Canadian companies that do business in the United States, Canadian individuals with assets in the United States, and U.S. individuals living in Canada should determine how they will be impacted by new U.S. tax changes. These new rules, many of which take effect on January 1, 2026, were enacted following the approval of the U.S. budget reconciliation bill (commonly known as the “One Big Beautiful Bill”). Although the United States ultimately removed some tax measures from the bill that were expected to increase taxes on U.S.-source income for Canadian corporations and certain other investors, many taxpayers will still be affected by these significant U.S. changes, including certain corporate tax measures that were made permanent, such as the higher EBITDA cap on the deduction for interest and 100% bonus depreciation. The United States has also enacted personal tax measures to increase the lifetime estate, gift, and generation-skipping transfer tax exemption and increase the Alternative Minimum Tax (AMT) exemption amounts, among other changes.
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