How accountants can navigate tax implications for wealthy Canadian investors in a shifting political landscape

Brian McGlynn is the CEO of Canadian investment portfolio accounting software company Wealth Write.Up.

AS THE Canadian federal election approaches — and with the ongoing uncertainty caused by Trump-era tariff policies — wealthy Canadian investors are navigating increased volatility. From potential changes to the capital gains inclusion rate to shifting trade relationships and global economic instability, the financial landscape is anything but predictable.

For high-net-worth individuals — especially those with complex portfolios and foreign assets — this environment demands careful tax planning, proactive portfolio management, and the right technology to stay ahead of risk.

Tax reform has become a key talking point in the upcoming Canadian election. Depending on the outcome, wealthy investors may see:

• Possible changes to the capital gains inclusion rate, which could significantly impact gains on securities, real estate, and business sales.
• Changes to the TFSA contribution room.
• Renewed discussion of a wealth tax or surtax on high earners.
• Changes to how corporations and trusts are taxed.
  

These changes could materially impact investment returns, estate planning, and income-splitting strategies — especially for those who’ve benefited from the current rules. Not to mention cause confusion for accountants. For example, The Conservatives have proposed to increase the TFSA contribution limit by $5,000 for funds invested in Canadian equities. There are issues with such policies in practice, as the Canadian markets feature companies that are based outside Canada, and many Canadian-based companies have most of their operations and employees based outside the country.

On the flip side, there are Canadian companies that are listed only on foreign stock exchanges, such as Lululemon, that presumably would not qualify. There is also a proposed capital gains tax holiday from July 2025 through December 2026, provided the gains are reinvested in Canada.

South of the border, political winds are shifting too. The strained Canada-U.S. relations, tariffs and increased costs of living have created new volatility in cross-border investments.

For Canadian investors with holdings in U.S. equities, foreign real estate, or global ETFs, these geopolitical movements could lead to more than just market swings — they could trigger tax implications tied to foreign asset performance, FX conversion, or income recognition.

All these changes can make timing critical — especially for those with complex portfolios considering asset liquidation, intergenerational transfers, or restructuring trusts and holding companies.

How Technology Can Help Accountants and their Clients Navigate Post-Election Change

With so much complexity, technology is becoming essential for accountants managing risk and compliance. Not only are more clients now relying on their accountants for strategic insights, they’re also relying on them for support with digital tools and automation.

Technology, like Wealth Write.Up can help professional services firms, family offices, and holding companies to:

• Streamline investment reporting across multiple custodians.
• Maintain a clean general ledger for tracking and audit-readiness.
• Provide real-time tax insights, including capital gains tracking, so clients can act quickly and strategically.

In volatile times, technology not only increases efficiency — it allows advisors to serve clients with speed, clarity, and confidence.

Four Strategic Tips for Accountants During Election Season

1. Stay informed and advise proactively — not reactively.

Tax laws don’t change overnight, but client anxiety does. As political platforms dominate headlines, clients may push for immediate action. As an advisor, your role is to differentiate between policy proposals and actual legislation.

• Stay current on both federal tax reform proposals and U.S. developments under Trump’s second term.
• Translate uncertainty into strategy: prepare “what-if” scenarios for inclusion rate increases, surtaxes, or trust rule changes.
• Create client-specific tax forecasts that balance long-term planning with short-term efficiency.

2. Reevaluate capital gains timing with each client.

With potential capital gains tax changes ahead, accountants should take a detailed look at:

• Unrealized gains across all asset classes, including real estate, corporate shares, and investment portfolios.
• Timing strategies for realizing gains under current rates, or deferring if tax policy remains stable.
• Leveraging corporate structures and family trusts to control the flow and recognition of gains over multiple years.

This isn’t one-size-fits-all — it requires deep client knowledge and precision timing to help preserve after-tax wealth.

3. Tighten up foreign asset tracking and CRA compliance.

Wealthy clients often have foreign property, offshore accounts, or U.S. investments. That brings a web of CRA compliance needs, including:

• Filing T1135 Foreign Income Verification Statements for clients with assets over $100,000 CAD abroad.
• Accurate reporting of foreign rental income, capital gains, and currency conversions.
• Assessing tax implications of foreign trusts, U.S. LLCs, or joint ownership structures.

Even minor oversights can lead to steep penalties or audits. Leverage tech tools that consolidate global data feeds and automate reconciliation to ensure accuracy and reduce exposure.

4. Embrace technology for real-time insight and client collaboration.

As portfolios grow more complex, old-school spreadsheets and manual workarounds won’t cut it. Specialized cloud-based platforms enable accountants to:

• Track transaction data and performance across multiple custodians.
• Maintain a detailed, auditable general ledger tied to investment activity.
• Deliver real-time tax impact reporting, such as current-year capital gains exposure or trust distributions.

As an accountant, this not only boosts your efficiency, but strengthens your value as a strategic partner who helps clients stay compliant and nimble when things shift — like during a federal election or a new round of U.S. tariffs.

Technology like Wealth Write.Up can help professional services firms, family offices, and holding companies to streamline investment reporting across multiple custodians; maintain a clean general ledger for tracking and audit-readiness; and provide real-time tax insights, including capital gains tracking, so clients can act quickly and strategically.

The intersection of politics, taxation, and wealth management is becoming increasingly dynamic — and high-net-worth Canadians are rightfully seeking clarity in a chaotic environment.

By staying informed, strategically planning around likely tax shifts, and embracing modern tools that enhance accuracy and visibility, investors and their advisors can not only weather the storm — but thrive in it.

Now more than ever, success requires agility, expertise, and a commitment to doing things right — because for wealthy families and institutions, the stakes have never been higher.

Brian McGlynn is the CEO of Wealth Write.Up, a leader in investment accounting technology, providing modern software solutions that simplify complex investment accounting for professional services firms, family offices, investment firms, and holding companies. With a track record of driving growth and innovation across the tech and software landscape, Brian brings decades of leadership experience to his role.

Before joining Wealth Write.Up, Brian held several senior executive positions, including Managing Member at Susquehanna Communications, GM of Commerce at Coveo, EVP and General Manager at Intershop Communications, and VP of Sales and Marketing at IP.com. Brian holds an MBA in Finance and Marketing Strategy from Concordia University and a Bachelor of Science in Telecommunication Engineering from the Rochester Institute of Technology.

Title image: iStock ID 1311977471. Author photo courtesy Wealth Write.Up.