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Sask Tax, 468 Alexandra Street, Regina, KY (2026)

09/22/2025

Check out the latest legislative proposals from Sask Tax (August 12, 2024)! Benefit from the Canadian Entrepreneurs' Incentive with partial capital gains deduction, a $10M capital gains deduction for Worker Cooperative Conversions (2024-2026), expanded Disability Supports Deduction, proposed low-vision navigation devices for medical expenses, more RRSP & RRIF transfer flexibility for spouses/partners, and new AMT treatment rules for flow-through share donations. Apply now at [email protected]!

09/21/2025

Discover the latest tax benefits from Bill C-69, enacted with Royal Assent on June 20, 2024, with Sask Tax! Highlights include the Canada Child Benefit continuing for 6 months after a dependent's death, an increased Canadian Journalism Labour Tax Credit (25% to 35% until 2026), a raised Home Buyers' Plan withdrawal limit to $60,000, a $10M capital gains exemption for Employee Ownership Trusts, and significant AMT changes for 2024. Perfect for first-time homebuyers, business sellers, or journalists!

09/20/2025

Stay updated on Bill C-59, now enacted with Royal Assent on June 20, 2024, from Sask Tax! Key changes include a strengthened General Anti-Avoidance Rule, new excess interest rules, hybrid mismatch regulations, a 10-year reserve for intergenerational transfers, and an extended 5-to-10 year reserve for Employee Ownership Trusts. Small business owners passing down companies should take note! Contact us at [email protected].

09/19/2025

Get the latest on 2024-2025 tax changes with Sask Tax! Discover updates to the Agri-Invest program, the shift to the mobile-friendly My Account (with MyCRA & MyBenefits CRA apps discontinued), and extended partial income deferral for farmers in drought/flood regions. Stay ahead and avoid surprises in your 2025 filings!

09/18/2025

Stay informed with the latest 2024 tax updates from Sask Tax! Learn about the renamed Canada Carbon Rebate (CCR), the new second CPP/OPP contribution, and updated vehicle expense limits, including a $37,000 cap for passenger vehicles and $61,000 for zero-emission vehicles. Plan your business vehicle purchases or leases wisely, as these changes impact your tax deductions.

09/17/2025

Home Expenses and Tax Deductions: What You Need to Know

For many Canadians, working from home has become a regular part of life. With this shift, questions about claiming home expenses on your taxes are more common than ever. Understanding which expenses are eligible and how to claim them can help reduce your tax liability.

If you use part of your home for work, you may be able to deduct certain expenses from your income. This includes costs like electricity, heating, water, home internet, property taxes, rent, and even mortgage interest for some situations. However, it’s important to note that you can only claim expenses that directly relate to your work. For example, if you use 20% of your home as an office, only 20% of eligible expenses can be deducted.

Canada Revenue Agency (CRA) provides two main methods for claiming home office expenses: the simplified method and the detailed method.

The simplified method allows a flat rate deduction, calculated per day you worked from home, up to a maximum limit. This method is easier but may result in a smaller deduction.

The detailed method requires tracking actual expenses and calculating the portion used for work. This approach can maximize your deduction but requires proper documentation, such as bills and receipts.

It’s also important to distinguish between employees and self-employed individuals. Employees must meet certain criteria to claim home office expenses, including having a T2200 form signed by their employer. Self-employed individuals, on the other hand, have more flexibility but still need accurate records to support their claims.

Claiming home expenses can significantly reduce your taxable income, but mistakes can lead to denied deductions or penalties. Keeping organized records and understanding the rules is essential.

If you are unsure which method to use or which expenses qualify, consulting a tax professional can ensure you maximize your deduction without risking errors. Being proactive and informed is key to making your home office work for you, not just professionally but also financially.

09/16/2025

Selling or managing property in Canada? Stay on top of your tax obligations! The Canadian Revenue Agency (CRA) has rules for real estate that homeowners, landlords, and investors must know. Whether selling your home or converting it to a rental, understanding these can save you from penalties. Let’s dive in!

Reporting Principal Residence Sales

Selling your principal residence—the home you live in? You must report it on your tax return, even if it’s tax-exempt under the Principal Residence Exemption (PRE). This helps the CRA track transactions.

Complete Schedule 3 (Capital Gains) and Form T2091 (Designation of a Property as a Principal Residence) to claim the PRE. Include the sale price, date, and years it was your principal residence. Missing this could lead to CRA penalties, so don’t skip it! Consult a tax pro if unsure.

Converting to Rental Use

Turning your home into a rental? This is a change-in-use, and the CRA treats it as a sale at fair market value (FMV). If the FMV exceeds your purchase price (adjusted cost base), you may face a capital gain.

For example, a home bought for $300,000 with an FMV of $500,000 at conversion means a $200,000 gain. The PRE might reduce this if it was your principal residence. Report the change-in-use to avoid penalties or reassessments.

