I have noticed that it can take 2 hours or more to get through on the CRA’s telephone line (1-800-959-8281). This has been true in the height of tax season (Feb-Apr) as well as other times. The alternative is to agree to have us represent you by signing an authorization form (AUTHREP) that will enable us to access your […]
The 2024 federal budget (Budget 2024) proposed to increase the capital gains inclusion rate for individuals, trusts, and corporations. Specifically, 66.7% of capital gains realized on or after June 25, 2024 would generally be included in income for tax purposes (this is up from 50%). To provide some relief, the budget proposed that capital gains up […]
The Canada Revenue Agency (“CRA”) has announced the following changes to the Income Tax Act for 2023.
Advance payments of the Canada workers benefit (“CWB”) are now issued automatically under the ACWB to those who received the benefit in the previous tax year. As a result, Form RC201, Canada Workers Benefit Advance Payments Application, has been discontinued.
Starting […]
Budget 2023 introduced an annual income-tested renter’s tax credit that will give $400 to low- and moderate-income renter individuals and families with an adjusted income of $60,000 or less. Individuals and families with an adjusted income greater than $60,000 and less than $80,000 may receive a reduced amount.
You can start claiming the renter’s tax credit on the 2023 T1 […]
The CRA has decided that home office expenses can only be claimed if the employer requires the employee to work from home more than 50% of his/her work days.
The flat rate of $2/day has been discontinued for 2023.
For an employee to claim employment expenses the employer must confirm the need to incur various expenditures on a signed T2200 Conditions of […]
The Underused Housing Tax is an annual federal 1% tax on the ownership of vacant or underused housing in Canada that took effect on January 1, 2022.
The tax generally applies to foreign national owners of housing in Canada. However, in some situations, this tax also applies to some Canadian owners (such as certain […]
For 2023 and subsequent taxation years, Budget 2022 introduced a new deeming rule for residential real estate (including rental property). The new deeming rule is to ensure that profits from the disposition of flipped property are taxed as business income.
Property flipping involves purchasing residential property and reselling the property in a short period of time to realize a […]
At Focused Tax Strategies, we feel obligated to inform our US clients about their obligations to file form 5471, failing which they could be liable for significant fines and exposure to life-long audits. Given the complexity of these situations, we are NOT accepting clients who need a 1040 and/or state return who own […]
In the Budget 2022, 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 Plan (RRSP), contributions would be tax-deductible, and withdrawals to purchase a first home—including from investment income—would be […]
