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.

Artificial Intelligence, climate crisis, tax reporting changes, economic uncertainty, decade high interest rates and inflation, and a looming cost of living crisis…there is no denying the fact that uncertainty and a lot of emotions were at play throughout 2023, where many Real Wealth Management lifestyle, financial, and economic triggers jeopardized our client’s wealth sustainability.  Please join us to hear more about the current Real Wealth Management Triggers that may be impacting your client’s holistic real wealth management plan today at our 360° Real Wealth Management Trigger Tour on February 8 at 10 am CST.

Did you miss the January 17 Virtual CE Summit? There are still ways to get your hands on the knowledge from the Advanced 2024 T1 Tax Update for 2023 Returns and learn your way, at your own pace from the convenience of your home or office.

The EFILE and ReFile services at CRA will officially close for transmission on January 26, 2024 as CRA gets its computers ready to receive 2023 tax returns.  However, records have already been broken in the tax filing world in 2024.  For the first time, over 32 million tax returns were filed with CRA in the period February 6, 2023 to January 5, 2024.  Only 7.7% of these returns were filed on paper, and 0.2% by phone under the File My Return option.  Here are some first glimpses at tax compliance, filing and investment milestones that take effect in January; the start to a tax season, which promises to break tax filing records again, especially because EFILE rules have changed:

Tax filing isn’t required by everyone, but, for very good reasons, every adult in Canada should file a T1 tax return.  Most people will file a tax return to get their tax refunds – an average of $2,260 last tax year.  Even those with no income should do it to tap into refundable tax credits and reserve important investment room in various tax-preferred accounts. Some minors with actively earned income should do it too to preserve RRSP room.   But who absolutely must file?  You may be surprised, especially if you are behind a year or two.  Check it out: 

Most people will have received – or are about to receive – their first pay of 2024 and there will be some changes to note.  In particular, the Canada Pension Plan premiums have increased and that is becoming the subject of some controversy of late.  Is this really the right time to burden taxpayers and small business owners with these extra taxes, or is it time to take a pause?  The Employment Insurance (EI) premiums have also risen and some tax free benefits and tax provisions that were available through COVID have ended. The T4 slips are due on February 29 with some new information require on group dental plans as well.  Overall, payroll clerks may find they need to sharpen up their skills to explain well.

While Albertans are paying 9 cents more at the pumps after their gas tax was reintroduced after a two year pause from a 13 cent tax, Manitobans began to enjoy a 14 cents per litre gas tax holiday in January, which over 6 months will provide a household with 2 cars about $250 in savings and combined savings to individuals, business and municipalities are projected to be $163 Million.  That’s a nice boost into the economy which is projected to feature a 2% inflation rate.   But, will this filter down into consumer advantages at a retail level?  Possibly.