Phase 2 Referred to as second enhanced CPP contributions, the contribution rate for employees and employers will be 4% but will only be applied to earnings above YMPE up to the yearly additional maximum pensionable earnings (YAMPE) ceiling. For 2024, YAMPE will be set at a number 7% higher than YMPE, estimated at $72,400. For …
CPP Enhancements: Higher Contributions and Higher Benefits (part 2) Read More »
Please, see the first part of the article here and the second part of the article here Home buyers’ plan (HBP) In a May 15, 2023 French Technical Interpretation, CRA was asked whether an individual could withdraw $8,000 under the HBP and contribute the funds to a tax-free FHSA, knowing they would purchase a qualifying …
First Home Savings Account (FHSA): A New Investment Tool (part 3) Read More »
Please read the beginning of the article here The maximum participation period for an FHSA ends at the earliest of: 15 years after opening an FHSA; the end of the year following the year of the individual’s 70th birthday; and the end of the year following the year when the individual first makes a qualifying …
First Home Savings Account (FHSA): A New Investment Tool (part 2) Read More »
The tax-free FHSA was introduced in 2023 to help first-time home buyers save up to $40,000 for a home purchase. Individuals eligible to open an FHSA must be at least 18 years of age and resident in Canada. The individual must also have notlived in a home that they or their spouse owned jointly or …
First Home Savings Account (FHSA): A New Investment Tool (part 1) Read More »
You can find the first part of the article here In a second March 6, 2023 Technical Interpretation, CRA was asked whether the construction of a separate, detached housing unit on the same parcel of land as a principal housing unit, such as a carriage house or laneway house, would be eligible. CRA noted that a qualifying renovation must enable the qualifying individual to reside …
Multigenerational Home Renovation Tax Credit: More Housing Support (part 2) Read More »
The multigenerational home renovation tax credit is a refundable tax credit applicable to the costs of constructing a secondary suite for an eligible person (generally a relative either age 65 or over, or eligible for the disability tax credit) to live with a qualifying relation. The tax credit is available on up to $50,000 of eligible expenditures incurred after 2022 at a rate …
Multigenerational Home Renovation Tax Credit: More Housing Support (part 1) Read More »
The DTC is a non-refundable tax credit that provides tax relief for individuals (or those that support those individuals) who have a severe and prolonged impairment in physical or mental functions. To access the DTC, eligible individuals must apply for it by completing Form T2201, Disability Tax Certificate. Recently, CRA updated their services so that …
Disability Tax Credit (DTC): Electronic Applications (part 1) Read More »
In some situations, a registered charity may be asked to receive donations on behalf of another organization or cause. While this may seem like a good way to generate funds and reward donors with charitable contribution receipts, it can have serious implications for the charity. A February 1, 2023 Technical Interpretation considered a charity that …
Gifts Directed to Other Donees: Loss of Charitable Status (part 1) Read More »
Budget 2023 (A Made-in-Canada Plan: Strong Middle Class, Affordable Economy, Healthy Future) was introduced in the House of Commons on March 28, 2023. The top five changes that may impact individuals and owner-managed businesses are as follows: Dental plan – The Canadian Dental Care Plan would be introduced to provide coverage for all uninsured Canadians …
Budget 2023: Top Five Items for Owner-Managers (part 1) Read More »
Please see the beginning of the article in our previous posts. Multiple returns to file. One return must be filed for each of the properties owned by the person, potentially resulting in multiple filings by a person. Likewise, if multiple persons are on title for a single property, each has their own filing obligation. Private …
Underused Housing Tax (UHT): Increased Disclosures and Taxes (part 3) Read More »