Federal Budget 2021 – Commentary and Analysis

The 2021 Federal budget was released yesterday (April 19th), for the first time in over two years. Here are some highlights:

Personal Measures

  • The Canada Recovery Benefit and related programs will be extended.
  • Individuals will have the option to claim a deduction in respect of the repayment of a COVID-19 benefit amount for the year when the benefit was received.
  • Access to the disability tax credit will be broadened.

Business Measures

  • The Canada Emergency Wage and Rent Subsidies (CEWS and CERS) will be extended.
  • The Canada Recovery Hiring Program was introduced.
  • The ability to immediately expense 100% of many capital asset purchases was introduced.
  • The corporate tax rate on zero-emission technology manufacturing will be halved.
  • The disclosure requirements for aggressive tax planning and filing positions will be expanded.

International Measures

  • A 1% tax on the value of vacant or underused real estate owned by non-residents will be implemented.

Sales and Excise Tax

  • Access to the GST/HST New Housing Rebate will be broadened for co-owners.
  • A new tax of up to 10% will apply to the purchase of luxury vehicles, aircraft, or boats.

Electronic Filing, Payments and Certification

  • Some CRA communications will be undertaken electronically without the taxpayer’s authorization.
  • Certain levels of payments will be required to be made electronically.

Previously Announced

  • Intention to proceed with a number of previously announced measures, such as the accelerated CCA changes for zero-emission vehicles, and expanded disclosure requirements for trusts.

For a full summary, keep reading below.

Continue reading “Federal Budget 2021 – Commentary and Analysis”

Canadian Tax Podcast 004 – Home Office/GST/Foreign Exchange

Canadian tax podcast for the week of 24 March 2021. This week we cover:

  • Headlines;
  • Home office / T777S;
  • Self-employed GST/HST;
  • When to claim forex gains/losses;

Continue reading “Canadian Tax Podcast 004 – Home Office/GST/Foreign Exchange”

What To Do With Incorrect T5008’s (TSP#3)

This episode continues the 2020 Tax Season Special Series, where Canadian Tax Podcast answers random questions related to the 2020 tax filing season.

This episode covers T5008’s in more detail, specifically:

  • What to do when you have a million T5008’s issued;
  • Why you can’t always rely on your broker gain/loss report;
  • Link to Chen case here.

Continue reading “What To Do With Incorrect T5008’s (TSP#3)”

T3’s / Record Storage / Wrong T5508’s (Tax Season Special #1)

With Feb 22nd being the start of Tax Season 2020, I thought it would be a good idea to just start answering questions via “Tax Season Specials.” In this episode I cover:

  • Entering T3 slips on a T2;
  • Having CRA store your records, and why that’s a bad idea;
  • Incorrect T5008 and what to do;

Thanks for listening.

Usual Disclaimer: This information is for general information purposes only, and deals with complicated and time-sensitive info that may not apply to your situation. Tax rules are always changing, and this information may not be current. Tax is complicated, this information is not tax advice, and don’t rely on this info to make tax decisions – Hire someone to help you.