<![CDATA[Kevin K. Yip, Inc.

<![CDATA[Kevin K. Yip, Inc. - Blog]]>Sat, 11 May 2024 22:29:57 -0700Weebly<![CDATA[2023 Tax News]]>Thu, 14 Dec 2023 01:59:42 GMThttp://kyipcpa.com/blog/2023-tax-newsWe've provided the 2023 tax news on our Christmas letter and resources, but we're putting them right here for you as well. Make sure to take a close look to see if any of them apply to you. We’ve added the sources for where we found the information, so you can take a closer look at issues you’re interested in.

Effective January 1, 2023, a person who sells a property that has been held for less than 12 months would be subject to full taxation on their profit as business income. Exceptions will be made for those with certain life circumstances, such as a death in the family, disability, divorce, or change in employment. Where this new rule applies, the principal residence exemption will not be available. (1)

Starting in 2023, there will be a new 15% refundable multigenerational home renovation tax credit (for up to $50,000 in eligible expenses for a qualified renovation) which provides up to $7,500 in support for constructing a secondary suite for a senior or an adult with a disability. (2)

A new tax-free first home savings account (FHSA) will allow certain taxpayers to contribute up to $8,000 per year, up to a lifetime maximum of $40,000 starting in April 2023. The balance will need to be used within 15 years of the account opening. (3)

There is a new trust reporting requirement for trusts with tax years ending on December 31, 2023, and onward. You’ll be required to file a tax return for bare trusts under these new reporting rules. (4)

Employment deduction for tradespeople’s tools increased from $500 to $1,000. (5)

RESP can now withdraw up to $8,000 for the first 13 consecutive weeks of enrollment for beneficiaries enrolled in full time programs and up to $4,000 per 13 weeks for part-time programs starting March 28, 2023. (6)

Interactive digital media tax credit is extended to August 31, 2028. (7)

Alternative Minimum Tax rate increased to 20.5% and exemption from 40K to 173K. (8&9)

New refundable renter’s tax credit for BC residents: effective Jan 1, 2023. Households with adjusted income of up to $60,000 that rent from unrelated persons for at least six months in a calendar year can claim the maximum amount of $400 per year. (10)

Canada Revenue Agency now requires taxpayers to remit tax payments over $10,000 electronically or pay a penalty of $100 per payment. (11)

If you have children under 12 years of age, your adjusted family net income is under $90,000, and you have no private insurance, you may apply for the Children’s Dental Benefit for up to $650. (12)

The second additional CPP contributions will begin January 1, 2024 for individuals who earn more than $68,500. These CPP contributions will apply to the portion of income from $68,500 to $73,200. (13)

The Federal government intends to deny income tax deductions for expenses incurred on or after January 1, 2024 with the purpose of earning short-term rental income, specifically when short-term rental operators are not compliant with the applicable provincial or municipal licensing, permitting or registration requirements. (14)

Sources:

]]><![CDATA[Introducing our New blog!]]>Wed, 13 Dec 2023 20:06:29 GMThttp://kyipcpa.com/blog/introducing-our-new-blogWelcome to Kevin K. Yip, Inc.’s blog!

This new feature has been set-up to better update our customers about both events happening within our company and relevant Canadian tax news.

You can expect posts about changes in procedures or software, links and instructional videos, and references to new legislation from the government which may affect you.

Make sure to check this out regularly to keep informed, particularly during tax season when we're sure to update more frequently.

For now, we'll like to wish you all a very Merry Christmas and a Happy New Year!]]>