Remember the proposed capital gains inclusion rate increase from Budget 2024? First it was meant to start in June 2024. Then it was deferred to January 2026. Today the new federal government announced that it will cancel the proposal altogether.

For an individual's 2024 return, nothing changes from the CRA's January guidance: the one-half inclusion rate applies to capital gains, unless an exemption applies. The proposed two-thirds rate was never enacted.

The government says it will keep the separate increase in the lifetime capital gains exemption to $1.25 million for eligible small business shares and farm and fishing property, with legislation to follow.

If you're preparing a 2024 return, report your gains and losses using the current forms. If you've been planning a sale around the proposed 2026 rate, you may want to revisit that plan using today's announcement.