{"id":3625,"date":"2024-04-25T09:44:45","date_gmt":"2024-04-25T13:44:45","guid":{"rendered":"https:\/\/www.teamarora.com\/?p=3625"},"modified":"2024-04-25T09:44:45","modified_gmt":"2024-04-25T13:44:45","slug":"canadas-new-capital-gains-tax-changes-and-their-impact","status":"publish","type":"post","link":"https:\/\/www.teamarora.com\/canadas-new-capital-gains-tax-changes-and-their-impact\/","title":{"rendered":"Canada’s New Capital Gains Tax Changes and Their Impact"},"content":{"rendered":"
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The federal government also announced an increase in capital gains taxes to 67% from 50% on June 25th for those earning over $250,000 per annum in capital gains.\u00a0<\/span><\/li>\n
This will be countered by investment in the supply of housing and social programs, to prevent the inheritance of a bigger deficit by younger generations.\u00a0<\/span><\/li>\n
The wealthiest 0.13%, or 12% of Canada’s corporations, as well as individuals with an average income of $1.42 million, will be affected.\u00a0<\/span><\/li>\n
The Lifetime Capital Gains Exemption Limit on Farming and Fishing Properties and Small Business Shares.\u00a0<\/span><\/li>\n
The capital gains tax would be applicable on the disposal of securities, lands, rental properties, or other property such as a cottage.\u00a0<\/span><\/li>\n
An exemption of the capital gain tax applies to the principal residences.\u00a0<\/span><\/li>\n
Critics argue that this could turn off innovation and put the squeeze on professionals’ retirement investments.\u00a0<\/span><\/li>\n
The government defended the move, saying it would only target a few Canadians and will not apply to the sale of the primary residence to create a fair tax system to raise $19.3 billion in the next five years. <\/span><\/li>\n<\/ul>\n
Introduction to Capital Gains Tax<\/span><\/h2>\n
The idea of capital gains tax is built on the fact that profits generated from the sale of property aka stocks or property are the subject of taxation. Canada relies quite heavily on this particular system of taxes, which holds a significant weight within the national tax legislation and applies to individuals and entities.<\/span><\/p>\n