“I think I might need to call you back,” David said, his voice tight with sudden concern.
We were midway through our quarterly portfolio review when he received a text from his accountant about some recent property sales.
”Apparently there’s confusion about how to report my capital gains this year with all the proposed tax changes. My accountant is worried we might miss the filing deadline while waiting for clarity.”
I smiled, knowing I could offer some relief. “Actually, David, there’s some good news on that front.”
This scenario has been playing out in conversations with many clients over the past several weeks. The uncertainty around capital gains reporting for 2024 has created unnecessary stress during an already complicated tax season.
For anyone who realized capital gains or losses in 2024, here’s the important update: The Canada Revenue Agency (CRA) is giving taxpayers reporting capital dispositions an additional month to file their 2024 returns.
This means:
Most importantly, filing during this extended period will not trigger late-filing penalties or interest charges.
This extension acknowledges the confusion caused by the proposed changes to the capital gains inclusion rate—changes that have now been deferred to January 1, 2026.
For clients like David, who sold investment properties or securities during 2024, this provides valuable breathing room to ensure everything is reported correctly. The standard 50% inclusion rate will apply to all capital gains realized in 2024, despite the initial guidance suggesting otherwise.
While the extended deadline provides welcome relief, it’s important to remember that proper tax planning happens year-round, not just during tax season. This situation illustrates why proactive tax planning should be an integral part of your overall financial strategy.
Some considerations worth discussing:
If you’ve experienced capital gains or losses in 2024—whether from selling investments, property, or other capital assets—this extension gives you additional time to ensure your return is accurate and optimized.
However, I generally recommend against waiting until the last minute simply because you can. The sooner you begin preparing your return, the more time you’ll have to identify potential strategies and address any complications.
When it comes to the intersection of investments and taxation, clarity matters. If you’re wondering how these changes might affect your specific situation or would like to discuss strategies for optimizing your tax position, I’m here to help navigate these complexities alongside your tax professional.
Let’s talk about how we can integrate tax considerations into your overall financial plan to help you make confident decisions—regardless of deadline extensions or changing tax policies.
