Tax Info

New - Underused Housing Tax (UHT)

The Canada Revenue Agency (CRA) understands that there are unique challenges for affected owners in the first year of the Underused Housing Tax Act (UHTA) administration.

To provide more time for affected owners to take necessary actions to comply, the Minister of National Revenue is providing transitional relief to affected owners. The application of penalties and interest under the UHTA for the 2022 calendar year will be waived for any late-filed underused housing tax (UHT) return and for any late-paid UHT payable, provided the return is filed or the UHT is paid by April 30, 2024.

Penalties and interest were previously waived until October 31, 2023, but this has been extended to April 30, 2024.

If the taxpayer has elected to use the fair market value (FMV) for a residential property, for 2022 calculation, the FMV must have been established between January 1, 2022, and April 30, 2023.

The due date to file your return, make any elections, and pay amounts you owe is April 30 of the following calendar year.

New Trust Reporting Requirements for T3 returns filed for tax years ending after December 30, 2023

The rules governing which trusts must file an annual T3 Trust Income Tax and Information Return ("T3 Return") have been changed for trusts with a taxation year ending after December 30, 2023. Specifically, all trusts, unless specific conditions are met, must now provide a T3 Return including additional beneficial ownership information on an annual basis. Additionally, bare trusts may now be required to file an annual T3 Return. As a result, many trusts that did not previously have to file are now required to file an annual T3 Return.

Documentation Requirements for Personal Tax Returns

Many of our clients have experienced delays in the processing and assessment of their tax returns due to the information required to claim certain tax deductions and credits. We have listed below the more troublesome amounts:

Home office expenses -  Flat rate method for the 2020, 2021 and 2022 Tax years and Detailed method for the 2023 Tax Year

If you worked more than 50% of the time from home for a period of at least four consecutive weeks in the year (2020, 2021, or 2022) due to the COVID-19 pandemic, you can claim $2 for each day you worked from home during that period. The maximum amount that can be claimed is $400 per individual in 2020 and $500 per individual in 2021 and in 2022. This method can only be used for 2020, 2021 and 2022 tax years.

The temporary flat rate method des not apply to the 2023 tax year. Eligible employees who worked from home in 2023 will be required to use the detailed method to claim home office expenses and get a completed Form T2200, Declaration of Conditions of Employment, from their employer. As an employee, you may be able to claim certain home office expenses (work-space-in-the home expenses, office supplies, and certain phone expenses).

Child care expenses

Expenses for daycare, preschool, or day camps can be claimed to a maximum of $8,000 per child born between 2015 and 2023, and a maximum of $7,000 per child for children born between 2005 and 2014. Any age, for whom the disability amount can be claimed is $11,000 per child born between 2015 and 2023, and a maximum of $10,000 for 2014 and previous tax years.

The expenses can only be claimed as a deduction against the employment income of the lower-income parent.

In order to claim child care expenses, you must have a receipt from the child care provider. If the child care provider is an individual, the receipt must have the provider’s social insurance number.

Further information can be found at: 

Employment expenses

In order to claim employment expenses, an employee must have a form T2200 completed and signed by their employer.

An employee can claim automobile expenses for mileage incurred in the course of employment, where the employee is not going between their regular place of work and their home.  In order to calculate the automobile expenses, receipts for gas, auto repairs, and insurance must be tabulated.  A record of kilometres driven for employment purposes and total kilometres driven should be kept.

A full list of deductible expenses can be found at 

Some of the more common expenses are home office costs, cell phone, supplies, and travel costs.

Employees who are paid commission can also claim business entertainment expenses.

Moving Expenses

Moving expenses can be claimed when a taxpayer has moved more than 40 kilometres in order to be closer to a new work location. The expenses can only be claimed to the extent of the income earned in the new locale. If the moving expenses are not used in the current year, they can be carried forward and claimed in the two following years.

