Budget 2024: Capital Gains Tax is Increasing [Canada]

Meet with PWL Capital: calendly.com/d/cpws-jyp-znp
Canada’s Federal Budget 2024 has proposed an increase in the capital gains tax rate in certain cases.
This means that selling a taxable asset like a business, a secondary real estate property, or an investment portfolio may cost more.
What does this mean for your investments?
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[@BenFelixCSI]

We have made the tool I show at 4:20 available online: research-tools.pwlcapital.com/

[@dimon22323]

Thanks for this. Cool stuff.

[@pretentiouscritic6513]

Just a suggestion here but can't you talk English sometimes? There's so much jargon in your videos. Maybe then you'd get more than 20% of your own subs watching.

[@inhabilitant]

@@pretentiouscritic6513 name fits

[@EastofVictoriaPark]

Nice to see the historical comparison to contextualize the numbers.

[@staebs]

When people say "it was so good back in the 90s, what are we doing differently now?" you can point them to those decades of conservative Ontarian government tax cuts for the rich that have put us in our current situation. Glad we're finally seeing some progressive taxation finally come back, this will benefit the vast majority of Canadians while only hurting very few, many of whom have been profiting off of their fellow Canadians in terms of buying up all the housing in the first place. Great news.

[@billcarruth8122]

@@staebs You're right. It's only hurting the people that have invested to build the buildings you live and work in.

[@James_48]

@@billcarruth8122if it’s such a bad investment then………but it’s not.

[@DebbieCWellness]

As this affects the way many Doctors manage their funds, can this be yet another reason even more Doctors leave Canada?

[@user-gz7of4pi5v]

Of course

[@6478nick]

Canada will be left with refugees, 🎉Police force, and sucker politicians. Rest all wise people will find a better place somewhere else. Canada laws are good for tenants, car thieves, shop lifters, and help them to repeat crimes and encourage them to do it again and again.

[@Kayakattacks]

Incredibly timely and helpful information!

[@bryannacaldwellsoccer]

Thank you for your videos. I learn so much from these and your podcasts.

[@DolfSmitler]

As a Canadian doctor , I moved out way before budget 2024 !

[@priuss6109]

Happy for you!

[@DolfSmitler]

@@priuss6109 thank you 🙏 super happy as well 😁

[@jenkins5265]

Good luck with the US healthcare system.

[@DolfSmitler]

@@jenkins5265 thankful the world is bigger than Canada and the US Lmfao

[@jenkins5265]

@@DolfSmitler happy that you didn't move south. Working as a doctor there is soul sucking.

[@funkdoc1000]

That was awesome. Love the analysis on not selling to let the investment grow. 🙏 Strange edit at 7:18 where it repeats the info you already stated.

[@web3tel]

Thank you for the video. Does the increase of inclusion impacts attractiveness of securities yielding substantial eligible dividends for investments within corporation. The eligible dividends taxation integration is still lossless and is not impacted by these recent changes.

[@LauzonAl]

Great as always!

[@LoganT101]

“Financial Plan: Just buy VGRO” I see you’ve found my notes Ben!

[@BuyBBStonk]

*VEQT

[@marcoz326]

VGRO and chill

[@odourboy]

Ben - question on this topic: Do the proposed changes to the AMT (tabled last year but delayed to this budget with mods) affect the 'break-even' analysis if one's income is primarily from capital gains?

[@vinorivo]

Jumping on this one with the AMT. I think It needs to be accounted for and it affects all capital gain above about 350k$ after Jan 2024. Here in QC, we calculated that before and after June 25 was almost the same tax payment for the first year. I'll share our results with the example given of 1M$. Good work again Ben, love your vids

[@priuss6109]

350k? ​@@vinorivo

[@brandname6]

