CERTAIN CAPITAL GAINS TO REMAIN TAXABLE

In our summer 2015 newsletter, we advised that the federal government was going to expand the types of transactions in which capital gains would be considered to be tax exempt.

Currently, if a taxpayer donates a public security or mutual fund, any gains that have accrued on the investment at the time of the donation are not taxable to the donor.

The plan at the time was to extend this policy to the donation of private company shares, as well as land, beginning in 2017.

However in their 2016 budget, the Liberal government indicated that they will not be introducing this measure.