There is talk that Tuesday’s 2016 Federal Budget will announce changes to the capital gains tax rate. Currently, only 50% of capital gains are taxable. The new government is facing a larger deficit than anticipated and may be on the look out to get more tax revenues. Some speculate that the capital gains rate may be increased to 66.67% or even 75% like it used to be. Should you take action now and trigger your gains to take advantage of the lower taxable gains?
We do not recommend taking action based on speculation. These are just rumours and triggering a taxable gain today may not be necessary. In any event, deferring a gain is most often better even if it means a bigger taxable gain in several years from now. Here is some information about other potential tax changes that may affect you.
Stay tuned, we will have a summary of all actual changes on Tuesday!
Read the article here