The 2024 federal budget: Bad news for medical professional corporations.

The 2024 federal budget in Canada includes major spending on housing, the Canada Disability Benefit, and a national school food program. However, these initiatives will result in a significant deficit and increased taxes. The government has increased the taxable portion of capital gains from 50% to 66.67% to help pay for these commitments. This change has been criticized for not considering the impact on middle-class Canadians and small businesses, including medical professional corporations. Medical professionals are concerned that these changes may prompt doctors to quit. The new higher inclusion rate applies to every dollar of capital gains of a corporation, which will affect medical professional corporations. The Canadian Medical Association has asked the government to exclude medical professional corporations from these changes. The integration of corporate and personal taxes has been thrown into disarray, making it disadvantageous to realize capital gains in a corporation. The best financial strategy going forward will require careful analysis by an accountant. [Extracted from the article]