Understanding the implications of the 2024 Federal Budget and its proposed changes to capital gains taxation is crucial for individuals and corporations alike. In today’s episode, we take a deep dive into the Canadian federal budget for 2024 and its impact on capital gains taxation. In our conversation, we discuss the technical details of capital gains taxation and its historical context and offer practical advice for navigating the proposed changes in the 2024 federal budget.
Discover the mechanics of capital gains tax in Canada, essential tax planning strategies, the importance of diversified tax exposure, and the concept of capital gains harvesting. Gain insights into the impact of the changes on the retirement plans of incorporated business owners and professionals, the role of optimal compensation in realizing capital gains, and approaches for navigating the proposed changes.
“The basic issue [of tax deferral] is that if you pre-pay tax now, you lose not only that tax money that you just paid, you also lose all of the growth that would have happened on that money by keeping it invested.”
@LoonieDoctor
“This current budget proposal really highlights how even a taxable individual and the taxable corporation are very different investors from the perspective of how they can be treated from a tax perspective.”
@benjaminwfelix
“Capital gains within a corporation have other layers of complexity that are in there that could break those thumbs if you’re trying to use rules of thumb.”
@LoonieDoctor
“The long-term projections really matter when you start thinking about things like tax deferral, and then they’ll make a difference in how attractive or not a strategy looks in analysis.”
@benjaminwfelix
