Lifetime Capital Gains Exemption Increase
In 2013, the Canadian government announced that the lifetime capital gains exemption (“LCGE”) available to resident Canadian individuals would increase to $800,000 for the 2014 year, and the amount would be indexed for inflation going forward.
For 2015, the CRA website indicates the LCGE has increased to $813,600 effective January 1 2015.
As a result, every Canadian resident individual who disposes of qualifying small business corporation shares in 2015 can shelter up to $813,600 in capital gains on those shares from tax.
The tax-free savings account contribution limit remains at $5,500 for 2015. A full list of all indexation increases can be found on the website linked above.
If you have further questions about tax planning, please contact us.