Budget 2024 presents a partial win for the sector’s advocacy on the Alternative Minimum Tax

The release of Budget 2024, saw an adjustment to previously-proposed changes on the Alternative Minimum Tax (AMT) in relation to the charitable tax credit, now allowing individuals to claim 80% of the charitable donation tax credit when calculating the AMT. 


This is a sizeable adjustment from the 50% reduction first proposed as changes to the AMT in Budget 2023, and should largely remove concerns of high-income Canadians regarding the tax implications of large gifts. 


While those changes were slated to take effect January 1, 2024, CAGP, Imagine Canada and others in the sector strongly advocated last fall that changes to the AMT which related to charitable giving should be removed. Following that, the Fall Economic Statement did not include those changes, thus delaying their implementation and giving hope that the government was listening to the sector’s concerns. Today’s budget shows that to be the case… somewhat. 


Changes had also been proposed to reduce the capital gains exemption for publicly listed security donations by 30%. That change is moving forward, and we understand there are other changes with regard to capital gains inclusion rates for high-income earners. 


As CAGP’s Government Relations Committee reflects more deeply on this, further updates will be provided. In the meantime, don’t hesitate to connect with our President & CEO, Ruth MacKenzie, with any questions or comments.


The article states to increase the capital gains inclusion rate from one-half to two-thirds for corporations and trusts, and from one-half to two-thirds on the portion of capital gains realized in the year that exceeds $250,000 for individuals, for capital gains realized on or after June 25, 2024. If there is a capital gain increase before June 25, 2024, the new capital gains inclusion rate will not apply. Is that right? So, should we encourage our donors to donate before June 25, 2024? How does the Budget 2024 affect the charitable sector? | CAGP (cagp-acpdp.org) 2024 Federal Budget: Highlights for the Charitable and NPO sector | Miller Thomson LLP | Canadian business law firm Thank you so much for your support, Berna Gulmisal


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