Rumours continue to swirl that the Liberals plan to raise taxes by cutting back on the break Canadians get from capital gains. The current capital gain inclusion rate is 50%.
Examples of properties that incur capital gain taxes upon disposition include:
- secondary properties, like cottages (principal residences are exempt from tax)
- investments held outside a tax-sheltered account
Finance Canada is notoriously tight-lipped about the timing of the budget, but the release will be sometime in March 2017.
This speculation could lead to some panic-selling of assets as people try to avoid a deadline. You don’t want to let the rumours drive your planning, as it is something that may never happen or might include a grandfather clause. However, if you have concerned or if you have sales that are already imminent please contact HGA for assistance immediately.