Paying Rent to Non-Residents: Withholdings Required
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.
Tax Advice
First Home Savings Account (FHSA): A New Investment Tool
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).
CPP Enhancements: Higher Contributions and Higher Benefits
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.
Unreported Capital Trades Included on a T5008: CRA Policy
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.
TFSA: Carrying on a Business Within It
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.
Underused Housing Tax (UHT): Increased Disclosures and Taxes
7 Common questions about the new UHT (Underused Housing Tax). Read more to find out if you need to file the UHT-2900 to avoid steep penalties.
Poker Winnings – Taxable or Not?
Earnings from gambling and hobbies may be taxable depending on the intention and circumstances surrounding the earnings. If in doubt as to the tax status, consult a tax advisor.
Top Up to the Canada Housing Benefit
While this benefit may not be available to you personally due to income levels, it may be available to lower-income adult children or family members.
Unreported Real Estate Dispositions
Ensure to report all dispositions of real property, whether it is eligible for the principal residence exemption or not, on your personal tax return otherwise you may end up in court with CRA.
Affordability Action Plan
Alberta’s economy has recovered strongly, but many people are struggling with the rising cost of living due to inflation. Find out how you benefit.