The interest rate on overdue taxes for the fourth quarter of 2022 (October 1 – December 31, 2022) has increased by 1% to 7%. Make sure to get those payments in to CRA on time!
The luxury tax affecting new vehicles and aircraft retailing for more than $100,000 and new boats over $250,000 has been rescheduled to commence on September 1, 2022.
On June 19, 2022, individuals suffering from Type 1 diabetes became automatically entitled to the disability tax credit. This change is retroactiveto 2021.
On June 23, 2022, legislation was passed which would allow the full and immediate expensing of many capital assets purchased on or after April 19, 2021.
The program that has offered purchase incentives of up to $5,000 for zero-emission vehicles since 2019 is proposed to be extended until March 2025, and eligibility would be broadened to include other vehicle models, including more vans, trucks and SUVs.
The federal climate action incentive (Alberta, Manitoba, Ontario and Saskatchewan) converted from a tax credit claimed on personal tax returns to quarterly payments in 2022. The first payment was made in July 2022 and it was a double payment for the first two quarters of 2022. Subsequent payments will be made each January, April, July and October.
CRA is currently reviewing how and when crypto asset holdings need to be disclosed on form T1135.
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.