You explain nuance very well . Thank you for the information

[@Tw-xg1dw]

hey ben, love ur work. Been listening to u and mark on moneyscope too. Just wondering in ur assessment on whether it makes sense to realize gains prior to june 25 in a corporation, did u account for the possibility of making a corresponding decrease in other personal payments to reach the same net post tax outflow from corp to personal? for example instead of a corp owner paying salary + flow thru dividends = 150k post tax, he can realize gains to pay CDA + dividends to release the extra rdtoh + less salary such that the end personal amount still reaches 150k post tax. The resulting lower salary paid reduces personal tax, which may offset the added corp tax costs from the cap gain. My point is the net tax hit for a corp owner from "early" realized gain to meet the June deadline can be somewhat offset. At least, relative to a base assumption where the gain would be realized "early" but no other adjustments to personal income distributions were made. Obviously, theres lots of other factors to consider like SBD passive income limits, personal tax brackets, etc.

[@BenFelixCSI]

In our episode on optimal compensation next week we explain that it likely makes sense to do what you have described all the time. We go through the “optimal” order of compensation sources. Salary is last in line. Realizing a corp gain at the current inclusion rate to create CDA seems sensible.

[@evansmith3766]

This also impacts a professional tax loophole / grey area in surplus stripping. Often doctors and professionals will convert 1m+ of salary into capital gains to pay half the tax. At least now this loophole will become less efficient.

[@BenFelixCSI]

Yep they have been looking for a way to shut that down for years.

[@donaldnicol8415]

Looks like the family members of one of,if not the largest tree nurseries/christmas tree farms in Ontario.Are squirming in their seats now,after the original majority shareholder in the company.Changed the company from a ltd to a corp in the 1990's.Then proceeded to make their wages paid to them as dividends and capital gains.The children who's retirement income is generated from the ever growing assets of this calculated income tax reduction scheme.May be getting to pay a fairer share of tax on their income.

[@dumbasmearse7733]

​@donaldnicol8415 You don't change "from a Ltd to a corp." Either you are incorporated or not. Also, wages can be taken as dividends, but only by shareholders in the corporation. The result is less personal tax but more tax paid by the corporation. Wages can not just be "changed" to capital gains.

[@dumbasmearse7733]

Surplus stripping, while it can save on taxes, is pretty uncommon. Executing it properly is pretty complex and costly, and definitely not without risk, as the CG realized could still end up taxed as deemed dividends.

[@marcodesalud7034]

​@@donaldnicol8415a fair tax system is a flat tax.

[@Chris-yu6ow]

A big part of many people's - including my own - retirement plan is to sell their business once it reaches a valuation that they could retire on. Most small business owners are living pretty frugally until they can get that "exit". So, at least in my scenario, it's not really "soaking the rich". It's "digging into the small business owner's retirement plan." (Also, before anyone mentions the capital gain exclusion for selling a Canadian business - at least in my industry, people don't buy businesses whole cloth. They buy out parts of the business as assets to avoid past liabilities, which means people realistically rarely get to leverage the cap gains exclusion rule that is only triggered if you literally sell the actual shares in the corporation.)

[@BenFelixCSI]

Business owners without saleable businesses, like doctors, are also taking a hit here. Many of them are investing for retirement in their corporations.

[@refixed]

@@BenFelixCSI good thing we have lots of doctors in the country

[@dumbasmearse7733]

Your comment doesn't really make sense. You're talking about the business valuation being your retirement plan, then saying you're going to sell "parts of the business as assets." If parts are being sold, then it's still income for the business.

[@TravellingNomad81]

@@BenFelixCSI I don't understand why people would choose to park investments in their corporations when passive income is taxed at ~50%. Is the tax deferral really that big of an incentive to do so?

[@BenFelixCSI]

Yes the tax deferral really is that big of a deal. If someone has an extremely low personal income it can make sense to take money out to invest, but by nature of doing so their personal income will increase over time.

[@ramican9155]

Thank you Ben!!!

[@pimptamitis]

Great video Ben, one more thing to think about in terms of selling assets is how the legislation will affect capital gains with reserves. Will the old rate apply to whole reserve at the sale date or will the new rate kick in after year one? Will it apply to current reserves? Who knows...

