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.

Year-end tax and investment strategies for individuals and small business owners in the context of the current environment has significantly changed. Think AMT on donations and intergenerational transfer rules that can increase tax risk in 2024. Learn more from Evelyn Jacks and special guests Alan Rowell and Carol Willes at the November 1 Virtual CE Summits.  A comprehensive full day virtual event, the CE Summit also includes access to a comprehensive new CE Savvy Collection Entitled New Issues in Year End Tax Planning and up to 15 CE Credits. Check out the agenda below and register by the October 15 early-bird deadline!

There is still time to register for DAC November 12-13 at the beautiful Banff Springs Hotel. Save Money - early registration ends September 30. The organizations and thought leaders that represent them at DAC 2023 will keep the insights rolling, and we give special thanks to Moodys Tax Law and Cadesky U.S. Tax for partnering with us.  Now, just imagine being live and in person with renowned tax specialists Kim Moody and Dr. Dean Smith who will unwind tax complexity for you.  But you’ll want to attend special ice breaker event open to all attendees for a few laughs first!  Check out the educational content and all the fun networking events:

Looking for IIROC credits before year-end? Knowledge Bureau is pleased to have 3 professional  CE options available to earn both PD and compliance credits before year end.  Check out the  RWM™ program (xx PD credits), the MFA-P™ (xxx credits) and the new Certificate Course,  Navigating Privacy Issues (10 Compliance Credits).  These outstanding programs are well reviewed (see below) and can be taken anytime, 24/7 online in the convenience of your home or office. Plus,  save an additional $75 on tuition when you register by the next session intake date: October 15.

It’s a sign of the times:  everything seems to be going up, including the billions Canadians owe to CRA. But now is a good time to catch up and stop the tax bleed.   Looking at the most recent stats from February 6, 2023 to September 18, 2023, 23% of returns filed this year had an average balance of $7556:  collectively a whopping tax debt of $54.8 Billion. These costs grow with expensive late filing penalties and interest charges.  Delinquent taxpayers can avoid incurring more costs by understanding the penalties and in hardship cases, requesting relief from penalties and interest.  But they may fear CRA repercussions and some sage counselling from their financial advisors can help to get it done. Start with a quick checklist:

It’s been confirmed, but the news was disappointing.  Canada Emergency Business Account (“CEBA”) loans  provided interest-free loans to 900,000 small businesses and non-profit organizations. Partial loan forgiveness would be available to those organizations which were to repay the balance of the loan on or before December 31, 2023. There’s been an extension, but for only 18 days for those who don’t have to refinance.  For the others, new loan repayment dates have been set.  Here’s what happened:

As the final quarter of 2023 is just around the corner, many taxpayers will want to discuss year end tax planning; specifically, what can be done to reduce cash flow required to settle tax debts triggered by 2023 transactions. Thanks to proposed legislative amendments released August 4, 2023, there’s a little known nugget for investors.  It’s possible to recoup prior year tax dollars on capital gains if a replacement property was acquired, and get a pandemic-related reprieve.  Here’s how it works: