PLEASE BE AWARE OF THE FOLLOWING TAX CHANGES FOR 2022

  • New Labour Mobility Deduction – a deduction of up to $4,000 per year to recognize travel and relocation expenses of constructionindustry employees. Please provide eligible transportation, meal and lodging expenses related to work relocation.
  • Medical Expense Tax Credit Surrogacy and other costs – costs relating to surrogacy and sperm, ova or embryo donations are now eligible for a tax credit. Please provide receipts.
  • Disability Tax Credit Type 1 Diabetes, Life-Sustaining Therapy and Mental Functions – those with Type 1 diabetes will now meet the disability tax credit requirements. Criteria has also been expanded for mental functions, impairment and life-sustaining therapy. Please check with your doctor if your specific situation would qualify.
  • Increases to Housing Related Tax Credits – the First Time Home Buyer’s tax credit amount has doubled to provide tax relief of $1,500. The Home Accessibility Tax Credit has also doubled, up to an annual expense of $20,000.
  • New Underused Housing Tax – this imposes a 1% tax on the value of non-resident, non-Canadian owned residential real estate considered to be vacant or underused. Individuals who are Canadian citizens or permanent residents, who own residential property as a trustee of a trust, or as a partner of a partnership, will also need to file a UHT return for each property.
  • New Critical Mineral Exploration Tax Credit – a tax credit for specified mineral exploration expenses utilized in various zero-emissiontechnologies and renounced to flow-through share investors is available. This applies to expenditures renounced under share agreements entered into after April 7, 2022 – March 31, 2027.
  • Immediate CCA Expensing of Capital Assets – capital assets acquired and put into use by individuals and certain business partnerships are eligible for immediate 100% expensing. Please discuss this with your accountant.
  • New Small Business Air Quality Improvement Tax Credit – a refundable credit of 25% on eligible air quality improvement expenses to make ventilation and air filtration systems safer and healthier. Please provide invoices of eligible expenses.
  • GST on Assignment Sales – assignment sales of newly constructed or substantially renovated residential housing are taxable for GST purposes, effective for any assignment after May 7, 2022.
  • New Canada Dental Benefit – an up-front, tax-free payment to cover dental expenses for children under the age of 12 without dental coverage. Available to families with an adjusted family net income of under $90,000. Applications for this benefit can be>made on CRA’s My Account.
  • THE FOLLOWING ARE TAX CHANGES EFFECTIVE JAN 1/23

  • Tax-Free First Home Savings Account – introduced to help first-time buyers save up to $40,000 for their first home purchase.
  • Contributions are deductible (like an RRSP) and income earned on the FHSA is non-taxable (like a TFSA). Talk to your bank about setting up your savings account.
  • Residential Property Flipping Rule – gains arising from disposition of residential property (including rentals) owned for less than 12 months are business income.
  • Quick Assignment Sales – profits from an assignment sale would be business income, if the rights to purchase the property were assigned less than 12 months after their acquisition.
  • New Multigenerational Home Renovation Tax Credit – tax relief on up to $50,000 of eligible expenses to construct a secondary suite for a senior, or person with a disability, to live with a relative.
  • Canada Workers Benefit (CWB) – individuals who received this benefit in the previous year will be automatically entitled to the CWB in the current year through quarterly advance payments.
  • Flow-through Shares for Oil, Gas and Coal – such expenditures are not permitted to be renounced to share purchasers under flow-through share agreements entered into after March 31, 2023.
  • New Canada Housing Benefit Top-up Payment – one-time $500 tax-free payment to low-income renters (who filed a 2021 tax return with adjusted net income under $35,000 for families or $20,000 for individuals). Applications for this benefit can be found online at CRA’s My Account.