[@DerivativeDaddy]

How does the Dimensional Vector ETF work? Is it a collection of stocks that are either value or high profitability, or are they stocks that have both value and profitability characteristics simultaneously?

[@BenFelixCSI]

This question has nothing to do with the capital gains inclusion rate 😂 We go through the methodology here www.pwlcapital.com/resources/dimensional-equityfunds/

[@accomplishedtheory9502]

Will actively manage mutual funds do worse now if they have to pay higher taxes when making gains? Especially if the fund is worth multiple billion dollars?

[@DUDIDUAN]

Not sure how to file tax this year. Some capital gains before June 25th and some after.

[@forc3s646]

3:56 does it have to be sold before June 25 or as long as it is listed by June 23? In order to avoid this capital gains tax changes.

[@BenFelixCSI]

The trade would have to be settled/ transaction closed.

[@PAINT_S_CAPES]

@@BenFelixCSIWhen is it expected to be accepted as law?

[@TheGreatAgnostic]

So does this make a stronger case for investing money personally by flowing it out of a corporation, rather than within?

[@BenFelixCSI]

That’s a complicated question. Even before this change, there were some cases where paying a dividend to invest in a personal taxable account and release refundable tax could make sense. That is probably more true now than before, but that doesn’t mean it always makes sense. Corporate tax deferral is still powerful.

[@ntubaro]

Can you elaborate how the “just buy VGRO” is affected by this change? Is it just that selling to fund retirement might cost more in tax at >$250k?

[@BenFelixCSI]

In certain cases people may want to realize their taxable capital gains prior to June 25. Whether they should depends on their broader financial plan.

[@NicolasBrouard09]

Any book suggestion sir?

[@PAINT_S_CAPES]

Will sole proprietors be as affected or is the corporation the one getting hit? And what happens if your sole proprietorship/passive income has a portfolio has little to no equity as you just started out less than a year ago?

[@M43782]

I live in a country with a 0% capital gains tax rate (Singapore). I'm a foreigner and don't have a guarantee that I will be allowed to live here indefinitely. Should I sell and rebuy my ETF portfolio every year in July?

[@aaacl08]

Hi I’m also interested in working and living in Singapore as a Canadian. Would you mind sharing the available ways to work and live in Singapore long term? Is it through work sponsorship?

[@YankstaNZ]

When I heard the new I knew the video was coming. Thank for the guidance Ben

[@jaccen4096]

This is going to make farm succession planning for family farms even more unnecessarily difficult.

[@pauldiab944]

So does the capital loss rates stay the same as well or is that changing also?

[@BenFelixCSI]

Also changing, and previous losses will get the new inclusion rate.

[@craftycrabhobby5457]

you suggested buying RRSP for Tax deferral, howevery, if later in year, If I happen to die, the government would still force your spouse or kids to cash it out, if the total retirement fund is abover the taxable bracket, my family would lose a lot of money from this tax. I feel this tax adjustment will affect everyone, I hope the goverment think this through.

[@BenFelixCSI]

Those are taxes you would have paid anyway. The RRSP allows you to defer them far into the future.

[@theowoytowich9959]

If you die. your RSSP if set up correctly can be transferred to spouse tax free.

[@theresasmith1]

I feel if people panic to sell cottages many will be on the market and the value will drop. Keep until your income is low. Hedge your investment 😊

[@msbrownbeast]

Or wait until they boot Turdo and his midget FInance Minister out and maybe the next administration would cancel out this ridiculous tax.

[@bhawandeepsingh1288]

Thanks Ben

[@aba192]

So glad I still have quite a few $$ room in my tax sheltered accounts so not looking at this as an immediate threat

[@loktom4068]

After this capital gain tax, so what's good is CANADA for investment and business?

[@user-mp5km8dg4c]

No good

[@user-mp5km8dg4c]

Why such a short time to tell us this and try to sell by June 25th? Holy Frig!!!

