TAX TIDBITS: Some Quick Points to Consider…
- The annual TFSA limit for 2022 remains at $6,000. As such, if an individual has never contributed and has built room since the program’s inception in 2009, up to $81,500 can be contributed.
- Employees working from home in 2021 due to the COVID-19 pandemic will again have the option to claim a deduction against their employment income using the temporary flat rate method. The maximum claim will increase to $500 from $400 in 2020.
- Did you know? About 30% of first-time homebuyers received financial help from family members. The average amount gifted was $82,000 but as high as $130,000 and $180,000 in Toronto and Vancouver. These informal agreements should be documented in writing to protect all parties, especially to clarify whether the funds are a gift, a loan (and repayment terms) or an equity investment in the property.
- The federal climate action incentive (Alberta, Manitoba, Ontario, and Saskatchewan) will convert from a tax credit claimed on personal tax returns to quarterly payments in 2022. The first payment will be made in July 2022, and will be a double payment for the first two quarters of 2022. Subsequent payments will be made each January, April, July, and October.
Contact one of our Taxation team members for more tax tips and advice.
