Confusion is swirling around capital gains tax changes in Canada, and here’s what you need to know.
1️⃣ What’s Changing?
The government proposed increasing the taxable portion of capital gains from 50% to 66.67%, applying to individuals earning over $250,000 in capital gains. While not yet passed in Parliament, the Canada Revenue Agency (CRA) is already preparing to implement these changes.
2️⃣ Why Is CRA Acting Before Approval?
The finance department explains that taxation proposals, like this one, take effect when a notice of ways and means motion is tabled. The Liberals introduced this motion in September 2024.
3️⃣ Impact of Parliament Prorogation
When Prime Minister Justin Trudeau announced his resignation, Parliament was prorogued until March 24. This wiped the legislative docket clean, leaving questions about the future of this proposal.
4️⃣ CRA’s Next Steps
The CRA will issue tax forms reflecting the proposed changes by January 31. If Parliament decides not to proceed, the policy will revert to previous rules.
Take control of your financial future today! Book a meeting with me to discuss how these changes could impact your retirement plans. Or dive deeper into strategies for retirement success with my book, The Art of Retirement.
