WHATS NEW FOR 2023
Line 12905 – Taxable first home savings account (FHSA) income
Taxable FHSA income includes any of the following:
- taxable withdrawals from your FHSAs
- any amount that must be included in your income if property remained in your account when it ceased to be an FHSA
- any property that remains in the deceased holder’s FHSA at the end of the exempt period you are entitled to as a beneficiary
Enter the amount from box 22 and box 26 of all T4FHSA slips.
For more information about FHSAs, see First Home Savings Account (FHSA).
Line 12906 – Taxable FHSA income – other
Other taxable first home savings account (FHSA) income includes the following:
- the amount of taxable distributions that you received in the year as a beneficiary upon the death of an FHSA holder
- the fair market value of any property in the FHSA that was used as security for a loan
Enter the amount from box 24 and box 28 of all T4FHSA slips.
Line 20805 – FHSA deduction
The first home savings account (FHSA) is a new registered plan to help individuals save for their first home.
Contributions to an FHSA are generally deductible and can be used to reduce your tax.
The contribution period for your FHSAs is the calendar year January to December. You cannot use any contributions that you made in 2024 as an FHSA deduction on your 2023 return.
For more information about FHSAs, go to First Home Savings Account (FHSA).
Completing your tax return
If you opened one or more FHSAs in 2023, complete Schedule 15, FHSA Contributions, Transfers and Activities, to calculate your FHSA deduction and enter the result on line 20805 of your return.
Line 45355 – Multigenerational home renovation tax credit (MHRTC)
The MHRTC is a new refundable tax credit that allows an eligible individual to claim certain renovation costs to create a secondary unit within an eligible dwelling so that a qualifying individual can reside with their qualifying relation.
If eligible, you can claim up to $50,000 in qualifying expenditures for each qualifying renovation completed, up to a maximum credit of $7,500 for each claim you are eligible to make.
For more information, go to Multigenerational home renovation tax credit (MHRTC).
Completing your tax return
Complete Schedule 12, Multigenerational Home Renovation Tax Credit, to calculate your credit and enter the result on line 45355 of your return.
Property flipping
Starting January 1, 2023, any gain from the disposition of a housing unit (including a rental property) located in Canada, or a right to acquire a housing unit located in Canada, that you owned or held for less than 365 consecutive days before its disposition is deemed to be business income and not a capital gain, unless the property was already considered inventory or the disposition occurred due to, or in anticipation of certain life events. For more information about flipped property and life-event exceptions, see Residential Property Flipping Rule or Schedule 3, Capital Gains (or Losses).
The CRA’s services
Electronic remittances or payments above $10,000
As of 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.
Individuals and families
Advanced Canada workers benefit (ACWB)
Advance payments of the Canada workers benefit (CWB) are now issued automatically under the ACWB to those who received the benefit in the previous tax year. As a result, Form RC201, Canada Workers Benefit Advance Payments Application, has been discontinued.
Starting in 2023, amounts from your RC210 slip are to be reported on Schedule 6, Canada Workers Benefit, in order to calculate the amount to enter on line 41500 of your return. If you have an eligible spouse, you can choose who will claim the basic amount for the CWB regardless of who received the RC210 slip for the basic amount. For more information about the ACWB, go to Canada workers benefit.
Canada Carbon Rebate (CCR) (formerly known as climate action incentive payment)
The Government of Canada has announced its intention to double the rural supplement to 20% starting in April 2024. It also intends to continue using the census metropolitan areas determined by the 2016 Census for the 2023 and 2024 tax years. For more information, see Canada Carbon Rebate.
Deduction for tools (tradespersons and apprentice mechanics)
Starting in 2023, the maximum employment deduction for tradespersons’ eligible tools has increased from $500 to $1,000. As a result, the threshold for expenses eligible for the apprentice mechanics tools deduction has also changed. For more information about tools deductions for tradespersons and apprentice mechanics, see line 22900 or Guide T4044, Employment Expenses.
Federal, provincial and territorial COVID-19 benefit repayments
Federal, provincial and territorial COVID-19 benefit repayments made after December 31, 2022 can be claimed as a deduction on line 23200 of your 2023 return.
First home savings account (FHSA)
The FHSA is a new registered plan to help individuals save for their first home. Starting April 1, 2023, contributions to an FHSA are generally deductible and qualifying withdrawals made from an FHSA to purchase a qualifying home are tax free. If you opened one or more FHSAs in 2023, complete Schedule 15, FHSA Contributions, Transfers and Activities. For more information, see First Home Savings Account (FHSA).
Multigenerational home renovation tax credit (MHRTC)
The MHRTC is a new refundable tax credit that allows an eligible individual to claim certain renovation costs to create a secondary unit within an eligible dwelling so that a qualifying individual can reside with their qualifying relation. If eligible, you can claim up to $50,000 in qualifying expenditures for each qualifying renovation completed, up to a maximum credit of $7,500 for each claim you are eligible to make. For more information and to make a claim, see Schedule 12, Multigenerational Home Renovation Tax Credit.
Property flipping
Starting January 1, 2023, any gain from the disposition of a housing unit (including a rental property) located in Canada, or a right to acquire a housing unit located in Canada, that you owned or held for less than 365 consecutive days before its disposition is deemed to be business income and not a capital gain, unless the property was already considered inventory or the disposition occurred due to, or in anticipation of certain life events. For more information about flipped property and life-event exceptions, see Residential Property Flipping Rule or Schedule 3, Capital Gains (or Losses).
Return of fuel charge proceeds to farmers tax credit
The Return of fuel charge proceeds to farmers tax credit is now available to self-employed farmers and individuals who are members of a partnership operating a farming business with one or more permanent establishments in Alberta, Manitoba, New Brunswick, Newfoundland and Labrador, Nova Scotia, Ontario, Prince Edward Island or Saskatchewan. If eligible, a portion of your fuel charge proceeds may be returned to you. For more information, see line 47556.
Temporary flat rate method for home office expenses
The temporary flat rate method does not apply to 2023. Therefore, taxpayers looking to claim home office expenses for 2023 will be required to use the detailed method and get a completed Form T2200, Declaration of Conditions of Employment, from their employer.