What percentage of capital gains is taxable?

In Canada, capital gains have always received preferential treatment in that they are not 100% taxable. Here is a summary of the history of percentage of capital gains which were subject to tax:

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What is General Anti-Avoidance Rule (GAAR)?

The General Anti-Avoidance Rule (GAAR) was introduced as part of the 1988 tax reforms to the Income Tax Act by enacting section 245. This provision allows the Canada Revenue Agency to redetermine the tax consequences of a transaction(s) entered into by a taxpayer in an effort to deny the tax benefit(s) otherwise enjoyed by the taxpayer as a result of the impugned transaction(s).

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What is ordinary income, capital gains, and dividends?

In terms of the effective tax rates, Canadians can divide their income into three categories: ordinary income, capital gains, and dividends.

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What is tax planning?

Tax planning involves arranging one’s fanancial affairs to reduce the tax liabilities. There are three basic goals of tax planning:

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What is the first-time home buyers’ tax credit (HBTC)?

The first-time home buyers’ tax credit (HBTC) is a non-refundable tax credit introduced in 2009 for the first-time home buyers who acquire a qualifying home after January 27, 2009, that is – closing after this date.

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Additional information