Philotimo Wealth Management

2022 Federal Budget Commentary

Click the link above to read the full commentary.

As mentioned, Baker Tilly is one of the country's largest associations of chartered professional accounting firms in Canada. They provide a thorough and detailed review of the 2022 Federal Budget. We encourage you to review the commentary and please feel free to reach out if you have any questions.

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A few things that were left unchanged were the:

Capital Gains Tax Rate
Personal Tax Rate
Corporate Tax Rate

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Help for homeowners looking to buy a new home with the new tax-free account. The Tax-Free First Home Savings Account (FHSA - finance people love their acronyms) is intended to help Canadians save for their first home with tax-deductible contributions.

No tax on withdrawals to make a first home purchase
$8,000 Annual contribution limit
$40,000 lifetime contribution limit.

The plan is set to role out in 2023.

The Home Buyer's Tax Credit is currently $750 and is proposed to double to $1,500, which is positive.

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According to Baker Tilly's take, tax loopholes are getting tighter. They're looking for more business income tax dollars. Flipping homes just got harder. If certain stipulations are met, instead of reporting gains as capital gains, you may have to report as business income, which of course is taxed at a much higher rate than capital gains.

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There are some other interesting notes and additions included - check out the commentary in the link above to read more.

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The article linked and mentioned above was published April 7, 2022 and written by a number of accountants on the Baker Tilly team including Tom Hunt, Rosa Maria Iuliano, Julianne McLaren, Robert Rock, Dave Clarke, Mike Hayward, John Oakey, Sylvain Campeau, Joseph Belanger. Check out Baker Tilly's website.

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Find the full PDF of the budget at the link here - 2022 Federal Budget.

This article was prepared by CJ Stevens and Jerry Kallitsis who are both mutual fund representatives with Investia Financial Services Inc. This is not an official publication of Investia Financial Services Inc. The views expressed in this article are those of the author alone, and are not necessarily those of Investia Financial Services Inc. The content is for informational purposes only, you should not construe any such information as legal, tax, investment, financial or other advice. All content on this site is information of a general nature and does not address the circumstances of any particular individual or entity.