Strange Tax Scenarios: Paying Taxes Without Making Money or Donating Big!
How Canada's expanded AMT rules are catching taxpayers off-guard by limiting deductions, increasing taxable gains, and creating unexpected tax bills on major financial transactions.
Show Notes
Most people think AMT only applies to "very wealthy" taxpayers.
But the 2024 changes quietly made it much broader – and the impact has surprised a lot of Canadians.
Here's what changed:
• 100% of most capital gains now count for AMT
• Many deductions (interest, losses, etc.) are cut to 50%
• The AMT rate increased to 20.5%
Why does this matter? Because these rules can create outcomes that don't feel logical or fair.
These rules are catching people off-guard – especially those doing large transactions, equity events, year-end gifts, or major investment moves.
If you're planning to sell a business, realize gains, donate to charities, or leave Canada, AMT absolutely needs to be part of the planning conversation before you take action.
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