Post-election changes to your taxes:
With Mark Carney and the Liberals returning to power, tax policy is set to remain a top priority. Promises are aimed at easing the cost of living for Canadians, especially seniors, healthcare workers, and low—to middle-income families. Here’s what to expect and when. Key Proposed Tax Changes 1. Lower Personal Income Tax The Liberals plan […]
Be careful when claiming moving expenses
CRA wins case against remote worker who claimed $67,000 in moving expenses This case revolves around an Ontario taxpayer who, in her 2021 tax return, claimed nearly $67,000 in moving expenses for a relocation in early February of that year. The Canada Revenue Agency (CRA) disallowed her claim, prompting her to challenge the decision in […]
Increased TFSA Contributions
In 2024, Canadians achieved a new milestone in their Tax-Free Savings Accounts (TFSAs), with average balances reaching an all-time high of $44,987. This represents an 8% increase from the 2023 average of $41,510. The annual TFSA contribution limit for 2025 remains at $7,000, consistent with the previous year. Consequently, individuals who have been eligible to […]
Capital Gains Tax Changes
The Canadian government has postponed the implementation of proposed changes to the capital gains tax until January 1, 2026. Initially introduced in April 2024, these changes aimed to increase the taxable portion of capital gains from 50% to 66% for businesses and individuals with gains exceeding C$250,000. The deferral is attributed to political challenges in […]
Foreign property disclosure
Who Needs to File? In Canada, if you own foreign property with a cost exceeding CAD 100,000 at any time during the tax year, you must report it on Form T1135 – Foreign Income Verification Statement when filing your taxes. You must file Form T1135 if: You are a Canadian resident (individual, corporation, trust, or partnership) The total cost […]
Trump’s Reciprocal Tariffs
Trump’s Reciprocal Tariffs Could Disrupt Established Trade Policies: Tariff Matching Strategy The idea behind reciprocal tariffs is that if a country imposes a higher tariff on U.S. goods, the U.S. would impose an equal or higher tariff on their imports. This is a departure from traditional trade agreements, which often involve negotiated reductions in tariffs […]
Federal Income Tax Bracket Adjustments for 2025
To account for inflation, federal income tax brackets have been adjusted for the 2025 tax year. The new brackets are as follows. The provincial tax rates will be applicable separately. 15% for earnings up to $57,375 20.5% for earnings between $57,375.01 and $114,750 26% for earnings between $114,750.01 and $177,882 29% for earnings between $177,882.01 […]
Bare Trust
What is a Bare Trust? Bare trust is a type of trust where the trustee acts as an agent for all the beneficiaries under the trust regarding all dealings with the trust’s property. Bare trusts can exist even without a written trust arrangement. Starting from tax years ending on or after December 31, 2023, most […]
What is better for you: Salary or Dividend
Options to Withdraw Funds: The two most popular options to withdraw funds from the business are taking a business salary or dividends. A third option is to take a loan from the business; however, it is a temporary withdrawal as the loan is to be repaid. Below is a comparison of salary and dividends: Comparison […]
Underused Housing Tax (UHT)
What is the Underused Housing Tax? It is not safe to assume that the Underused Housing Tax may not apply to you just because you are a Canadian Citizen or a Permanent Resident. You may have to file UHT return to declare the exemption or face significant penalties for failure to file. If you are […]