[@robhersey1796]

​@@user-mp5km8dg4c you just answered your own question. Not enough time, so most likely won't happen before that date. Their aim is to milk you dry.

[@bogytime1352]

Is this only for Long term capital gains?

[@BenFelixCSI]

There’s no distinction in Canada.

[@PAINT_S_CAPES]

How does Canada fare in comparison to other G8 countries when it comes to capital gains tax rates NOW and if this new increase is passed. Where do we sit on the world stage?

[@fakeymcfakerson7915]

Is it good to realize gains by selling and then rebuying the same assets?

[@kylem7153]

You're describing tax loss harvesting...I believe for some assets like stocks, you have to wait a minimum of 30 days to rebuy to claim it as a capital loss. There are ways around that, though.

[@philippedastous5697]

Did you consider the reduced CDA amounts for corporations in your calculations?

[@BenFelixCSI]

Yes.

[@khonshu6620]

We are living off the investments within our holdco as retirees. Time to do some serious thinking.

[@BenFelixCSI]

We ran the numbers on this today for a sample case. It will make a bit of a difference for retirement income, but the bigger hit will be on the estate.

[@astseesit]

Wait, what? We pay 50% on out gains and it is now foing to ve 38% thats a decrease so why sell at 50%? Why not sell at 38%? Hiw is 38% higher than 50%?

[@bencns]

TFSA

[@savysav1253]

My condolences to Canada 😢

[@rick-kv1gl]

ur doing god's work Ben. im so happy you are bastion of hope in these times....

[@priuss6109]

What ?

[@NavyMoo5e]

They should just impose this on real estate. Leave businesses and stocks alone.

[@iExploder]

Why should actual work be taxed more heavily than passive income?

[@borisjoffe]

Because you get taxed on the work once and then you get taxed on that same money again after you take it out of your investment. Not to mention sales taxes, property taxes, and all the other taxes that you're paying on the same exact money

[@Lolatyou332]

Technically, realizing gains and paying taxes shouldn't really impact your overall return in disposable income unless your able to be tax advantaged in retirement.. Ultimately all that matters is the tax rate that your gains experience.. That's why paying taxes now and putting it in a Roth IRA is still good versus putting into a 401k, as long the funds experience the same tax rate then it doesn't matter in the ending result (other than for tax strategies in retirement).. So ultimately if you can get a lower tax rate now rather than in 10 years from now, it would be better to realize the gains anyway. Just depends on if the tax changes are reverted, which I guess is where the risk comes with realizing gains now versus later.

[@soccerguy2468]

How to navigate this: Borrow against your assets and differ.

[@Lolatyou332]

How will you pay back if your just borrowing unless the loan literally lasts until the tax rate is lowered or you die?

[@batardglouton5455]

To be fair the so called middle class is more likely to be t4 employees who don't have the luxury to stress over these questions. These people were hit way harder during yet another great wealth transfer that was 2020.

[@myazer]

Two sides to that coin... I am an incorporated physician... talk about "luxury"... unlike "T4 Employees" we have no labour protections, no benefits, no sick days, no paid vacation, no severence pay.. We rely on our corps for all those things.

[@batardglouton5455]

​@@myazer Absolutely, and on the other hand you also get to be in the top earners of this country. Maybe you feel you should be compensated more, and in the end we probably all should. But we know that's not how this works. It's my fault for bringing a political debate where it doesn't belong but it is a fiscal policy in the end. I'm a huge fan of the RR community, but it suffers its own bias from a community of people with assets to invest. In the end do I really want to be well off at the cost of inequality so great that we have to shelter our loved ones from theft and crime like a third world country? (This is coming from someone with investments like most of the followers of this show I presume.) RR community probably did not notice but it is getting a lot harder out there.

[@charlescg3904]

I understand perhaps there are some differences in opportunities with someone's upbringings and everyone's capabilities are different, but there are no laws that are stopping anyone from becoming a doctor or high earner job or starting a business. If anything this country is lacking doctors.

