused Housing Tax (UHT) was introduced by the Govt. of Canada in 2022 in an effort to reduce the amount of housing in Canada that remains vacant while owners ‘sit on the investment’ as real estate prices continue to rise. For BC owners, particularly for

Saving For Your First Home? Learn More About Tax-Free First Home Savings Account (FHSA)

Saving For Your First Home? Learn More About Tax-Free First Home Savings Account (FHSA) In the 2022 budget, the government proposed the introduction of the Tax-Free First Home Savings Account (FHSA). This new registered plan would give prospective first-time home buyers the ability to save $40,000 on a tax-free basis. Like a Registered Retirement Savings

How to Maximize Tax Return 2022 in Canada

How to Maximize Tax Return 2022 in Canada With rising interest rates every Canadians are experiencing strains caused by the increased cost of living and inflation. Claiming tax deductions & credits can help offset the financial burden by putting extra money back in your pocket. In order to maximize your tax return, you need to calculate your