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When it comes to aging, an overwhelming majority of Canadians wish to do so at home¹. And as Canada’s aging population continues to expose gaps in long-term care options, staying in place may seem like the best option for many reasons.

However, aging at home has its own challenges that can come at a high cost to not only your savings but also the wellbeing of you and your loved ones.

In your healthier years, aging at home may feel like the best choice. But there may come a time when you become less independent and need help maintaining a safe and healthy lifestyle. Although you may be eligible for some level of government-funded home care, there’s a possibility you’ll need to personally cover some of the costs, which can be significant.

There is a misconception about how much funding is available to Canadians for care at home, so it’s common for people to underestimate or not plan at all for the potential costs they may face. In the end, they may not have enough money saved and need to ask loved ones to help them with their care needs.

The 2024 Federal Budget’s proposed capital gains inclusion rate increase has created much discussion and concern for Canadians who own capital property with inherent capital gains. The proposals provide a shortened period of time for proactive planning to manage exposure to the inclusion rate increase.

Capital gains basics

A capital gain results when you dispose of capital property for sale proceeds, net of selling costs, greater than the property’s adjusted cost base. Capital property may consist of real property, marketable securities, shares of private corporations, farming and fishing property, and other assets. You should consult with your tax advisor to determine whether the property you are disposing of is capital property.

Currently, 50% of a capital gain is included in calculating your income. This percentage is referred to as the capital gains inclusion rate. The result is known as a taxable capital gain. The 50% inclusion rate also applies to capital losses. The result is known as an allowable capital loss. Any resulting tax liability is calculated based on the net capital gain, which is the taxable capital gains minus allowable capital losses, included in your income tax return multiplied by your marginal income tax rate.

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