Summer is finally here, after a long winter many Canadians are itching to get away. As an incentive for Ontarians to travel within the province the Ontario Government has introduce the Ontario Staycation Tax credit, here is a quick summary:  

Ontario residents can claim 20% of their eligible 2022 accommodation expenses for a maximum of $2000 per family, or $1,000 as an individual. Ontarians can claim their accommodation expenses for their short-term stays at hotels, motels, resorts, lodges, bed-and-breakfast establishments, or cottage, campground, and vacation property rentals. The purpose of the stay must be for leisure, and the stay must be for less than one month.

This credit is only for accommodations. Fuel, car rentals, museums or amusement parks, activities, restaurants, train fares or cab rides will not be included. If your accommodations include meals, (Bed and Breakfast) then the part of the expense allocated to meals will be deducted from the qualifying amount.  

The receipts must include:   

– the location of the accommodation
– the amount that can reasonably be considered to be for the accommodation portion of a stay
– the amount of any GST/HST paid (*GST/HST number must be on a receipt for the expense to qualify.)
– the date of the stay
– the name of the payor (The name on the receipt has to match the tax filer who is claiming the credit.)

Taking a holiday is something we should all do because it helps us relax and get away from the day-to-day grind. One key element to a successful vacation is not to create additional debt; you can achieve this by planning ahead.    

Steps to Saving for a Vacation  

Open a separate vacation account – figure out how much you want to spend on your vacation, divide that number by 12 and transfer that amount into your vacation fund every month. It allows you to watch your money grow and eliminates the desire to spend the money on other things.  

Stick to your budget – There is nothing worse than coming home from a great holiday to a huge credit card bill, know in advance how much you are going to spend – and stick to it.  

Tax Refunds and Work Bonuses – put half of these amounts towards your financial goals but put the other half towards something fun – like your vacation account.  

Spending Diet – One week per month try and spend as little as possible on the things you don’t need, add up those savings and put them towards your next vacation.  

Go ahead, take a week off, you deserve it. Besides it’s finally summer.  

Have a great week,
Tracey    

For more information please check the Ontario website: https://www.ontario.ca/page/ontario-staycation-tax-credit  
Source: Original article written by Marie Fazio, CFP Security Financial Services. Article Ontario wants you to staycation–here’s what they’re offering to help, by Lorraine Sommerfeld posted on driving.ca Dec. 10, 2021.  
Products or services related to investments, investment recommendations, financial planning, retirement planning, and investment reviews are provided through our mutual fund dealer Security Financial Services and Investment Corp. 4665 Yonge Street, Suite 309, Toronto, ON M2N 0B4 t 416.964.0440
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