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New year, new taxes: how taxation changes in 2023 could affect you

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The federal government has introduced several changes to taxation and tax benefits for this year — and experts tell CBC News the tax changes related to housing are the ones to watch.

A First Home Savings Account (FHSA), an increased tax on home-flipping and a tax on unused or underused housing are among the new measures now in effect.

First Home Savings Account

The FHSA allows certain homebuyers to save up to $40,000 toward a home purchase, with a maximum annual contribution of $8,000 over five years. Contributions to the FHSA are tax-deductible and withdrawals to purchase a home are tax-free.

Hugh Woolley, a Vancouver-based chartered professional accountant, said it’s important to note that the FHSA isn’t just for first-time homebuyers. Those looking to buy a home who haven’t owned one for four years or more are also eligible.

“So this can also be for people who are re-entering the housing market, who’ve been out of the housing market for a number of years,” Woolley said.

Another new tax benefit related to housing is the Multigenerational Home Renovation Tax Credit.

The refundable tax credit will provide up to $7,500 “in support for constructing a secondary suite for a senior or an adult with a disability to live with family members,” Finance Canada said in an email.

Eligible families can claim 15 per cent of a maximum $50,000 in home renovation and construction costs to build a secondary housing suite.

New taxes on home-flipping, vacant housing

The government brought in a new rule in Budget 2022 which has effectively increased taxes on home-flipping.

The change means the government will assume anyone who sells a home after possessing it for less than 12 months will be considered to be flipping the property. Profits from the sale would be considered business income, not a capital gain.

Dan Rogozynski, co-director of the University of Waterloo’s masters of accounting program, said the government hopes the measures will help slow rising housing prices in Canada.

“They don’t like this flipping, because what happens is it creates demand, it inflates prices,” Rogozynski said.

But the change comes with a number of exceptions, such as selling a home because of a death or divorce.

Woolley said home-flippers will likely look for ways to get around paying the tax.

“I think there’s going to be a lot of people who do sell within a year [and] are still going to be able to come up with some reason as to why these rules don’t apply to them,” he said.

The government is also introducing an Underused Housing Tax (UHT).

“The UHT is a national, annual one per cent tax on the value of vacant and underused residential property in Canada owned directly or indirectly by non-resident, non-Canadians,” Finance Canada said in an email.

Any non-resident or non-Canadian who owns an underused or vacant residential property in Canada as of December 31, 2022 will have to file a UHT return for the property by April 30, 2023.

There are a number of exceptions to the UHT. They include exceptions for seasonal properties and properties made inaccessible by a hazard.

New taxes on home-flipping and vacant property are meant to increase the number of available housing units. (Richard Buchan/The Canadian Press)

Woolley said the range of exemptions to the UHT is notable.

“I think that one of the dangers in these rules is the more exemptions you provide, the more the tax planners and the clever, crafty people are going to say, ‘Well, this is the way you get around these rules,'” Woolley said.

Rogozynski said it’s likely the tax will increase in the next few years.

“I can’t see why over time that rate wouldn’t go up from 1 per cent, to 2 per cent, to 3 per cent, because they’re nameless, faceless foreigners. They don’t vote,” he said.

Other changes

The federal government indexes personal income tax brackets and many tax benefits to inflation. They’ll increase by 6.3 per cent this year, says the Canada Revenue Agency.

Rogozynski said it’s a far higher jump than usual.

“This is triple what you would normally see across the last 40 years,” he said.

“So pretty well everybody who is in Canada working now probably has never seen such an indexation factor going on.”

The Basic Personal Amount, the amount of income exempt from tax, has increased to $15,000 this year, up from 14,398 in 2022.

Rogozynski said that, overall, tax changes this year are modest.

“There may be a recession [in 2023]. That’s not the time to introduce a bunch of big new increases,” he said.

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B.C. court allows police to apply to dispose of evidence from Robert Pickton’s farm

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VANCOUVER – A B.C. Supreme Court judge says it has jurisdiction to order the disposal of thousands of pieces of evidence seized from serial killer Robert Pickton’s pig farm decades ago, whether it was used in his murder trial or not.

A ruling issued online Wednesday said the RCMP can apply to dispose of some 15,000 pieces of evidence collected from the search of Pickton’s property in Port Coquitlam, including “items determined to belong to victims.”

Police asked the court for directions last year to be allowed to dispose of the mountain of evidence gathered in the case against Pickton, who was convicted of the second-degree murder of six women, although he was originally charged with first-degree murder of 27 women.

Pickton died in May after being attacked in a Quebec prison.

Some family members of victims disputed the disposal because they have a pending civil lawsuit against Pickton’s estate and his brother, David Pickton, Yand want to ensure that the evidence they need to prove their case is not dispersed or destroyed.

The court dismissed their bid to intervene in July this year, and the court has now ruled it has the authority to order the disposal of the evidence whether it was used at Pickton’s trial or not.

