Capital Gains Tax in Canada
Canadian capital gains tax was introduced in 1972 in an effort to create a more equitable taxation system for the country and also help finance the social security system. However, with the rate rising as high as 75% in the 1990’s and now around 66.67%, it’s important for investors and other applicable individuals to get in touch with experienced accountants like us at Stein Jacobs Krolik for advice.
Why a Professional Accounting Firm like Stein Jacobs Krolik can help
The Canadian taxation system is complicated at the best of times; however, with capital gains tax, things can quickly become a little confusing. Speaking with an account prior to purchasing an asset can help to minimize your capital gains tax liability. Individuals who are selling or transferring a business may also be subjected to capital gains tax due to assets such as shareholdings, residential properties and commercial properties that are linked to the business. Stein Jacobs Krolik can help ensure that during these stressful times, the owners don’t pay any more tax than they are required to.
Exemptions of Capital Gains Tax in Canada
There are many exemptions that you may be applicable for, which we would be happy to discuss with you here at Stein Jacobs and Krolik. If you are retired, or soon will be retiring, you may be exempt from capital gains tax. Additionally, small business corporations (usually those with 90% of its assets involved in active business) may qualify too. For individuals with shares, you may be exempt if you have owned shares for 24 months before selling, and have used 50% of those assets in active business. We are happy to provide more information on when exemptions do and do not apply to prevent costly misunderstandings.
Founded in 1954, Stein Jacobs Krolik doesn’t only have years of experience and garnered knowledge; we provide a personal service that goes far beyond the stellar reputation we have built from the ground up. To discuss your capital gains tax liabilities, get in touch today for a free consultation.
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