Tax Tips: Second Quarter 2021

We provide tax tips on available benefits, CRA policies, and more.

2ND QUARTER 2021 TAX TIPS

Overview

Immediate Capital Asset Write-Off: Budget 2021

• The 2021 Federal Budget proposed to allow immediate expensing of certain property acquired by a Canadian-controlled private corporation (CCPC) on or after April 19, 2021 and before 2024.

Canada Recovery Hiring Program (CRHP): New Hiring Subsidy

• The 2021 Federal Budget introduced the new CRHP which would provide eligible employers with a subsidy of up to 50% of the incremental remuneration paid to eligible employees in respect of June 6, 2021 to November 20, 2021.

Extended Wage and Rent Subsidies: Details Released

• On March 3, 2021, the Department of Finance announced details on the Canada Emergency Wage Subsidy (CEWS) and Canada Emergency Rent Subsidy (CERS) for the March 14 – June 5 periods.

Rental Properties: Major Repair Expenses

• In a Tax Court of Canada case, the deductibility of rental expenses for a condo unit that underwent major repairs was considered.

Covid-19 Benefits for Individuals: Period Extensions

• The eligibility periods for several personal income replacement COVID-19 benefits have been extended:
  • Canada Recovery Benefit (CRB)
  • Canada Recovery Caregiver Benefit (CRCB)
  • Canada Recovery Sickness Benefit (CRSB)
  • Employment Insurance (EI)

Guaranteed Income Supplement: More People Are Now Eligible

• Since many individuals had lower income in the 2020 year, some are eligible to receive the Guaranteed Income Supplement (GIS).