Capital gains changes have Canadians rushing to get ‘affairs in order’

Starting June 25, the inclusion rate for taxable capital gains will increase to 67 per cent for individuals realizing more than $250,000 in capital gains annually.

Canadians are scrambling to get their “affairs in order” as controversial changes to how capital gains are taxed are set to go into effect on Tuesday, accountants say.

The changes, which have received pushback from business groups and doctors, will increase the inclusion rate for taxable capital gains from 50 to 67 per cent for individuals realizing more than $250,000 in capital gains annually.

Even though the proposal was first introduced in Budget 2024 in April, more details on the changes only became clear on June 10 when the Liberals put a motion to implement them up for a vote in the House of Commons – which approved it.

In advance of the changes kicking in on June 25, John Oakey, vice-president of taxation at Chartered Professional Accountants of Canada, said accountants have seen an influx of clients, with a lot of transactions being made over a “very intensive” last couple of weeks.

“I talked to a number of CPAs of accounting firms, as well as lawyers that have been frantically in the last about two weeks — since the notice of ways and means motion came out — frantically trying to help clients get their affairs in order and determine if they want to do any tax planning or not,” Oakey said in an interview with Global News on Monday.

“So, there is a lot of work going on right now and in the two weeks when the details came out up to the June 25 deadline,” he said, adding that some transactions might not be completed because there isn’t enough time left.

Jamie Golombek, managing director of tax and estate planning with CIBC Private Wealth, said that in the past week alone he was personally involved in at least five client meetings and four presentations on this topic.

“We’ve really been absolutely overwhelmed,” Golombek told Global News on Monday.