Prime Minister Justin Trudeau’s resignation and the prorogation of Parliament have created significant uncertainty regarding proposed capital gains tax changes. These changes, introduced in the 2024 budget, aimed to increase the taxable portion of capital gains from 50% to 66.67% for individuals earning over $250,000 annually. However, with Parliament prorogued until March 24, the legislation remains stalled, leaving taxpayers in limbo.
Here’s the upside for donors as this presents a unique opportunity for donors to maximize their giving through tools like Giftabulator®. The proposed changes, which increase the capital gains inclusion rate from 50% to 66.67% for gains over $250,000, emphasize the importance of tax-efficient strategies.
Giftabulator®, developed by FUNDING matters® Inc., empowers donors to make smarter, asset-based charitable contributions, such as donating appreciated securities. By avoiding capital gains taxes and claiming tax credits on the full market value of their gifts, donors can achieve greater financial benefits while supporting their favourite causes.
This uncertain tax environment highlights the value of tools like Giftabulator®, which help charities illustrate the benefits of planned giving and guide donors through complex tax scenarios. Whether or not the proposed changes are enacted, leveraging such strategies ensures impactful philanthropy while optimizing tax outcomes for donors.