Here’s a clear summary of the updates and their potential impacts:
1. Capital Gains
- Inclusion Rate: Increased to 2/3 for capital gains over $250,000 (effective for gains after June 25, 2024).
- Lifetime Exemption: Raised to $1.25 million, benefiting those eligible for exemptions.
2. Canada Child Benefit (CCB)
- Extended Eligibility: Starting in 2025, CCB eligibility extends 6 months after a child’s death. This also applies to the Child Disability Benefit (CDB).
3. Canada Pension Plan (CPP) & Québec Pension Plan (QPP) Enhancement
- Contribution Changes:
- Additional 4% contribution on earnings above the first ceiling.
- 8% for self-employed individuals.
- Contributions will now appear on your T4 slip.
4. Volunteer Firefighters & Search and Rescue Volunteers
- Increased Amount: The amount has doubled from $3,000 to $6,000 for those performing at least 200 hours of eligible service.
5. Disability Support Deduction
- Expanded Coverage: Now includes:
- Service animals.
- A broader range of eligible expenses.
- Claimable under either the disability support deduction or the medical expense tax credit.
6. Home Buyers’ Plan (HBP)
- Increased Limit: Withdrawal limit increased from $35,000 to $60,000.
- Repayment Relief: Temporary deferral of the 15-year repayment period.
7. Short-Term Rentals
- Expense Deductions: Tax deductions for non-compliant short-term rental expenses are now denied.
These changes may affect your tax planning and benefits eligibility, so consider consulting a professional for personalized advice.