[@iExploder]

@@charlescg3904The only law that prevents people from becoming doctors is the one which requires you to pay large amounts of money for several years to become one.

[@Bleebleeblahblahblah]

I put my money into a business and employ 12 people. I didnt buy a house. While a highschool janitor purchased a home 20 years ago has more.equity than me. And I have worked 70 to 80 hours a week to build my business. While that homeowner for doing nothing for the economy walks away tax free selling their home i get taxed up the wazoo. You dont go to a poor person for a job. You clearly know nothing about how the economy works. When people like me leave this country it will all fall apart.

[@poolschool5587]

If the gain is realised in real estate, I assume that the property would have to not only be sold, but also be closed before June 25th.

[@PAINT_S_CAPES]

Ben answered this just a few posts above yours. His answer was that closing would be BY June 25th. Done and done

[@abteenz]

why no one opposes drastic tax raises?

[@thedopplereffect00]

They want more "free" stuff

[@charlescg3904]

This country is becoming more and more a welfare state. Those with ambitions will be leaving in larger numbers because they don't want to lose the fruits of their labor, while those who want handouts will continually come here in droves. Follow the tides and you'll know where the wind is blowing. What kind of country this will become is anyone's gues..

[@nickzivs]

Because the government is unhinged and unfortunately A LOT of people now work for the government. Austerity or simply reducing public fiscal deficits isn't "popular" and 2025 is an election year. The right approach would be austerity or at the very least productive investment deficit spending, but Liberal/NDP politicians simply decree free things to buy votes and then go looking for additional revenue from others to pay for it at arguably the worst time economically speaking. If you're an entrepreneur or an investor, the Federal Liberals and NDP are telling you that you're not wanted.

[@PAINT_S_CAPES]

@@nickzivsLike ANY party is any different… please

[@ron.mexico.]

0:52 - the greatest economic expansion (and TSX returns) in Canada occurred during 2000s..go figure.

[@videojillian]

Absolutely awful! Im appalled by the fact that this is happening.

[@zorglubz1606]

So now factoring in a 3% yearly inflation + taxes my investments need to make a 5% yearly return just to break even? (and that's not counting investment fees such as a fund manager or other). I mean why bother invest and generate ROE.

[@BenFelixCSI]

Asset prices tend to adjust to tax changes like this.

[@zorglubz1606]

@@BenFelixCSI Foreign assets will not. Demand for local growth assets will decrease as it shifts out, and eventually local supply will also decrease. Either way, from a portfolio perspective, as a Canadian investor my average cost of capital has increased as a result of this change.

[@BenFelixCSI]

I think you said the same thing as me.

[@czapskibusinessgroup]

VTBs will become much more well known with this being implemented for individuals.

[@patienceisalpha]

the big side effect is on the deemed disposition tax that happens when you relocate outside Canada and cease being a tax resident. people with a lot of capital gains are going to be impacted. Another tax grab and more expensive exit tax. Canadians with an upright professional trajectory or entrepreneurs are well advise to leave now and incorporate elsewhere.

[@supernumex]

This would be, for example, unrealized gains (>$250K) in a taxable/margin account and then becoming a non-tax resident of Canada temporarily/permanently?

[@patienceisalpha]

@@supernumex yes

[@supernumex]

@@patienceisalpha and then if you become a tax resident again your cost basis resets, right?

[@patienceisalpha]

@@supernumex when you return to Canada yes One of the few countries that up your basis

[@george6977]

So this tax nudges aspiring entrepreneurs with a business idea to move to USA.

[@Wise_That]

There's no capital gains on the first 800K you get when selling a business in Canada, so if you're looking to spin up a business and sell it for a million bucks later, you're MUCH better off here than in the USA.

[@Hyperpandas]

...they'll still pay less tax than anyone making equivalent salary income.

[@EugeneTolmachev]

Happy trails

[@odourboy]

​@@Wise_That read about QSBS. I believe that provides a $10M capital gains exemption for US small corporations.

