Client Resources

On April 16, 2024, the Federal Government presented the 2024 Budget.

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Key items of interest:

• Capital gain inclusion rate – The inclusion rate for corporations, individuals and trusts will increase from one half to two thirds of the actual capital gain; however, individuals will still retain the one-half inclusion rate on the first $250,000 of capital gains annually. The increase is proposed to be effective for capital gains realized on or after June 25, 2024. 

• Increase in the Lifetime Capital Gains Exemption - The lifetime limit will increase from $1,016,836 to $1,250,000 for dispositions on or after June 25, 2024, and will be indexed for inflation starting in 2026

• Accelerated CCA – Purpose-built residential rental properties and certain productivity-enhancing assets, including computers, would benefit from accelerated CCA. 

• Canada carbon rebate for small businesses – An automatic payment to Canadian-controlled private corporations was proposed. These payments would return a portion of the Federal carbon tax collected (AB, SK, MB, ON, NB, NS, PEI and NL only). 

• Several business sale incentives – A new Canadian entrepreneurs’ incentive would be introduced to reduce the capital gain inclusion rate on certain business sales. The lifetime maximum capital gains exemption is proposed to increase to $1.25 million. Details on the proposal to exempt up to $10 million in capital gains from the sale to an employee ownership trust were provided. 

• Canada disability benefit – Payments to eligible Canadians (those 18 to 64 years of age eligible for the disability tax credit) would begin in July 2025, pending the successful completion of the regulatory process and consultations with persons with disabilities. 

• Various housing measures – Such proposals included increasing the withdrawal limit from the home buyers’ plan from $35,000 to $60,000 and allowing first-time home buyers to obtain CMHC-insured mortgages with a 30-year amortization period. 

 

Click the link below to access our commentary regarding this topic.

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After reviewing the linked information, if you have any questions, would like to discuss with one of our advisors, or have any questions about our full line of accounting services, call us to book an appointment at 306-873-4575 or email us at clientcare@janke.ca.