The 2024 federal budget delivered on April 16, 2024, proposed significant changes as to how capital gains will be taxed for capital gains realized on or after June 25, 2024. Budget 2024 proposes to increase the portion of the capital gain that is taxable from half, or 50 per cent, to two-thirds for Canadian corporations and trusts. At the same time, for Canadian individual residents, the proposed increase would only apply to capital gains in excess of $250,000, annually. More information on these proposed changes can be found in our 2024 federal budget highlights.
Ontario individual residents with capital gains in excess of $250,000, could pay additional taxes of nearly nine per cent. Ontario Canadian-controlled private corporations with realized gains on or after June 25, will also incur increased corporate income taxes of just over eight per cent. If you have a pending sale or are considering selling certain property, such as private company shares, public company shares, or real estate, on or after June 25, some actions can be taken to eliminate or reduce these additional taxes.
If you would like to assess the opportunities and benefits of undertaking transactions before June 25, 2024, or have any questions regarding the proposed changes, please reach out to your Fuller Landau advisor.
