Code

Ali Raza Jaffer, Chartered Accountant Mississauga, Greater Toronto Area

New Portal
Contact Us
Facebook X-twitter Linkedin Instagram
Menu

Dear Valued Clients & Friends,

Hope this edition of our newsletter finds you well and thriving.  With spring around the corner, it is a time for renewal and growth and perform a financial health check!  At AR Jaffer Professional Corporation, we are dedicated to supporting you in navigating the ever-changing landscape of personal taxation and financial planning.  As you prepare for spring cleaning, it is also a reminder to start gathering your income tax documents with the April 30th tax filing deadline quickly approaching.  Our professional staff are here to serve you, and we are committed to providing exceptional service in completing your personal tax returns and answering tax related inquiries.

In this edition of our newsletter, we review some tax changes in 2023 that you may want to note as you prepare your documents. We also continue to provide insightful updates and tips to help you make informed decisions and maximize your financial well-being.   We would like to extend our gratitude for your trust in us during the previous tax seasons. Despite the ongoing tax changes, we successfully assisted many clients in meeting their tax obligations efficiently and accurately and endeavour to continuing guiding you this year and beyond.  The most notable of these changes in 2023 that we have previously outlined as well, are the new Trust reporting rules, property flipping rules, and the Underused Housing Tax for Property Owners.

Attached, you will find an income tax return checklist to help you prepare your documents for the upcoming tax season. You can also find a link here:  2023 Personal Tax Checklist

 

Please do not hesitate to contact us, should you require any assistance or have any queries.

 

In our Tax edition of our newsletter, here are the topics that will be reviewed:

 

  • 2023 Personal Income Taxes
  • CRA Tax Updates
  • Important CRA Deadlines
  • CRA My Account
  • Life Insurance & Estate Planning, Loan applications, Advisory, Tax Planning and Cash Flow Planning

 

Please connect and follow the links to my social media at your convenience (Facebook, Twitter, LinkedIn, Instagram) to stay fully updated on tax planning tips for individuals & businesses.

Please also remember to do a google review for us, much appreciated.  Here is the link:  AR Jaffer Professional Corporation Chartered Professional Account Google Review

Sincerely,

Ali Raza Jaffer

  • 2023 Personal Income Taxes

 

There are a few tax updates for 2023, which we outline below.  As you gather your documents, you have the option of uploading the documents on the ARJ Portal.  If you require registration for our portal, please contact clientcare@arjcpa.ca

 

You also have the option of sending your files digitally (either via dropbox, google drive, box, or secured email).  Please do not hesitate to contact us should you require any assistance.  I have attached the income tax checklist as a pdf.

You can also access the checklist at the link:   2023 Personal Tax Checklist

 

  • CRA Tax Updates

 

For 2023, here are some notable changes for your personal taxes:

 

  1. Underused Housing Tax (UHT): new Tax Filing Requirement.  The deadline to submit 2022 and 2023 UHT returns is April 30th, 2024.

 

  1. Trust Reporting: new Tax filing requirement including T3 return and schedule 15.

 

  1. Property Flipping Rules:  As of January 1, 2023, residential properties bought and sold (‘flipped’) within one year will be subject to the business income rules (and not capital gains).  There are certain exemptions as identified in previous newsletters.  See https://arjcpa.ca/newsletter/

 

  1. Multigenerational Home Renovation Credit:  This is a 15% tax credit effective January 1, 2023 and applies when you build an additional unit on an existing dwelling for a family member who is 65 year or older or for an adult with a disability.  The maximum credit is for expenses up to $50,000 (maximum credit is $7,500).

 

  1. First Home Savings Account (FHSA):   The First Home Savings Account (FHSA) is a new type of registered plan that’s designed to help you save for your first home, tax-free. Your contributions will be tax-deductible, similar to a registered retirement savings plan (RRSP). Your qualifying withdrawals will be non-taxable, like a tax-free savings account (TFSA).  You can contribute up to $40,000 over their lifetime and $8,000 for any one year (including 2023) to a FHSA. Unused FHSA participation room can be carried forward at the end of the year, up to a maximum of $8,000, to use in the following year.

 

  1. First-time home buyer’s tax credit:   The amount used to calculate the first-time home buyers’ tax credit has increased to $10,000 (from $5,000) for a qualifying home purchased after December 31, 2021.

 

  1. Home accessibility tax credit:  The annual expense limit of the home accessibility tax credit has increased to $20,000; the maximum non-refundable tax credit is $3,000.

 

  1. Immediate write off of capital property for Self-Employed Individuals:  If you carried on an unincorporated business and acquired capital property in 2022, you may be eligible to claim a 100% deduction of the expenditure this year. Certain capital cost allowance classes are not eligible for the enhanced deduction.

