Capital gains
Under proposed changes, the capital gains inclusion rate will increase to 2/3 for capital gains realized after June 24, 2024. However, a new capital gains reduction will apply so that the effective inclusion rate for capital gains of $250,000 or less will remain at 1/2 for dispositions after June 24, 2024. In addition, the lifetime capital gains exemption will increase for dispositions occuring after June 24, 2024. A new capital gains reduction add-back, deduction for qualifying business transfers, and additional security options deduction will be introduced.
Home Buyers’ Plan (HBP) withdrawals
The HBP withdrawal limit has increased from $35,000 to $60,000 for withdrawals made after April 16, 2024. In addition, temporary repayment relief was introduced to defer the start of the 15-year repayment period by an additional three years for participants making a first withdrawal between January 1, 2022, and December 31, 2025. Accordingly, the 15-year repayment period will start in the fifth year following the year that the first withdrawal was made.
Short-term rentals
As of January 1, 2024, individuals are no longer able to deduct expenses related to non-compliant short-term rentals. This change applies to all expenses, including interest expenses, incurred after 2023 to earn income from operating non-compliant short-term rentals.
The CRA’s services
The CRA introduced a new identity validation option to register for the CRA sign-in services. This option provides a secure way to validate your identity in real-time, allowing full and immediate access to your online account, without needing to wait for a CRA security code by mail.
