Fiscal cost of partial inclusion of capital gains More than 80 percent of gains were declared by the 9.5 percent of Canadian taxfilers with total incomes over $100,000. Of the total, 54.6 percent was declared by taxpayers with incomes over $250,000. In all, Canadians realized $72.9 billion in taxable capital gains. Table 1 shows the extent of this inequality, based on the most recent data released by the Canada Revenue Agency. (Source: Canada Revenue Agency, T1 Final Statistics, 2017)īecause most capital gains income is realized by high-income taxpayers, these tax preferences are highly unequally distributed. Table 1 Distribution of tax benefits from partial inclusion of capital gains Total income range ![]() In all, capital gains income is taxed very lightly in our system – when it is taxed at all. Although there is in principle deemed realization of gains at death, taxpayers can engage in “estate freezes” and other sophisticated transactions to defer capital gains taxes, giving their beneficiaries additional tax advantages.
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