2024 THIRD QUARTER TAX TIPS

TAX TIPS & TRAPS

This publication is a high-level summary of the most recent tax developments applicable to business owners, investors, and high-net-worth individuals.

Tax Tidbits

Here are some quick points to consider.

• All eligible Canadian resident seniors (over age 65), children under 18 and individuals eligible for the disability tax credit can now apply for the Canadian Dental Care Plan. Other eligible individuals will be invited to participate in 2025. To qualify, the applicant must not have access to dental insurance and the applicant’s family income must be below $90,000.

• In July 2024, CRA began issuing legal warnings and taking legal measures to collect outstanding personal COVID-19 benefit program debts. Individuals who have not responded or cooperated are being contacted if CRA has determined that they have the financial capacity to pay the outstanding amount. CRA encouraged individuals who cannot pay the full amount immediately to contact them and develop a payment arrangement.

• While the increase to the capital gains inclusion rate from 50% to 2/3 for corporations and most trusts and from 50% to 2/3 on the portion of capital gains realized in the year that exceeds $250,000 for individuals has not been enacted into law, the government has confirmed that the change would be effective June 25, 2024.

Please see the linked commentary for more details on these items.