Tax Tip Thursday

Today we are bringing you good news! A pleasant change!

There’s quite a few of them, so make sure you have a look through to see what you might be eligible for.

CEBA

For any businesses who took a CEBA loan, the repayment was supposed to be by December 31, 2022 in order to qualify for the $10,000 or $20,000 forgiveness.

Good news: it’s been extended by a year to December 31, 2023!

Ontario Grants

The Ontario COVID-19 Small Business Relief Grant will soon be available for application. Businesses could be eligible for a $10,000 grant!

To receive the grant, a small business must:

• be required to close due to public health orders that took effect 12:01 AM on January 5, 2022; and
• have fewer than 100 employees.

Mileage for Self Employed and Employment Expenses

The new CRA mileage rate for business use of your vehicle for 2022 is $0.61 per kilometre for the first 5,000 kilometres driven in a calendar year and $0.55 per km after that for the balance of the year. Great!

CCA for Automobiles

This is a benefit to anyone with a business or who uses their vehicle for business use.

This is the first change in CCA ceilings in about 20 years!

For class 10.1 (all cars purchased for over $30,000), the ceiling has now moved up to $34,000! This could result in an additional deduction of almost $2,000 in the first year.

For those of you who lease, the lease ceiling has moved up from $800 to $900 per month. This could result in an additional deduction of almost $1,200 per year.

AND, for those of you who have zero emission vehicles for business purposes, the ceiling has increased from $55,000 to $59,000. This could mean an additional deduction of almost $2,000 in the first year as well.

Significant Increases, CPP Next Week

Does any of this apply to you? Are you unsure? Either way, we are happy to help you navigate through these changes and make sure you keep more of your money in your pocket. Just book an appointment and we will get started!

Next week we will talk about a new benefit for in-home office expenses, and I will share some bad news about CPP.

Disclaimer:

This article provides information of a general nature only. It is only current at the posting date. It is not updated and it may no longer be current. It does not provide legal or tax advice nor can it or should it be relied upon. All tax situations are specific to each individual. If you have specific tax questions you should book an appointment for a 1 on 1 consultation.