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As you file your 2024 income tax returns, here are a handful of recent notable changes to be aware of:
Capital Gains Inclusion Rate — The proposed increase to the capital gains inclusion rate* has been deferred to January 1, 2026, from the original proposed date of June 25, 2024. The CRA is providing additional time for taxpayers reporting capital gains to meet tax filing obligations and will grant relief from late-filing penalties and interest until June 2, 2025, for individuals and until May 1, 2025, for trust filers.
Home Office Expenses — Form T2200 has been amended to simplify information required by employers for employees claiming expenses when working from home. The update only requires an employer
to certify whether the employee worked from home more than 50 percent of the time over a period of at least four consecutive weeks.
Charitable Donation Extension — As a result of last year’s postal strike, draft legislation extended the deadline for 2024 charitable donations to February 28, 2025. Individuals can choose to claim eligible donations made up to February 28, 2025, on their 2024 tax return, 2025 return or during the normal five-year carryforward period. Corporations with a taxation year ending after November 14, 2024, and before January 1, 2025, are also eligible for this extension.
Canada Carbon Rebate (CCR) for Small Business — While the government stated that this rebate is tax free, legislation is pending so it must be included in taxable income.1 Introduced in the 2024 Federal Budget, this rebate helps eligible Canadian-Controlled Private Corporations (CCPCs) offset the federal fuel charge in certain provinces: AB, MB, NB, NL, NS, ON, PE, SK. CCPCs in other provinces/ territories may be eligible if they employ people in designated provinces. Rebates were distributed in December.
*From one-half to two-thirds on capital gains realized above $250,000 in a year by individuals, and on all capital gains realized by corporations and most trusts;
1. https://www.canada.ca/en/revenue-agency/services/tax/businesses/topics/corporations/business-tax-credits/canada-carbon-rebate- small-businesses.html
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