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Fall Economic Statement

January 3, 2022

In connection with the Fall Economic Statement announced on December 14th, we wanted to provide you with some highlights:

  • No changes to personal or corporate tax rates, including the capital gains inclusion rate.
  • Small Business Air Quality Improvement Tax Credit - Proposed refundable tax credit for certain Canadian Controlled Private Corporations and sole proprietors of 25% of qualified air quality improvement expenses incurred between September 1, 2021 and December 31, 2022. The credit applies on expenses up to $10,000 per location and $50,000 in total (shared within an affiliated group).

  • Underused Housing Tax - This is a tax proposed in Budget 2021 of 1% of the value of foreign-owned residential real estate in Canada considered vacant or underused. Updates in the Fall Economic Statement included exemptions for vacation properties and that the tax will be applicable in the 2022 calendar year.
  • Simplified method for home office deductions - It was announced that the ability to claim the “simplified” home office deduction has been extended to 2021 and 2022. This allows you to claim $2 per working day when working from home to a maximum of $500 per year.
  • Canada Emergency Business Account (“CEBA”) loans - It was mentioned that the deadline for small businesses to repay CEBA loans to receive the forgivable portion (currently December 31, 2022) may be extended, however there have been no written proposals to do so.
  • Luxury tax on luxury cars (> $100,000) and boats (> $250,000) - This is a tax proposed in Budget 2021. The only update provided is that draft legislation will be released in early 2022.

The full fall economic statement can be found here.
If you have any questions on any of the above items, please reach out to your Roth Mosey advisor to see how we can help!

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