Smart Advice with Carissa Lucreziano

Tax expert Jamie Golombek, Managing Director of Tax & Estate Planning at CIBC Private Wealth, joins us for an in-depth conversation on the new higher capital gains inclusion rate, and what this change could mean for Canadians and their future financial decisions—including individuals, investors, and businesses or corporations. If you might be affected by the change, you’ll want to listen to this episode!

Here are three reasons why you should listen to this episode:

1. Learn about the changes to the capital gains tax inclusion rate that took effect on June 25th, 2024.
2. Find out how the changes affect people with vacation homes/cottages and rental properties, investors, and corporations and businesses.
3. Discover the impact of tax planning with long-term strategies and advice.

Resources

• Visit CIBC for more smart advice
• Read Jamie Golombek’s column “Tax Expert” in the National Post

Episode highlights

[02:40] Current rules vs. proposed changes

• Jamie says it’s a big change, but only affects a small number of people each year. The change affects people who realize capital gains outside of a registered plan that total more than $250,000 in a calendar year.
• Jamie says the change will also affect individuals who sell a vacation property, income or rental property. Or, if the property isn’t transferred to a spouse or partner via spousal rollover, the estate may be liable for taxes.

[04:40] “If we really want to break it down, what does this really mean for those who are affected? For individuals, it’s only gains over $250,000, and effectively your tax rate is going up by nine percentage points.”

[05:51] Who the changes will affect

[06:30] Individuals with a second home/cottage/vacation property

• Jamie notes that if you will have higher capital gains from selling your vacation property, you can use the principal residence exemption.
• If a vacation property is jointly owned by two spouses or partners, capital gains can also be split 50-50. Each individual can take advantage of lower 50% inclusion rate on first $250,000 in capital gains. This also applies to jointly owned rental properties.
• Jamie suggests tracking capital expenditures, like a major renovation, that add to the property’s value. These can be added to your adjusted cost base for tax purposes. When you sell, the capital gain will be lower because cost will be higher.

[09:10] Cottage owners

• Jamie notes one interesting opportunity for some clients is permanent life insurance if there’s no cash in the family to pay capital gains taxes if you die and someone inherits your cottage. The amount of insurance you need only needs to cover the taxes. This can be done affordably if you’re in relatively good health and relatively young.

[12:11] Investors

• Jamie predicts for 2024, the new term will be “capital gains selling.”
• Jamie advises to look at your broader portfolio allocation and holdings, and speak to your advisor to see if there are opportunities to crystallize a gain and rebalance portfolio. By end of the year, as long as the capital gains are less than $250,000, you will pay a preferred rate on the capital gains tax.

[14:56] Corporations or businesses

• Jamie says that many professionals use corporations because of the substantial tax deferral. But with the recent change, there’s have a problem: if you earn capital gains, you don’t get the $250,000 break of the lower threshold in the corporation. This means you would be better off if you earned the gains personally vs. in a corporation.
• For new business owners, the real concern is if you’re building up an investment portfolio internally, you’re really disadvantaged.

[17:37] “I think that you really need to look at the value of deferral. If you’re not leaving at least $100,000 or more a year in the corporation, and you’re deferring tax on that, you have to question, is it worth paying that extra tax ultimately on the capital gain rather than having that investment done personally?”

[17:56] Will the capital gains inclusion rate ever go back down?

• Jamie says it will depend on what future governments do. A new government could get elected and reduce the inclusion rate.

[19:18] “Ultimately it really is a political issue, and I think it will depend on who comes in, and the budget, and ultimately spending and how they can manage the deficit and also the long-term debt.”

[19:46] Tax planning tips

• Jamie advises sitting down with a financial advisor, tax advisor, or an accountant to make sure you’re taking a...

Artificial Intelligence (AI) has been a popular topic in recent years, especially with the advancement of generative AI and the creation of tools like ChatGPT. People and businesses alike are exploring ways to integrate the technology into our daily lives from education and services, to businesses and investing.

