The Department of Finance has extended the deadline for Canada Emergency Business Account (CEBA) repayments. The qualifying date for partial loan forgiveness is now January 18, 2024, with further extensions if refinancing applied. As of January 19, 2024, outstanding loans will have 5% annual interest. The final repayment deadline is now December 31, 2026.
A registered charity may face serious implications when collecting donations on behalf of others. For instance, a charity’s status could be revoked if the collected funds, issued receipts, and disbursed money are not qualifying disbursements. A qualifying disbursement is a gift received by a qualified donee like municipalities in Canada. However, if the donee acts merely as a conduit, the charity’s gift doesn’t qualify. A charity’s status can also be revoked if it receives a gift conditional on granting another gift to a non-qualified recipient.
Ensure to take proactive steps to understand a landlord’s residency status. Renters can be liable for unremitted withholdings even if they do not know the landlord’s residency status.
To speed up and simplify the process for applying for the disability tax credit, consider using the electronic method.
If building a secondary suite for a family member 65 years of age or older, or eligible for the disability tax credit, check whether you can claim this new credit.
Ensure records of transactions are retained offline in the event that they are no longer available online in the future.
Individuals eligible to open an FHSA must be at least 18 years of age and resident in Canada. The individual must also have not lived in a home that they or their spouse owned jointly or otherwise at any time in the year or the preceding four calendar years. Contributions to an FHSA are deductible (like an RRSP). Income earned in an FHSA and qualifying withdrawals from an FHSA made to purchase a first home are non-taxable (like a TFSA).
In 2019, the government commenced a two-part enhancement to the Canada Pension Plan (CPP), with full implementation to be completed in 2025. Phase 1 occurred from 2019-2023; phase 2 will occur from 2024-2025. Overall, the changes will require larger contributions but also will provide larger benefits.
Ensure to report all gains from the disposition of securities fully; should dispositions not be reported, CRA may assess the taxpayer with unreported income much higher than the actual gain.
Earnings in a TFSA are typically not taxable. However, earnings in a TFSA become taxable when they are earned from carrying on a securities trading business. A recent court case may set precedence on what’s allowed and what’s not allowed in a TFSA.