[@charlescg3904]

@@Wise_That If you've ever owned a business, you'll know selling a business is much harder than you think. Selling a brand/asset or store perhaps won't be difficult, but to sell your entire corp? Very few businesses even very successful ones will ever have a chance to sell it's 'shares'. You're not a publicly traded company, no one wants them.

[@BreakingBadDebt]

Great video as usual Ben! I was originally planning to use my corp to income smooth during maternity leave but the new tax rate might mean I have to plan to realize those capital gains earlier...

[@BenFelixCSI]

If you realize before June 25 you could use CDA and non-eligible dividends to clear RDTOH during maternity leave. Incidentally, we just recorded a Money Scope on CPP and EI for incorporated professionals. Mark and I were both surprised to find that EI can actually look pretty compelling for anyone planning to take a leave.

[@jmc8076]

Small and med sized corps will def feel it. Lowest hanging fruit first vs largest.

[@BenFelixCSI]

Definitely. Incorporated professionals and small business owners are getting the worst of it.

[@dfs-comedy]

@@BenFelixCSI Sure, but they also tend to be able to take advantage of tax shelters that most people cannot. I owned a business for many years and currently own a holding company, and I certainly took advantage of all the tax-saving opportunities. But from a policy point of view, I don't know that it's good public policy to give high-wealth people more tax loopholes than the average person.

[@alexandrealferan7144]

@@BenFelixCSI So alot of real estate investors?

[@AlphaMatt1000]

@@BenFelixCSIkeep in mind corporate tax rate is lower. So it’s not as bad.

[@BenFelixCSI]

I don’t disagree with any of you. There is a clear advantage to having a corporation in some cases. The biggest benefit is tax deferral. All I’m saying is that people like family doctors and small business owners, who are not mega rich, will be affected by this more than the government implied in the budget.

[@jakegingrich7214]

As long as the federal government stops trying to make the sale of your primary residence a capital gains tax, I'll be good. Why tax the only thing that is going to make me money in life!

[@Lolatyou332]

So basically all this will do is make people less likely to sell out of businesses and invest in other businesses, thus resulting in less capital gains tax actually being collected...

[@Jon20202]

every time you say "increased tax rate" rather than "increased inclusion rate threshold" a kitten dies prematurely.

[@BenFelixCSI]

😂 the rate at which a gross capital gain is taxed has increased. I explained the inclusion rate, but I think the kittens will be ok.

[@dimon22323]

Feels kind of like a rushed change if the decision isn't made yet and its already to go in effect in June which is just couple of months away. Good points brought in video, its not straightforward answer.

[@Zizook]

This is quite interesting, this makes residential speculation, or any major growth stock holder very unhappy. I guess dividends is more the move from now in tax accounts. Very interesting.

[@Rey-is1eq]

Umm, hypothetically, what if my friend's financial plan is to just buy vgro...

[@BenFelixCSI]

There are definitely worse financial plans!

[@marylotv8263]

Hmmm does this include mpp and prime ministers who lined their pockets on our poor backs . Capital gains for mpps, prime ministers, rich, ceos pockets to be taxed.

[@PAINT_S_CAPES]

I think they will ALWAYS find a loophole no matter how loophole-proof a system is

[@ananditagangwar9988]

YOU BUY HIGH QUALITY INCOME ETFS, DRIP THE DISTRIBUTIONS, AND ALLOW IT TO COMPOUND. THATS IT. THERE IS NOTHING ELSE NEEDED TO BECOME A MILLIONAIRE.

[@trotzkii]

Huh! I never noticed it until now, but you have a copy of Thomas Piketty's "Capital in the 21st Century" on your bookshelf! Very cool!🤓

[@maxbork4087]

New capital gains hike won’t work as claimed, but will harm the economy as the economic costs exceed the amount of tax collected! Capital gains taxes are not paid exclusively, or even largely by ultra-high-income earners. Rather, Canadians with much lower levels of income, including many entrepreneurs and small business owners cashing out after a lifetime of work pay the majority of capital gains taxes in Canada. Therefore, any increase to the capital gains tax will affect Canadians across a variety of income levels, not simply the rich, as is claimed by Trudeau/Freeland.