 

  1. Home office expenses: The temporary flat rate method introduced during the pandemic no longer applies.  For home office expenses, a T2200 form must be obtained from your employee (the T2200 form is the declaration of conditions of employment form).

 

  1. Foreign assets reporting:  As per previous tax filing years, Canadian tax residents who hold foreign property with a cumulative cost amount over $100,000 at any time during the year are to be required to file the information return T1135 Foreign Income Verification form with their personal income tax return.  The deadline to file is April 30, 2024.  Failure to file will result in penalties of up to $2,500.

 

  1. Deduction for tools (tradespersons): Effective 2023, the maximum employment deduction for tradespersons’ eligible tools has increased from $500 to $1,000

 

  1. Home Buyers’ limit: You may still withdraw up to $35,000 from your RRSP for first time home buyers.

 

 

For a full list of tax changes, please click on the links:

 

Individual Tax Changes:  https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/whats-new.html

 

Business Tax Changes: https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/corporations/whats-new-corporations.html

 

  • Important CRA Deadlines

 

As we transition into the new tax year, it’s crucial to mark your calendar with important deadlines. Keep an eye out for the upcoming deadlines for filing your taxes, extensions, and estimated tax payments to avoid any penalties or interest charges:

 

  • April 2, 2024 – Deadline to file trust returns including the new Schedule 15 requirement for ‘bare trusts’ (note this is a new filing requirement as outlined in section 2) above).
  • April 30, 2024 – Deadline for filing & payment of taxes owing for 2023 Personal Tax Returns
  • April 30,2024 – Deadline for payment of HST payable for Self Employed
  • April 30, 2024 – Deadline to file the Underused Housing Tax (not this is a new form that must be filled out as outlined in section 2) above).
  • April 30, 2024 – Deadline for payment of taxes owing for Self Employed Individuals
  • June 15, 2024 – Deadline for filing Tax Return for Self-Employed Individuals
  • June 15, 2024 – Deadline for filing of HST for Self-Employed Individuals

 

If your income tax return is filed late, CRA will impose a penalty of 5% of any balance owing, plus an additional 1% for every month your return is late.  If you had previous late filing penalties imposed based on a request to file by CRA, your 2023 late filing penalty will be 10%.

 

  • CRA My Account

CRA Provides updates on tax changes, webinars, individual and business deductions, and credits and HST information on a regular basis.  You can access the information with update to date information at the following link:  CRA Updates

If you have not done so already, a reminder to sign up for your My account (individuals) or My business account (for business owners).  Details can be found at:

Individual Account:   https://www.canada.ca/en/revenue-agency/services/e-services/e-services-individuals/account-individuals.html

Business Account:   https://www.canada.ca/en/revenue-agency/services/e-services/e-services-businesses/business-account.html

CRA Processing Times:  CRA is still short staffed, so processing times are delayed.  Here is a resource to review processing times on any submissions to CRA.  This includes updates on tax returns and tax related requests:   https://www.canada.ca/en/revenue-agency/corporate/contact-information/check-cra-processing-times.html.

 

  • Life Insurance & Estate Planning, Loan applications, Advisory, Tax Planning and Cash Flow Planning

 

Personal tax filing season is also a good time to review your financial situation as an individual or business owner.   If you are looking at long term planning strategies, there are several strategies that are available and we can assist you with.  As part of our commitment and service delivery to our clients, we have been working with our clients on the following to achieve your financial goals:

 

  • Life Insurance Planning and recommendations to brokers
  • Business Financing which includes
    1. $100k BDC working capital loan application
    2. Bank loan proposals & applications
    3. Lines of credit applications
    4. Preparation of business plans and cash flow projections
  • Cash Flow Planning & Budgeting
  • Tax Planning and Corporate Restructuring (Holding companies, Estate Freezes, Trusts)
  • Net Worth Analysis and Planning
  • Strategies to achieve your short term and long-term goals

 

Please see our website for further details at https://www.arjcpa.ca/business-advisory-services/

 

Have an excellent March break and spring season!

 

Best regards,

 

Ali Raza Jaffer, CPA, CGA, MBA, BComm

Partner & CEO, AR Jaffer Professional Corporation

Chartered Professional Accountant

 

We appreciate your referrals!

   

Click here for the ARJ Portal       

    

Click Here to Sign up for our Newsletter!

 

The information in this email is confidential and may be legally privileged. It is intended solely for the addressee. Access to this email by anyone else is unauthorized.
If you are not the intended recipient, any disclosure, copying, distribution or any action taken or omitted to be taken in reliance on it, is prohibited and may be unlawful.