Affordable Tax Filing and Accounting Solutions

Deduction for tools (tradespersons and apprentice mechanics) – Starting in 2023, the maximum employment deduction for tradespersons’ eligible tools has increased from $500 to $1,000. As a result, the threshold for expenses eligible for the apprentice mechanics tools deduction has also changed.

Federal, provincial, and territorial COVID-19 benefit repayments – Federal, provincial, and territorial COVID-19 benefit repayments made in 2023, can be claimed as a deduction on line 23200 of your 2023 return.

First Home Saving Account (FHSA) – The FHSA is a new registered plan to help qualified individuals to save to buy or build a qualifying home. Starting April 1, 2023, contributions to an FHSA are generally deductible and qualifying withdrawals made from an FHSA to buy or build a qualifying home are tax-free. Notices of assessment will also include a table similar to the RRSP table for the FHSA balances where applicable.

Multigenerational home renovation tax credit (MHRTC) – The MHRTC is a new refundable tax credit that allows an eligible individual to claim certain renovation costs to create a secondary unit within an eligible dwelling so that a qualifying individual (a senior or an adult who is eligible for the disability tax credit) can reside with their qualifying relation. If eligible, you can claim up to $50,000 in qualifying expenditures for each qualifying renovation completed, up to a maximum credit of $7,500 for each claim you are eligible to make.

Home office expenses for employees – The temporary flat rate method used to claim a deduction for home office expenses does not apply to 2023. Therefore, eligible employees looking to claim a deduction for home office expenses for 2023 will be required to use the detailed method and get a completed Form T2200, Declaration of Conditions of Employment, signed by their employer.

Residential Property Flipping Rule – Starting January 1, 2023, any gain from the disposition of a housing unit (including a rental property) located in Canada, or a right to acquire a housing unit located in Canada, that you owned or held for less than 365 consecutive days before its disposition is deemed to be business income and not a capital gain, unless the property was already considered inventory of the taxpayer or the disposition occurred due to, or in anticipation of, certain life events.