New tax changes that might affect you.
Business Income Do you have business income? You can now claim an accelerated CCA (depreciation) on assets purchased after November 21, 2018. Claiming the accelerated CCA will triple what you could have claimed under the old rules in the first year of owning the asset. This accelerated rate stays in effect until 2023. From 2024 to 2027 the rate will decrease to be double the usual amount instead of triple, then starting in 2028 the rules prior to this November 21, 2018 change will be back in effect.
First-Time Homebuyers Thinking of buying your first home? You can now borrow up to $35,000 from your RRSP account to help with the down payment of your first home. Usually withdrawals from your RRSP account are taxable in the year of withdrawal, however, if you designate that the withdrawal is to assist in the purchase of your first home, then it is not taxable in the year of withdrawal, but it must be repaid to your RRSP account over a period of 15 years.
Post-Secondary School There are a couple of tax changes that you should be aware of if you or your loved ones are planning to attend a college or university in 2020. The first is that there is now a new refundable tax credit, the Canada Training Credit, that will be available to claim on 2020 and subsequent tax returns. The actual benefit of this credit will be between $250 and $5,000, with additional specific criteria to be eligible for this credit.
The second is that, starting in 2020, the Alberta government has eliminated the education and tuition tax credit. Any credits that have accumulated and not been claimed before 2020 will continue to carry forward until used. However, anyone going to school in 2020 and onward will no longer be eligible for the provincial portion of the tuition tax credit. The federal portion of the tuition tax credit is still available to individuals who attend a college or university.
Need more information on any of these recent changes? Contact us and we would be happy to help.