Budget 2024: Capital Gains Tax is Increasing [Canada]

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?
------------------
Follow Ben Felix on

Follow the Rational Reminder on:

Follow PWL Capital on:

You can find the Rational Reminder podcast on
Google Podcasts:
Apple Podcasts:
Spotify Podcasts:
------------------

[maxbork]

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.

[Tw-xgdw]

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.

[darlenehisko]

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

[accomplishedtheory]

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?

[vancouversworstdrivers]

Thats really going to attract investors to Canada :/

[Daniel-dsnd]

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

[forcs]

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.

[SeekingVirtueA]

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

[dimon]

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.