Will the capital gains tax changes really jeopardize doctors' retirement?
BNN Bloomberg
The Canadian Medical Association asserts the Liberals' proposed changes to capital gains taxation will put doctors' retirement savings in jeopardy, but some financial experts insist incorporated professionals are not as doomed as they say they are.
Prime Minister Justin Trudeau's government presented a federal budget last week that proposes making two-thirds rather than one-half of capital gains — or profit made on the sale of assets — taxable.
The increase in the so-called inclusion rate would apply to capital gains above $250,000 for individuals, and all capital gains realized by corporations.
Since doctors typically incorporate their medical practices and invest for retirement inside their corporations, the association points out its members will now face a higher inclusion rate on all capital gains they earn, including on retirement investments.
