Canada: Details on capital gains changes proposed in 2024 federal budget
Details on proposal in 2024 federal budget to increase inclusion rate for capital gains
Details on proposal in 2024 federal budget to increase inclusion rate for capital gains
Finance on June 10, 2024, issued a Notice of Ways and Means Motion (NWMM) providing additional details on the proposal in the 2024 federal budget to increase the inclusion rate for capital gains in excess of $250,000* realized on or after June 25, 2024 to 2/3 for corporations, trusts, and individuals. Read TaxNewsFlash
The notice clarifies several design aspects of the proposal, including regarding:
- Capital gains threshold
- Capital gains reserves
- Employee stock option deduction
- Allowable business investment losses
- Final return and net capital losses
- Capital cost of depreciable property on non-arm’s length transfer or change in use
- Designations by trusts, including mutual fund trusts, in respect of taxable capital gains
- Mutual fund corporations and mortgage investment corporations
- Related segregated fund trusts
- Partnerships
- Foreign affiliates and hybrid surplus
- Non-resident dispositions of taxable Canadian property
Read a June 2024 report prepared by the KPMG member firm in Canada
*$=Canadian dollar
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