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2015 Budget News
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Some significant changes that benefit an ageing population and charities:
- The limit for TFSA contributions is increased from $5000 to $10,000.
- The minimum RIFF withdrawal is being reduced for those between the ages of 71 and 94. The withdrawal factors will now be based on a 5% nominal returned (reduced from 7%) and 2% inflation indexing (up from 1%).
- And a long awaited change that could significantly impact charities relates to the donation of real estate. Any capital gain realized on the sale of real estate will not be subject to capital gains so long as the real estate is sold after 2016, the proceeds are donated to a charity within 30 days of the sale and the sale is not to a non-arm’s length party of either the donor or the charity. And the donor wins big time as not only do they not pay capital gains, they get a tax credit for the donation to be applied against other income.
This may be an “election” budget but good news is good news no matter the timing.