What is going on with us?
As we prepare for the 2023 tax season, it is evident that we are navigating unprecedented changes. The expansion of housing reporting by the Federal Government through the Underused Housing Tax (UHT) initiative, combined with the broader scope of Trust Reporting requirements, has significantly transformed the landscape. These changes, along with an industry-wide shortage of CPA staff, mean that we are facing tighter deadlines, more complex reporting obligations, and increased risks from higher penalties and a staggering 10% CRA interest rate.
While we continue to maintain our Downtown Vancouver office and maintaining space in Edmonton, many of our team members are embracing the flexibility of remote work. Rest assured, we are still available for face-to-face discussions, as long as they are scheduled in advance. If you require an in-person meeting, simply reach out to your Partner, and we will arrange it.
What’s New in Personal Tax?
This year introduces the First Home Savings Account, which presents a promising opportunity for eligible individuals to support first-time homebuyers in a meaningful way. On the other hand, the simplified home office expense claim process is no longer available, and employees planning to deduct home office expenses will need to complete the T2200 form.
2023 also marks the beginning of rigorous tax enforcement on property flipping. Selling a property within two years of purchase can now trigger an audit and potentially higher taxes due to new rules Federally and in BC. However, there is a silver lining with the introduction of the MultiGenerational Home Renovation Tax Credit, which offers relief to those adding a suite for a parent.
For BC residents renting with a family income under $80,000, a new BC Renter’s Tax Credit awaits, aiming to ease the financial burden.
One crucial area of focus this tax season is the reporting of trusts, including bare trusts (read our post here). This pertains to accounts or assets listed in someone's name who is not the sole beneficiary owner. It is a complex area that requires our attention to ensure compliance and minimize risks. However, the reporting obligations for many under the Underused Housing Tax has significantly reduced for 2023 year due to changes (read our post here).
As we enter another demanding tax season, our commitment to navigating these changes together remains unwavering. Here's to a successful season ahead. See you soon.
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