Recents changes – Investments

Module 07 – Placements

13 Nov 20243 min read

  • The increase in the capital gains inclusion rate from one half to two-thirds which had been slated for June 25, 2024 has been cancelled and the 50% inclusion rate has been maintained.
  • The Canadian Entrepreneurs' Incentive, which would have reduced the inclusion rate for capital gains realized on the sale of qualified shares up to an applicable eligible limit (which would have reached $2M in 2029) was cancelled. As a result, this measure, which was slated to be gradually phased in as 2025, will not be introduced.

FEDERAL

  • The eligibility period for the Mineral Exploration Tax Credit has been extended for flow-through share agreements concluded prior to April 1, 2027.

QUEBEC

  • On March 1, 2025, the rate under the Tax Credits for the Acquisition of Capital Régional et Coopératif Desjardins Shares was reduced from 30% to 25%. A lifetime subscription limit of $45,000 per shareholder was also introduced on March 26, 2025.
  • The additional deduction of exploration expenses and the capital gains exemption relating to flow-through shares was eliminated on March 26, 2025.
  • As of March 26, 2025, the deduction in respect of the Cooperative Investment Plan (CIP) is reduced from 125% to 100% of the acquisition cost of qualified securities.

TAGS  

Section 07 - Investments

See all modules

1- Nature of transactions

Property income (including dividend, interest and rental income) is often considered like a return on equity and generally requires very little work and
Read more

2- Capital gain or loss

A capital gain or loss is generally the difference between the proceeds of sale, net of expenses, and the cost of the property. The taxable capital gain is
Read more

3- Capital gains deduction

Taxpayers who realize a capital gain upon disposition of the shares of a qualified small business corporation or eligible farm property or fishing property
Read more

4- Interest income

Taxpayers must pay tax every year on the interest earned on investments (i.e., deposits, certificates, Treasury bills, bonds) on the anniversary date of the acquisition of the investment. This applies to interest received or interest accrued on compound interest investments.
Read more

5- Dividend income

The grossed-up amount of dividends received from Canadian corporations is taxable. However, taxpayers are entitled to a tax credit on the taxable amount of
Read more

6- Investment income comparison

A number of factors have to be considered when acquiring an investment, in particular the inherent risk as well as the individual's risk tolerance. The
Read more

7- Foreign investments

All Canadian residents are required to declare income from all Canadian and foreign sources. The full amount of foreign property investment income, such as
Read more

8- Leasing

Rental income is income from property if the taxpayer rents space and provides basic services only, such as heat, light, parking and laundry facilities.
Read more

9- Interest and financial expenses

Taxpayers should plan personal transactions properly so that the proceeds of a loan are used to earn income from a business or property. Interest will not be
Read more

10- Investment programs

Specific tax measures exist for some investment programs, which are generally designed to encourage investments in certain sectors but can also have impacts
Read more

11- Tax-free savings account

Individuals who are 18 years of age or older may contribute annually to a TFSA and income earned on such amounts is sheltered from income tax. The maximum amount that can be invested in 2025 is $7,000. Unlike the RRSP, TFSA contributions are not deductible for tax purposes. However, capital and income withdrawals are not taxable.
Read more
    See all modules