Navigating the New Capital Gains Inclusion Rate: What Real Estate Investors Need to Know

Рет қаралды 8,453

Күн бұрын

The Canadian government recently announced changes to the capital gains inclusion rate, a significant shift that was first introduced in the 2024 budget. Now that the motions have been tabled to pass this change into legislation, it’s crucial for real estate investors to understand the implications of this update.
In this video, I dive into the significant changes to the capital gain inclusion rates announced in the Federal Budget 2024. We cover the effects on investment property owners and stock market investors, strategies for deferring and calculating capital gains, and the implications of these new rules on real estate investors.
Key Moments In This Episode
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00:00 - Introduction to New Changes
02:15 - Impact on Investors
04:37 - Carrying Forward Capital Losses
07:03 - Calculating Offsets
09:37 - Simplified Calculation Post-June 25th
11:53 - Deferral Implications
14:07 - Timing of Capital Gains
16:20 - Restrictions on Tax Planning
18:28 - Sale Requirement for Gain Recognition
20:32 - Elimination of Tax Exemption Pre-Sale
22:36 - Effects on Real Estate Investors
If you have any questions or thoughts after watching this video, leave a comment below, and I’ll respond as soon as possible.
Don’t forget to subscribe to my channel for more videos on Canadian real estate and tax-saving strategies so you don’t miss a thing!
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Please make sure to speak to a professional that knows your personal situation before making a decision.
If you need to talk to someone on my team, email us at admin@cccpa.ca.
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DISCLAIMER:
Real estate Tax planning is a personalized decision and will depend on your situation, priorities, and risk tolerance. Consult with your legal and tax advisors to ensure you get the best personalized advice.
The information contained in this video is for general information purposes only.
The information is provided by ECRB Consulting Inc., RealEstateTaxTips.ca, Cherry Chan Professional Corporation and Cherry Chan.
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Пікірлер: 47

@RealEstateTaxTips 15 күн бұрын

Want to stay up-to-date with all the latest news about Real Estate Tax Tips, receive weekly tax tips and free real estate investment resources? Then subscribe to our newsletter here: realestatetaxtips.ca/youtube

@sallyt5568 12 күн бұрын

I own a property that once was my primary residence. I started renting it out last year. How will capital gains affect me when I sell? Thank you for your dedication to putting out good content for us!

@mikekovacs8981 15 күн бұрын

THIEFS. More or less taxing long-term investors on inflation

@2maw1wrimike 15 күн бұрын

To be fair there are massive problems from too many investors in real estate

@mikekovacs8981 15 күн бұрын

There is nothing FAIR about this tax theft. So new taxes are supposed to fix the housing crisis?

@haukenhung 15 күн бұрын

We pay all these taxes, the government keeps spending a ton of money causing inflation making the house values go up and more capital gains for investors! 😢

@somebodyintheworld5036 14 күн бұрын

Only long term investors who make over 250000 in a single transaction within a year. If you sell and rebuy liquid assets like stocks so that your capital gain for the year is below 250000, your tax payment should be unchanged no? The main issue is for real estate, but I believe there is both an exemption on capital gains made from the sale of your primary residence (not for second, third, or other investment properties that you do not reside in), as well as a life time capital gain exemption of 1M. You get to have your real estate appreciation and enjoy the first 1M or so of capital gains completely tax free!

@mikekovacs8981 13 күн бұрын

@@somebodyintheworld5036 and what about if you have a corporation or structured your estate in a trust? No 250k exemption. 30% more taxes. Can't afford Trudeau. PP for PM

@kirbyjackson8796 15 күн бұрын

Thank you for the update!!

@RealEstateTaxTips 15 күн бұрын

You bet!

@dealman3312 15 күн бұрын

Thanks for this summary Cherry. Much appreciate 👌

@RealEstateTaxTips 15 күн бұрын

Glad it was helpful!

@Taxicology 15 күн бұрын

Not sure if you mentioned in the video but graduated rate estates (GRE) and qualified disability trusts also get the 50% inclusion for 1st $250K. Might not help real estate investors too much, though.

@oscarsocualaya3304 15 күн бұрын

Thanks for the information provided;

@RealEstateTaxTips 15 күн бұрын

You bet!

