Apprenticeship Job Creation Tax Credit, Lower Taxes for Local Business, and Eligible Educator School Supply Tax Credit | Feb 25, 2021
2021 Tax Tips
Apprenticeship Job Creation Tax Credit:
Employers who employ an eligible apprentice in a skilled trade in the first two years of an apprenticeship contract (registered with the federal, provincial, or territorial government) can be eligible to receive a non-refundable tax credit equivalent to 10% of the salaries and wages paid to the apprentice. Introduced by the previous Conservative government, this can translate into tax savings for an employer of up to $2,000 per eligible apprentice. Visit online for more information at www.red-seal.ca.
Lower Taxes for Local Business Owners, Farmers and Fishermen
When an owner of a family farm, local business, or fishing enterprise passes from one generation to the next, the properties – or shares – are subject to a Capital Gains Tax. Previously, the first $500,000 of the value was tax-free.
The previous Conservative government increased this exemption to $800,000. (As it is indexed for inflation, the lifetime capital gains exemption is $883,384 for the 2020 tax year.)Additionally, Conservatives also increased the limit specifically for farm and fishing businesses to $1 million.
Eligible Educator School Supply Tax Credit
Eligible educators can claim a 15% refundable tax credit on up to $1,000 of supply purchases per year. Some examples include flashcards, arts supplies, writing materials, books for the classroom and more.