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[WEBINAR] 2024 Federal Budget Impact on Healthcare Professionals

 

[Recording Coming Soon]

 

About this webinar

This webinar will offer a summary of the major components of the 2024 Federal Budget, announced on April 16th by Finance Minister Chrystia Freeland. This session is prepared specifically for healthcare professionals, including medical residents and physicians. The webinar will provide an in-depth analysis of how these budget changes are expected to impact your future income tax obligations and financial planning strategies along with planning points and strategies to mitigate the adverse impact from these new measures.

In this webinar, you’ll receive clear explanations and practical examples of the budget’s provisions, based on the available information. Whether you’re well-versed in tax matters or new to the topic, you will gain valuable insights. Key topics to be covered include:

1. Capital Gains Inclusion Rate Increase

– The inclusion rate for capital gains will increase from 50% to 67% for gains exceeding $250,000 realized by individuals starting June 25, 2024. For corporations and trusts, the rate will be 67% without a threshold. This significant change impacts the tax-neutral principle of choosing legal vehicles for realizing capital gains.

2. Lifetime Capital Gains Exemption

– The lifetime capital gains exemption amount will increase to $1.25 million, with indexation resuming in 2026. This raises the potential cash tax savings from approximately $250,000 to over $400,000.

3. RRSP Home Buyers Plan

– The withdrawal limit for the RRSP Home Buyers Plan increases from $35,000 to $60,000, with a temporary extension to the repayment grace period of 5 years. This is particularly beneficial for medical residents planning to purchase their first home.

4. Crypto Asset Reporting Framework

– New reporting requirements will be introduced for Canadian crypto-asset exchanges and service providers. Understanding these changes is crucial for those involved in crypto investments.

5. Disability Supports Deduction

– The list of expenses qualifying for the disability supports deduction will be expanded, providing additional support to those who need it.

6. Future Federal Vacant Residential Land Tax

– A new consultation on a future vacant residential land tax will be initiated. This could affect investment and planning decisions.

7. CRA Audit Powers and Penalties

– Increased audit powers and new penalties for non-cooperation during audits will be implemented. Staying informed on these changes is essential for compliance and minimizing risks.

Although the topic may be technical in nature, our goal is to make this material accessible and straightforward. This webinar will offer practical insights and planning tips to reduce the impact of these proposed tax changes.

Jonathan Tucker

CPA, CA, LPA