For Those With Corporate Class Non-registered Investments

The Trudeau government announced earlier this year that the tax-deferred switching between corporate class investments would cease at the end of 2016.

For example:

Suppose that you had $100,000 in non-registered investments with an adjusted cost base of $80,000.  Today, you could switch from Corporate Class Investment A to Corporate Class Investment B without triggering any tax.  Starting January that switch would trigger a $20,000 capital gain taxable at 50%.

I will reach out to all of you with non-registered / open investments to explore if any changes should be made before the end of the year.

This change does not affect registered saving plans like TFSAs, RRSPs or RRIFs as investment switches within these plans are considered non-taxable.

October 14, 2016

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