top of page
  • Writer's pictureShamil Jessa

What the New Capital Gains Tax Rule Could Mean for You on June 25th


So, in the latest budget, Finance Minister Chrystia Freeland announced a plan to hike up the capital gains tax. Effective June 25th, 2024, the capital gains tax will go up from 50% to 67% when you sell something like a stock or a second home, They figure this move will bring in about $19 billion in new cash.


Who's feeling the pinch? Well, if you're making over $250,000 in profits, get ready for these new rules to kick in. They're saying this will affect around 40,000 people each year, which is a tiny fraction of Canadians.


To explain this clearly:


  • Individuals will pay 50% tax on gains under $250,000 and then 67% tax on gains above the $250,000

  • Capital gain = purchase price – selling price. ( The capital gains tax is on the profit amount not the entire amount)

  • The capital gains tax rate depends on the amount of your income





The Highlights


  • Real estate, including cottages and investment homes, affected by proposed changes.

  • Proposed change raises inclusion rate to 67% on capital gains above $250,000 for individuals.

  • Inheritance of primary home exempt from capital gains tax, but other properties may incur taxable gains.

  • Capital gains exemption for primary home remains unchanged in the 2024 budget.

  • Experts advise seeking professional advice on tax implications of property inheritance and sale.

Comments


bottom of page