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What you need to know about the capital gains tax changes in 2025

by Intuit Updated 3 weeks ago

The following is for informational purposes only, aimed at helping you make an informed decisions regarding your tax filings.

Background

The 2024 federal budget announced that the capital gains inclusion rate (how much of capital gains is taxed) would increase. Capital gains up to $250,000 would remain the same, with 50% of those gains taxed, while anything over and above $250,000 would face an increase, resulting in 66.67% of the gains taxed.

Current status

The government announced on January 31, 2025 that they will be deferring the capital gains rate increase until January 1, 2026. That means that the capital gains tax remains the same (at 50%) for tax year 2024.

How will the deferral of the capital gains increase affect a tax return?

ModuleImpact
T1Following the Department of Finance's announcement to defer the capital gains inclusion rate change, the CRA is currently working on new versions of the forms that had previously been issued as finals.
The following forms and worksheets that were available in earlier releases are now temporarily removed:

ABIL
OtherDeduct
LossNetCap
LossLPP
T1212
TP21.4.39


The new versions will be made available in upcoming releases. In the meantime, the CRA is providing relief on late-filing penalties and arrears interest for impacted T1 filers until Jun 2, 2025.
T2On January 31, 2025, the Department of Finance communicated that the increase in capital gains inclusion rate announced in the 2024 federal budget has been deferred until January 1, 2026. You can continue to use ProFile’s existing forms with the 50% inclusion rate until further notice.

Corporations that followed the CRA's guidance and applied the two-thirds inclusion rate based on the September 23, 2024 NWMM tabled in Parliament will receive corrective reassessments to reverse the application of this rate.
T3/TP646Following the Department of Finance's announcement to defer the capital gains inclusion rate change until January 1, 2026, the CRA is updating its systems and forms to reflect the previous 50% inclusion rate. As a result, the 2024 T3/TP646 module will be published as soon as these updates are available.

In the meantime, the CRA is providing relief on late-filing penalties and arrears interest for impacted T3 Trust filers until May 1, 2025.

More information

CRA statement on Agency's administration of the proposed capital gains taxation changes.

Department of Finance statement on deferring the implementation of the new capital gains inclusion rate.

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