Personal Tax Updates.

Getting you ready for April

For the 2025 Tax Year

Updated February 2026

Table of Contents

CRA Digitization Incentives

CRA is investing more in their online services, portals, and two-factor authentication. This means more digital-only communication from them.

Note: If your taxes owing is greater than $10,000, you can only pay online. Make sure you are prepared.

Sharing Economy

If you’re making extra cash offering freelance services, renting out a room or driving passengers, this applies to you. CRA deems this a compliance risk with a bigger focus. Make sure you include your income relating to the shared economy.

Send us all your online sale details.

Digital Platform Operators

From 2024, digital platform operators will report seller information directly to CRA (incl. Etsy, Uber, Airbnb, Amazon, etc.).

CRA has implemented new reporting rules for digital platform operators which means they may have to collect more detailed information from specific sellers to report to CRA.

According to CRA, sellers who will have their information collected and reported may include those who participate in the following:

  • Sale of goods
  • Rental of real or immovable property 
  • Rideshare and delivery services
  • Personal services

Short-term Rentals

Are you renting out a room or an apartment for less than 90 days? 

CRA focuses on this area, which includes renting out any area or part of a property. They are very creative in finding income. Expenses will be denied if they are not compliant with related provincial and municipal licensing, permit and registration requirements.

Have you considered the requirements to pay a tourism levy on rentals less than 30 days? Upload a copy of your approved license to the Client Portal.

Crypto

NEW: The government plans to follow legislative changes that would require crypro-asset service providers to report information to CRA about their customers’ crypto-asset transactions. This change is proposed to take effect January 1, 2027

Good reporting platforms are hard to find. Consider: Koinly and Crypto Tax Calculator. Talk to us if you have any Crypto investments or transactions.

Organ and Tissue Donation

NEW: This year on your 2025 T1 tax form you can opt in to receive information about organ and tissue donation. 

A News Release on May 5, 2025 announced this change to raise awareness on organ and tissue donation and encourage registrants.

Bare Trusts

A bare trust is a relationship where one person, the trustee, holds an asset on behalf of another, the beneficiary.

The trustee holds the title to property or assets as an agent without having any beneficial use of the property. The beneficiary has the right to use and equity in the property or assets.

If you own any shares in a private company that owns real estate, please let us know, as there are filing requirements we need to consider.

How do I know if I have a bare trust?

Consider this: when your asset is sold, who gets the money from it? If it is not you, there may be a bare trust relationship.

Did you open an investment account for a minor child or a parent? If so, it may fall under bare trust reporting.

Bare Trust Reporting

NEW: The government confirmed that it will proceed with the draft legislation to amend the trust reporting rules as proposed on August 15, 2025. 

Reporting by bare trusts would now be deferred to apply to taxation years ending on or after December 31, 2026.  In other words, bare trusts don’t need to follow the new reporting rules until the end of the 2026 tax year.

First Home Savings Account

FHSA can be set up by first-time home buyers, allowing tax deductions of up to $8,000 per year to a lifetime limit of $40,000.

If you are planning to buy your first home in the near term, contact us before the purchase for planning possibilities.

Underused Housing Tax

Underused Housing Tax (UHT) is a tax of 1% on the value of residential real estate owned by non-residents if those properties are considered vacant or underused.

NEW: Included in Bill C-15, the UHT will be eliminated as of the 2025 calendar year. No UHT will be payable and no UHT returns will be required in 2025 and future calendar years. Filing requirements, penalties and interest in respect of prior periods will not be removed.

Dental Care

The Canadian Dental Care Plan provides coverage for uninsured Canadians with an annual family income of under $90,000. Individuals must apply to be covered.

NEW: A Health Canada News Release announced that the ability to apply for the Canadian dental care plan (CDCP) would be opened in May 2025 for uninsured Canadians aged 18 to 64. 

Do I qualify for the CDCP?

To qualify, applicants must

  • have an adjusted family income under $90,000
  • be Canadian residents for tax purposes
  • have filed their 2024 tax returns
  • not have access to any form of dental insurance

Student Loan Forgiveness

NEW: As of December 31, 2025 an update to Canada.ca announced a new list of professions that are now eligible for student loan forgiveness.

How much could I receive?

The total loan forgiveness over a maximum of 5 years is as follows:

  • $15,000 for Early Childhood Educators, Dental Hygienists, or Personal Support Workers
  • $30,000 for Nurse Practitioners, Registered Nurses, Registered/Liscensed Practical Nurses, Registered Psychiatric Nurses, Midwives, Teachers, Social Workers, or Physiotherapists
  • $60,000 for Family Doctors, Family Medicine Residents, Dentists, Psychologists, or Pharmacists

Note: Loan forgiveness will apply to your loan’s principal balance after the end of your 12 months of service. You will have to keep making your payments. See Canada.ca for more details.

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