Aecon Group Inc T.ARE

Increase of taxable capital gain: June 25th

[Curious777]

From 50 to 67%...

This could be a window (2 month) of opportunity for a take over. There will be "before" and "after" June 25th.
Convincing shareholders to accept an offer will be that much easier.

Que sera sera...

[Alexcanada]

Nah : no takeover in sight but shareholders might sell in order to realize a capital gain before the end of june then rebuy one month later

[CarsT1]

Great site - lots of good insights. Just to correct the above statement, if you realize gain on sale of shares, you don't have to wait 30 days to buy back.... GLTA

[Alexcanada]

You are right. Hypothetical scenario : I sell 250K ARE shares in the morning, trigger the algos and rebuy in the afternoon maybe for less With a  realized 1625000$ capital gain (ACB around 10$), that's 406250$ in tax at 25% federal/provincial and 523125$ if first 250000$ at 25% and remaining at 33.5% (if fed and provincial at 33.5%) That's almost 29% more in tax ! now selling 250K

[Gabriel]

In my humble opinion this is a bad move that ulltimately incentivizes big money to flow outside Canada into foreign-based corporations that do not pay taxes in Canada. Sure, Canadian shareholders have to pay taxes on worldwide income but only that taken from these corporations. The corporations will not pay a penny here so while this is a probably a good political move, it is not a good idea

[Pandora]

That increase back to 66 2/3 % is only on the portion over $250K I believe. I could only dream of ever getting to that point but if we put Trudeau's gang back in there is a possibility they will hit it lower in the future. Depends on how many votes it may affect. Some on this board may be affected this/next year. If you have $300K gains as it is now you pay tax on 50% or $150K. If this budget

[iknownothingalot]

My understanding is anybody with a Holdco will be subject to the higher Cap Gains with no 250k exemption after June 25. It will be interesting to see if Polievre reverses this and severely cuts back spending and the number of employees employed by the Feds. This will only happen in 18 months once he is elected and no longer  subject to the whims of the NDP. Canada has become similar to a

[Henrye]

lol, but so true!!!! 

[Alexcanada]

I think that whatever gains you realize until June 25th will be subjected to 25% tax (and same for capital losses). After June 25th, you will still benefit from a pillow of 250K at 25% then the rest at 33.5% (same for capital losses). Next year, the 250K will apply from January 1st. Who knows if they will not lower this limit one day in the future. Why not sell all your position in very small lots

[Gabriel]

I had it checked today. If you sell you are ok. If you sell and buy back the same asset, it will be construed for what it is, tax avoidance and you will be reassessed with penalties. Tax avoidance also includes situations where a person reduces or eliminates tax through a transaction or a series of transactions that comply with the letter of the law but violate the spirit and intent of the