Canada Tax Questions Answered by Experts
Hi from just answer. I'm PDtax. I'll assist.
The capital gains rate can be as much as 23.8% currently, depending on your income in the year of sale. The 10% rate might be applicable to capital gains at a much lower income level.
The change in rate is only proposed by the president. It is not law yet.
Hope that clarifies things for you. Positive feedback is appreciated. I'm PDtax.
I was responding to US budget proposals, and I think you are asking about Canadian budget changes to occur at the same time.
I'll opt out, and a Canadian tax expert can assist.
I'm sorry, but the 10% and 28% in your initial question only appear in US Tax treatment, not in Canadian tax treatment. However, I see nothing in the budget proposal (as of January) which would make any change in the difference between selling your entire business and selling part of your business.
As for the timing, even if there were a difference, the tax change could be retroactive to the start of 2016, rather than only being effective as to the date of passage of the budget (or any other date specified in the budget).