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.

Canadians and their economy appear to be on the road to financial health.  Canada’s Consumer Price Index (CPI) rose 3.1% on a year-over-year basis in November, and while there was no decline from the month before, if the trend continues and the inflation rate falls to within the Bank of Canada’s target rate of 2%, Canadians could look to 2024 as the year the Bank starts cutting interest rates.  Better still, because household disposable income has risen at the fastest pace in five quarters, Canadian savings rates have risen, too.  There is a fly in the ointment, but even that can’t dampen spirits.

To pull ahead of high inflation, interest rates and new taxes looming for the first half of 2024,  taxpayers and their advisors can best cope by quickly sharpening their skills on uncovering tax-driven savings to manage financial challenges in the short term, says Knowledge Bureau Founder and President Evelyn Jacks, best-selling tax financial author and award-winning educator.  There are also some things that can still be done before year end, especially for delinquent tax filers, but the time is quickly drawing to a close, so if you have missed filing a return now is the time to catch up and recover refunds and benefits.    

Knowledge Bureau’s  T1 Advanced Tax Update Hybrid Learning Event is now available for registration, to provide a complete suite of educational resources personal tax specialists need to file a broad base of T1 returns for the 2023 tax year, including returns for individuals, students, families, investors, seniors, proprietors, the disabled and nuances for terminal returns.  Everything is included for this top tier Advanced T1 Tax Update to fully prepare you for the tax season including, as described below, the CE Summit workshops – virtual and in person – and a full tax research library, hard copy desk top reference journal, and CE Accreditation. 

We’ll be back on January 3, 2024!  In the meantime, please share your thoughts in our last poll of 2023:

Connect with a like-minded group of financial leaders through cross-referral and networking opportunities as a member of the Society of Real Wealth Managers™: open to those who have achieved the RWM™ Designation. Current members of the Society of Real Wealth Managers™ commit to an annual membership that qualifies for 15 CE/CPD credits to keep your RWM™ credentials in good standing with Knowledge Bureau. For existing members, join us on Tuesday, January 2 for our annual member’s meeting, check your calendar for details.

On  December 11, the federal government announced it will introduce the new Canada Dental Care Plan (CDCP) to seniors age 87 and above in December 2023.  Access for others will begin over the 6 months ending in June 2024.  In all cases, eligible claimants must not have access to a private dental care plan, and 2022 tax returns must have been filed to meet income testing.  Tax specialists should contact our oldest seniors immediately to discuss eligibility and in addition, be mindful of changes to T4 and T4A slip reporting as well.  Here are the details: