Latest news with #LifetimeCapitalGainsExemption
Cision Canada
5 days ago
- Business
- Cision Canada
CFIB statement on the need for the 2025 budget Français
TORONTO, June 3, 2025 /CNW/ - We're pleased to see talk in Ottawa about advancing a spring budget after all. Small businesses are waiting on word on at least five outstanding measures from the 2024 budget and Fall Economic Statement (FES). They include: The tax status of the $2.5 billion small business carbon rebate delivered in December (CRA says it is taxable until government introduces a change). Changes to and delivery of the $623 million small business carbon rebate for 2024/25 (the FES proposed a new formula and government is now sitting on the rebates). A legislative change to allow businesses to qualify for the earlier carbon rebate by filing their returns for those years before Dec. 31, 2024. A bump in the Lifetime Capital Gains Exemption (LCGE) to $1.25 million backdated to June 25, 2024 (introduced but not passed, promised by Prime Minister Carney too). The fate of the new Canadian Entrepreneurs' Incentive (backdated to Jan. 1, 2025) to lower the inclusion rate to 33% on a lifetime maximum of $2 million in eligible capital gains. All of these measures are supposed to be in place today, but were delayed due to the filibuster, prorogation of Parliament and election. Only one is temporarily supported by CRA (the LCGE change). A budget would provide the window for government to introduce the legislation, which should all be ready to go from the last Parliament. Without action, small businesses filing their 2024 taxes in June are required to pay corporate income tax on their share of the $2.5 billion carbon rebate they've already received and spent. Then, CRA is suggesting 600,000 small business owners file an amendment to get the tax back when the legislation change is made. This makes no sense at all. Among the best things the federal government could do to address the massive economic and trade uncertainty facing SMEs is to provide them with certainty on these tax measures. They have all been promised, are ready to go and should be part of a 2025 budget this legislative session. - Dan Kelly, President, CFIB About CFIB The Canadian Federation of Independent Business (CFIB) is Canada's largest association of small and medium-sized businesses with 100,000 members across every industry and region. CFIB is dedicated to increasing business owners' chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at
Yahoo
5 days ago
- Business
- Yahoo
CFIB statement on the need for the 2025 budget
TORONTO, June 3, 2025 /CNW/ - We're pleased to see talk in Ottawa about advancing a spring budget after all. Small businesses are waiting on word on at least five outstanding measures from the 2024 budget and Fall Economic Statement (FES). They include: The tax status of the $2.5 billion small business carbon rebate delivered in December (CRA says it is taxable until government introduces a change). Changes to and delivery of the $623 million small business carbon rebate for 2024/25 (the FES proposed a new formula and government is now sitting on the rebates). A legislative change to allow businesses to qualify for the earlier carbon rebate by filing their returns for those years before Dec. 31, 2024. A bump in the Lifetime Capital Gains Exemption (LCGE) to $1.25 million backdated to June 25, 2024 (introduced but not passed, promised by Prime Minister Carney too). The fate of the new Canadian Entrepreneurs' Incentive (backdated to Jan. 1, 2025) to lower the inclusion rate to 33% on a lifetime maximum of $2 million in eligible capital gains. All of these measures are supposed to be in place today, but were delayed due to the filibuster, prorogation of Parliament and election. Only one is temporarily supported by CRA (the LCGE change). A budget would provide the window for government to introduce the legislation, which should all be ready to go from the last Parliament. Without action, small businesses filing their 2024 taxes in June are required to pay corporate income tax on their share of the $2.5 billion carbon rebate they've already received and spent. Then, CRA is suggesting 600,000 small business owners file an amendment to get the tax back when the legislation change is made. This makes no sense at all. Among the best things the federal government could do to address the massive economic and trade uncertainty facing SMEs is to provide them with certainty on these tax measures. They have all been promised, are ready to go and should be part of a 2025 budget this legislative session. - Dan Kelly, President, CFIB About CFIB The Canadian Federation of Independent Business (CFIB) is Canada's largest association of small and medium-sized businesses with 100,000 members across every industry and region. CFIB is dedicated to increasing business owners' chances of success by driving policy change at all levels of government, providing expert advice and tools, and negotiating exclusive savings. Learn more at SOURCE Canadian Federation of Independent Business View original content to download multimedia: Error in retrieving data Sign in to access your portfolio Error in retrieving data Error in retrieving data Error in retrieving data Error in retrieving data
Associated Press
31-01-2025
- Business
- Associated Press
Tax Tip - Update on the Canada Revenue Agency's administration of the proposed capital gains taxation changes
OTTAWA, ON, Jan. 31, 2025 /CNW/ - The Department of Finance announced today that it will introduce legislation in Parliament in due course, related to the capital gains inclusion rate change with a new effective date of January 1, 2026. The announcement confirms the government's intention that, effective for dispositions that occur on or after January 1, 2026, the inclusion rate will increase from one-half to two-thirds on capital gains realized in excess of $250,000 annually for individuals and on all capital gains realized by corporations and most types of trusts. As a result, the Canada Revenue Agency (CRA) has reverted to administering the currently enacted capital gains inclusion rate of one-half. This means that all capital gains realized before January 1, 2026 will be subject to the currently enacted inclusion rate of one-half, unless an exemption applies. The announcement also confirmed that the government intends to maintain the existing coming into force date of the proposed increase to the Lifetime Capital Gains Exemption (LCGE) limit to $1.25 million of eligible capital gains included in the previous Notice of Ways and Means Motion (NWMM) tabled in Parliament on September 23, 2024. This measure remains unchanged, and the CRA will continue to administer the proposed change, which applies to dispositions that occur on or after June 25, 2024. Indexation of the LCGE would resume in 2026. Individuals and Trusts – Proposed capital gains rule changes effective January 1, 2026 With the proposed change to the effective date, the CRA will issue forms that have been reverted to the currently enacted rate in the coming weeks. The CRA will grant relief in respect of late-filing penalties and arrears interest until June 2, 2025, for impacted T1 Individual filers and until May 1, 2025, for impacted T3 Trust filers to provide additional time for taxpayers reporting capital dispositions to meet their tax filing obligations. Now that the government has communicated its intentions regarding the proposed capital gains inclusion rate, we are working as quickly as we can to adjust our systems and forms so that taxpayers who need to report capital dispositions can do so as early as possible. Corporations – Proposed capital gains rule changes effective January 1, 2026 As the capital gains rate change is now proposed to be effective January 1, 2026, corporations can continue to use existing forms and tax software to file using the one-half inclusion rate until further notice. For the small number of corporations that followed CRA's guidance to file on the basis of the NWMM tabled in Parliament on September 23, 2024, the CRA will coordinate corrective reassessments to reverse the application of the two-thirds inclusion rate. If you need additional information The CRA offers a variety of tools and services to help taxpayers understand and meet their tax obligations. Whether it is through the Liaison Officer service or the page, Personal income tax information, and Trust income tax information, we are here to help. Contacts Media Relations Canada Revenue Agency 613-948-8366 Stay connected
