Proposed Changes to Capital Gains Taxation in 2024 Budget
Increased Inclusion Rate
The proposed amendments in the 2024 budget aim to increase the capital gains inclusion rate from the current 50% to 66.67%. This means that 66.67% of capital gains realized on or after January 1, 2024, will be subject to taxation.
Phased Implementation
The proposed increase in the inclusion rate will be implemented in stages, with a one-half inclusion rate applying to the first $250,000 of capital gains and a two-thirds inclusion rate applying to capital gains exceeding $250,000.
Impact on Investors
The proposed changes are likely to affect investors with significant capital gains, including those who hold investments in real estate, stocks, and other assets. The increased inclusion rate will result in a higher tax liability for these individuals.
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