First Home Savings Account - This new registered plan would give prospective first-time home buyers the ability to save $40,000 on a tax-free basis. Like a RRSP, contributions would be tax-deductible, and like a TFSA, withdrawals to purchase a first home would be non-taxable. The government expects that Canadians will be able to open and contribute to an FHSA at some point in 2023. No matter when this happens in 2023, Canadians would be allowed to contribute the full $8,000 annual limit in that year. If you are interested, reach out to your financial institution for information on setting up an account.
Residential Property Flipping - This new measure became law on December 15, 2022, and introduces considerations for Canadians who are thinking about selling their residential real estate. Specifically, the sale of residential property that the owner has held for fewer than 12 months will be considered flipping and the profits from the sale will be taxed as business income. It will apply to residential properties (including rental properties) sold on or after January 1, 2023.
Multigenerational Home Renovation Tax Credit - This new tax credit provides relief on up to $50,000 of eligible expenses to construct a secondary suite for a senior or person with a disability to live with a relative, effective January 1, 2023. Hang on to your renovation receipts!
Quick Assignment Sales - Profits from an assignment sale would be business income if the rights to purchase the property were assigned less than 12 months after their acquisition unless a particular exception is met. This provision would apply in respect of transactions occurring on or after January 1, 2023.
Flow-Through Shares for Oil, Gas & Coal - Such expenditures are not permitted to be renounced to share purchasers under flow-through share agreements entered into after March 31, 2023.