The tax rate on capital gains will be rising, soon. You may have heard that this change is based on capital gains over $250,000.00. Any gain over $250,000.00 will be taxed at 2/3’s (previously 1/2). This portion is referred to as the “inclusion rate.” This change will be applicable to Canadian corporations, trusts and personal taxpayers.

 There may be some proactive strategies, that can be created before the deadline, which may help you to minimize the tax burden and preserve your wealth.

Some individuals may decide to realize their capital gain now instead of waiting for the disposition of the asset. For instance, they might consider transferring assets to their adult children and paying the current tax burden now. 

Alternatively, clients might explore rolling their assets into a Holding Company and creating a share structure that best suits their family.

Determining the best course of action depends on your unique situation. Although paying higher taxes may seem inevitable, assessing all available options now may result in a lower tax burden and preservation of wealth.

We cannot offer legal or accounting advice however we can help to guide you through the mortgage process, if need be, while collaborating closely with your consultants.

If you need a referral to a qualified lawyer or accountant, please don’t hesitate to (contact me).

Next rate announcement is June 5, 2024. If you would like to chat more about current and future interest rates, please (contact me).

Getting in touch is easy (contact me). 

If you would like more information about Mortgages or one of Sam’s Shorts, you are always welcome to contact us.