Time is Running Out for First-Time Home Buyers to Save in 2024

Owning a home, once almost considered a right of Canadian citizenship, has become a more distant dream for millions. The high cost of housing, coupled with a desperate shortage of supply, has turned the notion of home ownership into a near impossibility for many Canadians and those who have arrived in our country more recently.  The Tax-Free First Home Savings Account (FHSA) can help but it’s important to open an account before December 31, 2024 to create and preserve the contribution room.

In March, we asked our Knowledge Bureau Report readers to share why they subscribe to our weekly breaking tax and financial news. The feedback is in:  not only is it an invaluable resource for tax, accounting and financial professionals in their own practice, it helps create more informed and empowered taxpayers. Check out their comments, and we invite you to take this opportunity to share the subscription with your clients.

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Did you know that the moving expenses deduction has been around since the 1972 taxation year?  It was one of the original provisions of the Budget 1971 – which introduced the last major tax reform in Canada.  It was originally intended to recognize the expenses incurred in moving to a new job or educational institute to study and since has been extended to include moves to new locations for self employment purposes as well.  About 85,000 people claimed this deduction based on most recent statistics and it is quite lucrative.  Here’s what’s claimable:

I have heard and seen a lot of funny things on planes, trains and other modes of transportation, but a memorable episode recounted by a fellow traveller involved an emotional support turkey firmly grasped by its owner who was afraid of flying. It reminds me of a question I often get:  can I claim  my fur-baby on my tax return.  In some cases, the answer is yes.

Some might think this is too good to be true:  the realized capital gain on some financial assets is not subject to regular income tax if the security is transferred to a charity.  That’s right, the gain is avoided entirely. . .almost.  Here is what you need to know to make a social impact throughout the tax year, and reap impressive tax benefits too.

The final repayment deadline for outstanding CEBA loans is today, March 28.  This is the last opportunity to preserve any of the up to $20,000 in loan forgiveness.  Those business owners who failed to arrange financing for repayment must pay up the entire loan plus interest.  Will that push more businesses to close?  If so, it would add to the over 2200 business which closed their doors in December of 2023, for a total of 8 months of active business closures in 2023, according to Statistics Canada.  Check out the provincial trends: