Capital Gains Tax Changes: 0.13% of Canadians Impacted

Budget 2024 Unveils New Measures

The federal government has announced new capital gains tax changes as part of its 2024 budget, which will affect a small percentage of Canadians.

Impact on Economic Growth

Some business groups have expressed concern that the changes could stifle economic growth. However, Small Business Minister Rechie Valdez believes that the impact will be minimal.

Eligibility for Capital Gains Deduction

Individuals may be eligible for the capital gains deduction on taxable capital gains from the following sources:

• Dispositions of qualified small business corporation shares (QSBCS)

Changes Effective June 24, 2024

The following changes will take effect on June 24, 2024:

• Capital gains tax inclusion rate will increase from 50% to 66.67% for corporations and trusts
• Capital gains over $250,000 will be subject to the new inclusion rate