The new year brings a series of measures. Here are five to be remembered so that the sum of what is written is not missing.
Self-employed workers have the opportunity to use 100% of their vehicle acquired in 2022 in the context of their work.
The measure can apply to a real estate broker who often travels in a car for part of his work, provides an example of tax expert Sébastien Hamel, CPA in Panorama corporate taxation.
In a measure announced in the 2011 federal budget, self-employed workers were added in February 2022 to keep the food provisions of the bill.
The measure enables immediate reductions in reference to certain goods such as transport vehicles and zero-emission vehicles. Other types of property are also covered, but not real estate. “A person who renews their equipment in 2022 could use their tax return,” said Luce Morin, CPA, owner of Active Accounts and Tax Services in Lachine.
It is impossible, however, to create a loss with this capital cost allowance of 100% of the acquisition cost, Ms. Morin adds.
Typically, vehicles are depreciated to their purchase value by 30% or 45% to encourage accelerated property investment.
Federal forms T2125 and provincial forms TP-13.AD must be completed.
It measures both new and used goods.
To give you an idea of the sums involved, the maximum amount with the capital cost of sales (CCA) has been increased to $34,000 in 2022 for Class 10.1 Motor Vehicles and $59,000 for Class 54 Motor Vehicles with zero emissions.
Items in class 10.1 are now subject to resumption of reductions in the resale of the vehicle.
Since the use of 100% CCA immediately involves significant amounts, the tax authorities will closely monitor the situation. It is best to consult a tax specialist to ensure compliance.
For example, getting your hands on a federal incentive to purchase a zero-emission vehicle doesn’t prevent you from meeting the Class 54 CCA goals. However, claiming that Roulez vert under the Quebec program has no impact.
Work from home: $2 a day still available
COVID-19 made its presence felt in 2022. Governments logically continue to apply the deduction for e-home work expenses. We remember that the province is closed at home until the middle of February 2012.
It is the same law that the employee is entitled to deduct expenses if they have worked more than 50% of the time from home for at least four consecutive weeks, due to COVID-19.
Under the simpler method, the worker is entitled to $2 per day.
If the weekends are excluded, four weekly holidays and ten public holidays, there are still 230 valid days. Someone who telecommuted three days a week as of April 1 had worked from home for 162 days at $2 a day, crediting $324.
The distinction method may be useful to the tenant, for example, because it is generally more convenient for him to declare expenses in the house than in the case of the owner.
The Ministère des Finances du Québec has set up an interactive calculator.
For couples using a surrogate mother, for the first time in 2022 they will be able to claim money from the surrogate mother for medical expenses. These are the sums that can be significant.
In Canada, the payment of a surrogate mother is illegal. However, the expenses may be reimbursed by the parents, including medical expenses. Before 2022, parents could not claim these funds under medical care funding credits.
Owners of the camera
Owners of cottages or houses in rural areas should know that Quebec has extended for five years until 2027, a refundable tax for bringing residential treatment facilities up to standard. Prior credit must be applied to contracts entered into prior to April 1, 2022.
The amount they are eligible for is 20% of expenses over $2,500. The most credit amount is $5,500. It is cumulative over the period from 2017 to 2027. Only the weight in 2022 is eligible for credit. “It’s good to know because people don’t think so,” admits Luce Morin, CPA. We accountants provide inquiry forms to clients so they don’t forget credits. But it turns out we haven’t put on our form: have you changed your septic tank? “He continues.
If you have children under the age of 12 and a family income of less than $90,000, you can receive part of the new Canadian dental benefit. To qualify, the child must have received dental care by October 1, 2022, and this must be paid for by the entire household. It does not require access to a private dental insurance plan.
Depending on the family net, the benefit is $260, $390 or $650 to cover income and expenses from October 1, 2022 to June 30, 2023. The second eligibility period opens from July 1, 2023 to the following June 30. in the second year
For example, for a family income ranging from $80,000 to $90,000, the benefit is $260 per eligible child.
In Quebec, the Regie de l’assurance maladie covers most dental treatments for children under 10, such as annual exams and fillings.
The benefit is obtained by applying directly to the Commonwealth of Canada Revenue Agency. You must create a tax return in 2021.