Capital Gains Increase Coming

You probably know the rate of tax payable on capital gains is increasing as of June 25, 2024.

What you may not know is that some clients may want to trigger the capital gains now, rather than wait until after June 25.  Some elderly clients may elect to transfer the asset to their children and have the children borrow the amount required to pay the taxes. Some younger clients may elect to roll the asset into a holding company and take back preferred shares.  You, or us, do not know what is best for the client and their particular situation, but it may be preferable paying a higher tax down the road.

If you have clients/family/friends who own investment property you should advise them to check with their accountant to see if there are any tax saving strategies they could implement.

We are always available to steward our clients and work in tandem with accounting advisors to execute a plan.  Even if it is outside the scope of our expertise, we regularly refer clients to experienced accounting and tax partners.

Of course no accountant wants to be bothered this week (deadline for tax filing is end of month) but a phone call early May might be a good idea.  Or feel free to email us your questions and we will do our best to compile all questions and send out answers next week.