Tax Lawyer North York: Understanding the Proposed Changes to the Capital Gains Inclusion Rate

If you're a resident of North York searching for a knowledgeable tax lawyer, the proposed changes to the capital gains inclusion rate announced in the 2024 Federal Budget may significantly impact your financial planning. At AGI Law, our experienced tax lawyers can provide expert guidance and legal representation to help you navigate these changes.

What is Capital Gains Tax, and How Does the Inclusion Rate Work?

Capital gains tax is a tax imposed on the profit or gain realized when an asset, such as a property or investment, is sold for a higher price than its original purchase price. The inclusion rate determines the portion of the capital gain that is subject to taxation.

Currently, the inclusion rate in Canada is 50%, meaning only half of the capital gain is included in calculating a person's income. The proposed changes aim to increase the inclusion rate to 66.7% for capital gains over $250,000. This means that a larger portion of the capital gain will be taxable.

Implications of the Proposed Changes:

Impact on High-Income Earners:

• Individuals with capital gains exceeding $250,000 will be subject to a higher inclusion rate of 66.7%.

• This could result in a significant increase in their tax liability.

Estate Planning Considerations:

• The proposed changes may affect estate planning strategies involving the disposition of assets upon death.

• Seeking legal advice from a tax lawyer is crucial to ensure your estate plan remains effective.

How Can a Tax Lawyer Help?

A knowledgeable tax lawyer in North York can assist you in various ways related to the proposed changes to the capital gains inclusion rate:

1. Understanding the Implications:

• A tax lawyer can provide a comprehensive analysis of how the proposed changes may impact your specific financial situation.

2. Tax Minimization Strategies:

• Your lawyer can explore legal strategies to minimize your tax liability, such as utilizing tax-advantaged investments or optimizing your investment portfolio.

3. Estate Planning:

• If you have concerns about the impact on your estate plan, a tax lawyer can review and update your will and other estate planning documents accordingly.

4. Representation in Tax Disputes:

• In case of any disputes or disagreements with the Canada Revenue Agency (CRA), a tax lawyer can represent you and advocate for your rights.

If you're a resident of North York seeking legal assistance related to the proposed changes to the capital gains inclusion rate, don't hesitate to contact AGI Law. Our experienced tax lawyers are dedicated to providing personalized and effective legal solutions to meet your unique needs. Schedule a consultation today to safeguard your financial interests and ensure your compliance with the evolving tax landscape.