3 ms·
I haven't read the actual bill, but from the news reports it's the former. Right now the inclusion rate is 50%; which more or less means capital gains are effec
by travisb 2y ago
I haven't read the actual bill, but from the news reports it's the former. Right now the inclusion rate is 50%; which more or less means capital gains are effectively taxed at about 27%. On June 25th, 2024 the inclusion rate will be 66% for an effective capital gain taxation rate of around 35%.
- powerbroker 2y agoEither way, this is a big 'ouch' for the fat cats who hold stocks (probably all of them). Moreover, these 1-percenters tend to disproportionately hold higher amounts -- so 10% (very rough guess) of the shares in a typical company could be under this new regime (if it is passed). Result: 1. Bail after law passes, but before the effective date; 2. Hold, and sell, in multi-year allotments so as to stay under the 250,000 triggering criteria (drips and drabs strategy). If it was me (I'm not a Canadian citizen), I would sell half my holdings (as a fat cat) ahead of the effective date, and pay the lowered taxes early. I'm sure there are tax pros who have a few other tricks up their sleeves to minimize the 'hits' in future years. Full disclosure: I'm an American holding a CA stock.