RE:RE:RE:RE:Canada's 2024 Federal Budget increases capital gains tax Yes, my friend Notable.
Do understand the taxable change will only apply to individual gains above $250,000
What we don't know, is the in- place negotiations.
Assuming for example, they do announce a $5billion buyout.
being about $60/ps.
What is individual is your average cost base?
The math is based on your personal costs. & for obvious reasons , everyone will be different.
repeating my as you say convelouted story. The timing will not be based on tax rules.
consider, they are different for the Nasdaq/ USA holders. & different across various states.
One scinario?
They announce a deal, which might close November.
The announcement would immediately move the price up.
then the shaeholders could sell before the Nov closing date.
The capital gains tax applies to your selling $ - your average cost base.
when sold.not before & not after.
I would be thrilled to pay taxes above a $250,000 profit!
i do have enough shares to see that number. However split between my spouse & myself.
I sincerely doubt there would be any intentional delays.
All based on the science & potential income to the aquiring pharma.
canadian taxes are complicated enough. add- in multi country listings.
The fudicuary duty of the B.O.D. Is to oversee that all major decisions are in the best interest of the shareholders.
The tax rule change would only be part if discussions if proposed announced dates were being discussed.
Since disclosure rules indicate public announcements ASAP, they will announce as soon as a proposed deal is reached.
The nasdaq stock holders will not be affected by a Canadian tax rule change.
so, brining tax savings into the calculations is a very complicated process.
IMHO, not one they will be considering.
Lets end on a positive..think positive.
onc gets bought out $5 billion ++, announced early June. For shareholders to vote on.
FWIW.
assuming a Canadian taxpayer in the 30% marginal rate.
A profit of $500,000 would see an exiting tax bill go from $75k to $86k
ironically , the mangement with significant marginal tax rate. Probably above 40%. Would see s much higher tax incresse.
that said.
there are many thousand of onc shaeholders who will not see a dime of tax incresse.
lifetime exemption of $100k.
need profits above $250,ooo before any change.
I say, bring it on!