Capital Gains Chaos: Extensions & Unprecedented Delays to Tax Season 2025

Stop! Don’t file a T1 or T3 tax return yet, says a March 11, 2025, news release from the CRA, if you have been impacted by the chaos of the proposed capital gains inclusion rate increase.

The federal government announced over $200 million in new rent and emergency shelters support as well as $5 million a year to fund consumer research, investigate and reveal harmful business practices, all as part of its economic plan. Sadly, there was no broad-based tax relief to put money into the hands of consumers.  Here’s what was announced and how filing a tax return before the end of the month could provide more broad-based help instead.

Finance Canada has extended the ban on foreign ownership of Canadian housing for an additional two years.  This will now expire on January 1, 2027. Foreign commercial enterprises and people who are not Canadian citizens or permanent residents will not be allowed to purchase residential property in Canada.  But will this help make housing more affordable in Canada? 

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Share the love with your companion or team member and join us in the splendid aura of the arts in the charm of Montreal as you discover new ways to lead with impactful guidance at the Acuity Conference for Distinguished Advisors, November 10-12, 2024.  Early-bird deadline: February 15. Save up to 25% on tuition when you register as a Delegate, Companion or Team Member!

Did you miss the January 17 Virtual CE Summit? Now available, the Advanced T1 Tax Update for 2023 Returns, Lite version! Tax season is coming up fast, and this is the tax season solution your team needs! Contact your friendly registrar Carol Scott

Did you or your clients sell capital property last year?  Did they help finance the purchase?  In that case, it’s important to review how to complete Form T2017 Summary of Reserves on Dispositions of Capital Property, because tax on these capital gains can be deferred for up to 10 years.   Further, if there is a gradual transfer of property under the new intergenerational business transfer rules that begin in 2024, the capital gains reserve provisions will come into play. Here’s a synopsis of the rules, with excerpts from Knowledge Bureau’s Evergreen Explanatory Notes.