213 words / 1 min read

Late last week, the government announced that the federal government is deferring the date on which the capital gains inclusion rate would increase from June 25, 2024 to January 1, 2026. This followed extensive advocacy from Doctors Manitoba, the CMA and other medical associations following Prime Minister Trudeau’s resignation.

WHY IT MATTERS: The changes to capital gains concern many physicians who have planned capital investments as part of a retirement plan. While the changes were introduced in parliament, the legislation to enact them had not yet been passed.

OUR PERSPECTIVE: Doctors Manitoba and other medical associations joined with the CMA’s call to drop the capital gains increases on medical corporations and physician practices. We continue to work together to turn this delay into a permanent cancelation of the proposed changes, as worded, because of how unfairly they treated medical corporations. 

WORTH NOTING: This delay and an upcoming change in leadership or governing party will affect the future approach to capital gains. Meanwhile, our advice is to continue to work with your accountant to get personalized advice about how capital gains impact your tax return.

LEARN MORE: Read our article from last spring that explains the changes and how they affect physician practices. You can see the Finance Canada notice delaying the change here.