On this page, you will find information on the following:

• Automobile deduction limits
• Mineral exploration tax credit
• Critical mineral exploration tax credit
• Lifetime capital gains exemption
• Short-term rentals
• Replacement property acquired during the COVID-19 pandemic
• Reporting rules for digital platform operators
• Capital gains inclusion rate
• Reportable and notifiable transactions penalty

Automobile deduction limits

On December 18, 2023, the Government of Canada announced the automobile deduction limits for 2024.

For Class 10.1 passenger vehicles (new and used) acquired on or after January 1, 2024, the prescribed amount increases from $36,000 to $37,000, before tax.

Automobile deductible leasing costs increase from $300 to $350 per month, before tax, for new leases entered into after 2023.

Mineral exploration tax credit

The Government of Canada has extended the mineral exploration tax credit by one year. The credit is now available for eligible mineral exploration expenses a corporation incurred after March 2024 and before 2026, and renounced under flow-through share agreements entered into after March 2024 and before April 1, 2025.

For more information, go to Mineral exploration tax credit.

Critical mineral exploration tax credit

The eligibility for the critical mineral exploration tax credit (CMETC) now includes eligible expenses relating to the exploration of lithium brine deposits. You can claim a CMETC on eligible expenses relating to the exploration of lithium brine deposits renounced under flow-through share agreements where the expenses were incurred on or after March 28, 2023.

For more information, go to Critical mineral exploration tax credit.

Lifetime capital gains exemption

The Government of Canada proposes to increase the lifetime capital gains exemption (LCGE) from $1,016,836 to $1,250,000. This measure would apply to dispositions that occur after June 24, 2024. The annual indexation of the LCGE would resume in 2026.

For more information, go to Cumulative captial gains deduction.

Short-term rentals

As of January 1, 2024, individuals are no longer able to deduct expenses related to non-compliant short-term rentals. This change applies to all expenses, including interest expenses incurred after 2023 to earn income from operating non-compliant short-term rentals.

For more information, go to Non-compliant short-term rentals.

Replacement property acquired during the COVID-19 pandemic

In some cases, you can defer reporting the capital gain or recapture of capital cost allowance resulting from the disposition of depreciable property. To do so, you must acquire a replacement property within the specified time limits and use it for a similar purpose.

Do not count the period beginning on March 15, 2020, and ending on March 12, 2022, in the calculation of the specified time limits.

For more information, go to Replacement property.

Reporting rules for digital platform operators

New reporting requirements have been introduced for the 2024 calendar year for platform operators in the select segments of the digital economy, particularly those in the sharing and gig economy. Under these new rules, if you are a reportable seller, your platform operators will give you a copy of the annual information that they have collected and reported about you by January 31 of every year to help you file your taxes.

To learn more about the reporting rules for digital platform operators, go to Reporting rules for digital platforms.

Capital gains inclusion rate

The Government of Canada initially proposed to increase the inclusion rate of capital gains over $250,000 from one-half to two-thirds after June 24, 2024. The Department of Finance announced that it will introduce legislation in Parliament in due course, related to the capital gains inclusion rate change with a new effective date of January 1, 2026. As a result, the CRA has reverted to administering the currently enacted capital gains inclusion rate of one-half. This means that all capital gains realized before January 1, 2026 will be subject to the currently enacted inclusion rate of one-half, unless an exemption applies. For more information on the inclusion rate and the change in use election, see Guide T4037, Capital Gains.

For more information, go to Special situations.

Reportable and notifiable transactions penalty

The general penalty provision for not filing an information return is removed for reportable or notifiable transactions, as there are specific penalty provisions under the mandatory disclosure rules (MDR) that apply. This is deemed to have come into force on June 22, 2023, which is the coming into force date of the specific penalty provisions under the MDR.

For more information, go to Information reporting related to reportable transactions and notifiable transactions.