Today on the show, Peter Bowen, VP of Tax and Retirement Research at Fidelity Canada, breaks down the capital gains changes from the recently released 2024 Federal budget. He explains what the tax changes could mean for your clients and potentially their investment and retirement plans. Peter reviews what changed, including how the capital gains inclusion rate increased from one half to two thirds. He says most individuals won’t be affected, but these tax changes could affect corporations and trusts plus those with second homes, vacation properties and cottages. Peter also breaks down possible steps and scenarios for those affected by the capital gains changes. Those being small and large business owners, even doctors on the small business side.  Should you consider selling your investments within your private corporation, or sell your entire portfolio to trigger the capital gains? Peter says the decision depends on the time value of money and if you want to pay taxes early at a lower rate. Either way, he suggests, to sit down with your financial advisor and figure out a plan well before the June 25th deadline.

Recorded on May 1, 2024

Today’s podcast is brought to you by the 2024 Fidelity Retirement Report. Head to go.fidelity.ca/retirement to receive the report and insights on how you can better prepare for your retirement, whatever that may look like.

At Fidelity, our mission is to build a better future for Canadian investors and help them stay ahead. We offer investors and institutions a range of innovative and trusted investment portfolios to help them reach their financial and life goals. Fidelity mutual funds and ETFs are available by working with a financial advisor or through an online brokerage account. Visit fidelity.ca/howtobuy for more information.