On January 31, 2025 the Government of Canada announced a change to the effective date for the capital gains inclusion rate increase from June 25, 2024 to January 1, 2026. This means that the inclusion rate for calendar year 2024 remains at 50%. As a result of this announcement, many software updates and slip preparations may be delayed. Due to this, we will not be able to complete tax returns with capital gains or losses to be reported before April 4, 2025.

• Capital Gains and Lifetime Capital Gains Exemption – As a result of the January 31, 2025 announcement, if you had a disposition of qualified farm or fishing property (QFFP), or qualified small business corporation shares (QSBCS) you must report dispositions of capital property, and business investment losses, for transactions before June 25, 2024 (Period 1) and after June 24, 2024 (Period 2). This is necessary to support the increase to the Lifetime Capital Gains Exemption (LCGE) limit to $1.25 million, effective June 25, 2024. Separate reporting for Period 1 and Period 2 may also be necessary if you received a tax slip reporting dispositions in Period 1 and Period 2 because some tax slips had already been issued prior to the January 31, 2025 announcement
• Electronic Remittances or Payments Above $10,000 – effective January 1, 2024, remittances or payments to the Receiver General of Canada should be made as an electronic payment if the amount is more than $10,000. Payers may face a penalty unless they cannot reasonably remit or pay the amount electronically. For more information, go to payments to the CRA
• Alternative Minimum Tax (AMT) – Changes to the AMT calculation have been introduced for 2024 and later tax years. These changes include an increase to the minimum tax rate and the basic exemption threshold, as well as changes to the calculation of adjusted taxable income for AMT purposes, the special foreign tax credit, and the minimum tax carry over. The changes also limit the value of most non-refundable tax credits. For a complete list of changes, go to Line 41700 – Minimum tax
• Reporting Rules For Digital Platform Operators – New reporting requirements for platform operators have been introduced for the 2024 calendar year on sellers in the sharing and gig economy, including the rental of real or immovable property. If you are a reportable seller, your platform operator will provide you with an annual copy of the information that is collected and reported to the Minister under these rules by January 31, 2025, to help you file your taxes
• Short-term Rentals – As of January 1, 2024, individuals are no longer able to deduct expenses related to non-compliant short-term rentals. This change applies to all expenses, including interest expenses, incurred after 2023 to earn income from operating non-compliant short-term rentals
• Donations Extension – donations made to the end of February 2025 will be deemed to have been made in 2024. Among some exclusions to this rule will be donations made through payroll
• Home Buyers’ Plan (HBP) Withdrawals – the HBP withdrawal limit has increased from $35,000 to $60,000 for withdrawals made after April 16, 2024. In addition, temporary relief was introduced to defer the start of the 15-year repayment period by an additional three years for participants making a first withdrawal between January 1, 2022 and December 31, 2025. Accordingly, the 15-year repayment period will start in the fifth year following the year that the first withdrawal was made
• Volunteer Firefighters’ Amount (VFA) and Search and Rescue Volunteers’ Amount (SRVA) – the VFA and SRVA have increased from $3,000 to $6,000 for eligible individuals who performed at least 200 hours of combined eligible volunteer service during the year

Other Notable Updates:

• The 2024 cumulative lifetime capital gains exemption is $1.25 million
• The tax-free savings account (TFSA) limit is $7,000 for 2024, bringing the cumulative contribution limit to $102,000 for individuals that were eligible to make a TFSA contribution in 2009
• The RRSP contribution limit for the 2025 taxation year is 18% of earned income you reported on your tax return in 2024, up to a maximum of $32,490. For the 2026 taxation year, the RRSP contribution limit would be a maximum of $33,810