The Impact of New Capital Gains Tax Rules on Canadian Investors
Adrian C. Spitters FCSI?, CFP?, CEA? President, Author, Private Wealth Advisor
I Execute Tax-Efficient Investment Portfolio Solutions So That Your Business, Family, And Estate Assets Are De-Risked And Protected Against Financial Risk, Economic Threats, Inflation And Higher Taxes.
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Understanding the Changes and Preparing for the Future
The new capital gains tax rules, effective June 25, have raised significant concerns among business groups, health professionals, and many Canadians. The federal government's decision to increase the inclusion rate for capital gains tax from 50% to 66.67% aims to "make tax fairer," but a recent Angus Reid Institute poll reveals that more Canadians oppose the change than support it.
Concerns About Reduced After-Tax Income
The poll highlighted that one in five respondents believe their after-tax income will be reduced over the next five years due to these changes. Participants were asked:
“A capital gain is the difference between the cost of an asset—an investment property, a stock, or a mutual fund—and its total sale price. The change would mean tax must be paid on two-thirds of this sale now instead of half on capital gains of more than $250,000. Will this change in how capital gains are treated affect your personal after-tax income over the next five years?”
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Slightly more than half of respondents (53%) said they would not be affected, but 12% expected to pay a little more and 11% expected to pay a lot more. Despite the government's statement that just one-tenth of 1% of taxpayers would be affected, the findings suggest broader concerns.
Impact on Different Income Levels
Excluding those who were unsure, the highest household income levels expect to be the most impacted, with 13% of those earning less than $25,000 anticipating higher taxes, compared to 47% of those in the $200,000+ income group.
Widespread Opposition
Opposition to the changes increases with income levels, with one-third of Canadians supporting the inclusion rate increase and half opposing it. Older generations are more likely to oppose the changes. The poll also found that approximately two in five Canadians have heard little to nothing about the issue, indicating a need for more public awareness and engagement with financial advisors.
Navigating the New Tax Landscape
As the financial landscape becomes increasingly complex and uncertain, professional guidance and a diversified, risk-mitigated portfolio and wealth planning strategy are crucial. To help navigate these changes, I am offering a complimentary portfolio evaluation to discuss how to fortify and de-risk your portfolio against financial institution risk, economic threats, inflation, and higher taxes. To schedule your complimentary portfolio evaluation, email me at [email protected] or use my Calendly Link .
Taking proactive steps today can help ensure a more secure financial future amidst the evolving tax environment.
A Partnership for Holistic Wealth Management
As a dedicated advocate for de-risking business, family and multi-generational wealth, I am partnered with one of the leading independent private wealth management firms. My team serves high-net-worth clients nationwide. We provide professional investment management and comprehensive wealth planning solutions from a fiducially focused, client-first perspective, providing access to sophisticated tax-advantaged strategies and solutions traditionally reserved for the ultra-affluent.
We are driven by a "capital preservation first" philosophy. Our team generates consistent, tax-efficient returns uncorrelated to public markets. By leveraging our expertise, you are granted access to key industry professionals, gaining exclusive entrance into alternative investments such as private equity, private real estate, precious metals, commodities, government-sanctioned flow-through tax-efficient structures, and tax-minimizing corporate insurance solutions offered through mutual life companies. All are designed to fortify, secure and de-risk your family, business and estate assets against financial risk, economic threats, inflation and higher taxes.
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To receive a complimentary digital copy of "Who's Investing Your Money?," email me at [email protected] or book a complementary portfolio evaluation with me through my Calendly Link.
The Custodial Model: An Additional Layer of Protection
In light of the revelations in David Roger Webb's book The Great Taking , to further safeguard wealth, the firms I work with employ a custodial model, where client assets are held securely by an independent third-party custodian rather than commingled with the firm's assets. This crucial segregation of assets provides an additional layer of protection, reducing the risk of seizure or misappropriation in a financial crisis or institutional insolvency. The custodial model offers investors a safeguarded solution to help secure their wealth separately from the management firm.
Watch The Great Taking Documentary
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Exploring the U.S. for Wealth Security
Amid economic uncertainty and high taxes in Canada, many affluent Canadians are considering relocating their wealth to the United States. The U.S. offers a more favourable tax environment and stronger asset protection laws. Peter J. Merrick, a renowned cross-border specialist, assists Canadians in navigating international wealth management complexities, facilitating seamless asset transfers to diversify holdings and safeguard their hard-earned assets from potential risks.
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Adrian C. Spitters FCSI?, CFP?, CEA? President, Author, Private Wealth Advisor
I Execute Tax-Efficient Investment Portfolio Solutions So That Your Business, Family, And Estate Assets Are De-Risked And Protected Against Financial Risk, Economic Threats, Inflation And Higher Taxes.
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