Increase in Capital Gains Inclusion Rate Deferred Until January 1, 2026
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The Government of Canada has announced it is deferring the proposed increase in the capital gain tax inclusion rate until January 1, 2026. As announced in the 2024 Federal Budget, the government proposed to increase the capital gains inclusion rate from one-half to two-thirds for capital gains realized after June 25, 2024. The first $250,000 of capital gains realized by […]
Continue ReadingOntario Made Manufacturing Investment Tax Credit (“OMMITC”)
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The provincial government continues to support the manufacturing sector with the introduction of a new 10% refundable tax credit. Qualifying expenditures of up to $20 million per year are eligible for a tax credit of up to $2 million. The $20 million limit is shared among an associated group of corporations and is prorated for short tax years. Eligible Corporations […]
Continue Reading2024 Federal Budget Commentary
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On April 16, 2024, the Deputy Prime Minister and Finance Minister, the Honourable Chrystia Freeland, presented Budget 2024 – Fairness for Every Generation, to the House of Commons.No changes were made to personal or corporate tax rates. Some highlights include the following: A. Personal Measures B. Business Measures C. International Measures D. Sales and Excise Measures E. Other Measures F. […]
Continue ReadingToronto’s Vacant Home Tax – 2023 Declarations Due by February 29, 2024
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The City of Toronto will issue Vacant Home Tax Notices at the end of March 2024 to owners of properties subject to the tax. All residential property owners in Toronto are required to declare the occupancy of their property on an annual basis. Vacant Home Tax Calculation: Vacant Home Meaning: Making a Declaration: Eligible Exemptions: Penalty for Late or False […]
Continue ReadingNew Expanded Trust Reporting Requirements
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In 2018, the federal government first announced proposed legislation to significantly expand trust reporting requirements to increase transparency regarding beneficial ownership and to better assess the tax liabilities for trusts and beneficiaries. A revised version of the rules was passed which will now require all Canadian Resident Trusts and Deemed Canadian Resident Trusts to file a T3 “Trust Income Tax […]
Continue ReadingEmployment Insurance Premium Rates for 2024
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The Canada Employment Insurance Commission (“CEIC”) has announced that the EI premium rates for 2024 will increase from 2023. The EI premiums for employees will be increased to $1.66 for every $100 of earnings in 2024, up from $1.63 in 2023. In addition, the employer rate will be increased to $2.32 for every $100 of earnings, up from $2.28 in […]
Continue ReadingCPP/QPP Pensionable Earnings Ceiling for 2024
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Beginning in 2024, the maximum pensionable earnings under the Canada Pension Plan (“CPP”) will have two tiers. This will allow for the CPP to protect a higher portion of employees’ earnings. The first tier of pensionable earnings limit will be $68,500 – up from $66,600 in 2023. The second tier of pensionable earnings will have a limit of $73,200. Contributors who earn more […]
Continue ReadingNEW UNDERUSED HOUSING TAX Return and Election
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Form Due April 30th. Are you required to file? As part of the ongoing effort to discourage ownership of vacant or under-used residential property, the federal government introduced the Underused Housing Tax (“UHT”). The UHT is effective January 1, 2022 and applies a 1% annual levy on the value of vacant or underused property. Generally, the UHT applies to non-resident, non-Canadian […]
Continue ReadingThe New Residential Property Anti-Flipping Rules
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The 2022 Federal Budget announced new anti-flipping rules for residential real estate which came into force on January 1, 2023. New Rules The new rules will disallow the use of the principal residence exemption and the 50% capital gains inclusion rate on the sale of residential real estate in Canada, including a rental property, if it is owned for less […]
Continue ReadingToronto’s New Vacant Home Tax – Declarations Due by February 2, 2023
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In an attempt to increase the supply of housing and to discourage homeowners from leaving their residential properties unoccupied, the City of Toronto has implemented a Vacant Home Tax and declaration reporting requirements. All residential property owners in Toronto will now be required to declare the occupancy of their property on an annual basis. The City of Toronto has sent […]
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