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ARTICLE · 03 JUNE 2024

Capital Gains Planning: Pre-June 25 Action Items

Borden Ladner Gervais LLP
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Currently, only 1/2 of a taxpayer's capital gains are included in computing income. The 1/2 inclusion rate currently applies to all taxpayers (be it a corporation, trust or an individual).

CanadaTax
Joelle Kabouchi
Joelle Kabouchi
Pamela Cross
Pamela Cross
Steve Suarez
Steve Suarez
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Background

Capital gains inclusion rate increased to 2/3

  • Currently, only 1/2 of a taxpayer's capital gains are included in computing income. The 1/2 inclusion rate currently applies to all taxpayers (be it a corporation, trust or an individual).
  • Budget 2024 proposed the following, effective for capital gains (other than on a principal residence) realized on or after June 25, 2024:
    • For corporations and trusts, increase capital gains inclusion rate from 1/2 to 2/3 for all capital gains; and
    • For individuals, increase capital gains inclusion rate from 1/2 to 2/3 on capital gains realized in the year that exceed $250,000.

Capital gains exemption increased to $1,250,000

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