Key Updates for Individual Taxpayers (T1 Returns)
Extended Filing Deadline:
If you’re reporting capital gains on your 2024 T1 return, the CRA has extended the filing deadline to June 2, 2025. This extension applies to returns originally due on April 30, 2025. Filing by this new date ensures exemption from late-filing penalties and interest charges.
Self-Employed Individuals:
For those with self-employment income, the standard filing deadline remains June 16, 2025. However, any taxes owed are still due by April 30, 2025, to avoid interest charges.
Updates for Trusts (T3 Returns)
Extended Filing Deadline:
The CRA has also provided relief for certain information returns:
- T4, T4A, T5 Slips: No late-filing penalties if filed by March 7, 2025.
- T4PS, T5008 Slips: No late-filing penalties if filed by March 17, 2025.
- T3 Slips for Trusts: No late-filing penalties if filed by May 1, 2025, for applicable trusts.
Note: Filing after these extended deadlines will result in penalties calculated from the original due dates.
Capital Gains Inclusion Rate Update
The federal government has deferred the proposed increase in the capital gains inclusion rate. Originally set to rise from 50% to 66.67% for gains exceeding $250,000, this change is now postponed until January 1, 2026. Until then, the inclusion rate remains at 50%.
Action Steps
- Review Your Tax Situation: Determine if you qualify for the extended deadlines based on capital gains reporting.
- Stay Informed: Monitor CRA announcements for any further changes or clarifications.
- Consult Professionals: Seek guidance from tax professionals to navigate these updates effectively.
For personalized assistance and to ensure compliance with the latest tax regulations, feel free to contact our office. Our team at Freeman & Lourenco LLP is here to support you through this tax season.
