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How to prepare for a potential tax hike on capital gains


The Globe and Mail
Brenda Bouw
Published January 12, 2021
wutwhanfoto/iStockPhoto / Getty Images
The threat of a higher capital gains tax rate is resurfacing in conversations between financial advisors and their clients as Ottawa looks for ways to pay down a soaring deficit amid billions in spending on pandemic-relief measures.
There has been speculation ahead of each federal budget in recent years that the Liberal government will increase the so-called capital gains inclusion rate, currently at 50 per cent, which is the percentage of capital gains included in taxable income. However, advisors say the unprecedented spending on COVID-19 programs, which has pushed the projected size of the deficit to almost $400-billion, makes a capital gains tax increase more likely. ....

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