The federal government’s increase to the capital gains inclusion rate is set to increase tomorrow.

Jasmin Guennette, Vice President of National Affairs for the Canadian Federation of Independent business explains here what that means.

“For example, let’s say you bought a piece of land a few years ago and you are selling your land, the difference between what you paid for and what you are selling the land for is considered capital gains. Right now, you would be taxed on half of the profit that you would make from that sale.”

Currently, the rate which capital gains is taxed is 50 per cent. That is set to rise to almost 67 per cent.

The CFIB is encouraging the government to scrap the increase but, in the meantime, advises business owners to check with their accountants and tax specialists.

The CFIB also has a full page dedicated to this topic on their website.

Go to cfib.ca to learn more and tune in to Thompson Today this afternoon at 12:40 and 5:10.