Donna Genie breaks down Canada's June 2024 proposal to tax 67% of capital gains over $250,000, up from 50%. A $500,000 gain now triggers $333,000 in taxes, raising the question of whether investing in Canada still makes sense.
June 2024
67% (up from 50%)
More than $250,000 in gains
$333,000 in income taxes
We're keeping an eye on legislation here in the US Where President Biden is looking to increase the capital gains rate beginning in 2025. But our neighbors to the north and Canada have already got a proposal in place for this. Effective In June of 2024, they want to increase their capital gains rate from 50% to 67%. Ouch. They want to take the capital gains rate for anybody who has more than $250,000 in gains. So imagine that you have a piece of property that you've had in your family for a long while and you sell it for $500,000. What's the tax on $500,000 if the tax rate is 67%? So of that $500,000 in profit, you would end up paying $333,000 in income taxes. Is it even worth it to invest in Canada again? That gets into all the economics and politics of it. But people buying real estate or investing in businesses in Canada can't believe two thirds of the profit to the government. That's just not sustainable. And most investors will take that risk.
