Donation Deadline Draws Near

There is still time to give and save money: mark your calendar for February 28.  That is the deadline date to make cash, cheque, money order donations  to your favorite charity and claim the deduction on your 2024 tax return.

Get ready for the Acuity Conference for Distinguished Advisors experience in Puerto Vallarta, November 23-26, 2025 where we’ll be gathering for 4 days of mornings in session, afternoons in the sun, and fun and fiesta at night! We’re pleased to announce our official conference venue: the Sheraton Buganvilias Resort and Convention Centre. This is an All Inclusive resort experience at exclusive prices for KB Delegates. Check out the details and register for the conference now and you'll receive access to book your hotel room! Team member and group rates available.

There have been recent changes in the mechanics of how trusts function, including the Graduated Rate Estate (GRE) rules along with new rules in regard to which trusts are required to file a return every year regardless of whether or not there is income to be reported for trusts with taxation years ending after December 30, 2023. The deadline for filing those return is no later than 90 days after the trust's tax year-end. This is generally December 31. Therefore, trusts with a December 31, 2024, must file a T3 by March 31, 2025.

Taxpayers who own a residential property and rent it out must be aware that income reporting is required in most cases.  Further if the rental was for periods of less than 90 days, expenses to offset that income could be restricted.  These Short Term Rental (STR) rules are new for the 2024 tax year.  Here’s what you need to know based on recent directives from Finance Canada and the CRA, which includes a brief reprieve for some STR owners in 2024:

The federal government has introduced legislation to disallow the claiming of all expenses against rental income produced through non-compliant short-term rental ventures as of January 1, 2024. This applies to those who earn income through short-term rental platforms like Airbnb or VRBO. How can taxpayers ensure their short-term rentals become and remain compliant?  This is important because of the vast new audit powers CRA has in this regard. 

Writing off interest costs in the 2024 tax year?  Consider the implications of recent jurisprudence and the New General Anti Avoidance Rules in structuring plans to ensure interest expenses are deductible, especially if it involves a family home.   What’s important is that the object, spirit and intent of the law is followed.

One week until Rookie Tax Training School focused on families, employees and investors. This half day event drills down on key tax filing tips and traps for tax season 2025 and will take a detailed look at the tax forms, including late form releases from CRA, and is ideal for anyone new to personal tax filing and especially valuable for career development in the tax preparation, public accounting or financial services industries. Register now and upskill your team for the upcoming tax season. Your tuition includes access to Canada’s Income Tax Fundamentals Course.