Year-end tax planner – 2024: Helping individuals and owner-managed businesses save tax

The Year-end tax planner is designed primarily for individuals who have accumulated some wealth or own their own businesses (large or small). It includes nine year‑end tax planning checklists and several tables of useful information.

Year-end tax planning checklists

Alternative minimum tax (AMT) – changes to the AMT regime (rate and exemption amount increased and base broadened), for taxation years beginning after 2023

Capital gains inclusion rate – increased from ½ to ⅔, for capital gains realized after June 24, 2024; for individuals (and graduated rate estates and qualified disability trusts), the effective capital gains inclusion rate will be ½ on the first $250,000 of capital gains earned in the year (the $250,000 threshold will not be prorated in 2024 and applies only against capital gains incurred after June 24, 2024)

Lifetime capital gains exemption – increased to $1.25 million, for eligible dispositions occurring after June 24, 2024

Canadian Entrepreneurs’ Incentive – will provide a beneficial capital gains inclusion rate for eligible dispositions on up to $2 million of capital gains during an individual’s lifetime (maximum $400,000 in 2025)

Employee ownership trusts (EOTs) – for 2024 to 2026, $10 million of capital gains exempt from tax on the sale of a business to an EOT

Accelerated capital cost allowance (CCA) – available for eligible class 44, 46 and 50 properties acquired, and for eligible purpose-built rental housing projects that begin construction, after April 15, 2024

Clean economy investment tax credits (ITCs) – applications are being accepted for the refundable ITCs for carbon capture, utilization and storage, clean technology adoption, clean hydrogen production and clean technology manufacturing; new details for clean electricity generation ITC

Employee stock option deduction – decreased from ½ to ⅓ of the taxable benefit realized after June 24, 2024, to align with the higher capital gains inclusion rate (see above); election available to increase the effective deduction to ½ on up to an annual $250,000 limit for qualifying options

Tax-free savings account (TFSA) – annual TFSA contribution limit increased from $6,500 to $7,000 in 2024

Trusts – reporting rules amended to reduce the number of trusts, including “bare trusts,” that will be subject to these rules and to defer the start of the revised bare trust filing requirements until the 2025 taxation year

Home buyers’ plan – withdrawal limit from a home buyer’s RRSP increased to $60,000 after April 16, 2024

Non-compliant short-term rentals – expenses incurred after 2023 to earn short-term rental income are no longer deductible if the rental does not comply with applicable provincial and municipal laws and other requirements

Excessive interest and financing expenses limitation (EIFEL) – deductibility of net interest and financing expenses limited for certain taxpayers, for taxation years beginning after September 30, 2023

Small business corporate rates

Newfoundland and Labrador – decreased from 3% to 2.5% on January 1, 2024
Saskatchewan – increasing from 1% to 2% on July 1, 2025

Personal income tax rates

Manitoba – taxable income brackets increased in 2024; starting 2025, basic personal amount to be phased out for individuals with income exceeding $200,000
Prince Edward Island – income tax rates and taxable income brackets changed and surtax eliminated in 2024; further tax rate and tax bracket changes in 2025
Saskatchewan – non-eligible dividends decreasing gradually from 2024 to 2026

Nova Scotia HST rate – decreasing from 15% to 14% on April 1, 2025

Year-end tax planning checklists

Working with your PwC adviser is essential when considering the following year-end tax planning tactics. In addition to tax considerations, your financial plan should reflect investment philosophies, sound business practices and motivational goals. Owner-managers should ensure that sufficient funds are retained to meet business objectives; given the uncertainty in the economic environment, cash flow management is especially important.