Investigative Tax Prep:  Top Ten Changes to Probe

Tax season 2025 has started with a focus on the increased income levels some taxpayers may report due to proposed changes in capital gains tax laws.  But aside from this there are new questions to probe with clients to ensure the family’s tax returns are filed to their very best benefit, given change in their life and financial events as well.  Here are top 10 queries to add to your interview checklist:

Canadians of working age who live in poverty because of a disability have been awaiting the Canada Disability Benefit since 2020.  The Canada Disability Benefit Act was passed into law on June 22, 2023 and the next step to income is a consultation period that ends December 21. The eight topics are the government wants to know more about describes what’s in the legislation and provides an overview of what disabled people and their families can expect from the benefit.

All the updated knowledge and resources a professional personal tax specialist needs plus expert instruction is what the Knowledge Bureau’s Advanced T1 Tax Update is about,  and it’s coming your way in one of three delivery choices:  a national virtual event on January 17, 2024 or two in-person events:  January 24 at the Pearson Convention Centre in Toronto or January 26 at the Sandman Airport Hotel in Calgary.  Registration is required by December 15 for receipt of all five components of this comprehensive experience including a hard copy desk top reference and Evergreen Explanatory Notes, which you’ll cherish throughout tax season:

The Underused Housing Tax has been making headlines, most recently with the last-minute decision on October 31 to extend the filing deadline to April 30, 2024. It’s a move that 85% of tax and financial advisors said they agreed with in responding to our November poll question. However, it’s a nuanced issue that was addressed in many insightful comments. Check them out!

The federal government wants to accelerate the supply of long term residential housing and one way they intend to do this is to “crack down” on non-compliant short term rental owners and deny their income tax deductions when filing a tax return, starting January 1, 2024, according to proposals in the Fall Economic Statement released November 21, 2023.  What exactly will this mean in practice for taxpayers and their advisors in 2023; will it actually work to meet goals, and how will this affect the integrity of the tax system overall?

Amongst the many tax changes coming for the 2024 tax year is the fact that the federal government has now confirmed an indexing factor of 4.7% on most non-refundable tax credits, tax brackets and income-tested earnings levels for the purposes of refundable tax credits. That announcement will also affect some investments, like the room available for TFSA contributions. But there are more important changes to know about.  Here is a synopsis:

Cash strapped? At year end, it’s always important to review prior filed or omitted returns to make sure all the tax refunds, credit and benefits all the taxpayers in a family are entitled have been claimed.  But there are some specific rules to take note of.  Check them out here: