On April 16, 2024, the Canadian Deputy Prime Minister and Minister of Finance introduced the federal budget for 2024. Among many components, the budget includes a proposed change to Canadian capital gains taxes. As of June 25, 2024, the capital gains inclusion rate (the portion of the gain that is taxable) would increase from one half to two thirds for corporations and trusts, and from one half to two thirds on the portion of the gain in excess of $250,000 for individuals. (For more information please see the government’s summary here; and for specific advice on how these proposed changes might affect a project you are working on, discuss the particulars with your advisors).
Generally speaking, these proposed changes would likely have an effect on many people who own Canadian property (other than a principal residence), especially those who have owned their property for a period of time during which the value of the property has appreciated significantly. CTV News covered some reactions among cottage owners in this news story, for instance. Given this, it’s an important time for land trusts and property owners to be aware of the tools that can mitigate capital gains tax liabilities for donors of ecologically sensitive land, such as the Ecological Gifts Program and for non-residents of Canada, donations to Prescribed Donees like American Friends of Canadian Conservation (AFCC).
You can read more about AFCC’s status as a Prescribed Donee and how that can help reduce capital gains taxes in our comprehensive cross-border conservation resource, Save Some Green. And for more information on AFCC and its work, please contact Katie Blake at katie.blake@conservecanada.org.
