WEB: Capital Gains in Canada and Tax Implications
50% of Capital Gains Are Taxable
In Canada, capital gains earned from the sale of investments or assets are subject to taxation. If you sell an investment or asset, 50% of the capital gain is added to your income for that year. This means that capital gains are taxed at your marginal tax rate, which can range from 15% to 53% depending on your other income and the province or territory you live in.
Lifetime Capital Gains Exemption Limit
There is a lifetime capital gains exemption limit of $892,218 for dispositions in 2021 for qualified small business corporation shares.
Conclusion
Understanding the tax implications of capital gains is crucial when managing your investments and assets. By being aware of the tax liability associated with capital gains, you can plan accordingly and minimize your overall tax burden.
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