Tips, Tricks and Taxes
Underused Housing Tax (UHT)
Dear Clients,
Beginning for 2022, the government has introduced the Underused Housing Tax (“UHT”).
The UHT imposes a 1% annual tax on the value of residential real estate considered to be vacant or underused that is owned on December 31 of each year. The government indicated that the tax would target property owned by non-Canadians; however, the scope of filing requirements extends to many Canadian entities and individuals, inclu...
First Home Savings Account (FHSA)
Dear Clients,
Beginning in April of 2023, the government is introducing the First Home Savings Account (FHSA) for individuals who are the age of 18 and older and are resident of Canada.
The FHSA offers prospective first-time home buyers the ability to save $40,000 tax-free. Like registered retirement savings plans (RRSP), contributions to a FHSA would be tax deductible. Like tax-free savings accounts (TFSA), income and gains inside a FHSA as well as withdrawal...
Ontario Regional Opportunities Investment Tax Credit
The Ontario Regional Opportunities Investment Tax Credit (OROITC) was introduced on March 25, 2020 providing a refundable tax credit for corporations that invest more than $50,000 to construct, renovate or acquire eligible commercial and industrial buildings in designated regions of Ontario, including Windsor-Essex.
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Fall Economic Statement
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 qual...
COVID Program Updates
On October 21, 2021 the federal government made a number of announcements with respect to COVID-19 measures.
Please note that all of the below items are proposals and have not received Royal Assent. It is possible there are further changes.
Government Eases Restrictions on Businesses Transfers to Children / Grandchildren
Prior to Bill C-208, when there was an intergenerational sale to a child or a grandchild of the shares of a corporation that otherwise qualified for the capital gains exemption, the family was left to make a choice. The family could structure the sale of a corporation so that one of the following objectives were achieved but not both:
- The parents could claim the capital gains exemption, allowing for up to approximately $892,000 of the gain (per pare...