|  What you need to know before filing your taxes It’s no one’s favourite time of year — except maybe your accountant’s. There are a few tips and changes to be made aware of to help make your way through this year’s tax season. Firstly, though the deadline to file your taxes is still April 30, because that date falls on a Saturday this year, you’ll technically get an extra weekend – taxes will need to be filed by May 2, 2022. Next, anyone who received COVID-19 benefits over the past two years will want to keep in mind that those payments are taxable. While some credits, like the Canada Recovery Benefit, have income tax withheld at the source, be aware that you might need to pay more at tax time. Other tweaks that will affect how much you owe or will get back in a return include a higher cap on the work-from-home tax deduction and a change in how the Climate Action Incentive is distributed. To get the full scoop before filing, read the Global News guide to filing your taxes in 2022.  Home prices in the crosshairs Though the past two years of the COVID-19 pandemic have been marked by soaring home prices, recent steps from policymakers could see that trend stabilize or even reverse, according to a BMO economist. Robert Kavcic wrote in a note to clients this week that expectations of rising interests rates from the Bank of Canada, paired with new and expanded taxes on non-resident buyers in provinces including Ontario, constitute a “full-scale attack” on housing prices in Canada. His prediction came as Reuters reported this week that money markets are betting on a rate hike of half a percentage point in April. BMO itself is projecting back-to-back hikes of 50 basis points as part of an accelerated tightening strategy seeking to tame rampant inflation. The result of these measures could see home prices drop by 10 per cent or more in the year to come, Kavcic argues. "They're an inflation-targeting central bank and their first job is to get inflation back down into that one-to-three per cent range. And if lower house prices are a byproduct of that, they're going to have to just let it go,” he tells Global News. Read more from reporter Craig Lord about what the rate path means for buyers and homeowners.  Co-ownership a path into the housing market Not everyone is content with waiting for the housing market to settle before jumping into homeownership. Four millennials in Toronto recently broke into the country’s least-affordable housing market by giving co-ownership a try. Four co-owners who spoke to Global News this week talked about how their strength-in-numbers approach helped them collectively afford a duplex worth nearly $2 million — a property neither of the two participating couples could afford separately. "This house is magical. When you look at the bones, they're perfect. The yard is incredible. It's an oasis in the city and we are so close to transit that we really don't need a car," Michael Carleton, a 36-year-old teacher and financial planner, said. The co-ownership trend is gaining steam according to Ourboro, a Toronto-based company that facilitates these agreements and helps with down-payments in exchange for an equity stake. The number of applicants the company heard from in the first quarter of 2022 was up nearly 400 per cent from the year before. Ourboro chief product officer Alex Kjorven says many interested co-owners are seeking ways to get into the housing market before rising interest rates price them out. Curious how it works? Read more from Global News reporter Anne Gaviola. ________________________ – THE QUESTION – “I am a newly-arrived immigrant (2017) from Honduras, now a permanent resident and soon to be a Canadian citizen. My goal is to purchase a small condo/home somewhere in Canada, perhaps in Red Deer, Alta. Ontario seems to be too expensive to live in. Are there any incentives in place that could help me realize my dream? I should have about $20,000 in cash to put down and am thinking of a purchase price of around $109,000.” — A Money123 reader “First off, welcome to Canada! Home to kind people, scenic beauty and mind-boggling home prices. Weather aside, Red Deer is an OK pick if affordability is key. It isn’t exactly a booming economic hub and its population growth is stagnant, but it’ll potentially have a stop on an upcoming Calgary to Edmonton high-speed transit line, is getting an important airport expansion and it’s one of few western cities with 100,000-plus population and dozens of homes under $100,000. There aren’t many grants in that area but if you’re putting down less than 20 per cent, CMHC’s First Time Home Buyer Incentive is one option. It boosts your down payment using government money and lowers monthly payments. The government may announce enhancements to this program in its April 7 budget. That same budget announcement could also reveal other first-time buyer incentives, like a new tax credit. You’ll also want to call city hall to see if they have any planned grants for home buyers. None were being advertised in Red Deer at this time. Good luck!” -Robert McLister, mortgage specialist, mclister.com
___________________________ Want your money question answered by an expert? Get in touch! | 
No comments:
Post a Comment