Welcome to the 2024 Personal Tax Filing Season!
It’s time again to file your personal tax returns. This year, 2024 tax returns must be in the hands of the Canada Revenue Agency by no later than Wednesday, April 30, 2025.
We’d like to deliver the finished product as quickly and efficiently as possible – and we’re sure that many clients will, as of today, already possess all the information that’s needed. So, we’d like to encourage everyone to consider the “practical” deadline as really being early April – there’s little reason for any later than that!
This issue of the newsletter includes the following:
1. (Very Important): Our T1 engagement letter which must be included with the material you send us;
2. Our abbreviated, ‘Simplified’ T1 checklist‘
3. Our more Comprehensive T1 Checklist, including explanatory information.
Extra copies of these checklists can be obtained at our website – www.lohncaulder.com/checklists
Submitting information to us through Portal
Clients will, by now, be familiar with our system of document submission, which uses our portal. Based on prior years’ trends, we expect that at least 85% of our clients will use this system. It’s popular because it’s easy to use, it’s secure, and is not restricted as to file size, which is generally a problem with e-mail attachments these days.
To access the service, you need an account set up. You can get that by contacting portal@lohncaulder.com.
BC Home Flipping Tax (Effective January 1, 2025)
In addition to the Federal Residential Property Flipping Rule, British Columbia is introducing a home-flipping tax effective January 1, 2025. This tax applies to all “taxable property” located in B.C., including:
- Beneficial interest in residential property; or
- Rights to acquire such interests (e.g. pre-sale contracts).
The tax targets residential properties sold within two years of purchase.
Tax Rates
- Within 1 year (365 days): 20% tax on the net taxable income from the sale.
- Between 1 and 2 years (365 to 730 days): The tax rates decrease incrementally, reaching 0% after two years.
Exemptions
Certain life circumstances may exempt seller from the flipping tax, including:
- Separation or divorce
- Disability or illness
- Death
- Relocation for work
- Change in household membership
- Insolvency
- Safety threats
Primary Residence Deduction
Sellers of primary residence may qualify for a deduction of up to $20,000 on net taxable income, subject to specific conditions.
Commercial Properties
Properties used exclusively for commercial purposes are exempt from the flipping tax.
We look forward to speaking with you in the near future.
The Lohn Caulder Team
