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📢 Canada Revenue Agency's Update on Capital Gains Taxation Changes

January 31, 2025 | Ottawa, Ontario

📢 Legislative Update on Capital Gains Inclusion Rate

The Department of Finance has introduced legislation in Parliament that will affect the capital gains inclusion rate. Effective January 1, 2026, the inclusion rate will rise from one-half to two-thirds for capital gains exceeding $250,000 annually for individuals. This will also apply to all capital gains realized by corporations and most types of trusts. 📊

📄 ### Administration of Current Capital Gains Inclusion Rate

The Canada Revenue Agency (CRA) will continue to administer the current capital gains inclusion rate of one-half for all gains realized before January 1, 2026, unless an exemption applies. 📉

📈 Lifetime Capital Gains Exemption (LCGE) Limit

> The government will maintain the increase in the Lifetime Capital Gains Exemption (LCGE) limit to $1.25 million for eligible capital gains. The CRA will implement this change for dispositions occurring on or after June 25, 2024, with indexation resuming in 2026. 💼

Impacted Filers – Relief Measures

Individuals and Trusts:

• New forms reflecting the current rate will be issued soon. 📃

• Relief for late-filing penalties and arrears interest until June 2, 2025, for T1 Individual filers. ⏳

• Relief until May 1, 2025, for T3 Trust filers. 📅

Corporations:

• Continue using existing forms and software with the one-half inclusion rate until further notice. 🖥️

• Corrective reassessments for corporations that followed previous CRA guidance will be coordinated. 🔄

Need More Information? 🤔

The CRA offers various tools and services to assist taxpayers:

Services and Resources:

• Liaison Officer Service 🤝

• Resources for Small and Medium Businesses 📂

• Personal Income Tax Information 📜

• Trust Income Tax Information 📑

📊 Summary of Changes:

Dive deeper into the topic.

From $1/Day to Billionaire: An Inspiring Journey 🚀

Issued By: My First Million

In Episode 673, Shaan Puri engages in a captivating conversation with Nick Mowbray, the founder of the world’s most profitable toy company. Join us as we unravel Nick's extraordinary journey from humble beginnings to achieving billionaire status in just 10 years. 💼✨

Key Highlights:

Why You Should Listen:

This episode is packed with practical tips and inspirational stories that will resonate with entrepreneurs, investors, and anyone passionate about business growth. 💼📈 

📋 Tax Debt Resolution & Financing Program

For Tax Debts under $100K

💼 Legal Fee: The cost of buying down the interest rate to less than 10% + a service fee (i.e., % of total financing sought).

How the Program Works

📝 Initial Consultation & Assessment

• Free Initial Consultation: Evaluate the client's tax debt situation, assess CRA notices, and devise the optimal resolution strategy.

• Eligibility Review: Collaboration with the Tax Mechanic to assess client eligibility for the 0% interest financing option.

🔍 Engagement & Financing Agreement

1. Service Engagement: Eligible clients sign a retainer agreement with the law firm.

2. Financing Application: Assistance with completing a financing application with the partner financing company.

3. Immediate Payout: Upon approval, 100% of the legal fees and total tax debt amount is deposited into Lawlignment's trust account.

⚖️ Legal and Financial Management

🔧 Comprehensive Tax Debt Resolution Services

• Debt Analysis & Negotiation: Develop and execute a tailored legal strategy (e.g., negotiating installment agreements, filing objections).

• Ongoing Legal Representation: Represent clients in dealings with CRA to ensure compliance and favorable outcomes.

💳 Client’s Repayment to Financing Company

This program provides a structured and efficient approach to resolving tax debt, ensuring clients receive comprehensive support from initial consultation to final repayment. By leveraging professional legal and financial management, clients can achieve favorable outcomes and clear their tax debts with confidence. 💼

Municipalities Loan $1.6M to Operators of Truro's Rath Centre in Dispute with CRA 🏛️💼

📅 Source: CBC News 🗓️ Date: February 5, 2025

Overview

Two Nova Scotia municipalities are providing over $1.6 million to the society operating the Rath Eastlink Community Centre in Truro, N.S. This financial assistance results from the Canada Revenue Agency's (CRA) clawback of a COVID-19 pandemic relief program.

Background

> The Central Nova Scotia Civic Centre Society is contesting the CRA's decision to reclaim nearly $1.3 million received through the Canada Emergency Wage Subsidy. Despite losing its first appeal, the society is preparing for a second one. Meanwhile, a repayable grant will be received from both the Town of Truro and the Municipality of the County of Colchester.

Financial Impact 💸

Matt Moore, Executive Director, revealed that the CRA is withholding $186,000 in HST returns, which has accumulated over $300,000 in interest. Additionally, legal and auditor fees are adding to the financial strain.

• HST Returns Withheld: $186,000

• Accrued Interest: $300,000+

• Emergency Wage Subsidy Reclaimed: $1.3 million

Municipal Support 🏢

Community Value 🏘️

> "The facility brings significant value to the community, serving as an emergency center during crises like post-tropical storm Fiona," said Matt Moore. Moore noted that the CRA issue has caused financial hardship for the organization, which aimed to support over 100 staff and aid community recovery during the pandemic.

Key Facts:

• Grant Amount: $1.6 million

• Interest Rate: 1.5%

• HST Returns Withheld: $186,000

• Accrued Interest: $300,000+

• Emergency Wage Subsidy Reclaimed: $1.3 million

Dive deeper into the topic.

Is Your Farm Being Stolen by Taxes? 💰

In our recent TikTok video, Fraser explained how families can protect their farms from the heavy burden of capital gains taxes. Here’s a concise summary of his key points:

@taxmechanic

Is Your Farm Being Stolen by Taxes? 🚜💸 Learn how to protect your family farm from sneaky taxes with these smart strategies! #FarmTaxTips #... See more

Strategies to Protect Your Farm:

Stay proactive and compliant with your tax obligations. For expert assistance, contact us today. 🌟📞💼(Email - [email protected])

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