Canada’s Changing Capital Gains Tax Landscape

Understanding the Changes:

Please Note: This blog was published prior to the changes on June 25th. These changes are now in effect.

The proposed increase in the inclusion rate of capital gains, could lead to higher tax obligations for both individuals and corporations when realizing capital gains. Currently, 50% of capital gains are subject to tax, but if this rate is raised, it could significantly impact the financial outcomes of entrepreneurs and investors.

We recently hosted a live webinar on the topic which you can watch on YouTube.

Key Take-Aways:

The proposal is part of the government’s efforts to address wealth inequality.
The current capital gains inclusion rate is 50%.
The potential changes could involve increasing this rate to 2/3 or 66.67%.
This is not the first time the capital gains inclusion rate has changed, or even increased, since its introduction.
Everyone’s individual situation is of the utmost importance when considering these changes.

Strategies for Entrepreneurs and Investors:

Given the potential changes in capital gains tax, it’s crucial for entrepreneurs and investors to evaluate their strategy. Here are some proactive steps to consider:

Tax Planning: Engage with tax professionals to explore your strategies for structuring investments.
Investing Decisions: Ensure you are reviewing your full picture plan with your trusted tax and investment advisors.

How Hendry Warren Can Help:

At Hendry Warren, we specialize in assisting entrepreneurs and investors in navigating complex tax landscapes. Our experienced team can provide tailored advice and strategies to optimize tax outcomes amidst changing regulations. By remaining proactive and leveraging expert guidance, businesses can navigate uncertainties and continue to thrive in the dynamic Canadian tax ecosystem.

Contact our team today to learn more about how we can support your tax planning needs and help you achieve your business objectives in an evolving regulatory environment.

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