2022 federal budget—What you need to know
You may have noticed that the federal budget was released yesterday. As soon as it was made available, CIBC taxation experts–including Jamie Golombek, Managing Director, Tax and Estate Planning, CIBC Private Wealth–started to explore how it might impact our clients.
- Personal tax rates: There are no changes to personal tax rates.
- Alternative minimum tax: Changes to the minimum tax to ensure higher-income people pay more federal tax will be announced in the fall economic update.
- Small business deduction: Small business owners currently benefit from a favourable small business rate on the first $500,000 of active business income. This rate is reduced on a straight-line basis if the business has between $10-15 million of taxable capital. The range is being bumped up to $50 million. This means more businesses will qualify for the small business deduction.
Feel free to get in touch with any questions you might have.