The Canada Revenue Agency (“CRA”) has announced the following changes to the Income Tax Act for 2023.
Advanced Canada workers benefit (ACWB)
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 […]
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 […]
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 […]
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 […]
Key Highlights
- The Act defines residential property as buildings with 3 dwelling units or less. This includes semi-detached houses and condominium units. The Act doesn’t prohibit the purchase of larger buildings with 4 or more dwelling units.
- Non-Canadians can purchase residential properties located outside of Census Metropolitan Areas (CMA) and Census Agglomerations (CA).
- Certain exceptions apply allowing Non-Canadians to purchase […]
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.
What is property flipping?
Property flipping involves purchasing residential property and reselling the property in a short period of time to realize […]