🚨 Attention Canadian Doctors and Business Owners!

The recent changes to the capital gains inclusion rate are shaking up your financial world. Here’s what you need to know to protect your wealth and stay ahead of the curve. 💼💡

Hi, I’m Laurent Munier—welcome, or welcome back! 👋 Today, we’re diving deep into the recent changes to Canada’s capital gains inclusion rates and how they directly impact incorporated professionals like doctors and business owners.

💥 Capital Gains Inclusion Rates Explained

Capital gains inclusion rates determine how much of your profit from selling an asset is taxable. Before, only 50% of your gain was taxed, but with the 2024 Federal Budget changes, that rate has jumped to 66.67%. This means higher taxes on your gains, cutting into the benefits of investing through your corporation. 📉

🏢 How This Affects Incorporated Doctors

If you’re using a holding company to invest, this change is a big deal. Holding companies have been a go-to strategy for Canadian doctors to defer taxes and grow their investments. But with the higher inclusion rate, the tax burden on your capital gains is significantly heavier. I’ll break down exactly how this impacts your financial strategy. 🏦

⚖️ Understanding Tax Integration

The principle of tax integration is meant to prevent double taxation on income earned through your medical corporation. However, with the new rules, this balance is disrupted, leading to higher taxes on both corporate and personal levels. I’ll explain how this affects you and your financial planning. 💡

🔄 Strategies to Mitigate the Impact

With these new tax rules in effect, it’s time to rethink your financial strategy:

1. Reevaluate Your Investment Portfolio: Are there better investment options to minimize your tax burden?
2. Maximize Tax-Deferred Accounts: RRSPs and TFSAs just became even more valuable.
3. Consider Permanent Life Insurance: This can offer estate protection and tax-deferred growth within your holding company. Life insurance policies also avoid the new passive income rules—two problems solved with one strategy. 🎯

🏥 Final Thoughts for Incorporated Physicians

These changes are real, and they’re already affecting incorporated professionals across Canada. Now is the time to consult your financial team—your insurance advisor, investment advisor, accountant, and lawyer—to adjust your plan accordingly. If you’re unsure where to start, or if you’re looking for a second opinion, we’re here to help.

📞 Get in Touch

Reach out to us at safepacific.com and send us a message. We’ll get back to you within 24 hours on business days to set up a meeting and help you navigate these changes. 🖥️

Contact & More Info: https://safepacific.com/contact/

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