What's new for small businesses and self-employed
On this page, you will find information on the following:
Government assistance programs for the self-employed
You may have received federal, provincial or territorial government program assistance that was provided for self-employed individuals, businesses, farmers or fishers. You are responsible for reporting the amount of assistance received when you file your income tax return.
Government assistance income is taxable and will either be included in business, farming or fishing income or, if you elect, will reduce your business, farming or fishing expenses. You may also have received a government loan. The loan itself is not taxable. However, any part of the loan that is forgivable is taxable in the year in which the loan is received.
Automobile deduction limits
For zero-emission passenger vehicles (new and used) acquired on or after January 1, 2022, the prescribed amount is increased from $55,000 to $59,000, before tax.
For passenger vehicles (new and used) acquired on or after January 1, 2022, the prescribed amount is increased from $30,000 to $34,000, before tax.
Automobile deductible leasing costs increased from $800 to $900 per month, before tax, for new leases entered into after 2021.
Capital cost allowance for clean energy equipment
Capital cost allowance (CCA) Classes 43.1 and 43.2 now include air-source heat pumps primarily used for space and water heating. This applies to property that is acquired after April 6, 2022, and that has not been used or acquired for use before April 7, 2022.
For more information, see Class 43.1 (30%) and Class 43.2 (50%) – Clean energy equipment.
Air quality improvement tax credit
If you have incurred expenses related to ventilation or air quality, you may be eligible to claim the air quality improvement tax credit (AQITC). The AQITC is a refundable tax credit equal to 25% of your total ventilation expenses incurred from September 1, 2021, to December 31, 2022, to improve ventilation or air quality at your place of business, up to a maximum of $10,000 per location and $50,000 in total.
To claim the AQITC, fill in new Form T2039, Air Quality Improvement Tax Credit. For more information, see Air quality improvement tax credit.
Critical mineral exploration tax credit
The critical mineral exploration tax credit (CMETC) is a new 30% investment tax credit for the exploration of specified minerals. Eligible expenditures renounced under eligible flow-through share agreements that are entered into after April 7, 2022, and before April 1, 2027, will benefit from either the CMETC or the mineral exploration tax credit. For more information, see Critical mineral exploration tax credit.
Immediate expensing
The Government of Canada introduced a temporary immediate expensing incentive for certain property that an eligible person or partnership acquires. This incentive provides an immediate deduction of the cost of designated immediate expensing property, up to a maximum of $1.5 million. This incentive applies to eligible property acquired after December 31, 2021, and that becomes available for use before 2025. For more information, see Immediate expensing incentive.
Crypto-assets
If you have activities related to crypto-assets in 2022, you may have business income (or loss) that you must report on your income tax return. For more information, see Crypto-assets.
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