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On April 7, 2022, the Canadian government released the federal budget for 2022.
This budget was widely anticipated to have increased tax rates and additional new taxes as well as rules that would stop some tax planning that had been going on.
The good news is that there were no changes to income tax rates. More specifically, there was no change to capital gains rates. A lot of planning had been going on before the budget in anticipation of an increased capital gains tax rate. Fortunately, that did not happen.
There was a change to the taxation of the sale of principal residences. If a taxpayer buys and sells a property within 12 months, the capital gain would not be sheltered by the principal residence exemption subject to some allowances that allow for unexpected personal situations. The sale of the property, will be treated as business income and will be fully taxable (not at the 50% inclusion rate).
The most substantial change is the new rules on how non-CCPC’s will be taxed.
Please download our budget commentary and a more detailed listing of the budget highlights.
If you have any questions, please do not hesitate to contact your Segal tax advisor.
Best regards,
Segal GCSE Tax Team
On April 7, 2022, the Canadian government released the federal budget for 2022.
This budget was widely anticipated to have increased tax rates and additional new taxes as well as rules that would stop some tax planning that had been going on.
The good news is that there were no changes to income tax rates. More specifically, there was no change to capital gains rates. A lot of planning had been going on before the budget in anticipation of an increased capital gains tax rate. Fortunately, that did not happen.
There was a change to the taxation of the sale of principal residences. If a taxpayer buys and sells a property within 12 months, the capital gain would not be sheltered by the principal residence exemption subject to some allowances that allow for unexpected personal situations. The sale of the property, will be treated as business income and will be fully taxable (not at the 50% inclusion rate).
The most substantial change is the new rules on how non-CCPC’s will be taxed.
Please download our budget commentary and a more detailed listing of the budget highlights.
If you have any questions, please do not hesitate to contact your Segal GCSE tax advisor.
Best regards,
Segal GCSE Tax Team
On April 7, 2022, the Canadian government released the federal budget for 2022.
This budget was widely anticipated to have increased tax rates and additional new taxes as well as rules that would stop some tax planning that had been going on.
The good news is that there were no changes to income tax rates. More specifically, there was no change to capital gains rates. A lot of planning had been going on before the budget in anticipation of an increased capital gains tax rate. Fortunately, that did not happen.
There was a change to the taxation of the sale of principal residences. If a taxpayer buys and sells a property within 12 months, the capital gain would not be sheltered by the principal residence exemption subject to some allowances that allow for unexpected personal situations. The sale of the property, will be treated as business income and will be fully taxable (not at the 50% inclusion rate).
The most substantial change is the new rules on how non-CCPC’s will be taxed.
Please download our budget commentary and a more detailed listing of the budget highlights.
If you have any questions, please do not hesitate to contact your Segal GCSE tax advisor.
Best regards,
Segal GCSE Tax Team
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