The federal government’s proposed change to capital gains taxation is expected to increase taxes on investments.
After unveiling plans to spend billions of dollars to boost Canada’s housing supply and social programs, the federal government is framing its plan as a fair way to offset those investments and prevent younger generations from inheriting a bigger deficit.
“I understand for some people this may cost more if they sell a cottage or a secondary residence. But young people can’t buy their primary residences yet,” Prime Minister Justin Trudeau told reporters Tuesday in Saskatchewan.
Here’s what you need to know about the change to capital gains taxation.
What is changing?
In a bid to make rich individuals and corporations pay more taxes, the federal Liberals said they will increase the capital gains inclusion rate— the share of capital gains that is taxed — …