[@darlenehisko2595]

I Do not think a senior who has had a family cottage for yrs are rich

[@waffles1ca]

Just keep enjoying your cottage, my dad spent decades worrying about the capital gains on the cottage, he and my mom enjoyed the cottage for his entire life.

[@marca.1339]

Sold. Four months ago. Getting prepared to move to the states had enough of Trudeau

[@knowyourkismat]

Not sure USA is any better?

[@odourboy]

@@knowyourkismat Americans aspire to wealth, Canadians resent it. I lived in the USA for 10 years. Left with thousands, returned with millions. Much easier to 'make your fortune' there IMHO.

[@knowyourkismat]

@@odourboy interesting. As a healthcare worker, I’ve considered moving to the states from Canada several times but have always been too intimidated. So much more $$ to be made there than here

[@PAINT_S_CAPES]

RULE OF THUMB in this thing called LIFE. Absolutely EVERYTHING is a trade off. One way or another. Hence the saying, the grass is not always greener on the other side. Very rarely is it ever. We are all on this earth to learn and with that comes suffering. Not one of us is immune to that. There WILL be a tradeoff that will hurt. If you’re hooman.

[@TroyQwert]

So, if you sell before June 26, who buys it makes a big mistake. Who's buying it?

[@BenFelixCSI]

No. Whoever buys it will have an adjusted cost base equal to the market value, so no capital gain (unless it appreciates right after they buy it).

[@TroyQwert]

@@BenFelixCSI , sounds Greek to me, sorry!

[@BenFelixCSI]

Basically the problem you are pointing out is not a problem because of how a capital gain is calculated.

[@TroyQwert]

@@BenFelixCSI , OK! Sounds better. But. If that one buys, after he/she buys it after June 25 it is not a problem for them on the date of the purchase. But how about if they decide to sell it eventually, one day, if the same policy still is in effect?

[@BenFelixCSI]

Yes but that is separate from the decision to sell before the new inclusion rate. You will pay less tax on an asset with a large capital gain if you sell it before June 25. Selling now means paying tax at the lower rate on the existing capital gain. In some cases that could make sense.

[@vancouversworstdrivers]

Thats really going to attract investors to Canada :/

[@PedroOliveira-ez2ni]

Maybe I'll migrate my assets to a canadian account, I just love being taxed Canadian Government just did something great!

[@RobertH-qb5it]

Did anyone really think that capital gains taxes could never change? That would be magical thinking.

[@BenFelixCSI]

Lots of people believed they wouldn’t change.

[@staebs]

@@BenFelixCSI Lots of people don't know sh*t about economics. We will play the tiniest violin for the rich people getting taxed slightly more.

[@EccentricRogue]

Hopefully, rich home owners get hit with no more personal capital gains exclusion. Treat all assets the same. Rich home owners should pay more.

[@jenkins5265]

​@@EccentricRoguethere's loads of ways around this. Just have loads of kids and write each property off as a primary residence for each, like they already do. Who is actually checking and holding people accountable?

[@markistheone947]

Thank God I only lose money so will never pay any capital gains. 😢

[@Daniel-ds8nd]

Yes, more taxes pls.. we just want more taxes

[@willskol]

Until Government gets 110% of what you earn they will not own you. But, don'f expect those in government to pay those amounts.

[@Bittersweet721]

Next is Taxing TFSA😂

[@jakeh2049]

Been saying that for a while

[@pauldiab944]

Next is tossing this bum out of office

[@blakemoore2567]

Sure am glad I'm not retiring anytime soon. In a time when our country needs to grow our GDP (legitimately) and improve our healthcare system by retaining more doctors, the Liberals release a budget that discourages both. It would be like having record immigration during a housing crisis

[@lilsabin]

People are not gonna sell anything anymore . We will all HODL :P Good luck , with real estate . :)

[@patienceisalpha]

Fairness for every canadian, except the ones who end up paying I guess

[@jmc8076]

Not to worry all our govts at all levels have/will ensure tax money goes to benefit all with full transparency. No quiet or hidden deals. BTW anyone have a bridge or pet rock for sale?

