Feds Increase Capital Gains Inclusion Rate

Danielle Park, CFA
By Danielle Park of Juggling Dynamite
Portfolio Manager •

The new Federal Budget released yesterday has significant implications for capital assets held by individuals and corporations. See: Feds raise capital gains inclusion rate to 66.6% starting June 25.

Fed Federal Reserve System Central Banking System United States America — Stock Photo, Image

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The new Federal Budget released yesterday has significant implications for capital assets held by individuals and corporations. See: Feds raise capital gains inclusion rate to 66.6% starting June 25.

The taxable portion increases to two-thirds from one-half on capital gains above $250,000 realized annually by individuals and all capital gains realized by corporations and trusts.

This will undoubtedly incentivize some asset sales before June 25 and prompt consideration of whether some capital assets, like real estate and equities presently held in corporations, can be transferred to individual owners for greater tax efficiency. Accountants will be busy.

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