Tax News 

2024 New Federal Capital Gains Tax Calculator 

In the 2024 Federal Budget, Canada introduced a significant change in capital gains taxation, increasing the inclusion rate from one-half to two-thirds for certain capital gains realized after June 25, 2024. This adjustment impacts the taxable portion of capital gains, particularly affecting corporations and trusts, and individuals with annual gains exceeding $250,000. The new policy maintains the one-half rate for individual gains below this threshold.

The delayed implementation until June 25 offers taxpayers a strategic period to manage their investments. Many may choose to realize their capital gains early to avoid higher taxes. This is especially relevant for assets likely to appreciate, such as real estate (excluding primary residences) and business shares.

This change challenges the Tax Act’s integration principle, which strives for tax neutrality whether income is earned directly or through a corporation. The new, higher rate for certain gains disrupts this balance, potentially leading to different tax burdens for corporations versus individuals.

What Is The First Home Savings Account(FHSA)?

Overview of FHSA

FHSA Rules and Eligibility

Opening and Managing an FHSA

Withdrawals from FHSA

Investment Options and Alternatives

Other Canadian Home Buyer Incentives

This analysis encapsulates the FHSA's intent, operational rules, benefits, and its interplay with other Canadian home-buying incentives, providing a comprehensive guide for potential first-time homebuyers.

Government of Canada extends deadline for homeowners 

to file their Underused Housing Tax return

From: Canada Revenue Agency

October 31, 2023/Ottawa, Ontario

The Minister of National Revenue announces that owners affected by the Underused Housing Tax (UHT) will have until April 30, 2024, to file their returns for the 2022 calendar year without being charged penalties or interest. 

This transitional relief will allow more affected owners to meet their obligations under this new law, which is part of the Government’s long-term plan to increase available housing for Canadians. Consequently, the Canada Revenue Agency will waive the application of penalties and interest for any late-filed UHT returns and for any late-paid UHT payable for the 2022 calendar year, provided the return is filed and the UHT is paid by April 30, 2024.

"The Underused Housing Tax is one part of our plan to combat the housing shortage,” says the Honourable Marie-Claude Bibeau, Minister of National Revenue. “We understand that many homeowners may not be aware that they are subject to this new law. This is why I want to ensure that every effort has been made to inform homeowners and help them meet their obligations.” 

The UHT is an annual 1% tax on the ownership of vacant or underused housing in Canada. It is a federal tax that is independent of other provincial and municipal taxes on vacant or underused housing in Canada. It generally applies to foreign national owners of Canadian residential property, but it’s important to note that some Canadian individuals (namely those who own residential property as a partner of a partnership or as a trustee of a trust) and some Canadian corporations may also have to file a UHT return, even if they qualify for an exemption from paying the tax. These owners are referred to as “affected owners”. 

The vast majority of Canadian individuals who own residential property are excluded owners and, therefore, do not have to file a UHT return or pay the tax. It is the duty of the owner of Canadian residential property to determine if they are an affected or excluded owner. 

How to determine if you are an “affected owner”

The CRA has published a new online self-assessment tool. This tool helps you to find information you need to determine if you:

If you’re an affected owner of residential property in Canada, you must file a separate UHT return by April 30, 2024, for each property you owned on December 31 of the 2022 and 2023 calendar years to avoid penalties and interest.

Filing the Underused Housing Tax return

The fastest and easiest way to file your UHT return is through My Account and My Business Account

If you are not registered for the CRA’s online portals, you can file your UHT return electronically, but you will need:

You can also file your return by mail or fax. Visit our File the return page to find out more.

More information

To learn more about the Underused Housing Tax, visit

For more information that can save you time, we encourage you to visit UHTN15, Questions and Answers on the Underused Housing Tax -

RRSP Contribution Limit for 2023/2024/2025

The RRSP contribution limit for the 2023 taxation year is 18% of the earned income you reported on your tax return in the previous year, with a maximum cap of $30,780.

For the 2024 taxation year, the RRSP contribution limit will increase to a maximum of $31,560, and for the 2025 taxation year, it will be $32,490.

Any unused RRSP contribution room can be carried forward for use in subsequent years, up until the age of 71, after which you are no longer eligible to maintain an RRSP account.

Contributions made during the first 60 days of 2024 can be claimed as deductions from income for the 2023 taxation year. The deadline for 2023 contributions is Thursday, February 29, 2024.

Any RRSP contributions received after February 29, 2024, will not qualify for deduction in the 2023 taxation year.