Alternative minimum tax (AMT) – Changes to the AMT calculation he been introduced for 2024 and later tax years. These changes include an increase to the minimum tax rate and the basic exemption threshold. There are also changes to the calculation of adjusted taxable income for AMT purposes, the special foreign tax credit, and the minimum tax carryover. The changes limit the value of most non-refundable tax credits.
Capital gains – The Department of Finance recently announced that it will introduce legislation in Parliament in due course, related to the capital gains inclusion rate change with a new effective date of January 1, 2026. The announcement confirmed the government’s intention that, effective for dispositions that occur on or after January 1, 2026, the inclusion rate will increase from one-half to two-thirds on capital gains realized in excess of $250,000 annually for individuals and on all capital gains realized by corporations and most types of trusts. The CRA will grant relief in respect of late-filing penalties and interest until June 2, 2025, for Individual filers and until May 1, 2025, for Trust filers to provide additional time for taxpayers reporting capital gains to meet their tax filing obligations.
Home Buyers' Plan (HBP) withdrawals – The HBP withdrawal limit has increased from $35,000 to $60,000 for withdrawals made after April 16, 2024. Temporary repayment relief was also introduced to defer the start of the 15-year repayment period by an additional three years for participants making a first withdrawal between January 1, 2022, and December 31, 2025. Accordingly, the 15-year repayment period will start in the fifth year following the year that the first withdrawal was made.
Reporting rules for digital platform operators – Starting with the 2024 calendar year, reporting platform operators are now required to collect and report information on sellers using their platform to sell goods or provide certain services, such as the rental of real or immovable property. If you are a reportable seller, your reporting platform operator will provide you with an annual copy of the information that is collected and reported to the CRA under these rules by January 31, 2025, to help you file your taxes.
Short-term rentals – Starting January 1, 2024, if you owned, at any time, a non-compliant short-term rental you can no longer deduct the non-compliant amount. The non-compliant amount is a pro rata amount of the expenses related to a short-term rental that doesn’t comply with provincial or municipal restrictions. See the CRA webpage Changes to rules for eligible deductions from short-term rental income for more information.
Volunteer firefighters' amount (VFA) and search and rescue volunteers' amount (SRVA) – The VFA and SRVA he increased from $3,000 to $6,000. Eligible individuals who performed at least 200 hours of combined eligible volunteer service during the year can claim one of these amounts.
For a full list of what’s new this tax season, go to What's new for 2024.