May 7, 2024 By Ontario Federation of Agriculture
The Ontario Federation of Agriculture (OFA) is addressing concerns from Ontario farmers and farm businesses regarding the federal government’s proposed increase to Canada’s capital gains inclusion rate, which was announced recently in the 2024 budget.
The changes, which are proposed to take effect on June 25, 2024, mean the following:
For corporations and trusts: the inclusion rate will increase from one-half to two-thirds for all capital gains.
For individuals: The inclusion rate will increase to two-thirds for capital gains higher than $250,000 after deductions and exemptions.
The budget also contained a proposal to increase the inclusion rate, Budget 2024 also proposed to increase the Lifetime Capital Gains Exemption (LCGE) for qualified farm property from $1 million to $1.25 million and continue adjusting it for inflation after 2026.
The OFA has compiled a list of resources, including a member webinar, here.
