Personal Tax Filings Now Open in Canada
February 24, 2024
The 2024 tax filing for individuals is now available. It’s important to be aware of several key changes in the 2024 tax filing season. Notable changes include adjustments to work-from-home deductions, new rules for home flippers and renovators, and the introduction of a multigenerational home renovation tax credit.
Work from Home Deductions:
The simplified method for claiming work-from-home expenses, which allowed a flat $2 per day to a maximum of $500, has been eliminated for the 2023 tax year. Now, individuals who work primarily from home will need to use the detailed method, requiring a signed T2200 form from their employer and diligent tracking of expenses. The Canada Revenue Agency (CRA) provides a tool to help calculate eligible working-from-home expenses.
Spence Walker, partner at Kreston GTA chartered professional accountants, says “With the elimination of the simplified work-from-home deduction method, it’s crucial for individuals to accurately track their expenses and understand the detailed method requirements. This change may significantly impact your tax return, so it’s important to consult with a professional to ensure you’re maximizing your deductions.”
Home Flippers and Renovators:
New rules target home flippers by disallowing the principal residence exemption for homes sold within 12 months of acquisition, subjecting the proceeds to full business taxes. However, there are exceptions for life events such as divorce, death, or disability. Additionally, homeowners who renovated their homes in 2023 to accommodate a senior or a family member with a disability can qualify for a new tax credit, allowing them to claim up to $50,000 in qualifying expenses, with a return of 15% up to $7,500.
Walker explains that the new rules targeting home flippers introduce a significant shift in tax obligations for those selling their principal residence within a year of acquisition. “This change underscores the importance of understanding the tax implications of real estate transactions and planning accordingly to avoid unexpected tax liabilities.” He goes on to say “the introduction of the multigenerational home renovation tax credit offers a valuable opportunity for taxpayers who have made eligible renovations to accommodate seniors or family members with disabilities. It’s essential to review your expenses and ensure they qualify for the credit to maximize your tax savings.”
Tax Filing Deadlines:
The CRA opens its portal for 2023 income tax filing on February 19, with individual Canadians having until April 30 to file. For those self-employed or with a self-employed spouse, the deadline extends to June 17. However, if you owe money to the CRA, the payment deadline remains April 30.
Key Dates to Remember:
February 19: CRA portal opens for 2023 income tax filing
April 30: Deadline for individual Canadians to file income taxes and pay any owed amounts
June 17: Extended filing deadline for self-employed individuals and those with a self-employed spouse
About Kreston GTA:
Kreston GTA is a leading accounting and advisory firm based in Toronto, Canada. The firm offers a wide range of services, including tax planning, audit and assurance, business advisory, and more. With a commitment to excellence and a client-focused approach, Kreston GTA is dedicated to helping businesses and individuals achieve their financial goals.
About Spence Walker
Spence Walker is a Partner at Kreston GTA, known for his expertise in accounting, audit, and tax services. With a keen eye for detail and a strategic approach to financial management, Spence has earned a reputation for delivering exceptional results for clients across a range of sectors. His commitment to excellence and client-focused mindset have been instrumental in building long-lasting relationships and driving success. As a leader at Kreston GTA, Spence’s innovative thinking and collaborative style continue to contribute to the firm’s growth and reputation in the industry.