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Deferral of Canadian capital gains inclusion rate increase

The Canadian federal government has recently announced a deferral of the proposed increase in the capital gains inclusion rate. Initially set to take effect on 25 June 2024, the implementation of this increase has now been deferred to 1 January 2026.

Originally, the 2024 budget proposed an increase in the capital gains inclusion rate from 50% to 66.67%. However, with the deferral, taxpayers can continue to use the current 50% inclusion rate until the new implementation date. This deferral provides much-needed clarity for taxpayers regarding their 2024 tax filings.

For more detailed information about the implications of the deferral, please click here.

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