Federal budget: Capital gains tax hike will hit business owners

With the federal budget yesterday, Chrystia Freeland, minister of finance, had a mixed message for this industry. The housing construction incentives, previously announced, were in the billions—and the stimulated demand should be a beneficial factor for building centres and their vendors.

But in paying for that spending, in part, Ottawa intends to raise an extra $19.4 billion over four years by increasing the “inclusion rate” for capital gains taxes from 50 percent to 66.6 percent. The new rules come into effect on June 25, 2024.