REGINA—The Agricultural Producers Association of Saskatchewan (APAS) is expressing concern over the proposed changes to capital gains tax regulations and calling for a pause on them.
With parliament's recent prorogation, many people are left wondering how the proposed changes to capital gains tax rules are allowed to continue. While the changes are left in limbo, the Canada Revenue Agency will continue to collect new charges in the coming tax season.
In last year’s federal budget, an increase to the capital gains inclusion rate was proposed on any gains realized on or after June 25, 2024. Instead of the previous 50 per cent, the inclusion rate rose to 66.67 per cent—except for individuals and certain trusts (graduated real estate and qualified disability trusts), who still fall under the old rate on the first $250,000. Corporations and the majority of family trusts are affected by the new rate, and for individuals, the increase in the top tax rate on capital gains above $250,000 is approximately nine percentage points.
Meanwhile, agricultural producers are also left wondering exactly how the proposed changes will affect their operations, especially those with succession planning at top of mind.
Click here to see more...