- Advanced Canada workers benefit – Advance payments of the Canada
workers benefit (CWB) are now issued automatically under the ACWB to those
who received the benefit in the previous tax year. As a result, Form
RC201, Canada Workers Benefit Advance Payments Application, has been
discontinued. Starting in 2023, amounts from your RC210 slip are to
be reported on Schedule 6, Canada Workers Benefit, in order to calculate
the amount to enter on line 41500 of your return. If you are married or
have a common-law partner, you can choose who will claim the basic amount
for the CWB regardless of who received the RC210 slip for the basic
amount.
- Deduction for tools
(tradespersons and apprentice mechanics) – Starting in 2023, the maximum employment deduction for
tradesperson’s eligible tools has increased from $500 to $1,000.
- Federal, provincial and
territorial COVID-19 benefit repayments – After December 31, 2022, if you repay 2020 or 2021
COVID-19 benefits that you reported as income, you can only claim a
deduction for the amount repaid in the year of the repayment.
- First home savings account (FHSA) – The FHSA is a new
registered plan to help individuals save for their first home. Starting
April 1, 2023, contributions to an FHSA are generally deductible and
qualifying withdrawals made from an FHSA to purchase a qualifying home are
tax-free.
- Multigenerational home renovation
tax credit (MHRTC) – The MHRTC is a
new refundable tax credit that allows an eligible individual to claim
certain renovation costs to create a secondary unit within an eligible
dwelling so that a qualifying individual can reside with their qualifying
relation. If eligible, you can claim up to $50,000 in qualifying
expenditures for each qualifying renovation completed, up to a maximum
credit of $7,500 for each claim you are eligible to make.
- Property flipping – Starting January 1, 2023, any gain from the disposition
of a housing unit (including a rental property) located in Canada, or a right
to acquire a housing unit located in Canada, that you owned or held for
less than 365 consecutive days before its disposition is deemed to be
business income and not a capital gain, unless the property was already
considered inventory or the disposition occurred due to, or in
anticipation of certain life events.
- Ontario credits – The Ontario seniors’ home safety tax credit, Ontario
jobs training tax credit and the Ontario staycation tax credit are no
longer available for 2023 and later tax years.
- New reporting requirements for T3
returns - All trusts, unless
specific conditions are met, must file a T3 return for tax years ending
after December 30, 2023. Many trusts, including bare trusts, will need to
file for the first time.
