New federal Anti-Flipping Rule in Canada aims to address real estate speculation
On December 15, 2022, Bill C-32 received Royal Assent and became law. Bill C-32, which will take effect on January 1, 2023, includes a new federal Anti-Flipping Rule. The new Anti-Flipping Rule aims to address speculation in real estate transactions. Under the rule, if a property is sold for a profit after being held for less than 365 days, the profit will be treated as Business Income rather than Capital Gain. Business Income is subject to a higher tax rate than Capital Gain, with 100% of the Business Income being included in the current year's taxable income compared to only 50% of the Capital Gain. Additionally, the principal residence exemption will not apply to the sale of a property held for less than 365 days, meaning that even if the property was used as a primary residence before the sale, the appreciation would be treated as Business Income.
Tax Changes and New Rules to Be Aware of in 2023
As we start the new year of 2023, we say goodbye to the epidemic for good but begin a new year full of uncertainty accompanied by high-interest rates and high inflation. To help individuals and businesses plan their finances, it is helpful to review any changes in taxation for the coming year. It is recommended to seek the advice of an accountant or reliable sources for the most current and accurate information.
Federal foreign buyers ban coming in January 1st, 2023
As of January 1, 2023, foreign nationals will be banned from purchasing residential properties in Canada. The federal government has announced a series of exemptions to this rule, including exemptions for international students and work permit holders who meet certain conditions and intend to reside in Canada long-term. The specific details of these exemptions are as follows:
2023 Automobile Deduction Limits and Expense Benefit Rates for Businesses
On December 16, 2022, The Department of Finance Canada announced the automobile income tax deduction limits and expense benefit rates that will apply in 2023.
Common Tax Deductions for Self-employed or Small Business Owners
As a self-employed or small business owner, you may be eligible to deduct a range of business expenses from your taxable income. This can help you reduce your tax bill and keep more of the money you earn. The Income Tax Act provides guidelines for what expenses are deductible, but in general, any expense that is necessary to run your business is likely to be deductible.
Is Your Moving Expense Tax Deductible?
Canadians can deduct certain moving expenses on their tax return. But not everyone can claim moving expenses and not all expenses are eligible moving expenses.
Toronto Vacant Home Tax: Everything you must know as Toronto homeowner
The City of Toronto recently announced the rules for the implementation of the Vacant Home Tax. Effective January 1, 2023, all residential property owners in Toronto will be required to submit a declaration of the occupancy status of their property for the previous year. The deadline for declaring the 2022 occupancy status of a property is February 2, 2023. The online declaration platform will open in mid-December 2022. An annual tax will be levied on vacant residences in Toronto, payable beginning in 2023.
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