New capital gains inclusion rate: With its 2024–25 budget, the federal government announced that capital gains in excess of $250,000 per year would be subject to a 66.7% inclusion rate effective June 25, 2024. That’s up from the 50% that applied previously (and which still applies to your first quarter-million in yearly gains). However, with the prorogation of government and that the actual amendment to the Income Tax Act bringing the rule into effect has not yet passed, many wondered if these changes would apply to your 2024 tax return.
Read: CRA to continue administering changes to capital gains tax during prorogation
New alternative minimum tax changes: As of January 1, 2024, the AMT rate is 20.5% (it was previously 15%). Essentially, the AMT is a minimum level of tax for Canadians who claim certain deductions, exemptions and/or credits to reduce how much personal income tax they pay. The change doesn’t apply to most Canadians.
Read: Update on bare trust tax filing rules for 2024 and beyond
Charitable donations extension: The Government of Canada announced extending of 2024 charitable donations to February 28, 2025, instead of the expected December 31, 2024.
Read: The best charities in Canada for 2024: Where to donate to make an impact
There have been lots of tax changes for 2024. If you have any concerns, always consult a tax professional.
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