5 Tax Tips to Consider Before You File Your 2022 Return

TFSA Contribution Limit for 2023 is $6,500 

Canadian residents, age 18 and older, can contribute up to their unused TFSA contribution room. If you were 18 years of age or older in 2009 and have never contributed to your TFSA, you may be able to contribute up to $88,000 in 2023. 

Working from Home 

Numerous people were expected to work from home during this pandemic. If that is the case in your situation, you may qualify to claim certain home-office expenses which were not reimbursed by your employer. The CRA will allow home office expenses of up to $500 depending on the amount of time worked from home. You will not be required to obtain a T2200 form from your employer.  

Charitable Donations 

Donating publicly traded shares which have appreciated in value, instead of cash, can be a tax-efficient way for you of making a gift to a qualifying charity organization. 

Donating publicly listed shares will result in a donation receipt equal to the fair value of the gifted shares while no taxes payable on the gain. 

Estate Planning 

The drafting and final execution of your Will is not a one-time event, but an ongoing process. Life events, such as first marriage, separation, divorce, re-marriage, child birth, child adoption, blended families, death of a family member and sequence of death will have implications on how your estate is to be distributed amongst the beneficiaries. Your Will and net worth should be reviewed on an ongoing basis to ensure after-tax liquidity is available to meet your estate planning objectives. 

Prescribed Rate Loan 

This strategy allows to shift investment income and capital gains that would otherwise be taxed in your hands at a high marginal tax rate to the hands of your low-income family members. An interest-bearing loan is made at prescribed rates (currently set at 4% annual) to your spouse, common-law partner, minor child or family trust who will then use the funds to earn investment income or capital gains.