It’s April 2025, and Canadians are racing to file their 2024 tax returns. Whether you’re a real estate investor, small business owner, or employee, these tax deductions and credits can save you thousands—but only if you know what to look for.
Let’s break down 9 tax deductions and credits you don’t want to miss before the April 30 deadline.
1. 💻 Home Office Expenses – Different Rules for Employees vs. Self-Employed
Employees:
If you worked from home in 2024, you’ll need a signed T2200 from your employer to deduct expenses. What you can deduct depends entirely on what’s authorized in the T2200. This might include:
- A portion of rent, internet, utilities
- Cell phone, parking, mileage, or other costs — only if listed on the form
📝 You must use the detailed method now; the simplified flat rate was discontinued in 2022.
Self-Employed:
If you’re self-employed, your home office expenses may include:
- Utilities, internet, maintenance
- Mortgage interest (but not principal)
- Property taxes, home insurance
- Rent, if you don’t own your home
📐 Pro tip: Keep a floor plan and calculate the business-use portion of your home. CRA loves to see this during audits.
2. 👨👩👧👦 Child Care Expenses
If you paid for daycare, summer camps, nannies, or after-school programs to work or study, you may deduct:
- $8,000 per child under 7
- $5,000 per child aged 7–16
- $11,000 per child with a disability
🧾 Usually claimed by the lower-income spouse.
3. 🧾 RRSP Contributions – Know Your Limit & Strategy
RRSP contributions made on or before March 1, 2025 can be claimed for your 2024 return. But let’s clear up some confusion:
- Your actual limit is calculated as 18% of your 2023 earned income, up to $31,560
- CRA confirms your RRSP room on your 2023 Notice of Assessment
- If your 2024 income was low, you can choose not to deduct now and carry it forward for use in a higher-income year
🎯 Strategic RRSP deduction timing can maximize your refund when your marginal tax rate is higher.
4. 📉 Capital Losses vs. Business (Non-Capital) Losses – Including Private Lending
Many Canadians lost money in 2024—through the stock market, real estate, or private lending deals outside of registered accounts. Let’s break this down:
💸 Capital Losses:
Applies when you sell capital property (stocks, real estate) at a loss:
- Can only offset capital gains
- Carry back 3 years or carry forward indefinitely
- Can reduce taxes paid on past gains (e.g. from 2021 or 2022)
🧨 Business (Non-Capital) Losses:
Applies if your activity was treated as a business — e.g., real estate flipping, frequent assignments, etc:
- Losses may be fully deductible against salary, rental, business, or investment income
- Carry back 3 years or carry forward for 20 years
🧠 Private Lending Losses: If you loaned money to earn interest and the borrower defaulted, you may be able to deduct the bad debt as a capital loss—especially if lending was infrequent.
⚠️ CRA considers intent, frequency, and organization of the activity. If you’re unsure, consult a tax pro to avoid reclassification or denial.
5. 💼 Business & Professional Expenses
If you’re self-employed or earn commission income, here’s what you can deduct:
- Accounting, legal, and consulting fees
- Internet, phone, and office supplies
- Software subscriptions and advertising
- Vehicle expenses (keep a mileage log!)
- Business meals (50% deductible)
🧾 Even if your business showed a loss, these expenses may reduce your overall taxable income or create a non-capital loss to carry forward.
6. 🏡 Interest on Investment Loans
Interest is deductible when borrowed funds are used to earn investment or business income, such as:
- Rental property mortgages
- HELOCs or loans used to buy stocks or investment real estate or private lending
- Loans for business operations
🧮 Funds must be traceable. If you mix investment borrowing with personal spending, CRA may deny the deduction.
7. 🏷️ Professional Membership Dues
Annual dues paid to maintain your professional designation (CPA, RECO, etc.) are deductible if:
- You paid them in 2024, and
- The dues are required for your employment or self-employed business
📌 Employees: These can only be claimed if not reimbursed by your employer
📌 Self-employed: Deducted as a regular business expense
🚫 Memberships to gyms, golf clubs, or other social clubs? Not deductible.
8. 💝 Donations – Timing Matters
You can claim charitable donations made in 2024, and also those made in the first 60 days of 2025 (just like RRSPs).
- First $200: 15% federal credit
- Over $200: 29%, or 33% if income exceeds $247K
- Claimable by either spouse — but best to use the lower-income spouse if it avoids OAS clawbacks or benefits phaseouts
💡 Unused donations? Carry forward up to 5 years.
9. 🏠 Multigenerational Home Renovation Tax Credit (MHRTC)
If you renovated your home in 2024 to add a secondary unit for a senior or disabled relative, you may be eligible for a refundable credit:
- 15% of renovation expenses
- Up to $50,000 in costs = $7,500 refund
✅ Must be a self-contained suite for a qualifying family member
✅ Available even if you owe no tax
🔁 Other Credits You Might Be Missing
These often-overlooked credits can still make a dent in your 2024 taxes:
- ✅ Disability Tax Credit – Up to $9,872 in 2024; Form T2201 required
- ✅ Medical Expense Credit – Claim expenses over the lesser of 3% of net income or $2,759
- ✅ Digital News Subscription Credit – 15% on up to $500 in eligible Canadian subscriptions
- ✅ Volunteer Firefighter or Search & Rescue Credit – $6,000 credit if you volunteered 200+ hours
📅 Final Thoughts (as of April 8, 2025)
Don’t just file—optimize. Here’s your final checklist:
✅ RRSP contributions – did you deduct now or save for later?
✅ Home office – T2200 signed? Expenses match what’s approved?
✅ Lost money? Classify losses correctly—capital or business
✅ Donated in early 2025? Claim it for 2024
✅ Reviewed all tax credits, especially refundable ones?
The CRA won’t chase you down for unclaimed credits—so make sure you don’t miss these tax deductions and credits on your tax returns.
Until next time, happy Canadian Real Estate Investing.
Cherry Chan, CPA, CA
Your Real Estate Accountant
