Can Capital Gains Push Me Into a Higher Tax Bracket?
Learn how capital gains are taxed and how to avoid paying more taxes than necessary when selling your assets. As an investor, you likely know that long-term capital gains (gains on assets such as stocks, bonds, shares in mutual funds and exchange-traded funds (ETFs), as well as rental properties, cottages , and business assets, equipment held for over one year) are taxed at a lower rate than ordinary income taxes. What you may not know is whether these gains will cause your wages, dividends, RRIF, LIFF, or pension withdrawals to be taxed at a higher rate. Will the capital gain actually make you keep less of your hard-earned money? Selling your high-performing stocks (congrats on buying Amazon in 1995!) or your cottage during COVID can reap significant profits, and those moments are worth celebrating. But while you’re enjoying the profits of your investments and impeccable timing, keep in mind that you’ll eventually have to pay tax on them. In Canada, most gains on capital assets are ta...
