Tax Tips 2022

Tax Tips 2022

Time flys by so quickly, hard to belive 2022 will soon be with us. Here is some quick tips to help us going forward. ~ Tim

 

https://www.advisor.ca/tax/tax-news/essential-tax-numbers-updated-for-2022/

 

This article was updated on Dec. 8, 2021, to include 2022 numbers.

You have a lot to remember as an advisor, so we’ve assembled this reference list of tax numbers. We’ll update it as things change.

Working clients


Maximum RRSP contribution: The maximum contribution for 2022 is $29,210; for 2021, it’s $27,830. The 2023 limit is $30,780.


TFSA limit: In 2022, the annual limit is $6,000, for a total of $81,500 for someone who has never contributed and has been eligible for the TFSA since its introduction in 2009. The annual limit for 2021 is also $6,000, for a total of $75,500 in room available in 2021 for someone who has been eligible since 2009.


Maximum pensionable earnings: For 2022, the maximum pensionable earnings amount is $64,900 (up from $61,600 in 2021), and the basic exemption amount remains $3,500 for 2021 and 2022.


Maximum EI insurable earnings: The maximum annual insurable earnings (federal) for 2022 is $60,300, up from $56,300 in 2021.


Lifetime capital gains exemption: The lifetime capital gains exemption is $913,630 in 2022, up from $892,218 in 2021.


Low-interest loans: The current family loan rate is 1%.


Home buyers’ amount: Did your client buy a home? He or she may be able to claim up to $5,000 of the purchase cost, and get a non-refundable tax credit of up to $750.


Medical expenses threshold: For the 2022 tax year, the maximum is 3% of net income or $2,479, whichever is less. For 2021, the max is 3% or $2,421.


Basic personal amount: The basic personal amount for 2022 is $14,398 for taxpayers with net income of $155,625 or less. At income levels above $155,625, the basic personal amount is gradually clawed back until it reaches $12,719 for net income of $221,708. The basic personal amount for 2021 ranges from $12,421 to $13,808.


Older clients


Age amount: Clients can claim this amount if they were 65 years of age or older on Dec. 31 of the taxation year. The maximum amount they can claim in 2022 is $7,898, up from $7,713 in 2021.


OAS recovery threshold: If your client’s net world income exceeds $81,761 in 2022 or $79,845 in 2021, he or she may have to repay part of or the entire OAS pension.

Clients with children, dependants


Canada caregiver credit: If you have a dependant under the age of 18 who’s physically or mentally impaired, you may be able to claim up to an additional $2,350 in 2022 and $2,295 for 2021 in calculating certain non-refundable tax credits. For infirm dependants 18 or older, the amount for 2022 is $7,525 and the 2021 amount is $7,348.


Disability amount: The amount for 2022 is $8,870 (non-refundable credit; $8,662 in 2021), with a supplement up to $5,174 for those under 18 (the amount is reduced if child care expenses are claimed; $5,053 in 2021).


Child disability benefit: The child disability benefit is a tax-free benefit of up to $2,985 (2022) for families who care for a child under 18 with a severe and prolonged impairment in physical or mental functions. For 2021, the amount is $2,915.


Canada child benefit: In 2022, the maximum CCB benefit is $6,997 per child under six and up to $5,903 per child aged six through 17. In 2020, those amounts are $6,833 per child under six and up to $5,765 per child aged six through 17.

E-mail me when people leave their comments –

You need to be a member of Brock Shores Financial #ImprovingFutures to add comments!

Join Brock Shores Financial #ImprovingFutures

Comments

  •  

     

    Noah Sarna
    Noah Sarna• 2ndCommodity Tax Partner at Thorsteinssons Tax Lawyers
    1d • Edited • 1 day ago
    Follow

    The more fact patterns you throw at the new Underused Housing Tax (UHT), the more you see outcomes that don’t seem to add up.

    Consider, for instance, how homes owned through a trust can fall outside the exemptions and be subject to the tax without a policy justification.

    Taking a step back, the UHT is fundamentally a tax on certain registered owners. But despite the name of the tax, and unlike other vacancy or underuse taxes, there is no broad exemption based on full use or occupancy. At least not necessarily where the registered owner is a trustee, and especially not where the owner is a corporate trustee.

    Let’s turn to the exemption for homes owned by foreigners but used as a “primary place of residence”.

    Generally, the UHT legislation relieves the tax where a home is occupied by the child of the owner as their most important place of living for the purpose of attending an institution of higher learning in Canada.

    Unfortunately, the exempting provision (s. 6(8)) says that the registered owner must be “an individual” for the exemption to apply.

    This means that the relief is unavailable if the registered owner is, for instance, a corporate bare trustee, or an individual trustee who essentially is not the parent or step-parent of the student.

    Does the presence of a trustee on title change whether the home is "underused"? Does it mean there is some other policy reason for the tax to apply?

    Of course not. It's just lazy drafting. Despite the broad reach of the tax, there was just not enough time or effort put into certain finer points.

    (By the same token, a home owned by a foreign grandparent, aunt or uncle but fully occupied by the student will also fall outside the exemption.)

    The takeaway for tax professionals: be on guard. As we keep learning, the tax is often not what it seems.

    #underusedhousingtax Hugh Neilson FCPA FCA TEP Joseph Devaney CPA, CA John Oakey
    Activate to view larger image,
    text, letter
    Activate to view larger image,

  • Underused Housing Tax – Quick Reference Chart


    Updated chart released on February 1, 2023.*

    The newly introduced Underused Housing Tax (UHT) imposes a 1% annual tax on the value of residential real estate considered to be vacant or underused that is owned on December 31 of each year. While the government indicated that the tax would target property owned by non-Canadians, the scope of filing requirements extends to many Canadian corporations and individuals, including CCPCs, trustees of a trust and partners of a partnership. The first filings and taxes are due by May 1, 2023. Penalties for failure to file the return (even where no tax is payable) start at $5,000 for individuals and $10,000 for corporations.

    To assist you in navigating these new filing requirements and tax liabilities, Video Tax News has prepared a Quick Reference Chart incorporating legislation and CRA commentary as of January 17, 2023. The specific legislation, regulations and CRA administrative policy should be reviewed for a complete and detailed understanding.

    Please note: This Quick Reference Chart is for accounting and financial professionals. Video Tax News does not provide consulting services. Please contact your accountant or other advisor for specific questions on the UHT legislation.

    Due to the novel and evolving nature of this tax, minor changes might be made to the chart, as necessary, to adjust references, resources, or commentary.

    *Updates to February 1, 2023 Quick Reference Chart: link to Form UHT-2900 added and exemption 3B updated.

    Underused Housing Tax – Quick Reference Chart | Video Tax News
    Updated chart released on February 1, 2023.* The newly introduced Underused Housing Tax (UHT) imposes a 1% annual tax on the value
  • https://www.videotax.com/web-tips-articles/underused-housing-tax-qu...

    Underused Housing Tax – Quick Reference Chart | Video Tax News
    Updated chart released on February 1, 2023.* The newly introduced Underused Housing Tax (UHT) imposes a 1% annual tax on the value
  • https://www.kiva.org/lender/omegastewardship

    Lender > Timothy Ross , FA from Tincap,Elizabethtown,Brockville,Leeds Grenville, Ontario, Canada |…
    Timothy Ross , FA from Tincap,Elizabethtown,Brockville,Leeds Grenville, Ontario, Canada has made 294 loans on Kiva.
  • https://www.advisor.ca/tax/tax-news/essential-tax-numbers-updated-f...

    Essential tax numbers: updated for 2022
    Use this handy list of tax numbers as a quick reference
This reply was deleted.