3 Examples of new capital gains taxes in Canada

Stay informed about capital gains taxes in Canada with our detailed guide featuring three illustrative examples. Learn what capital gains taxes are and how they work, including how much you pay based on federal and provincial rates. Understand the combined tax rates to see your overall tax liability. Examine specific scenarios with capital gains of $500k and $1M, both before and after recent tax changes. These examples highlight the impact of new regulations and help you navigate your tax obligations effectively. Optimize your financial planning with these essential insights!

💼 Dive into the intricacies of capital gains taxes in Canada with this insightful video! Learn through three detailed examples how these taxes work and how recent changes might impact you.

❓ What are capital gains taxes? Understand the basics of capital gains taxes and why they matter for your investments.
💸 How much taxes do I pay? Discover how the amount of tax you owe is calculated based on your capital gains.
📊 Federal tax rates: Explore the federal tax rates applicable to capital gains in Canada.
🏢 Provincial tax rates: Learn about the varying provincial tax rates and how they affect your overall tax bill.
⚖️ Combined tax rates: See how federal and provincial tax rates combine to determine your total tax obligation.
💵 Example 1 – Capital gains $500k: Examine a scenario where $500,000 in capital gains is taxed.
💰 Example 2 – Capital gains of $1M before the changes: Understand how a $1 million capital gain was taxed before recent changes.
🆕 Example 3 – Capital gains of $1M after the changes: Analyze the tax implications for a $1 million capital gain after the latest tax reforms.
🎉 Conclusion: Summarize the key points and takeaways to help you navigate capital gains taxes effectively.

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2. 3 Examples of New Capital Gains taxes By Lakshay Gandhi CPA, CGA 647-987-4025 [email protected]

3. What are Capital Gains Taxes? Capital gains = profit - The difference between the sale price and the purchase price is the capital gain Capital gains tax occurs when a person buy stocks, cottage, mutual funds, investment property and then sell it out at a higher price. For example, if someone purchased a cottage for $750,000 and later sold it for $850,000, they would have a capital gain of $100,000. Out of $100k, only 50% which is 50,000 will be taxed.

4. How much taxes do I pay? Taxable Capital gains = $50,000 Personal income is = $50,000 Total income = $100,000 Taxes will be based on the individual’s personal tax bracket Federal = $15,723 Provincial = $7,718.43 Total taxes = $23,441.43

5. Federal Tax rates

6. Provincial Tax rates

7. Combined Tax rates

8. Example 1: Capital gains $500k Combined taxes     $ 94,678.08

9. Example 2: Capital gains of $1M before the changes Combined taxes     $ 227,902.90

10. Example 3: Capital gains of $1M after the changes

11. In Conclusion When it comes to rental properties, it will lower the supply as less people will be looking at buying a second property as an investment. Rental property owners might now be encouraged to sell before the change comes into effect this summer. Who is impacted the most? Individuals selling homes with capital gains greater than $250k Start-ups offering employees compensation in form of stock options

12. Any questions? By Lakshay Gandhi CPA, CGA 647-987-4025 [email protected]