{"id":1411,"date":"2025-02-04T19:06:12","date_gmt":"2025-02-04T19:06:12","guid":{"rendered":"https:\/\/advisor.wellington-altus.ca\/smokinbulls\/?p=1411"},"modified":"2025-02-04T19:23:43","modified_gmt":"2025-02-04T19:23:43","slug":"federal-government-defers-capital-gains-inclusion-rate-increase-to-2026","status":"publish","type":"post","link":"https:\/\/advisor.wellington-altus.ca\/smokinbulls\/2025\/02\/04\/federal-government-defers-capital-gains-inclusion-rate-increase-to-2026\/","title":{"rendered":"Federal Government Defers Capital Gains Inclusion Rate Increase to 2026"},"content":{"rendered":"\t\t<div data-elementor-type=\"wp-post\" data-elementor-id=\"1411\" class=\"elementor elementor-1411\" data-elementor-post-type=\"post\">\n\t\t\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-413238d elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"413238d\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<section class=\"elementor-section elementor-top-section elementor-element elementor-element-1387cb97 elementor-section-boxed elementor-section-height-default elementor-section-height-default\" data-id=\"1387cb97\" data-element_type=\"section\" data-e-type=\"section\">\n\t\t\t\t\t\t<div class=\"elementor-container elementor-column-gap-default\">\n\t\t\t\t\t<div class=\"elementor-column elementor-col-100 elementor-top-column elementor-element elementor-element-7dbe08a7\" data-id=\"7dbe08a7\" data-element_type=\"column\" data-e-type=\"column\">\n\t\t\t<div class=\"elementor-widget-wrap elementor-element-populated\">\n\t\t\t\t\t\t<div class=\"elementor-element elementor-element-19ae752e elementor-widget elementor-widget-text-editor\" data-id=\"19ae752e\" data-element_type=\"widget\" data-e-type=\"widget\" data-widget_type=\"text-editor.default\">\n\t\t\t\t<div class=\"elementor-widget-container\">\n\t\t\t\t\t\t\t\t\t<p><a href=\"https:\/\/wellington-altus.ca\/wp-content\/uploads\/2025\/02\/AWPG-Capital-Gains-Inclusion-Rate-Increase-Postponed.pdf\">Download this PDF here<\/a>.<\/p><p>The Minister of Finance and Intergovernmental Affairs, Dominic LeBlanc, announced that the federal government will postpone the implementation of the proposed increase to the capital gains inclusion rate\u2014from one-half to two-thirds. Originally set to take effect on June 25, 2024, the new proposed implementation date is now January 1, 2026.<\/p><p>While this announcement provides little solace to taxpayers who had already undertaken planning for the previous June 25, 2024, implementation date, it does offer clarity for individual taxpayers regarding their 2024 tax reporting.<\/p><p><strong>Key Highlights:<\/strong><\/p><p><em>Increase to the Lifetime Capital Gains Exemption (LCGE)<\/em><\/p><ul class=\"wp-block-list\"><li>The proposed increase in the LCGE to $1.25 million on the sale of qualified property remains<br \/>unchanged. Importantly, this measure is still proposed to come into effect as of June 25, 2024,<br \/>and will not be deferred to January 1, 2026.<\/li><\/ul><p><em>$250,000 Annual Threshold for Individuals<\/em><\/p><ul class=\"wp-block-list\"><li>The government reaffirmed its commitment to introducing an annual $250,000 threshold for<br \/>individuals, meaning only capital gains exceeding this threshold amount will be subject to the<br \/>higher inclusion rate. This measure is now proposed to take effect on January 1, 2026.<\/li><\/ul><p><em>Canadian Entrepreneurs\u2019 Incentive<\/em><\/p><ul class=\"wp-block-list\"><li>The Canadian Entrepreneurs\u2019 Incentive, which was announced alongside these measures in the<br \/>2024 Federal Budget, will proceed as planned, taking effect starting on January 1, 2025, and will<br \/>not be deferred to January 1, 2026.