|
Home -> Federal Budget -> 2024 Federal Budget2024 Federal Budget - April 16, 2024See Department of Finance - Budget 2024 for full budget information. Contents2024 Federal Debt Forecasts in $billions 2024 Federal Deficit Forecasts in $billions 2024 Forecast for Annual Interest on the Federal Debt in $billions 2024 Federal Budget Tax Measures Home Buyers / Home Owners / Home Builders Entrepreneurs / Farmers / Fishers Employee Ownership Trust Tax Exemption Business and Other Tax Measures 2024 Federal Debt Forecasts in $billions
2024 Federal Deficit Forecasts in $billions
2024 Forecast for Annual Interest on the Federal Debt in $billions
2024 Federal Budget Tax MeasuresMany tax measures have been proposed. All measures are subject to legislative approval. Home Buyers / Home Owners / Home Builders
30-Year Mortgage Amortizations, $1.5 Million Price Cap for Insured MortgagesA September 16, 2024, Finance Canada news release announced that eligibility for 30-year mortgage amortizations would be extended to all first-time homebuyers, not just first-time homebuyers of new builds, as well as to all buyers of new builds, not just first-time homebuyers of new builds. The news release also announced the increase of the cap for insured mortgages to $1.5 million from $1 million. Both of these changes are effective December 15, 2024. Secondary Suite Loan ProgramAn October 8, 2024 Finance Canada news release announced details regarding Mortgage Insurance Rule Changes to Enable Homeowners to Add Secondary Suites. The budget originally indicated this would provide homeowners up to $40,000 in low-interest loans to add secondary suites to their homes, or laneway homes to their properties. The news release does not mention low-interest loans, and indicates that the additional financing must not exceed the project costs, so probably does not have a $40,000 limit. The new insured mortgage refinancing product will be available effective January 15, 2025. The new units must be fully self-contained units with separate entrances, which means they will not likely be eligible for the principal residence exemption. Before taking advantage of this, homeowners should read the information One Principal Residence (Housing Unit) Per Couple, and seek advice from a CPA tax specialist or a tax lawyer. Tax Tip: Secondary suites may not be eligible for the principal residence exemption! Entrepreneurs / Farmers / Fishers
Investors / Landlords / Business Owners / Capital Property Owners / Estate Planning - Capital Gains Inclusion Rate
See Draft Legislation below, released for consultation on August 12, 2024. See Capital Gains Inclusion Rate in the 2024 Federal Budget. Technical Interpretation TI 2024-1016011E5 - General Anti-Avoidance Rule (GAAR), dated April 29, 2024 discussed whether the crystallization of an accrued gain prior to the increase in the capital gains inclusion rate is subject to GAAR. The position of CRA is that the crystallization, "solely as a means of ensuring access to the current inclusion rate, would not, in itself, be subject to GAAR". However, the TI also stated: "It is important to note, however, that the crystallization of an accrued capital gain as part of a series of transactions, one of the main purposes of which is to obtain a tax benefit (other than, or in addition to, the taxation of an accrued gain at the current inclusion rate) would not be immune from scrutiny under the GAAR. In particular, we would refer you to our letter dated February 29, 2024 (CRA document 2023-0987941I7), in which we stated that the Income Tax Rulings Directorate would not provide rulings in respect of a series of transactions in which an individual shareholder proposes to engage in non-arm’s length transactions, one of the main purposes of which was to facilitate the extraction of corporate retained earnings other than in the form of a dividend." Employee Ownership Trust Tax ExemptionThe 2024 Federal Budget provided further details on the proposed Employee Ownership Trust Tax Exemption. From the 2023 Federal lBudget: New rules coming into force January 1, 2024 would make it easier to establish EOTs:
The 2024 Federal Budget included further details on the proposed exemption and conditions. Legislation is included in: Bill C-59 Fall Economic Statement Implementation Act, 2023 and Bill C-69 Fall Economic Statement Implementation Act, 2024. It's important for anyone thinking of pursuing EOTs to listen to the August 2024 Life in the Tax Lane video from Video Tax News, which reveals surprising details of the EOT and discusses whether it is an exemption from tax, or a deferral of tax. Tax Tip: Thinking of establishing an EOT? Seek advice from a qualified tax professional! Other Personal Tax Measures
Business and Other Tax MeasuresThere are many business income tax measures, international income tax measures, and sales and excise tax measures. See Tax Measures: Supplementary Information for information on all proposed tax measures. The initial Notices of Ways and Means Motions are also available at that link. Canada Disability BenefitBudget 2024 announced that consultations on this benefit would begin soon. See 2.1 Taking Care of Every Generation and scroll down to (or do a search for) Launching the Canada Disability Benefit. See Canada Disability Benefit (CDB) - Consultations were announced in June 2024 regarding the Canada Disability Benefit Regulations. 2024 Budget LegislationNotice of Ways and Means Motion released September 23, 2024
Draft legislation was released for consultation on August 12, 2024, followed by
Interested Canadians were invited to email their comments by September 3, 2024 for the changes to the Capital Gains Inclusion Rate (CGIR) and the Lifetime Capital Gains Exemption (LCGE), and by September 11, 2024 for other measures. See the Life in the Tax Lane September 2024 video which addresses the August draft legislation. On June 10, 2024 a Notice of Ways and Means Motion was made available regarding the capital gains inclusion rate (CGIR), with "updated draft legislation" to follow in July. On April 30, 2024 the government announced a Notice of Ways and Means Motion which then became Bill C-69, Budget Implementation Act, 2024, No. 1. Bill C-69 received Royal Assent on June 20, 2024.
Revised: October 08, 2024
|
Copyright © 2002 Boat Harbour Investments Ltd. All Rights Reserved. See Reproduction of information from TaxTips.ca Facebook
| Twitter
| See What’s New, stay
connected with TaxTips.ca by RSS or Email |