@tin2xdeegee661 14 күн бұрын

Thanks for the update …

@ReAl-uu8ku 12 күн бұрын

Thank you Cherry!

@karimnanji4163 15 күн бұрын

Thank you keep up the good work.. I pray for all the happiness in the world for you and yours.

@mohammadtahir8785 14 күн бұрын

Thank you Cherry. I always learn a lot from your videos.

@RealEstateTaxTips 14 күн бұрын

I'm so glad!

@mdaroza 15 күн бұрын

Can you please comment on how inheritance is handled? You might still have some control via tax planning while you’re alive. Can’t really plan when you die. Also, any way to additional insight on the type of industries that can get the 1.25M one-time exemption?

@Cassie118 8 күн бұрын

Thank you for another great video! Does the CDA reduce when the inclusion rate increases? If so, does that mean this change further erode the ability to take money of our corporation by shareholder?

@u2v22 15 күн бұрын

How does this work with spouses/common-laws? Can assets be transferred from one partner to another and then have the gain under their person?

@MonaZabanah 15 күн бұрын

Great info, thank you! What if a rental property is owned by two people (spouses) and the gain on the sale is $400k. Is that gain split 50/50 as individual personal income and the inclusion rate applied then? Another example is a gain of $600k. Again, would it be split 50/50 and therefore the inclusion rate applying against the first 250k at 50% and 67% on the $50k balance?

@lightdecore 14 күн бұрын

I have questions

@rajeevlamb5436 15 күн бұрын

Hi ! Is there a LIFETIME capital gains exemption (LCGE) for individuals and/or corporations ? How does it work, please?

@Taxicology 15 күн бұрын

Every individual gets the LCGE in Canada, but there are some strict criteria to qualify for it so the vast majority of real estate investors won't get to use it for their corporation's shares. The new budget actually increased the total amount of the LCGE, but again, even more restrictions so a lot (probably even the majority) of business owners won't get the increased limit.

@thanhle-pt5qy 15 күн бұрын

It's a wonderful video for me... I have my investment property for 28 years on my personal name. So do i qualify for LCGE or what can i do for best situation when I sold the property. Thank for your help

@Taxicology 15 күн бұрын

@@thanhle-pt5qyLCGE is for sale of certain corporation shares, so it won’t apply to your situation. Best to speak with a tax professional about your situation specifically to get the best advice.

@shermantse7322 15 күн бұрын

The government is forcing me to leverage to offest taxes. I am thinking of opening a margin account borrow to invest....

@uneetudiant 14 күн бұрын

Who or what MAKES me a taxpayer? The Income Tax Act is 3,488 pages with over 100 separate Definition sections. The word taxpayer is used 55,561 times. If I am a taxpayer, where do I look to see the definition of taxypayer? , Some to think about , Cheers

@DD-pbgyu 15 күн бұрын

I'm thinking about all the people who will die with huge rifs over 250k gain, That's a lump sum 2/3 taxed likely at the highest rates. Everyone needs to redo estate planning now

@NeilB.-rv2ww 14 күн бұрын

Any RRIF contents at time of death are treated as income (100%) and added to othe income in the year of death. RRIF are registered vehicles so capital gains are irrelevant.

@mohammadwaleed9971 15 күн бұрын

😢

@RealEstateTaxTips 15 күн бұрын

@ryhchoi 15 күн бұрын

It’s a pity that the Canadian government dont focus on enlarging its income sources via expansion of industries vs. Turning to gouging its citizens and heavy taxing its people left right and center to make Canadians poor.

@DD-pbgyu 15 күн бұрын

Well you can capital gain average on stocks so why not property...ugh. Disappointed with this move and I will not support this government in the next election

@user-kv4kp4co1r 15 күн бұрын

"Buy f.king now." - Cherry Ponzi

@philippe8742 14 күн бұрын

Rich problems 🤣

@meenachand4559 13 күн бұрын

If you want social programs like $10 Daycare and Dental for children and seniors you need to pay taxes. Cherry your information is incorrect. It only affects people who have made over $250,000 for that year and over. You are misleading - watch this video By Canadian in a Tshirt

@alpereira5286 12 күн бұрын

People who own corporations and personal corporations are being taxed at 67% inclusion rate on capital gains. There is no $250,000 exemption for them even though they don't have pensions and it was their retirement income plan. Please stick to what you know...