Breaking News - Capital Gains Inclusion Rate Increase Postponed to January 1, 2026

Breaking News - From Finance Canada today - a postponement of capital gains inclusion rate increase from June 25, 2024 to January 1, 2026—the new date on which the capital gains inclusion rate would increase from one-half to two-thirds on capital gains realized annually above $250,000 by individuals and on all capital gains realized by corporations and most types of trusts.

According to a report earlier this year from Statistics Canada relating to enterprises in the first quarter of 2021, many businesses have continued to thrive in spite of the pandemic, and more will be on the road to recovery as Canada’s economy continues to further re-open. The financial sector, for instance, recorded an increase in net income of 11% before taxes, or $3.9 billion. Tax professionals can provide essential front-line services to help small business owners thrive and now two new educational opportunities provide credentials and confidence to do so.  

Looking to take your business and client relationships to a higher level? Joey LeBlanc, DFA-Tax Services Specialist™ shares how she accomplished that with a Knowledge Bureau education!

Virtual DAC Acuity 2021, October 17-19 will feature the thought leadership of 8 senior executives, 2 best-selling authors, leading scholars and top wealth advisors. It’s a star-studded online conference experience that tax and financial professionals won’t want to miss. Share the knowledge: enrol yourself and bring your team along at a reduced tuition fee, until September 30.

Women in Canada earn around 89 cents for every dollar men earn. That wage gap is set to close, at least in federally regulated sectors, as the Pay Equity Act comes into effect on August 31. It requires employers in federally regulated sectors with ten or more employees to identify and correct pay disparities within their workplaces within three years. That is just one more reason financial advisors will want to engage with female clients about the impact these changes and other good news will have on their wealth management.

In one of our most popular polls to date, the “no” side is winning the opinion poll; but it is in their comments that some astute insights are emerging.  What’s your take on this question: “In the last election, some parties suggested an increase to the capital gains inclusion rate to 75% or more as the best way to raise new money to pay down the government debt. Do you agree?”. Here is just some of the feedback shared so far:

Limited recourse capital notes (“LCRN”) are yielding some impressive coupon payments.  LCRNs are a new and complicated hybrid security.  This article will provide preliminary Canadian federal income taxation information as it discusses the tax treatment for third-party investors by investing in LCRNs.