Enhanced capital cost allowance (CCA) claims, which permit accelerated deductions for tangible assets, will be phased out for assets available after December 31, 2023. The 100% claim on immediate expensing property and accelerated investment incentive property will also follow suit, and variances for zero-emission property and manufacturing or clean energy machinery are specified. Afterwards, first-year CCA reductions will decrease.
The Department of Finance, on 14th September 2023, outlined an enhancement to the existing GST rental rebate, increasing it from 36% to 100% and removing phase-out thresholds for properties over $350,000. The proposal would apply to rental project constructions initiated between 14th September 2023 and 31st December 2030, and completed by 31st December 2035 under specific conditions.
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.