{"id":351,"date":"2024-05-22T13:49:50","date_gmt":"2024-05-22T17:49:50","guid":{"rendered":"https:\/\/mariecinerenaud.ca\/?post_type=blogue&p=351"},"modified":"2024-06-25T10:44:31","modified_gmt":"2024-06-25T14:44:31","slug":"the-2024-federal-budget-and-its-impacts-on-your-financial-plan","status":"publish","type":"blogue","link":"https:\/\/mariecinerenaud.ca\/en\/blog\/the-2024-federal-budget-and-its-impacts-on-your-financial-plan\/","title":{"rendered":"The 2024 federal budget and its impacts on your financial plan"},"content":{"rendered":"

Dear client,<\/p>\n

Although the federal budget has not yet been adopted, the measures announced by the Minister of Finance on April 16 should still catch your attention. The intention of this info letter is to share some significant points that may have an impact on your financial planning. If you want to better understand how these measures affect you, don\u2019t hesitate to get in touch with me.<\/p>\n

You are planning to become a homeowner<\/strong><\/h2>\n

The withdrawal limit from your RRSP is increasing to $60,000 within the Home Buyers\u2019 Plan (HBP). Combined with the sums in an FHSA, is this strategy the right one for you?<\/p>\n

You own a business, cottage, land, rental property, or even non-registered investments \u00a0<\/strong><\/h2>\n

Starting June 25, 2024, the tax inclusion rate on capital gains will likely increase from 50% to 66.67% for all capital gains realized by corporations and trusts, as well as capital gains over $250,000 realized by individuals.<\/p>\n

Important to know<\/strong><\/h2>\n

The law requires you to have disposed of all your assets just before your death. If you have an asset that generates capital gains (cottage, rental property, land, non-registered investments, etc.), your loved ones may therefore be required to pay a tax bill to conserve your assets.<\/p>\n

Example<\/strong><\/h2>\n

Jeanne and Jeannot
\nRetired parents of three children
\nTheir family assets include a family cottage that they wish to bequeath equally to their children.<\/p>\n

Purchase price of the cottage in 1990: $100,000
\nMarket value of the cottage in 2024: $750,000<\/p>\n\n\n\n\n\n\n
<\/td>\nCurrently<\/strong><\/td>\nAs of June 25, 2024<\/strong><\/td>\n<\/tr>\n
Capital gain<\/strong><\/td>\n$650,000<\/td>\n<\/tr>\n
Taxable capital gain<\/strong><\/td>\n$325,000\u00a0(50%)<\/td>\n$391,680
\n(50% on the first $250,000 and 66.67% on the portion over $250,000)<\/em><\/td>\n<\/tr>\n
\n

Taxes payable<\/strong><\/p>\n

In the absence of life insurance, children may need to borrow this sum if the succession doesn\u2019t have the necessary liquidity. <\/em><\/p>\n<\/td>\n

$173,257
\n(deceased tax rate of 53.31%)<\/td>\n		$208,804
\n(deceased tax rate of 53.31%)<\/em><\/td>\n<\/tr>\n<\/tbody>\n<\/table>\n

If adopted, the proposed budget will have an impact on the tax inclusion rate on capital gains, since it provides for certain modifications to capital gains taxation.\u00a0<\/strong><\/p>\n

In a snapshot<\/strong><\/p>\n