The ruling says police plan to “bring a series of applications” for court orders allowing them to get rid of the evidence because they are “legally obligated to dispose of the property” since it’s no longer needed in any investigation or criminal proceeding.

Justice Frits Verhoeven says in his ruling that there may be reason to doubt if the court has jurisdiction over items seized from the farm that had not be made exhibits.

But he said that will be a decision for later, noting “the question as to whether the court retains inherent jurisdiction to order disposal of seized items may remain to be considered, if necessary, in some other case.”

Jason Gratl, the lawyer representing family members of victims in the civil cases against the Pickton brothers, said in an interview Wednesday that the latest court decision doesn’t mean exhibits will be destroyed.

“Any concern about the destruction of the evidence is premature. Just because the court will hear the application to allow the RCMP to destroy the evidence does not mean that the court would grant the application,” he said.

Gratl said that if the RCMP brings an application to get rid of evidence that could be useful in proving the civil cases, he would ask the court for the evidence.

“We would be seeking to take possession of any evidence that the RCMP no longer wants in order to prove that civil claim,” he said.

Gratl said no date has been set for when the civil cases will be heard.

The court’s earlier ruling says the RCMP has agreed to allow some of the civil case plaintiffs “limited participation” in the disposal application process, agreeing to notify them if police identify an “ownership or property interest in the items” that they’re applying to destroy.

This report by The Canadian Press was first published Nov. 6, 2024.

The Canadian Press. All rights reserved.



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Democrats devastated by Vice-President Kamala Harris’ defeat |

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Supporters of Vice-President Kamala Harris say they are devastated the Democratic party leader lost the United States presidential election. Harris was set to address Democrats at her alma mater Howard University in Washington, D.C. after conceding the race in a phone call with Donald Trump. (Nov. 6, 2024)



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Democrat Elissa Slotkin wins Michigan’s open Senate seat, defeating the GOP’s Mike Rogers

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DETROIT (AP) — Democratic U.S. Rep. Elissa Slotkin has won Michigan’s open U.S. Senate seat, giving Democrats a bittersweet victory in a swing state that also backed Republican President-elect Donald Trump in his successful bid to return to the White House.

Slotkin, a third-term representative, defeated former Republican congressman Mike Rogers. Democrats have held both Senate seats in Michigan for decades, but this year were left without retiring incumbent Sen. Debbie Stabenow.

Michigan’s was among a handful of Senate races Democrats struggled to defend. They lost their U.S. Senate majority despite Slotkin’s narrow win.

The race was incredibly close. Just minutes before it was called for Slotkin, she addressed supporters in Detroit, acknowledging that many voters may have cast their ballots for her while also supporting Trump, who won the state’s electoral votes over Democrat Kamala Harris.

“It’s my responsibility to get things done for Michiganders. No matter who’s in office, just as I did in President Trump’s first term,” said Slotkin. “I’m a problem solver and I will work with anyone who is actually here to work.”

Slotkin’s win provides some solace for Democrats in the state, many of whom entered Election Day with high confidence following sweeping victories in the 2022 midterms. Democrat Gov. Gretchen Whitmer still controls the executive branch and Democrats held onto the Senate, but their state House majority was in peril.

And Republicans also captured a mid-Michigan seat vacated by Slotkin, considered one of the most competitive races in the country.

Slotkin, a former CIA analyst and third-term representative, launched her Senate campaign shortly after Democratic Sen. Debbie Stabenow announced her retirement in early 2023. With a largely uncontested primary, Slotkin built a significant fundraising advantage and poured it into advertising. Her high-profile supporters included former President Barack Obama and Stabenow, who helped her on the campaign trail.

On the Republican side, Rogers faced multiple challengers for the party’s nomination, including former Reps. Justin Amash and Peter Meijer, the latter of whom withdrew before the Aug. 6 primary. Rogers served in the U.S. House from 2001 to 2015 and chaired the House Intelligence Committee.

Trump won Michigan in 2016 by just over 10,000 votes, marking the first time a Republican presidential candidate had secured the state in nearly three decades. This time, he expanded that margin to about 80,000 votes.

Slotkin and other Michigan Democrats focused much of their campaigns on reproductive rights, arguing that Republican opponents would back a national abortion ban, although Rogers said he wouldn’t. How effectively the issue motivated voting in a state where reproductive rights were enshrined in the constitution by Michigan voters in 2022 remained to be seen on Election Day.

About 4 in 10 Michigan voters said the economy and jobs is the top issue facing the country, according to AP VoteCast, a sweeping survey of more than 110,000 voters nationally, including about 3,700 voters in Michigan. About 2 in 10 Michigan voters said immigration is the most pressing issue, and roughly 1 in 10 named abortion.

Slotkin used her funding advantage to establish her narrative early, aiming to connect both with her base and disillusioned Republicans.

“For the Republicans who feel like their party has left them over the last few years, you will always have an open door in my office,” Slotkin said during their only debate.

The Canadian Press. All rights reserved.



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