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FINANCIAL MATTERS

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FINANCIAL MATTERS

FINANCIAL MATTERS

Starting in 2024, this budget proposes to expand the list of expenses recognized under the DSD, specifically for individuals with severe and prolonged impairment in physical functions, impairments in physical or mental functions and vision impairments.

Measures for businesses

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Lifetime Capital Gains Exemption

The Lifetime Capital Gains Exemption (LCGE) allows individuals to be exempt from taxes on capital gains realized on the disposition of qualified small business corporation (QSBC) shares and qualified farm or fishing property (QFFP).

The 2024 federal budget proposes to increase the LCGE from $1,016,836 to $1 25 million for dispositions on or after June 25, 2024. Indexation of the exemption amount will resume in 2026 and future years.

Canadian Entrepreneurs’ Incentive

The 2024 federal budget proposes to introduce the Canadian Entrepreneurs’ Incentive (CEI) to reduce the capital gains inclusion rate by one-half on the disposition of qualifying shares by an eligible individual, starting on January 1, 2025. The lifetime limit for this incentive would be phased in by increments of $200,000 per year, from January 1, 2025 to January 1, 2034, reaching the maximum limit of $2 million

If the individual is subject to the twothirds capital gains inclusion rate proposed in the 2024 budget, this incentive would reduce the inclusion rate to one-third on disposition of qualifying shares. This measure would apply in addition to any available lifetime capital gains exemption.

Accelerated Capital Cost Allowance

Taxpayers may claim a deduction under the Capital Cost Allowance (CCA) rules for the capital costs incurred to purchase certain depreciable property. The 2024 federal budget proposes to increase the CCA rate allowed for new eligible purpose-built rental housing from 4% to 10%.

To qualify, the property construction must begin after April 15, 2024 and before January 1, 2031 In addition, the property must be available for use before January 1, 2036.

Canada Carbon Rebate for Small Businesses

The budget proposes to introduce a new Canada Carbon Rebate for Small Businesses where eligible corporations will receive an automatic refundable tax credit directly in proportion to the number of employees in each applicable province.

Written and published by IG Wealth Management as a general source of information only Not intended as a solicitation to buy or sell specific investments, or to provide tax, legal or investment advice Seek advice on your specific circumstances from an IG Wealth Management Consultant

Jacob Gaudet is an Associate Consultant on the wealth advisory team Gaudet Group Private Wealth Management He helps clients get more out of their money, so they can get more out of life Jacob specializes in six key areas: Investment, Retirement, Estate, Tax, and Insurance, and Mortgage Planning With more than 60 years of combined experience, Gaudet Group Private Wealth Management is committed to making clients’ interests their top priority Do you have questions you’d like Jacob to Answer? Email him at jacob gaudet@igpwm ca or check out his website at GaudetGroup ca! Investors Group Financial Services Inc

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