With tax season just around corner, here are some tax facts to get the most out of your fillings. Like every year, there have been several updates to tax rules that might affect your bottom-line. Whether you’re a business owner, manage investments, or a tax-paying individual, the following tips can help you avoid unexpected surprises. Our experts at Rise CPA have compiled all the current personal tax laws you’ll need to file like a pro. Check out these notable tax changes and download the full free Quick Tax Facts 2022 document here.
Notable Tax Changes in 2021-2022
Taxable COVID-19 Subsidies
There are several government-supported programs applicable for the 2021 calendar year taxable in the year they were received. These subsidies include:
- The Canada Recovery Hiring Program (CRHP)
- The Canada Emergency Wage Subsidy (CEWS)
- The Canada Emergency Rent Subsidy (CERS)
- The Canada Recovery Sickness Benefit (CRSB)
- The Canada Recovery Caregiving Benefit (CRCB)
- The Canada Worker Lockdown Benefit (CWLB)
Inter-Generational Transfers of Wealth
On June 22, 2021, new legislation attempted to alleviate tax restrictions to those who sell their businesses to children or grandchildren. These new rules allow for preferential tax treatment on inter-generational transfers, including potentially utilizing capital gains exemptions on such transactions.
Business Equipment Rebates
Between April 2021 and September 2022, incorporated businesses may be eligible for a rebate on B.C. PST on selected equipment. This machinery must have been acquired between September 17, 2020, and March 31, 2022.
Small Business Deductions
After 2018, the small business deduction of $500,000 will be reduced if investment income between $50,000 and $150,00 is earned. The small business deduction is reduced to nil if the investment income exceeds $150,000 for the preceding taxation year.
RRSP and TFSA Contributions
The 2021 RRSP contribution limit of $27,830 is reached with earned income of $154,611. The 2021 TFSA contribution limit is $6,000. If no contributions have been made, the cumulative amount available is $75,000.
Your Business. New Heights.
Rise CPA provides professional accounting, tax and business advice to help you make the right decisions at the right time. Since 1979, we’ve been helping clients create businesses and lifestyles they envision by delivering expert insights and financial guidance. At Rise, we excel at advising business owners and their families in a caring and personal way. Our services cover a wide range of Tax Planning, Auditing, Accounting, Estate Planning, and Business Advisory. Please call (604) 936-4377 or use the online contact form to book an appointment with one of our accounting professionals.
