Capital Gains Examples Here are some examples of how much tax you would pay before and after the changes in the capital gains. The calculations are for a person with regular income of $50,000. As you can see, even with a net PROFIT of $1,000,000 there is only an extra tax burden of $41,258.25, that’s just over 4%. Now for a history lesson of capital gains. Did you know that there hasn’t always been a 50% inclusion rate? From 1972 until 1988 capital gains were taxed at 50% but in 1988 it increased to 66.7%, then up to 75% in 1990! This lasted a decade until February 2000 when it dropped back to 66.67% until October and then down to 50% where it has been until now. Corporations will now have an inclusion rate of 66.7 for ALL capital gains, however, there will be a lifetime capital gains exemption of $1.25 million. There is also a new Canada Entrepreneurs’ Incentive to lower capital gains for up to $2,000,000. Qualifying entrepreneurs will pay income taxes on 33.3% of their capital gains rather than the new 66.7%. I am not focusing on the Corporate capital gains right now, maybe at a later date.

To be eligible to claim home office expenses an employee must be given a completed
T2200 from their employer. The temporary flat rate method allowed during Covid is no
longer an option.

DATES TO REMEMBER

You may be eligible to open a First Home Savings Account to help save for your down
payment.

Are you considering adding a second unit to your home to care for an aging family
member or someone with a disability? You may be eligible for a tax credit of up to
$7,500

Ontario Provincial Tax Brackets

Seniors’ Home Safety Tax Credit A new credit that supports seniors in making their homes safer and more accessible. With a credit of 25% up to a maximum of $10,000 in eligible expenses. This can be worth up to $2,500 per year.

A refundable personal tax credit to help seniors with eligible medical expenses, including expenses that support again at home. The credit is equal to 25% of your eligible medical expenses up to $46,000 for a maximum credit of $1,500

New Federal Tax brackets for 2022

Did you explore Ontario in 2022? Don’t forget to claim your Ontario Staycation Tax Credit. It can be worth up to $200 for an individual or $400 for a family.