Yahoo Finance The CRA Benefits Every Canadian Will Want to Maximize in 2024
Written by Christopher Liew, CFA at The Motley Fool Canada
There are crucial tax changes in tax season 2024. Three Canada Revenue Agency (CRA) benefits, which involve updating dependents, tracking expenses, and transforming savings into tax-free income will help lighten your tax burden.
1. Financial assistance for parents
A taxpayer can claim the Canada Child Benefit (CCB) if the child is under 18 years old, is a Canadian citizen or candidate for permanent residency, and has lived with the claimant for at least half a year. Individual parents will receive 50% of the CCB in case of shared custody.
For 2024, the CCB amount is $619.75 monthly for every qualified dependent under six and $522.91 per qualified dependent between ages 6 and 17.
2. Work-from-home employees
Taxpayers working from home, whether allowed or required, can still deduct home office expenses. The time of work rendered must be more than half the time for at least a month straight. However, you are required to use the detailed method only.
You can claim portions of rent, utilities, home internet access fees, and maintenance and minor repair costs. However, you can’t claim the following expenses: mortgage interest, principal mortgage payments, home internet connection fees, and capital expenses, including furniture and home decor.
3. Offset tax payables with savings
Tax-Free Savings Account (TFSA) users can use their savings to offset tax payables. You can invest the new $7,000 limit in 2024 or your available contribution room in dividend stocks. Maximize the limits yearly because all income in a TFSA is exempt from personal tax.
Indirect real estate ownership
TFSA users can be pseudo-property owners by investing in Nexus Industrial (TSX:NXR.UN). This $653.2 million pure-play industrial real estate investment trust (REIT) pays generous monthly dividends. If you invest today, the share price is $6.99, while the dividend yield is 9.06%. A $7,000 investment will generate $52.85 in monthly passive income or an annual tax-free income of $634.20.
Nexus delivered solid financial results in 2023. In the 12 months ending December 31, 2023, property revenues, net operating income (NOI), and net income increased 15%, 16.9%, and 32.4% year over year respectively to $157.7 million, $111.9 million, and $160 million. The industrial occupancy rate at year-end was 99%.
Essential products and services
Superior Plus (TSX:SPB) is ideal for risk-averse investors. The $2.3 billion company distributes propane, compressed natural gas, renewable energy and related products and services in North America. It is Canada’s largest propane distributor and fourth-largest in the United States.
The recently acquired Certarus will strengthen its position in mobile low-carbon energy solutions. In Q4 2023, net earnings increased 23% year over year to a record $77.5 million. At $9.40 per share, Superior Plus pays a lucrative 7.7% dividend.
“Our propane distribution business continues to generate strong cash flows that we intend to reinvest in our businesses to maximize returns for shareholders on a per share basis. We look to grow and improve further in 2024,” said Allan MacDonald, President and CEO of Superior Plus.
Avoid a big hit
April 30, 2024 is the tax filing deadline for 2023 tax returns. All taxpayers must file on time to avoid an unnecessary big hit. The interest rate on overdue income has increased from 9% to 10%.
The post The CRA Benefits Every Canadian Will Want to Maximize in 2024 appeared first on The Motley Fool Canada.
Should you invest $1,000 in Nexus Industrial Reit right now?
Before you buy stock in Nexus Industrial Reit, consider this:
The Motley Fool Stock Advisor Canada analyst team just identified what they believe are the 10 best stocks for investors to buy now… and Nexus Industrial Reit wasn’t one of them. The 10 stocks that made the cut could potentially produce monster returns in the coming years.
Consider MercadoLibre, which we first recommended on January 8, 2014 ... if you invested $1,000 in the “eBay of Latin America” at the time of our recommendation, you’d have $15,578.55!*
Stock Advisor Canada provides investors with an easy-to-follow blueprint for success, including guidance on building a portfolio, regular updates from analysts, and two new stock picks each month – one from Canada and one from the U.S. The Stock Advisor Canada service has outperformed the return of S&P/TSX Composite Index by 32 percentage points since 2013*.
See the 10 stocks * Returns as of 3/20/24
More reading
Can You Guess the 10 Most Popular Canadian Stocks? (If You Own Them, You Might Be Losing Out.)
How to Build a Bulletproof Monthly Passive-Income Portfolio in 2024 With Just $25,000
Fool contributor Christopher Liew has no position in any of the stocks mentioned. The Motley Fool recommends Nexus Industrial REIT and Superior Plus. The Motley Fool has a disclosure policy.
2024
