Exact Tax & Accounting Solution Ltd

The capital gains tax inclusion rate – today and tomorrow
Today, only 50% of the capital gain is taxable (this is known as the capital gains tax inclusion rate). This means that $50,000 of the $100,000 earned from the sale of the cottage in our example is added as income for that tax year.

Here’s an example:

Your regular income, earned from your full-time job, is $75,000

You make a $100,000 profit from the sale of your cottage (after you pay real estate fees, closing costs, etc.)

50% of the profit is taxable, which means you add $50,000 to your income during the tax year in which you realized this capital gain

$75,000 + $50,000 = a total income for that tax year of $125,000

The amount of tax you ultimately pay in that year will depend on your tax bracket and its marginal tax rate.

If this budget is passed, the capital gains tax inclusion rate is set to change. The federal government’s 2024 budget proposes a few modifications to how capital gains are taxed. Here’s a rundown of the changes:

For all corporations and trusts, the capital gains tax inclusion rate will increase to 66.67% – up from 50%.

For individuals with gains over $250,000, the capital gains tax inclusion rate will increase to 66.67% – up from 50%.

For individuals with gains under $250,000, the capital gains tax inclusion rate will stay the same, 50%.

The taxman’s project on incorporated employees is in full swing Learn more.

The CCR is not available in the following provinces and territories
British Columbia
Northwest Territories
Nunavut
Quebec
Yukon

You are eligible for the CCR if all of the following conditions are met at the beginning of the payment month:

You are a resident of Canada in the month before the payment
You are a resident of an applicable CCR province on the first day of the payment month:
Alberta
Manitoba
New Brunswick
Newfoundland and Labrador
Nova Scotia
Ontario
Prince Edward Island
Saskatchewan

WELCOME TO CANADA
International students especially coming from India to Canada always have heard about this credit “Welcome to Canada” cash benefit – but there are a lot of misconceptions about it. In reality It does NOT exist and you will not able to find such a phrase or term on Canada Revenue Agency official website. In the recent days this question was raised by the most of my new International students (clients) which I had no clue and I decided to dig up the details.

The “Welcome to Canada” phrase comes from a Halton Hills, Ontario based accountant Samarjit Khaira who has many international students as clients. He came up with this term around 7 years ago, in an effort to encourage International students who were newcomers to Canada to file their first income-tax returns even though they weren’t yet employed here.

Most Canadians must file their tax return by April 30, which is also the deadline to make a payment for those who owe money to the government. Canadians who are self-employed, along with their spouses or common-law partners, have until June 15.

💡 Did you know that almost 93% of tax returns were filed online last year?

Why not try filing your tax return online?

There are so many benefits:

✔️ immediate confirmation that we received your return
❌ you don't have to send in receipts (unless we ask for them later)
💰 you could get your refund faster

Find out more 👉 https://ow.ly/ZbgS50QuZ7J

[Image description: Two people sit at a kitchen island. One is taking notes while the other works on an open laptop. The turquoise outline of a diamond shape frames their head.]

The government recently announced the 2024-25 amounts for the CCR.

Starting this April, a family of four will receive Canada Carbon Rebates of:

$1,800 in Alberta ($450 quarterly)
$1,200 in Manitoba ($300 quarterly)
$1,120 in Ontario ($280 quarterly)
$1,504 in Saskatchewan ($376 quarterly)
$760 in New Brunswick ($190 quarterly)
$824 in Nova Scotia ($206 quarterly)
$880 in Prince Edward Island ($220 quarterly)
$1,192 in Newfoundland and Labrador ($298 quarterly)

The Canada Carbon Rebate (CCR) (previously known as the Climate action incentive payment (CAIP)) is how the federal government returns the proceeds of carbon pollution pricing to families in provinces where the federal backstop system applies. The name was updated to the Canada Carbon Rebate to clarify its function and make its meaning and relationship to the carbon pricing system more intuitive for Canadians.

"May your heart be filled with love, your mind with peace, and your days with joy in the coming year."

HAPPY NEW YEAR 2024

Reduce your instalment interest and penalty charges
You can reduce or eliminate interest and penalties if you do one of the following:

# overpay your next instalment payment
# pay your next instalment early
This will allow you to earn instalment credit interest. This credit interest is not refundable and can only be used against any interest charges on insufficient or late payments for the same tax year.

Instalment interest

You will be charged instalment interest if all the following apply:

# You are required to pay by instalments in 2023
# You receive an instalment reminder in 2023 that shows an amount to pay
# You did not make any of your instalment payments, paid late, or paid less than what you had to pay
CRA charge instalment interest on all late or insufficient instalment payments. Instalment interest is compounded daily at the prescribed interest rate, which can change every three months.

