Capital gains inclusion rate deferral leads to a positive outlook for hotel transactions in 2025

The federal government recently announced that the increase in the inclusion rate for capital gains tax will be deferred until January 1, 2026. This is a turnabout from last year's announcement that the change from half to two-thirds would be implemented as of June 25, 2024. Arguably, the change influenced investment decisions, contributing to downward pressure on hotel sales volume across Canada’s largest cities in the second half of the year.