Tax law changes that affect most taxpayers:
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First Home Savings Account (FHSA)
If you have opened FHSA account in 2023, you can use federal schedule 15 to declare it. Most lines will be filled in automatically from numbers on T4FHSA slip, but you do need to confirm you have opened the account using the schedule.
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Multigenerational home renovation tax credit
The MHRTC is a new refundable tax credit that allows an eligible individual to claim certain renovation costs to create a secondary unit within an eligible dwelling so that a qualifying individual can reside with their qualifying relation.
If eligible, you can claim up to $50,000 in qualifying expenditures for each qualifying renovation completed, up to a maximum credit of $7,500 for each claim you are eligible to make.
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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, unless the property was already considered inventory or the disposition occurred due to, or in anticipation of, certain life events.
If the sale of a flipped property resulted a loss, zero must be used.
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Climate action incentive payment (CAIP)
Starting in July 2023, the climate action incentive payment is available to eligible residents of New Brunswick, Newfoundland and Labrador, Nova Scotia, and Prince Edward Island.
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COVID-19 benefits repayment
Repayment made in 2023 can only be deducted on line 23200 of 2023 tax return. You no longer have the option to deduct it in the year the benefit was received. Form T1-B is not longer valid in 2023.
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Air quality improvement tax credit
This credit is for 2022 tax year only, you can no longer use form T2039 to make any claim. However, if you have received a T5013 slip with box 238 (the partnership incurred expenses in 2022 in current 2023 fiscal year), you can still claim it.
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T777S โ Working at Home Due to COVID-19
This form has been eliminated. If your employer requires you work from home to perform job duties, use regular form T777 instead. Your employer needs to sign form T2200 for you to make the claim.
Provincial Tax Changes
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Ontario
Staycation, Job training and Seniorsโ home safety tax credit has been terminated as planned
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Saskatchewan
Credit for home renovation expenses has been terminated as planned.
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British Columbia
Renterโs tax credit and Clean buildings tax credit have been introduced.
