Federal

Home Office – the Covid work from home deduction, maximum claim $500, has been extended to December 31, 2022.

Equipment and capital asset purchases – Purchases of equipment and other assets that we would typically depreciate, if purchased after January 1, 2022, may qualify for a 100% deduction in 2022. Termed immediate expensing, eligible businesses (sole proprietors, partnerships and corporations) may fully deduct such purchases, to a maximum of $1.5 million. The property must become available for use before 2025 and applies to most but not all types of capital property.

Air Quality Improvement Tax Credit for Small Business – Eligible businesses, including sole proprietors may be eligible for a refundable tax credit of 25% of qualifying expenditures made between September 1, 2021 and December 31, 2022. Expenditures must be intended to increase outdoor air intake or improve air cleaning. The maximum expenditure eligible for the credit is $10,000 per location and a total of $50,000 for all locations.

Ontario

Staycation Tax Credit – for 2022 only, the credit is 20% of the cost of eligible accommodation. The maximum spend is $1,000 for an individual or $2,000 for a family. i.e. a credit of $200 or $400 respectively if you spent the maximum. To be eligible for the credit you must have stayed in the eligible accommodation in the calendar year 2022, regardless of when you paid for it.

The accommodation expenses must have been paid by you, your spouse or common-law partner, or your eligible child, as set out on a detailed receipt provided by a supplier registered for the Goods and Services Tax (GST)/Harmonized Sales Tax (HST). This may be a hitch for people who rent accommodation from an individual family. However, it’s important to note that anyone offering short term accommodation rentals is required to register for HST and charge it. If you didn’t pay HST or see it on the invoice, it’s likely the people you rented from are not operating as they should – and you will not be eligible for the credit. It’s also important to note that this credit is only available for vacation rental. You may not claim a credit for a cottage you already owned.

Eligible types of accommodation are:

• hotel
• motel
• resort
• lodge
• bed-and-breakfast establishment
• cottage
• campground
• vacation rental property