6 Can't Miss Personal Tax Tips

Jared Pilon

It is hard to believe that April 2024 is already here! With less than one month left in the 2024 tax season, there are still a large number of personal tax returns to be filed.

If you haven’t filed your return yet, here are 6 tips that you should know before filing your 2023 return.


Working from home

The $2/day flat rate for claiming home office expenses that could be used during the COVID years is no longer available for 2023 tax returns. Instead, you will be required to have a T2200 form completed by your employer and then supply us with detailed information with respect to the expenses and size of your home office to make a claim. See this link from CRA for further info. Home office expenses for employees


Real estate cautions

New residential property flipping rules will deem any gain from a property held for less than a year as business income (fully taxable), effective for dispositions as of January 1, 2023.

Certain life events will provide an exception to these rules and include death, marital breakdown, addition of family members, disability, work relocation, involuntary termination of employment, insolvency, threat to personal safety or destruction or expropriation of property. See this link from CRA for further info. Residential Property Flipping Rule


Real estate possibilities

For 2023 and subsequent years, the new Multigenerational Home Renovation Tax Credit (MHRTC) is available. This credit provides assistance with the cost of renovating a home or for the creation of a secondary unit that enables a qualifying individual (a senior or an adult who is eligible for the disability tax credit) to live with you.

The tax credit is calculated by multiplying 15% by the lowest of:

  • $50,000,
  • The amount of qualifying expenditures or,
  • NIL if the individual is not resident in Canada throughout the year.

See this link from CRA for further info. Multigenerational Home Renovation Tax Credit


The 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 (certain limits apply).

This program combines aspects of a tax-free savings account and an RRSP account into one. In order to start accumulating room, you need to open an account. If you are in the market for your first home, this program might be beneficial to you. Don’t forget to report your FHSA slips on your 2023 tax return too! See this link from CRA for further info. First Home Savings Account (FHSA)


Increased interest rates

The prescribed interest rate for arrears, instalment interest and other CRA balances increased by 1% to 10%! Interest paid to CRA is non-deductible for tax purposes and should be avoided if at all possible. See this link from CRA for further info. Prescribed interest rates


Underused Housing Tax (UHT)

Everyone’s favourite additional tax filing requirement in 2022 has gone by the wayside in 2023 (for most people). Proposed amendments to the Underused Housing Tax Act have changed the definition of ‘excluded owner’ to include:

  • Trustee of trust that is a specified trust,
  • Partner of a partnership of a specified Canadian partnership,
  • A specified Canadian corporation.

As such, many of the individuals & corporations that were required to file these returns in 2022 (even though they did not have a tax liability) are now exempt from filing the returns. If you think you may still have a filing requirement (you are not a Canadian citizen and own Canadian property), please reach out to us. See this link from CRA for further info. Legislative and Regulatory Proposals Relating to the Underused Housing Tax Act


Bare trust reporting

Bare trust reporting for trusts with a yearend date of December 31, 2023 were to be filed by April 2, 2024 or face significant penalties. On March 12, 2024 CRA waived the late-filing penalties giving some relief to taxpayers. Then, on March 28, 2024, CRA stated that it would not require trust returns to be filed unless they make a direct request from a taxpayer.

So, if you have your name on title with your parents for estate planning or they have their names on your property for financing, you no longer need to file a trust tax return. It may be prudent to see if this type of planning should changed in the future as it is always possible that the bare trust reporting rules could be subsequently amended. See this link from CRA for further info. New – Bare trusts are exempt from trust reporting requirements for 2023



Tax rules are always changing. It is important to have a professional on your team that is up-to-date and looking out for your best interests. Please contact us at reception(at)legacyllp.ca for one-to-one advice with respect to your personal tax return.


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Posted: 4/2/24