On April 16, 2024, the Minister of Finance presented the
Government of Canada's 2024 Federal Budget (“Budget
2024”). Significant proposals and updates include increasing
the capital gains inclusion rate for corporations, trusts and
individuals.
Currently, 50% of a capital gain (and 50% of a capital loss) is
included in computing a taxpayer's income. For capital gains
and losses realized on or after June 25, 2024, Budget
2024 proposes to increase such rate:
- from 50% to 66.7% for all corporations and trusts; and
- from 50% to 66.7% for individuals, but only with respect to the
portion of capital gains or losses realized annually that exceed
$250,000.
In other words, the inclusion rate will continue to be 50% for
capital gains or losses up to $250,000 realized annually by
individuals (including through trusts or partnerships). The
$250,000 threshold would be fully available in 2024 (i.e.,
it would not be prorated) and would apply only in respect of
capital
