Here’s what you need to know about the changes to our taxes

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Published January 3, 2020 at 6:26 pm

taxes

As of January 1, 2020, several changes to our taxes have come into effect.

As of now, the Basic Personal Income–which is deducted from a person’s salary before the amount of income tax they owe is determined–has been increased to $13,229 for 2020. This is part of the government’s intention of raising it to $15,000 by 2023.

These changes also include the Home Buyer’s Plan.

Now, people looking to purchase or built a house can withdraw $35,000 from an RRSP to pay for a downpayment without having to pay tax on it.

Additionally, people who experience a breakdown of a marriage or common-law partnership—in the year of making a withdrawal or in any of the four preceding calendar years—will be able to access the Home Buyers’ Plan, even if they do not meet the first-time homebuyer requirement.

Changes intended to provide Canadians with greater flexibility when it comes to their retirement savings.
Now, purchases of advanced life deferred annuities will be permitted from a registered retirement savings plan, registered retirement income fund, deferred profit-sharing plan, pooled registered pension plan (PRPP) and defined contribution registered pension plan (RPP).

Additionally, variable payment life annuities will be permitted under a PRPP and defined contribution RPP.

Finally, the information return deadline for a taxpayer’s foreign affiliates has been accelerated from 15 months after year-end to 12 months after year-end for taxation years of a taxpayer that begin in 2020, and to 10 months after year-end for taxation years of a taxpayer that begin after 2020.

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