Avoiding CRA Penalties

The CRA enforces property rules strictly. Errors like not reporting sales or rental income can lead to fines or audits. To stay compliant:

Keep records: Track purchase price, improvements, and sales.

File on time: Report in the correct tax year.

Get help: A tax advisor ensures accuracy.

Stay proactive to avoid surprises.

Quick Tips

Rental Income: Report on Form T776; deduct expenses like mortgage interest.

Partial Change-in-Use: Renting part of your home requires allocating use.

Foreign Property: Report if total cost exceeds $100,000 (Form T1135).

Questions about property taxes? Comment or DM us! Follow Sask TAx for tips to navigate Canada’s tax rules.

09/15/2025

Pension & Retirement Income in Canada: What’s Taxable?

Retirement does not mean you stop paying taxes. In Canada, most types of pension and retirement income are taxable, but there are also credits and strategies that can help reduce your tax burden.

Types of Taxable Pension Income

Canada Pension Plan (CPP): Monthly retirement benefits are fully taxable.

Old Age Security (OAS): Fully taxable; higher-income seniors may face a clawback.

Registered Retirement Savings Plan (RRSP) withdrawals: Taxable in the year funds are taken out.

Registered Retirement Income Fund (RRIF) payments: Mandatory withdrawals after age 71 are fully taxable.

Private and employer pensions: Includes income from workplace plans and annuities.

Non-Taxable Benefits

Not all benefits are taxable. Government benefits such as the GST/HST credit or the Guaranteed Income Supplement (GIS) are non-taxable.

Tax Credits and Deductions for Seniors

Age Amount Credit: Available if you are 65 or older (income-tested).

Pension Income Amount: Claim up to $2,000 of eligible pension income.

Pension Splitting: You may split up to 50% of eligible pension income with your spouse or common-law partner to reduce overall taxes.

OAS Clawback Reminder

If your net income exceeds the threshold (approximately $90,000 in 2024), part of your OAS benefits may be clawed back. Strategic planning of RRSP or RRIF withdrawals can help minimize this.

Example

A retiree receives in one year:

CPP: $9,000

OAS: $7,000

RRIF withdrawal: $15,000

Private pension: $5,000

Total taxable pension income = $36,000.
Credits such as the pension amount and age amount may reduce the final tax owed.

Pro Tip

Plan withdrawals carefully. Taking large amounts from RRSPs or RRIFs at once could place you in a higher tax bracket and trigger OAS clawbacks.

Retirement income planning is not only about saving—it is also about understanding how those savings will be taxed.

09/14/2025

Rental Income in Canada: What Landlords Need to Know

If you own a property and rent it out, the income you earn is considered taxable in Canada. The good news is that you can also claim certain expenses to reduce the amount of tax you owe.

What Counts as Rental Income

Rent payments from tenants

Additional amounts paid by tenants (e.g., parking, laundry, utilities)

Security deposits that you keep (if not returned)

This income must be reported on Form T776 (Statement of Real Estate Rentals) when filing your personal tax return.

Deductible Rental Expenses

Landlords can reduce taxable income by claiming:

Mortgage interest (not the principal)

Property taxes and insurance

Utilities (if paid by the landlord)

Repairs and maintenance

Advertising costs to find tenants

Property management fees

Travel costs (if you manage the property yourself)

Capital Cost Allowance (CCA)

Depreciation on the property, known as Capital Cost Allowance (CCA), may also be claimed. While it reduces taxable income in the short term, it can increase taxes later when you sell the property. Claiming CCA is optional and should be planned carefully.

Example

Annual rental income: $24,000

Expenses: $10,000 (mortgage interest, repairs, utilities, etc.)

Net rental income = $14,000 (this is the taxable amount).

Important Reminders

Keep receipts and detailed records for all expenses, as the CRA may request proof.

If you own multiple properties, report income and expenses for each one separately.

If you rent only part of your home, claim expenses proportional to the rented space.

If you convert your home into a rental property, you must report a “change in use” to the CRA.

Pro Tip

Set aside a portion of your rental income for taxes. Unlike employment income, no tax is withheld automatically, so the balance is due when you file your return.

Owning rental property can be a great investment, but understanding how to report income and claim expenses helps you keep more of what you earn.

09/13/2025

Investment Income in Canada: What You Need to Report

Investing is an effective way to build wealth, but at tax time, it is important to understand how different types of investment income are taxed. In Canada, not all investments are treated the same way.

Types of Taxable Investment Income

1. Interest Income

Earned from savings accounts, GICs, and bonds.

Fully taxable at your regular income tax rate.

Reported on a T5 slip.

2. Dividend Income

Paid by Canadian corporations.

Eligible for the dividend tax credit, which helps reduce the tax owed.

Reported on a T5 slip.

3. Capital Gains

Profit from selling investments such as stocks, ETFs, or real estate (excluding your principal residence).

