The 2024 federal budget includes significant new spending on projects and programs, relying on revenue from a change to the capital gains inclusion rate to help pay for it. Here’s a breakdown of what this change entails:
Current Calculation | |
---|---|
Original Purchase Price: | $500,000 |
Current Sold Price: | $900,000 |
Profit: | $400,000 |
Current Capital Gain Tax at 50%: | $100,000 |
After June 25th 2024 | |
---|---|
Original Purchase Price: | $500,000 |
Current Sold Price: | $900,000 |
Profit: | $400,000 |
New Capital Gain Tax (First $250,000): | $62,500 |
Plus profit over $250,000: | $50,002.50 |
Total Capital Gain Investment tax payable: | $112,502.50 |
New Capital Gain Tax Rate if Property is under corporation | |
---|---|
Original Purchase Price: | $500,000 |
Current Sold Price: | $900,000 |
Profit: | $400,000 |
Total Capital Gain Investment Tax: | $133,340 |