Tax Reminders & Updates
Explore this article for insightful tips on tax and income strategies, along with other valuable tax-related advice to maximize your financial well-being.
Godfrey Yu, CPA, CGA, CFP, CIM, TEP, CIWM
Relationship Manager and Wealth Planner
We encourage you to reach out to our team if you have any financial planning questions.
Below are some savings and income strategies to optimize your finances, including key dates for RRSP contributions, TFSA limits, and retirement income planning. Additionally, we highlight important changes to trust reporting, the introduction of new tax credits, and modifications to existing tax credits
RRSP Contribution Deadline
The RRSP contribution deadline is February 29, 2024. You can also contribute to your RRSP at any point during the year, plus the first 60 days of the following year. We can help you setup one time or automatic contributions. Ask us how.
TFSA Contributions
The annual TFSA dollar limit for 2024 is $7,000; with a maximum cumulative limit based on your age as noted in the chart. We can help you setup one time or automatic contributions. Ask us how.
Retirement Income Strategy: A little planning goes a long way
New Trust Reporting Requirements
New reporting requirement for trustees of a trust including bare trust – whether it’s formal and informal, a trust exists where a person (trustee) holds legal title to property for the benefit of another person (beneficiary): You could be subject to the new trust filing requirement if you hold a trust whether intentionally: an informal trust for children, or “unintentionally” - simply holding an account joint with your children where you continue to be the sole beneficiary of the assets. It’s good to bring up to your accountant if you have such accounts.
Home Office Deductions
With the pandemic mostly behind us, the government has discontinued the flat rate method used to claim for expenses related to working from home for the 2023 tax year. To claim deductions for home office expenses, individuals are now required to file with the T2200 form. Visit the CRA website to learn more
Multigenerational Home Renovation Tax Credit
This renovation tax credit could provide a valuable refundable credit for eligible expenses related to certain qualifying renovations to create a self-contained secondary unit for an individual to reside with a relation. Your could claim up to $50,000 in expenditures for each qualifying renovation that is completed. The tax credit is 15% of the costs, up to a maximum of $7,500, for each eligible claim. Visit the CRA website to learn more
Home Vacancy Declaration
Owners of properties in Toronto are required to declare the occupancy status of their property every year. For the 2023 tax year, the deadline is Feb.29.2024. Please visit the link to find out more and for declaration: Vacant Home Tax – City of Toronto
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