For studio owners, entrepreneurs, and women-owned companies who need a dynamic partner in building a real business that can support a legitimate source of income, a retirement plan, and the ability to live life on her own terms, Pyop Accounting is the full-service CPA and business growth expert that delivers a way to make your studio a main source of income and a worthy investment because life is too short for low returns on big energy.
Ah, Canada. Land of maple syrup, hockey, and—wait for it—sky-high capital gains taxes? Yep, you heard me right. Our friendly neighbors to the north are shaking things up with a proposed increase in their capital gains rate from 50% to a whopping 67%. For anyone with more than $250,000 in gains, this new tax rate could feel like a slap shot to the wallet.
Imagine this: You’ve got a cozy piece of property that’s been in the family for generations. You sell it for $500,000, making a cool profit of $500,000. Under these new rules, you’d owe $333,000 in income taxes! Ouch. Suddenly, investing in Canada feels like trying to skate uphill.
But don't get too comfortable, folks. President Biden is eyeing similar changes here in the US, with plans to increase the capital gains rate starting in 2025. While our current 20% rate seems like a bargain next to Canada's potential 67%, the winds of change are blowing.
Thankfully, in Canada, you won’t pay taxes if you sell your primary residence (as long as you've lived there the whole time). But rental properties? They're fair game for this hefty tax hike. Could such drastic measures roll downhill to the US? If so, it might put the brakes on a lot of investments and take money out of investors’ hands—not exactly a recipe for economic joy.
So, what does this mean for investors? If Canada goes through with this, we might see a migration of investment dollars southward, giving the US real estate market a boost. But don’t just take my word for it; keep an eye on these trends and stay informed on the latest updates. After all, forewarned is forearmed.
Ready to navigate these choppy financial waters with ease? Let Pyop Accounting be your compass, guiding you to profitability and peace of mind. Stay tuned for more updates, and remember: every brushstroke today adds value to your legacy tomorrow.
Are you prepared for the changes ahead?
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Donna Bordeaux, CPA with PYOPAccounting.com
Creativity and CPAs don’t generally go together. Most people think of CPAs as nerdy accountants who can’t talk with people. Well, it’s time to break that stereotype. Lively, friendly, and knowledgeable can be a part of your relationship with your CPA, as demonstrated by Donna and Chad Bordeaux. They have over 50 years of combined experience as entrepreneurial CPAs. They’ve owned businesses and helped business owners exceed their wildest dreams. They have been able to help businesses earn many times more profit than the average business in the same industry and are passionate about helping industries that help families build great memories.
