Canada’s Capital Gains Tax inclusion rate will rise from one-half to two-thirds over C$250,000 per year on June 25.
Joshua Harris, finance expert from Harris & Partners, said: “For those with significant investments or assets like cottages or rental properties, the increase in the capital gains inclusion rate could mean higher tax liabilities on investment gains.
“It’s essential for you to stay informed about these changes and consider how they may impact your financial plans and investment strategies.
“Using options such as the $1.25 million lifetime capital gains exemption can help mitigate the higher inclusion rate.”
The CGT exemption is designed for those selling a small business, a farm property or a fishing property.
Harris added: “With the deadline for triggering capital gains tax looming, corporations holding appreciated investments face a critical decision.
“Selling before June 25 could result in much lower tax liabilities for you, as the income tax payable after this date may be about 33% higher.”
Harris recommended taking full advantage of Canada’s Registered Retirement Savings Plan (RRSP) to mitigate the impact of any future tax rises in the country.
