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Allowing those who made HBP withdrawals after January 1, 2022 and those
who will make withdrawals prior to the end of 2025 to take more time to
begin repayments, up to 5 years in total rather than 2.
30-year mortgage amortizations will be allowed for first-time home buyers,
but only if they are purchasing newly built homes, effective August
1, 2024.
Remove the GST for student residences built for public universities,
public colleges, and public school authorities. This will apply to new
student residences that begin construction on or after September 14, 2023
and before 2031, as long as construction is completed before 2036.
Introduce a new Secondary Suite Loan Program to provide homeowners
up to $40,000 in low-interest loans to add secondary suites to their homes.
Before taking advantage of this, homeowners should read the information One
Principal Residence (Housing Unit) Per Couple, and seek professional
advice if necessary.
which would provide a capital gains inclusion rate that is 1/2 the
prevailing inclusion rate, on up to $2 million in capital gains per
individual over their lifetime.
will be phased in by increments of $200,ppp per year, beginning on
January 1, 2025, before reaching a value of $2 million by January 1,
2034.
With the 2/3 capital gains inclusion rate proposed in Budget 2024,
this would result in an inclusion rate of 1/3 for qualifying
dispositions.
This measure would apply in addition to any available capital gains
exemption.
For dispositions that occur on or after January 1, 2025.
Investors
/ Landlords / Business Owners / Capital Property Owners / Estate Planning -
Capital Gains Inclusion Rate
Increase the capital gains inclusion rate from 1/2 to 2/3 for
corporations and trusts, and from 1/2 to 2/3 on the portion of capital gains
realized in the year that exceed $250,000 for individuals, for capital gains
realized on or after June 25, 2024.
The $250,000 threshold would apply to capital gains net of any:
current-year capital losses;
capital losses of other years applied to reduce current-year
capital gains; and
capital gains for which the LCGE, the proposed Employee Ownership
Trust Exemption or the proposed Canadian Entrepreneurs' Incentive is
claimed
There is no legislation yet, so we don't know if there will be any
exemption for family cottages, deemed disposals on death, or anything
else.
Technical
Interpretation TI 2024-1016011E5 - General Anti-Avoidance Rule (GAAR), dated
April 29, 2024 discussed whether the crystallization of an accrued
gain prior to the increase in the capital gains inclusion rate is subject to
GAAR. The position of CRA is that the crystallization, "solely as a means
of ensuring access to the current inclusion rate, would not, in itself, be
subject to GAAR". However, the TI also stated: "It is important to note, however, that the crystallization of an accrued capital gain as part of a series of transactions, one of the main purposes of which is to obtain a tax benefit (other than, or in addition to, the taxation of an accrued gain at the current inclusion rate) would not be immune from scrutiny under the
GAAR. In particular, we would refer you to our letter dated February 29, 2024 (CRA document
2023-0987941I7), in which we stated that the Income Tax Rulings Directorate would not provide rulings in respect of a series of transactions in which an individual shareholder proposes to engage in non-arm’s length transactions, one of the main purposes of which was to facilitate the extraction of corporate retained earnings other than in the form of a
dividend."
Canada
Child Benefit (CCB): extend eligibility for 6 months after a child's death, if the
individual would have otherwise been eligible for the CCB in respect of that
child.
Qualified
Investments for Registered Plans: invite stakeholders to provide
suggestions on how the qualified investment rules could be modernized on a
prospective basis to improve the clarity and coherence of the registered
plans regime.
Deduction
for Tradespeople's Travel Expenses: consider bringing forward amendments
to the Income Tax Act to provide for a single, harmonized deduction for
tradespeople's travel that respects the intent of Bill
C-241, which provides for a deduction with no cap on expenses,
retroactive to the 2022 taxation year.
income of the trusts established under the First Nations Child and
Family Services, Jordan's Principle, and Trout Class Settlement
Agreement, and
payments received by class members as beneficiaries of the trusts.
This measure would apply to the 2024 and subsequent taxation years.
Business and Other Tax
Measures
There
are many business income tax measures, international income tax measures, and
sales and excise tax measures. See Tax
Measures: Supplementary Information for information on all proposed tax
measures. The initial Notices of Ways and Means Motions are also available at
that link.
2024 Budget Legislation
On April 30, 2024 the government announced a Notice
of Ways and Means Motion which will become Budget Implementation
Act, 2024, No. 1. It includes many tax measures, but it does not include the change to the capital gains
inclusion rate.
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