<\/li><\/ul><p>For additional information on the previously announced measures, be sure to check out the<br \/>AWPG article titled \u201c2024 Federal Budget Highlights\u201d found\u00a0<a href=\"https:\/\/wellington-altus.ca\/highlights-from-the-2024-federal-budget\/\">HERE<\/a>.<\/p><p><strong>Impact on Administration and Tax Filings:<\/strong><\/p><p>Previously, the Canada Revenue Agency (CRA) stated that it would cease to administer the proposed measure if no implementation bill is passed by Parliament, and the government signals its intent to not proceed with the proposals. Given today\u2019s announcement, it is unlikely that the CRA will proceed with administering the proposed increase to the capital gains inclusion rate for the 2024 taxation year.<\/p><p>Corporations that have already filed tax returns based on the previously announced June 25, 2024, implementation date for the capital gains inclusion rate increase may need to amend their returns to recover any excess taxes paid.<\/p><p>The official news release can be found on the Department of Finance website\u00a0<a href=\"https:\/\/www.canada.ca\/en\/department-finance\/news\/2025\/01\/government-of-canada-announces-deferral-in-implementation-of-change-to-capital-gains-inclusion-rate.html\">HERE<\/a>.<\/p>\t\t\t\t\t\t\t\t<\/div>\n\t\t\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/div>\n\t\t\t\t\t<\/div>\n\t\t<\/section>\n\t\t\t\t<\/div>\n\t\t","protected":false},"excerpt":{"rendered":"<p>There are many reasons to consider a Registered Education Savings Plan (RESP) to save for a child\u2019s future education: tax-deferred growth within the plan, earnings taxed at the child\u2019s tax rate when eventually withdrawn and, of course, the Canada Education Savings Grant (CESG).<\/p>\n","protected":false},"author":68,"featured_media":1336,"comment_status":"closed","ping_status":"open","sticky":false,"template":"","format":"standard","meta":{"_oasis_is_in_workflow":0,"_oasis_original":0,"_oasis_task_priority":"","_exactmetrics_skip_tracking":false,"_exactmetrics_sitenote_active":false,"_exactmetrics_sitenote_note":"","_exactmetrics_sitenote_category":0,"footnotes":""},"categories":[27],"tags":[258,267,260,67,259,144,79],"class_list":["post-1411","post","type-post","status-publish","format-standard","has-post-thumbnail","hentry","category-articles","tag-capital-gains","tag-financial-advice","tag-financial-freedom","tag-financial-planning","tag-wealth-advisory","tag-wealth-management","tag-wealth-planning"],"_links":{"self":[{"href":"https:\/\/advisor.wellington-altus.ca\/smokinbulls\/wp-json\/wp\/v2\/posts\/1411","targetHints":{"allow":["GET"]}}],"collection":[{"href":"https:\/\/advisor.wellington-altus.ca\/smokinbulls\/wp-json\/wp\/v2\/posts"}],"about":[{"href":"https:\/\/advisor.wellington-altus.ca\/smokinbulls\/wp-json\/wp\/v2\/types\/post"}],"author":[{"embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/smokinbulls\/wp-json\/wp\/v2\/users\/68"}],"replies":[{"embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/smokinbulls\/wp-json\/wp\/v2\/comments?post=1411"}],"version-history":[{"count":5,"href":"https:\/\/advisor.wellington-altus.ca\/smokinbulls\/wp-json\/wp\/v2\/posts\/1411\/revisions"}],"predecessor-version":[{"id":1417,"href":"https:\/\/advisor.wellington-altus.ca\/smokinbulls\/wp-json\/wp\/v2\/posts\/1411\/revisions\/1417"}],"wp:featuredmedia":[{"embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/smokinbulls\/wp-json\/wp\/v2\/media\/1336"}],"wp:attachment":[{"href":"https:\/\/advisor.wellington-altus.ca\/smokinbulls\/wp-json\/wp\/v2\/media?parent=1411"}],"wp:term":[{"taxonomy":"category","embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/smokinbulls\/wp-json\/wp\/v2\/categories?post=1411"},{"taxonomy":"post_tag","embeddable":true,"href":"https:\/\/advisor.wellington-altus.ca\/smokinbulls\/wp-json\/wp\/v2\/tags?post=1411"}],"curies":[{"name":"wp","href":"https:\/\/api.w.org\/{rel}","templated":true}]}}