May 9, 2024
The Canadian government has recently proposed
significant changes to how capital gains are taxed, but how will
this impact Canadians? In this episode, we delve into the proposed
capital gains tax changes and their impact on financial planning.
We unpack the definition of capital gains tax and the complexity of
the proposed changes. Explore the historical trends of capital
gains tax rates in Canada, how capital gains tax works, and who
will be impacted by the proposed changes. We discuss the
intricacies of the alternative minimum tax (AMT), its relevance to
capital gains tax, and whether the old or new AMT rules apply to
the upcoming changes. Gain insights into tax considerations for
long-term investment strategies, the importance of tax
diversification in mitigating risk, lifetime capital gains
exemption, tax planning ramifications, and more! Although this
episode is Canadian-focused, it offers many useful takeaways for
non-Candaians as well. To gain a comprehensive understanding of the
complexities surrounding capital gains tax and strategies to
navigate the proposed changes effectively, tune in now!
Key Points From This Episode:
(0:00:00) Introduction and outline of today’s topic: proposed capital gains tax changes.
(0:03:07) Overview of the topic, what capital gains tax is, and the proposed changes.
(0:08:10) Historical trends in capital gains tax rates in Canada.
(0:10:59) Find out who will be impacted by the proposed changes.
(0:14:45) Advice on how to plan for the proposed changes with an example.
(0:17:13) Model results and we unpack the nuance of AMT (alternative minimum tax).
(0:25:35) How the changes to AMT impact the proposed capital gains tax changes.
(0:32:05) Whether the new or old AMT rules apply to the proposed capital gains changes.
(0:34:27) Important tax considerations for long-term investment strategies.
(0:36:30) Insights into why tax diversification is essential to reduce the tax rate risk.
(0:39:25) Interesting budget proposals and their tax planning implications.
(0:41:17) Our perspectives on the media response to the proposed tax changes.
(0:45:40) After-show: listeners’ reviews, upcoming guests, an update on Mark’s book, and more.
Links From Today’s Episode:
Rational Reminder on iTunes — https://itunes.apple.com/ca/podcast/the-rational-reminder-podcast/id1426530582.
Rational Reminder Website — https://rationalreminder.ca/
Rational Reminder on Instagram — https://www.instagram.com/rationalreminder/
Rational Reminder on X — https://twitter.com/RationalRemind
Rational Reminder on YouTube — https://www.youtube.com/channel/
Rational Reminder Email — info@rationalreminder.ca
Benjamin
Felix — https://www.pwlcapital.com/author/benjamin-felix/
Benjamin on X — https://twitter.com/benjaminwfelix
Benjamin on LinkedIn — https://www.linkedin.com/in/benjaminwfelix/
Cameron Passmore — https://www.pwlcapital.com/profile/cameron-passmore/
Cameron on X — https://twitter.com/CameronPassmore
Cameron on LinkedIn — https://www.linkedin.com/in/cameronpassmore/
Mark McGrath on LinkedIn — https://www.linkedin.com/in/markmcgrathcfp/
Mark McGrath on X — https://twitter.com/MarkMcGrathCFP
Capital Gains Calculator — https://research-tools.pwlcapital.com/research/realize-gain
Episode 224 — https://rationalreminder.ca/podcast/224
Episode 284 — https://rationalreminder.ca/podcast/284
Episode 299 — https://rationalreminder.ca/podcast/299
Episode 302 — https://rationalreminder.ca/podcast/302
Canadian Medical Association — https://www.cma.ca/
The Money Scope Podcast — https://moneyscope.ca/
The Most Important Lessons in Investing — https://www.youtube.com/watch?v=MOjS2zuQMdo
Dan Solin — https://danielsolin.com/
Compensation Strategies for Canadian Business Owners — https://www.pwlcapital.com/compensation-strategies-for-canadian-business-owners2/
Books From Today’s Episode:
The Wealthy Barber — https://www.amazon.com/Wealthy-Barber-Updated-3rd-Commonsense/dp/0761513116