Federal Budget 2024 and Proposed Changes to Capital Gains

Proposed changes to the inclusion rate for calculating capital gains tax have created concern for owners of Canadian corporations and trusts (Please refer to Federal Budget 2024 article published by our Tax and Estate Planning team).


Below is a little chart that tries to quantify the impact of these changes.

Chart showing how if you do not crystalize a capital gain, your capital gains and taxes will go up. For more detailed information, please contact us.

Chart showing how if crystalize gains in may and reinvest proceeds after tax, your capital gains and taxes go down. For more detailed information, please contact us.

This is a rather simple analysis. Other factors to consider when making this important decision are the spread between bid and ask and the ability to reinvest at good prices, your individual time horizon for the corporation and other mitigating strategies that could be put in place to offset tax.

For more detailed information, or an introduction to our Tax & Estate Planning team, please feel to contact us directly.