Highlights of the April 16th Federal Budget Commentary Include:

A. Personal Measures

• An increase to the capital gains inclusion rate to 2/3, however individuals will retain the 1/2 inclusion rate on the first $250,000 of capital gains annually.
• An increase to the lifetime maximum capital gains exemption, and two new incentives on specific types of business sales.
• Modifications to the proposed amendments to focus the alternative minimum tax regime on high-income individuals.

B. Business Measures

• A Canada carbon rebate for small businesses that will begin by delivering payments to eligible CCPCs for five years of carbon tax.
• Accelerated capital cost allowance on purpose-built residential rental properties.
• Immediate expensing of certain productivity-enhancing assets, including computer hardware, acquired on or after April 16, 2024.

C. International Measures

• A crypto-asset reporting framework that will require annual reporting by cryptoasset service providers on their clients’ activities using these assets.

D. Sales and Excise Measures

• Extension of the GST exemption for new purpose-built rental housing projects to not-for-profit universities, public colleges and school authorities.

E. Other Measures

• Details on the Canada disability benefit intended to commence in July 2025.

F. Previously Announced Measures

• Intention to proceed with previously announced measures, including the denial of expenses for non-compliant short-term rental activities; the exemption of certain
  services of psychotherapists and counselling therapists from GST/HST; proposals related to the underused housing tax; temporarily pausing the fuel charge on heating oil; various clean energy tax credits; and other initiatives related to the clean economy.

Read the full article here: Commentary on the Federal Budget 2024