To look at the growing opportunities for generative AI in finance, Robertson Velez is here to join us on Smart Advice. He is a Portfolio Manager with CIBC’s Global Equities team responsible for stock selection, portfolio construction and risk control for the Technology and Communications sleeves of the Renaissance Global Technology Fund and CIBC Global Technology Fund. He also has a 12-year career in computer engineering. This makes Robertson uniquely qualified to help us better understand the impact of AI on finance and beyond. He dives into how AI has been used in the past while identifying opportunities for the future.

Join us as we discuss the growing use and potential of generative AI on this episode of Smart Advice.
Resources

· CIBC Smart Advice

· Read the CIBC Asset Management Market Spotlight on Generative AI

· Watch Generative Artificial Intelligence: What investors need to know

· Listen to Robertson Velez on the Advisor To Go podcast: Identifying investment opportunities in AI

· Learn more about the CIBC Global Technology Fund

In this episode of Smart Advice, Carissa Lucreziano sits down with the Honourable Lisa Raitt, former federal cabinet minister and current Vice Chair of CIBC Capital Markets, to navigate the complex interplay of politics, economics, and markets. With insight shaped by decades of experience in government and now in the financial services sector, Lisa cuts through the noise to reflect on what matters most: Canada's sovereignty, strategy, and resilience in a rapidly changing global landscape.

Be equipped with insights to make sense of volatility, understand the tools available to weather potential changes in US-Canada relations, and learn where smart money might be headed next. This episode is for every Canadian asking how to turn economic uncertainty into actionable opportunity.

Here are three reasons why you should listen to this episode:

1. Learn how political shifts, including Canada's new leadership, could reshape economic priorities at home and abroad.
2. Understand the long-term implications of Donald Trump's return to the global stage and how Canada must prepare for potential changes in US-Canada relations.
3. Gain clarity on growth opportunities in sectors like power generation, manufacturing, and national defence.

Resources

• CIBC's "Smart Advice" Podcast and Website - Website | Apple Podcast | Spotify
• The Raitt Stuff
• Visit CIBC for more Smart Advice, including a recent piece on ‘Navigating uncertainty and market volatility’

Episode highlights

[00:05] Are Canadians ready for future US-Canada relations?

• Lisa Raitt is introduced as a former cabinet minister in natural resources, labor, and transportation, now serving as Vice Chair at CIBC Capital Markets.
• Canadians today face rising global tensions, inflationary pressures, and heightened political transitions which are reshaping economic expectations and policies.
• Lisa shares her optimism over the clarity offered by Canada’s newly elected Prime Minister, Liberal leader Mark Carney, noting the stability—even in a minority government.
• The current US-Canada relations may shift with Prime Minister Carney’s approach, but Lisa warns against overconfidence.
• Trade negotiations require more than charisma—leaders must find practical ways to provide the U.S. with a political “win” while protecting Canadian interests.

[02:24] The rise of economic nationalism

• Lisa outlines how economic nationalism, especially in the US, has led to the weaponization of tariffs and elevated supply chain threats.
• Canada’s dependence on US trade is now seen as both a strength and a potential vulnerability—prompting calls for increased self-reliance.
• She advocates for doubling down on sectors where Canada already has a comparative advantage: energy, agriculture, mining, and forestry.

[08:48] Lisa: “What has happened in the time of Trump is we realize that you can't continue on just accepting the United States growth as the growth that we're going to get; that we actually have to do some work ourselves”

• Government must play a dual role—advocating for global trade fairness while supporting long-term investment in domestic capacity and infrastructure.

[09:31] Understanding Trump’s policy vision

• Unlike previous leaders, Trump’s economic policy direction is guided less by data and more by ideology, particularly focused on ‘Made in America’ mandates.
• Lisa emphasizes that traditional counter-arguments (e.g., logic, economic impact) often fall flat with the Trump administration.
• Trump is unapologetically focused on rebuilding American manufacturing—painful or not—for the long-term benefit of US jobs and industrial strength.
• Canadian leaders and citizens must stop assuming rational policy shifts or midterm electoral changes in the US will automatically solve trade tensions.

[12:18] What’s driving American progress?

• Despite controversial rhetoric, some of Trump’s policies—bringing semiconductor production back, advancing nuclear energy—could deliver strategic benefit.
• The concern lies in whether these wins are drowned out by large-scale costs: fractured alliances, damaged supply chains, and fragile diplomacy.

[13:42]