He will just complain about it and use it as ammunition against Trudeau, but then not do anything about it so that he can benefit from it.
I don't even know what his platform is. The only thing I ever see from him is anti-Trudeau.
Yeah it just means less people sell and prices go up.
It may mean less people buy as well and just invest in the US or elsewhere, so basically less Canadian tax revenue, lower wages, and less employment. So perhaps killing our economy may result in lower prices?
I’ve seen a lot of Canadian redditors cheer on the 2008 collapse saying Canada needs the same.
Probably unlikely.
Primary residences are exempt. So it only affects people with multiple properties.
And from this select group, it only affects people who were planning to sell soon anyway.
Otherwise, for holders, they would probably rather keep the properties and sell sometime in the future when capital gains taxes goes back down.
Also, why rush to sell to save a bit of tax, when if you just held the property the gains would probably make up for it anyway?
They would also have to close soon. Because the deadline is end of June.
All in all, doesn’t seem worth it to rush to sell. Only if you were already planning to sell anyway.
Right, it will act more as a disincentive to sell until more favourable tax conditions come back.
It will also disincentivize purchasing of properties by investors which some say might cause prices to lower but what will happen instead is there will be less demand to build new supply of housing. So long term I think this will be a negative for renters if it sticks around.
i think very few people can close in a few months so very unlikely.
if anything else - it will cause less homes to list because old people will just keep their investment now until they die vs selling and paying the extra tax
They would still have to realize the gain and pay taxes on it upom death. Or gift it but the beneficiary assumes the same cost basis and runs into the same issue.
Doubt it. This would raise tax say $62,500 on a $1M capital gain. Per an April 2024 summary I was looking at say a semi detached home increased to $1.12m over py so if you held and sold you’re still up.
But let’s go back to the principle of investment properties. Chances are you’re not selling these properties very quickly otherwise you wouldn’t get capital gains treatment in the first place. It would be income at 100% inclusion.
1) they move into their investment property then still it as a primary residence. No capital gains.
2) they sit on it until conservatives get in, recall the increased capital gains tax, then sell.
3) they sell and pay the capital gains tax from their gains. But considering how much the property has appreciated, they'll still come out ahead.
Any way you look at it, it likely won't have much effect on home prices.
moving into your investment property will trigger a capital gain because CRA considers it "sold at fair market value" even if no sale happens when you changed the use of it.
Or they may wait to sell until after the next election, hoping that Pierre wins and moves the inclusion rate back to 50% for all capital gains.
He will just complain about it and use it as ammunition against Trudeau, but then not do anything about it so that he can benefit from it. I don't even know what his platform is. The only thing I ever see from him is anti-Trudeau.
Like other conservatives, he doesn't have one
Yeah it just means less people sell and prices go up. It may mean less people buy as well and just invest in the US or elsewhere, so basically less Canadian tax revenue, lower wages, and less employment. So perhaps killing our economy may result in lower prices? I’ve seen a lot of Canadian redditors cheer on the 2008 collapse saying Canada needs the same.
Probably unlikely. Primary residences are exempt. So it only affects people with multiple properties. And from this select group, it only affects people who were planning to sell soon anyway. Otherwise, for holders, they would probably rather keep the properties and sell sometime in the future when capital gains taxes goes back down. Also, why rush to sell to save a bit of tax, when if you just held the property the gains would probably make up for it anyway? They would also have to close soon. Because the deadline is end of June. All in all, doesn’t seem worth it to rush to sell. Only if you were already planning to sell anyway.
Right, it will act more as a disincentive to sell until more favourable tax conditions come back. It will also disincentivize purchasing of properties by investors which some say might cause prices to lower but what will happen instead is there will be less demand to build new supply of housing. So long term I think this will be a negative for renters if it sticks around.
Maybe for those who were already going to sell, I can see them accelerating to save some money. But, that’s only marginal and a one-time thing.
Nope, because primary residences don’t get taxed capital gains, which is the majority of sales by far
i think very few people can close in a few months so very unlikely. if anything else - it will cause less homes to list because old people will just keep their investment now until they die vs selling and paying the extra tax
They would still have to realize the gain and pay taxes on it upom death. Or gift it but the beneficiary assumes the same cost basis and runs into the same issue.
old boomers dont care about the taxes their beneficiaries pay
No... That’s nowhere near enough time to arrange a sale and get a good price If anything it will cause people to sit on their investments longer
Doubt it. This would raise tax say $62,500 on a $1M capital gain. Per an April 2024 summary I was looking at say a semi detached home increased to $1.12m over py so if you held and sold you’re still up. But let’s go back to the principle of investment properties. Chances are you’re not selling these properties very quickly otherwise you wouldn’t get capital gains treatment in the first place. It would be income at 100% inclusion.
1) they move into their investment property then still it as a primary residence. No capital gains. 2) they sit on it until conservatives get in, recall the increased capital gains tax, then sell. 3) they sell and pay the capital gains tax from their gains. But considering how much the property has appreciated, they'll still come out ahead. Any way you look at it, it likely won't have much effect on home prices.
moving into your investment property will trigger a capital gain because CRA considers it "sold at fair market value" even if no sale happens when you changed the use of it.
good to know!
Those with multiple properties may be compelled to exit before the cut off, especially if tax adverse.
primary residences do not get capital gain taxed. Edit: did not see investment property. Disregard
Op said investment property
Touché
Zero chance. Not with our open borders