2024 Federal Budget Commentary

We are pleased to share commentary on the 2024 federal budget.  This commentary does not originate from our office.  Our subscription to the commentary allows for us to distribute it to our clients.  We hope you find it useful.

Some highlights include:

A.  Personal Measures

• An increase to the capital gains inclusion rate to 2/3, however individuals will retain the 1/2 inclusion rate on the first $250,000 of capital gains annually.
• An increase to the lifetime maximum capital gains exemption, and two new incentives on specific types of business sales.
• Modifications to the proposed amendments to focus the alternative minimum tax regime on high-income individuals.

B.  Business Measures

• A Canada carbon rebate for small businesses that will begin by delivering payments to eligible CCPCs for five years of carbon tax.
• Accelerated capital cost allowance on purpose-built residential rental properties.
• Immediate expensing of certain productivity-enhancing assets, including computer hardware, acquired on or after April 16, 2024.

C.  International Measures

• A crypto-asset reporting framework that will require annual reporting by crypto-asset service providers on their clients’ activities using these assets.

D.  Sales and Excise Measures

• Extension of the GST exemption for new purpose-built rental housing projects to not-for-profit universities, public colleges and school authorities.

E.  Other Measures

• Details on the Canada disability benefit intended to commence in July 2025.

F.  Previously Announced Measures

Intention to proceed with previously announced measures, including the denial of expenses for non-compliant short-term rental activities; the exemption of certain services of psychotherapists and counselling therapists from GST/HST; proposals related to the underused housing tax; temporarily pausing the fuel charge on heating oil; various clean energy tax credits; and other initiatives related to the clean economy

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