This week of April 15th, 2024 the federal government announced its intention to increase in the capital gains inclusion rate from one-half to two-thirds, effective June 24, 2024. Our goal in this memo is to explain the most important ways this change may affect you.
The change will affect individual taxpayers differently from business and trusts.
For all corporations and trusts: the higher inclusion rate will affect all capital gains. Professional corporations and holding companies fall into this category.
For individuals: the higher inclusion rate will only affect capital gains more than $250,000 in a given tax year. Principal residences are exempt from capital gains tax of any type and will be unaffected by this change.
Read more here: Unity’s Practical Guide to Recent Tax Changes