Capital Gains Break Even

This calculator compares selling an investment before June 25, 2024 at the 50% inclusion rate to holding the investment until a future date and selling when the inclusion rate is 66.67%. It estimates your break-even holding period when the after-tax value of your portfolio will be the same whether you sell before June 25 or maintain your portfolio and sell in the future, assuming all else remains the same.

Where do you live? Alberta
Top marginal tax rate
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Top Marginal Tax Rate
This the top marginal tax rate on interest/employment income in your province.
Investment Details
Fair Market Value (maximum value $10M)
A
500,000
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Fair Market Value
The fair market value of the asset or investment you are selling or disposing of through a deemed disposition.
Adjusted cost base (maximum value $10M)
B
200,000
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Adjusted Cost Base
The adjusted cost base is usually the original cost of the asset or investment plus any expenses to acquire it, such as commissions and legal fees.
Sell Now at 50% Inclusion Rate and Reinvest Proceeds
Capital gain
A - B
400,000
Taxable gain (50% of capital gain)
150,000
Tax at 53.53
C
80,295
Amount to reinvest
A - C
419,705
Hold and sell at a later date at 66.67% inclusion rate
Amount to invest
500,000
Include lower inclusion rate in "sell at later date" option?
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Include Lower Rate?
Yes means the 50% inclusion rate on the first $250,000 of capital gains is factored into the "sell at later date" calculations. No means the 66.67% inclusion rate is used on all capital gains.
Rate of return (maximum value %)
5.00%
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Rate of Return
The rate of return is 100% deferred capital gains with no interest or dividends.

Expand Table
This table shows the difference in after-tax value between selling now at the 50% inclusion rate and holding/selling the security at a later date at the 66.67% inclusion rate.

 
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Assumptions
All calculations use your province's top marginal tax rate in 2024. Returns are 100% deferred capital gains with no interest or dividends component. The new inclusion rate rules have not yet been passed into law. This calculator shows results for a maximum of 30 years.

Note
You should consult with your tax advisor to assess how this new budget proposal might affect you, your trust, and your corporations. There are tax and non-tax factors to consider so a comprehensive cost-benefit analysis is advisable.

Disclaimer