[@MaxPowersCFB]

Interesting right as around the BoC is about to also talking about raising rates. Pretty much money is going to vanish from our economy while Turdeau is trying to drain the treasury.

[@maxpayne7419]

If you try to sell an asset quickly - you are likely going to accept a lower price. How dumb is that!

[@patman9467]

Crook Tax!!

[@pinballpsycho]

“You vill own nothing undt you vill be appy!”

[@cdbbroadfield6154]

Got to love the liberal government, what’s next a tax of 27% on primary residence

[@daveschmarder-1950]

Soak the rich, eh?

[@ChrisMCP2]

Go ahead sell now. Then watch the budget fail with non confidence 😆

[@nickzivs]

LOL no clue why I'm even watching this, I'm broke as a bad joke.

[@KT-hb5xp]

Do not pass this law

[@segelmark]

Why am I watching a clip on Canadian tax planning? 🤔

[@BenFelixCSI]

I even put [Canada] in the title! This is all on you 😂

[@segelmark]

See it as a complement 😊

[@jimbojimbo6873]

35% CGT is INSANE

[@jiecut]

This is if you're in the top tax bracket and have more than $250k in gains in a year. It's 27% on the first $250k (at the top tax bracket).

[@jonboy602]

@@jiecut Not if your retirement portfolio is in a corporation, like many professionals.

[@jiecut]

@@jonboy602 Well, money in a corporation isn't fully taxed yet. Professionals have the option of more dividends or salary to invest in a taxable account.

[@TravellingNomad81]

@@jonboy602 They chose to NOT pay themselves a salary and NOT get RRSP contribution room in order to take advantage of the tax deferral which most of us don't get to do.

[@last-life]

I don't invest in Canada. More probable that we need to leave Canada's system

[@Ryan-sl8mw]

This isn't even about tax. Its about dismantling the economy as we know it and implementing the CBDC once the economy is destroyed. Silly normies!

[@behonestwithyourself3718]

They should give us more time. This gov can go f itself as far as im concered.

[@jtomb]

Capital gains tax should be abolished. If I take a big risk with an investment and win big on it, why the hell should the government get a cut of that? I was the one putting my money on the line. It's BS.

[@odourboy]

And with these new taxes, the risk on every investment in Canada just notched up.

[@Robsav-yx6vi]

Truer words are never spoken. Not to mention the risk you took .

[@TroyQwert]

New rules give birth to new hacks.

[@tyeealpha]

The cottage problem- I see that losing the cherished family asset just became more likely for many. In BC, property transfer tax effects the break-even year. Also, the rate ramps up as the future value of the cottage does. Gifting the cottage before June 25 might prevent a forced liquidation, but it may also result in fewer actual dollars in the estate. Perhaps think about those lost dollars as premiums on an insurance policy to ensure the kids keep the asset is one way to see it. As said, the break-even point gets pushed out by PTT in BC. Another thing coming to mind is is longevity risk- the liquid assets in the estate are reduced, as the cottage value increases to become the lion's share of the estate. Passing it to the kids with a lifetime interest for the parents before June 25 might be the right choice for some, but it's clearly not an easy decision.

[@hailmademodeG]

Dont be fooled. this will affect many Canadians, not just business owners. Its particularly bad for physicians (and their communities!). They cannot sell their business to just anyone, nor can they increase their prices for their services to make up for this extra burden (nor can they charge more to keep up with inflation). Meanwhile the population is getting older and more physicians are retiring. God help us if they decide to move... good thing there isnt a country right next to us where to could be paid more with lower taxes.

[@canuckeh782]

So creating a buisness and jobs you are punishable by taxes .