FHSA:You can withdraw amounts from your RRSP under the HBP and make a qualifying withdrawal from your first home savings account (FHSA) for the same qualifying home, as long as you meet all of the conditions at the time of each withdrawal. For information about FHSA, go to First home savings account (FHSA).

HBP: The Home Buyers' Plan (HBP) is a program that allows you to withdraw from your registered retirement savings plans (RRSPs) to buy or build a qualifying home for yourself or for a specified disabled person. Currently the HBP withdrawal limit is $35,000.

There are millions of children that do not have the luxury to attend a school- but we can change that, starting with one child at a time.

Become a Sponsor (link in bio)

Home As a Sikh based charity, we believe in the oneness of humanity & work to provide a selfless service that does not discriminate.

🤔 Need to change an income tax and benefit return that you already filed?

💻 Don’t stress, you can do it online with:

➡️ Change my return in My Account; or
➡️ ReFILE.

Find out more ➡️ http://ow.ly/9qUR50OrshK

[Image description: A person types at a laptop in a brightly lit office. In the background, there’s another empty desk. The white outline of a diamond-shape frames their head.]

🖥️ Register for My Account to view and manage your tax and benefit information online! It’s:

⚡ fast;
👍 easy;
🔒 secure.

Get started today ➡️ http://ow.ly/tPBx50OraLB

[Image description: A smiling person looks at their dog. They are laying on their couch with a laptop in front of them. The teal outline of a diamond-shape frames their head.]

One of the world's most expensive cities just raised the minimum wage by 32 cents an hour — and it's getting absolutely slammed for it Hong Kong's minimum wage is now 40 Hong Kong dollars per hour — a 7% increase from 37.50 Hong Kong dollars previously.

"We will not contact you by text or instant message unless you request a one-time passcode for CRA sign-in services like My Account.

If you get any other texts claiming to be from us, it's a scam!

Learn more about what to expect from us at http://ow.ly/iAPf50NJhOr

[Image description: A blue text box placed over a blurred image of a smartphone on a teal background reads: "Urgent CRA: Notice of Assessment. Sign into your account to view here." Above it, a magnifying glass icon hovers over text that reads: "This is a scam."]

Tax-Free First-Home Savings Accounts Are Officially Launching In Canada — Here's How They Work Contributions are tax deductible.🤑

CRA to begin automatically filing tax returns for some 'vulnerable' Canadians next year The minister responsible for the Canada Revenue Agency says she would like the government to eventually file most Canadians’ taxes automatically as the agency prepares a pilot project to do just that for vulnerable Canadians. If you’re hoping that one day the CRA will automatically file your tax...

3 reasons why it’s worth filing your tax return even if you don't owe any money There are those who file their income taxes as soon as possible, and those who avoid it as long as possible, sometimes missing the deadline by months or even years. Some of my clients like to quickly file their returns because either they are expecting a refund, or they just want to get it out of th...

The biggest CRA-related scams to watch for this tax season While Canadians are preparing their tax returns, fraudsters are preparing their newest batch of scam messages, particularly those pretending to be from the Canada Revenue Agency (CRA). Scammers are also getting more sophisticated and utilizing all forms of communication to bombard Canadians, making....

What are the Alberta income tax brackets?

In Alberta, taxes will claim 10% of your first $131,220 in taxable income in the 2022 tax year. You'll pay 12% on income between $131,220 and $157,464, and 13% on income between $157,464 and $209,952. Income between $209,952 and $314,928 is taxed at 14%. Any income above that highest threshold is taxed at 15%.

For someone making $50,000 in taxable income, they'll pay:

0.10 x ($50,000)
This amounts to $5,000 in provincial income taxes.

What are the British Columbia income tax brackets?

In British Columbia, you'll be taxed 5.06% on the first $43,070 of taxable income. Then, you'll be taxed 7.7% on anything between $43,070 and $86,141. Anything between $86,141 and $98,901 is taxed at 10.5%, and anything between $98,901 and $120,094 is taxed at 12.29%. From $120,094 to $162,832 is taxed at 14.7%. Anything between $162,832 and $227,090 is taxed at 16.8%, and anything above $227,090 is taxed at 20.5%.

For someone making $50,000 in taxable income, they'll pay:

0.077 x ($50,000 - $43,070) +
0.0506 x $43,070
This amounts to approximately $2,713 in provincial income taxes.

8 Canada Tax Credits & Deductions That Could Help You Maximize Your Return In 2023 Who doesn't love a nice tax return?