Canadian PM proposes capital gains tax on stocks and cryptocurrencies

Canadian Prime Minister Justin Trudeau has proposed a new capital gains tax that will range from 50% to 67%, depending on the taxpayer's income bracket. According to the Canada Revenue Agency website, common capital property includes houses, securities (such as stocks, bonds, cryptocurrencies and mutual fund trust units), land and buildings. Starting June 25, the proposed changes will affect individuals with capital gains of more than $250,000 per year. Corporations and trusts will also face increased tax liabilities on most gains. The Canadian government clarified that the change will mainly affect the richest 0.13% of individuals, including about 12% of Canadian businesses and Canadians with an average income of $1.42 million. 99.87% of Canadians will not be affected by this adjustment, which does not include the sale of a primary residence. In Canada, taxpayers do not have to pay taxes on the purchase or holding of cryptocurrencies. Capital gains or business income from cryptocurrency sales, mining activities or other cryptocurrency-related transactions are taxed. Individual cryptocurrency holders are required to pay taxes on 50% of their total capital gains, while professional (day) traders are required to pay taxes on 100% of their profits. (Finbold)