In order to claim the expenses, the following information must be provided:

  • The distance to the new work locale from previous residence
  • The distance to the new work locale from new residence
  • Full addresses of previous and current residences
  • Date that employment started at new locale and name of employer
  • Date of move

A large range of expenses can be claimed:

  • Costs of selling the previous residence, such as commission and legal fees. Please provide us with the statement of adjustments to calculate these amounts.
  • Temporary accommodation and meal costs. Actual receipts can be submitted for meals or $23 per meal, to a maximum of $69 per day (sales tax included) per person, without receipts. Although you do not need to keep detailed receipts for actual expenses if you choose to use this method, the CRA may still ask you to provide some documentation to support your claim.
  • Cost of movers and storage. Please provide receipts.
  • Costs of purchasing a new residence, including property purchase tax. Please provide us with the statement of adjustments for the purchase.
  • Travel costs of $0.56 per kilometre for vehicle travel.

Spousal support

The cost of spousal support can be a deductible expense, if periodic payments are made as a result of a separation or divorce agreement. In order to claim these amounts, we require:

  • A copy of the separation or divorce agreement
  • The name, address, and social insurance number of the recipient of the payments
  • The amount of the payments

The CRA often also asks for copies of cheques for proof of payment. If the agreement includes child support as well as spousal support, proof that the child support has been paid may also have to be provided. 

If you do not have a court order or written agreement, the payments are not subject to the tax rules that apply to support payment. You cannot deduct any of the payments made and do not have to report the payments received on your tax return.

Apprenticeship tax credit

Apprentices who are registered in an I.T.A.  (Industry Training Authority) program are eligible for a training tax credit for each level completed.  In order to claim the tax credit, please provide us with your certification of completion for each level.


Taxpayers who have severe or prolonged physical or medical impairments may qualify for the disability tax credit. An application form must be completed by the attending physician and submitted to Canada Revenue Agency to qualify. The form can be found at:

The application does not need to be made on an annual basis. Once Canada Revenue Agency has determined that someone is eligible, the eligibility will continue until Canada Revenue Agency requests an updated application be submitted.

The determination of eligibility by the Canada Revenue Agency usually takes at least a month.  If a tax return needs to be filed before eligibility is determined, the tax return can be adjusted once confirmation of eligibility is received.

Equivalent to Spouse

Taxpayers who are married or in a common-law relationship can claim an additional tax credit if the taxpayer is financially supporting their partner.

The equivalent to spouse tax credit gives similar relief to single parents with children under the age of eighteen.  In order to claim the credit, the taxpayer can be the recipient but not the payor of child support.

Medical Expenses

When a taxpayer incurs medical costs that are greater than three percent of their net income, they can receive a tax credit. The medical expenses of the spouse, dependent children, and the taxpayer can be included in the calculation.

Most medical expenses are eligible. For a complete list of what can expenses can be included please go to 

One expense that is frequently missed by our clients are the health and dental insurance premiums. If you pay the premiums yourself, they are considered eligible medical expenses.

The medical expenses can be for any twelve-month period ending in the taxation year. For example, a taxpayer could use medical receipts from July 2022 to June 2023 when filing the 2023 personal tax return. This allows the taxpayer to use the most advantageous period to maximize the credit.

In order to substantiate your medical costs, we will need to have the original receipts. The exception to this is if you have submitted your expenses to your health insurance provider for reimbursement. In this situation, please submit the statements from the insurance provider showing the amount of the original expense, and the amount reimbursed. Only the expenses that were not reimbursed by the insurance provider are eligible for the medical tax credit.

It is also important that you are able to show proof of payment.

For prescription drugs, the official receipt or a statement from the pharmacy is required to claim the expense. Cash register receipts are not acceptable. Over-the-counter medications are not eligible expenses, either.

Expenses incurred in travelling to a location to receive medical treatment are eligible expenses, as long as the treatment takes place eighty kilometres from the patient’s home, and equivalent medical services could not be provided at a closer locale. Please discuss with us if you wish to claim travel costs, as the mileage and reason for the travel has to be well-documented.

Seniors’ Home Renovation Tax Credit

This provincial tax credit assists seniors with the cost of home renovations needed to enhance mobility, accessibility, and safety. The tax credit can also be claimed by family members who have seniors living with them.

