Canada’s Capital Gains Tax and the exodus to the U.S.

By Eileen M. Martin and Devon R. McDonald (July 5, 2024, 1:40 PM EDT) -- There may be a change coming to the way Canada taxes capital gains. While Prime Minister Justine Trudeau claims it will affect a minuscule percentage of Canadians, it has more than a minuscule percentage of Canadian taxpayers on edge. The new taxing regime is complex, with 56 pages of guidance. While some taxpayers are already subject to a capital gains tax inclusion rate (meaning the amount of capital gain that is currently included in computing a taxpayer’s income) of 50 per cent on their realized gains, the capital gains inclusion rate under the taxing regime will exceed 66 per cent on some assets in certain circumstances....