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U.S. TAX TREND
Corporate Transparency Act: Back On Again — For Now... Or Is It?
On February 18, 2025, the U.S. District Court for the Eastern District of Texas stayed the preliminary relief it had previously granted in its January 5, 2025, order. Though the U.S. Supreme Court had, on January 23, 2025, reversed the U.S. Court of Appeals for the Fifth Circuit’s preliminary injunction involving Texas Top Cop Shop v. Garland, the court did not address the injunction in the Smith v. U.S. Department of Treasury case. As such, a nationwide injunction remained in place. Considering the Supreme Court ruling, the U.S. District Court for the Eastern District of Texas stayed its prior ruling.
TAX TREND
Capital Gains Change Postponed Until 2026
It is now official. The capital gains change to the inclusion rate (1/2 to 2/3) will not occur until 2026. That is of course subject to the Liberals, not the Conservatives, winning the next election or it may not happen at all.
In addition, the increase to the capital gains exemption will be raised to $1,250,000 from June 25, 2024.
The new Canadian Entrepreneurs’ Incentive will also proceed from 2025 onward as announced. The inclusion rate will be 1/3 on up to $400,000 of eligible capital gains.
None of this is law and a new bill would have to be introduced. So we are not done with the “capital gains chaos” but at least some clarity is emerging.
