Major Tax Changes in store for 2022 Tax Season courtesy of EJ Tax Service

• Air quality improvement tax credit – If you were self-employed or a member of a partnership in 2022, you may be eligible to claim a refundable tax credit equal to 25% of your total ventilation expenses to improve ventilation or air quality at your place of business.
• Critical mineral exploration tax credit – The critical mineral exploration tax credit (CMETC) is a new 30% investment tax credit for the exploration of specified minerals. The CMETC will only apply to expenditures renounced under eligible flow-through share agreements entered into after April 7, 2022, and before April 1, 2027.
• First-time home buyer’s tax credit – The amount used to calculate the first-time home buyers’ tax credit has increased to $10,000 for a qualifying home purchased after December 31, 2021.
• Home accessibility tax credit – The annual expense limit of the home accessibility tax credit has increased to $20,000.
• Labour mobility deduction for tradespeople – The labour mobility deduction provides eligible tradespeople and apprentices working in the construction industry with a deduction for certain temporary relocation expenses. Eligible individuals may be able to deduct up to $4,000 in eligible expenses per year.
• Ontario seniors home safety tax credit – A temporary, refundable 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. The maximum credit is equal to $2,500 per year.
• Ontario seniors care at home tax credit – A refundable credit has been introduced to help low to moderate-income seniors with eligible medical expenses, including expenses that support aging at home. The credit is equal to 25% of your eligible medical expenses up to $6,000, for a maximum credit of $1,500.
• Ontario staycation tax credit – A one-time, refundable tax credit for Ontarians who’ll be able to claim 20% of their stay in an Ontario hotel, cottage or campground, during 2022 up to $1,000 individually or $2,000 as a family.

LOOKING AHEAD TO 2023

• First home savings account (FHSA) – Set to launch on April 1st, 2023, the FHSA offers prospective first-time home buyers the ability to save $40,000 tax-free, with a maximum annual contribution of $8,000 over five years. Contributions to the FHSA are tax-deductible and withdrawals to purchase a home are tax-free.
• New taxes on home-flipping – As of January 1st, 2023, anyone who sells a home after possessing it for less than 12 months will be considered to be flipping the property. Profits from the sale would be considered business income, not capital gain. There are some exceptions to this rule, however.