2025 Year-end Tax Planning Opportunities

With tax legislation continuing to evolve rapidly, 2025 has been another year where proactive tax planning is essential. While the 2024 federal budget introduced a proposed increase to the capital gains inclusion rate, the prime minister confirmed that the government will not proceed with the change. This reversal highlights how quickly tax policy can shift, impacting your investment and financial planning decisions. At the same time, major tax reform and political changes in the United States, including the One Big Beautiful Bill Act, introduced new cross-border considerations for Canadians with U.S. investments or business interests. These developments underscore the importance of monitoring not only domestic legislation but also global tax trends that may affect Canadian taxpayers.

As the year-end approaches, Canadians should take time to assess their financial position and explore strategies that go beyond the traditional tax season. Opportunities such as tax-deferred growth, income splitting, charitable giving, and optimizing registered account contributions remain key tools to reduce tax liability and build long-term wealth. Reviewing your investments and income in light of your goals, the broader economic environment, and international policy changes can help ensure you are well-positioned for 2026 and beyond. Tax planning today requires a global lens and a forward-looking approach.

It is recommended that clients seek independent advice from a professional advisor on legal and tax-related matters.

Securities-related products and services are offered through Raymond James Ltd. (RJL), regulated by the Canadian Investment Regulatory Organization (CIRO) and a Member of the Canadian Investor Protection Fund. RJL financial/investment advisors are not tax advisors, and we recommend that clients seek independent advice from a professional advisor on tax-related matters. Insurance products and services are offered through Raymond James Financial Planning Ltd., which is not regulated by CIRO and is not a Member of the Canadian Investor Protection Fund. Solus Trust Company (“STC”) is an affiliate of Raymond James Ltd. and offers trust services across Canada. STC is not regulated by CIRO and is not a Member of the Canadian Investor Protection Fund.