Up to $10,000 in eligible expenditures can be claimed, resulting in a tax credit of up to $1,000.

Eligible expenditures are renovations specifically undertaken to enhance mobility, accessibility, and safety. Expenditures that are not eligible are;

  • Costs for regular house maintenance
  • Purchase of mobility devices such as wheelchairs or home monitoring equipment
  • Services for home monitoring, house maintenance, and home care

In order to claim the credit, please supply our offices with the supporting invoices detailing the work done or materials purchased.

Sale of your Principal Residence

When you sell your home or when you are considered to have sold it, usually you do not have to pay tax on any gain from the sale because of the principal residence exemption. This is the case if the property was solely your principal residence for every year you owned it. 

Before 2016, if you sold your property, and it was your principal residence for every year you owned it, you did not have to report the sale to claim the principal residence exemption. 

For dispositions in 2016, you had to report the sale and designate the property on Schedule 3, Capital Gains (or Losses) in all situations. 

For dispositions in 2017 and later years, in addition to reporting the sale and designating your principal residence on Schedule 3, you also have to complete Form T2091(IND), Designation of a Property as a Principal Residence by an Individual. 

For the sale of a principal residence in 2016 and subsequent years, Canada Revenue Agency will only allow the principal residence exemption if you report the disposition and designation of your principal residence on your income tax return. If you forget to make this designation in the year of the disposition, it is very important to ask Canada Revenue Agency to amend your income tax return for that year.  

Property Flipping

Starting January 1, 2023, any gain from the disposition of a housing unit (including a rental property) located in Canada, or a right to acquire a housing unit located in Canada, that you owned or held for less than 365 consecutive days before its disposition is deemed to be business income and not a capital gain. However, there are some exceptions to this new anti-flipping rule that are available to individuals who sell their residential property within 12 months.

First Home Savings Account (FHSA)

A first home savings account (FHSA) is a registered plan which allows you, if you are a first-time home buyer, to save to buy or build a qualifying first home tax-free (up to certain limits). If you opened an FHSA in 2023, you can claim up to $8,000 in FHSA contributions you made by December 31, 2023, as an FHSA deduction on your 2023 income tax and benefit return.

B.C. Renter's Tax Credit

Starting in the 2023 tax year, a renter's tax credit based on annual income has been introduced. For 2023 this tax credit will give $400 to low- and moderate-income renter individuals and families with an adjusted income of $60,000 or less. Individuals and families with an adjusted income greater than $60,000 and less than $80,000 may receive a reduced amount.

Value of Foreign Assets

If you hold certain foreign assets with a combined cost of over $100,000, the assets must be reported on your tax return. 

Foreign assets that do not have to be reported are:

  • Foreign property held for personal use only
  • Foreign assets held within an RRSP plan
  • Foreign assets held within a mutual fund managed by a Canadian company

Foreign assets that do have to be reported are:

  • Foreign stocks and bonds, even if held in a Canadian brokerage account
  • Foreign bank accounts
  • Foreign rental or business property
  • Interests in foreign trusts

The threshold of $100,000 is based on the combined cost of the assets in Canadian funds. Below are some examples of when a taxpayer would or would not have to report their assets holdings:

Example 1

Taxpayer A bought shares in a US technology company for $75,000 Cdn. He does not hold any other foreign assets. The shares are now worth $130,000 Cdn. Taxpayer A does not have to report his foreign holdings, as the original cost is less than $100,000.

Example 2

Taxpayer B has a bank account in England arising from funds inherited from a family member. At the time the funds were inherited, the value was $40,000 Cdn. Taxpayer B also has shares in a US technology company, which cost $75,000. Taxpayer B must report his foreign asset holdings, as the combined cost is greater than $100,000.

Reporting must be done if the cost of the assets is greater than $100,000 at any time in the year.

Example 3

Taxpayer C has a vacation cottage in the United States that cost $300,000, and bank accounts in the United States of $60,000. Taxpayer C does not have to report his foreign assets holdings, as the vacation cottage is a personal-use property.