Only 50% of the gain is taxable.

Example: If you sell shares for a $10,000 profit, only $5,000 is taxable.

Non-Taxable or Tax-Sheltered Investments

Tax-Free Savings Account (TFSA): Income and gains are completely tax-free, even when withdrawn.

Registered Retirement Savings Plan (RRSP): Income grows tax-deferred until you withdraw.

Lottery winnings or gifts: Not considered investment income.

Other Important Points

If you own foreign stocks, withholding taxes may apply in the other country, but you can often claim a foreign tax credit in Canada.

Cryptocurrency gains must be reported, as the CRA treats them as investment income.

Certain investment fees may be deductible if they were incurred to earn investment income.

Example

Suppose you earned in 2024:

$1,000 interest from a GIC

$2,000 in dividends

$4,000 capital gain from selling stocks

You will report:

$1,000 fully taxable (interest)

$2,000 with dividend credit applied

$2,000 taxable from the capital gain (50% of $4,000)

Total taxable investment income = $5,000.

Pro Tip

Take advantage of tax-sheltered accounts such as the TFSA and RRSP to legally reduce or defer taxes on your investments.

Smart investing is not just about choosing the right assets—it is also about managing the tax implications that come with them.

09/12/2025

Self-Employed in Canada? Here’s What You Need to Know

Being your own boss is exciting, but it also means managing your own taxes. Unlike employees, no one deducts tax for you, so it is your responsibility to report income accurately and pay the correct amount.

What Counts as Self-Employment Income

Freelance work (consulting, design, writing, etc.)

Running a small business or online shop

Commission sales (if not paid through payroll)

Farming or fishing income

How to Report It

Use Form T2125 to declare income and expenses.

Report gross income (all sales or revenue).

Deduct eligible business expenses to calculate net income—this is the amount subject to tax.

Common Deductible Expenses

Office supplies and equipment

Rent and utilities (or a portion for a home office)

Advertising and marketing

Professional fees (accounting, legal)

Vehicle expenses (fuel, insurance, repairs)

Meals and entertainment (50% deductible)

CPP Contributions

Self-employed individuals must pay both the employee and employer portions of Canada Pension Plan (CPP) contributions. For 2024, the combined rate is 11.9% of net income above $3,500.

Other Key Points

If your revenue exceeds $30,000 per year, you must register for GST/HST.

Keep all receipts, as the CRA may request supporting documentation.

Home office expenses can be claimed if the space is used primarily for business purposes.

Example

Gross income: $60,000

Expenses: $20,000

Net income: $40,000

Only $40,000 is taxable (plus CPP). The $20,000 in deductions significantly reduces taxable income and lowers the overall tax burden.

Pro Tip

Maintain a separate bank account for your business. This simplifies tracking income and expenses and makes tax filing more accurate.

Being self-employed requires careful recordkeeping, but it also provides opportunities to reduce taxes through smart deductions.

09/11/2025

Employment Income in Canada: What You Need to Report

If you are employed in Canada, your employer will usually provide you with a T4 slip each year. This slip is essential for filing your taxes correctly—it shows how much you earned and how much tax was already deducted. But what exactly counts as employment income?

What’s Included in Employment Income

Wages & Salaries – your regular pay.

Bonuses & Overtime – additional compensation from your job.

Tips & Gratuities – even cash tips must be reported.

Commissions – income based on sales or performance.

Taxable Benefits – for example, personal use of a company car, housing allowances, or health insurance paid by your employer.

All of these are generally shown in Box 14 (employment income) on your T4 slip.

Other Important Deductions & Credits

Registered Pension Plan (RPP) contributions (Box 20): reduces taxable income.

Union or Professional Dues (Box 44): claimable on Line 21200.

Canada Pension Plan (CPP) contributions (Box 16): mandatory, helps fund your retirement.

Employment Insurance (EI) premiums (Box 18): required, may provide benefits if you lose your job or take leave.

Canada Employment Amount: a small non-refundable tax credit given to all employed individuals to help offset work-related costs.

Multiple Jobs and T4 Slips

If you worked for more than one employer, you will receive multiple T4 slips. Add them all together when reporting your income. This also helps identify over-contributions to CPP or EI—if you paid more than required, the CRA will refund the excess.

Example

Employer 1 T4 shows $40,000.

Employer 2 T4 shows $25,000.

Total employment income = $65,000 (reported on Line 10100 of your tax return).

Pro Tip

If you have work-related expenses (such as using your own car or maintaining a home office), you may be able to deduct them. However, you will need your employer to complete and sign a T2200 form to validate these claims.

Final Reminder

Even if your employer deducted taxes from your pay, you are still required to file a tax return. Filing ensures you know whether you owe additional taxes or are entitled to a refund.

Filing employment income accurately allows you to maximize your refund and avoid issues with the CRA.

Sask Tax

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