Capital Gains tax on principal residences

[campking]

The fact this has even been floated by the Liberal Government really concerns me, they deny they are going to implement it but they discussed it.

“Another idea that has emerged from housing town halls is a sliding scale on the Capital Gains Tax on the sale of principle residences. A 50% tax after one year of ownership, 25% after two years, 15% after 3 years, 10% after 4 years, 5% after five,” is the idea, which is pitched as a way to prevent house flipping.

[Redthies]

I’m going to go polish my Conservative sign.

[Knute]

Of course they claim it was only an idea that was brought up at a town hall meeting.
They have no intention of implementing the program...right...
How many ways can they find to collect tax to pay for never ending deficits?
We hit the early poll yesterday, can't wait for the results...worse than his father and that's saying a lot.

[Gun Dog]

First I'm heard of it. There are already rules in place to catch house flipping and in case you missed it -- starting in 2016 you have to declare the sale of your principal residence even though there's no tax to pay.

[Jack Russell]

I’m going to go polish my Conservative sign.

Im going to piss on a Liberal sign.

[IronNoggin]

I’m going to go polish my Conservative sign.



Cast my Vote for them yesterday mid-day.
From what the folks at the polls said, methinks the turn-out this time around will be rather large - at least locally.
Hopefully the same all over the West!

Cheers,
Nog

[srupp]

Voted early today..as yesterdays turnout here was very brisk..45 minute wait.
Hope this is good news for Canada.
Srupp

[weatherbyjunkie]

The fact this has even been floated by the Liberal Government really concerns me, they deny they are going to implement it but they discussed it.

“Another idea that has emerged from housing town halls is a sliding scale on the Capital Gains Tax on the sale of principle residences. A 50% tax after one year of ownership, 25% after two years, 15% after 3 years, 10% after 4 years, 5% after five,” is the idea, which is pitched as a way to prevent house flipping.

What a load of horse-crap! CRA has more or less declared a war on primary resident “flippers”,targeting builders real estate agents and anyone who has a “pattern” of turning over primary residences for profits. Punishing most people with another tax isn’t the answer,if you have to sell B.C. of financial reasons,health reasons,family has outgrown your house or family has all left and you need to downsize,or any other reason,and your house value has increased why should you be punished with a tax,ridiculous!!! Almost as smart of an idea as their gun control......

[Baconator]

Knowing what a bunch of outright liars the Liberals are I am sure they already have the frame work for taxing capital gains on primary residences. And if they do form a minority government the other communist parties, Greens and NDP will be in bed with them. And the Bloc will negotiate an exemption for Quebec. Hopefully voters will re-install sanity in Ottawa on election day!

[Bigdoggdon]

Pretty sure the people doing the majority of house flipping are the same wealthy people that hire lawyers to avoid paying their taxes anyway.

[HappyJack]

First I'm heard of it. There are already rules in place to catch house flipping and in case you missed it -- starting in 2016 you have to declare the sale of your principal residence even though there's no tax to pay.

If you follow tax cases people have been assessed for capital gains on principle residences sold that are on property with more than 1.2 acres. The premise is they bought that much land as an investment, thus it's taxable.

""No. 5: Restriction on the amount of land
The size of land where your primary home sits cannot be greater than one-half hectare (or 1.2 acres) of land. So, if you bought a 10-acre farm and lived in the farmhouse, you wouldn’t have to pay tax on the appreciated value of the farmhouse or on 1.2 acres of the land—because they’d quality for the exemption. However, you would have to pay capital gains tax on the appreciated value 8.8 acres. Now, the CRA has said that you can get apply for a tax exemption on parcels of land that are greater than 1.2 acres, but you will need to prove to that the additional land was required for your use and enjoyment of the property.""

https://www.moneysense.ca/spend/real-estate/8-questions-about-the-principal-residence-tax-rules/

[RyoTHC]

They have to make the hard working Canadian pay for the lazy lefties universal income somehow, sneaking another tax in on the hard working makes sense, no one on any of the liberals handouts are going to be buying or selling a home let alone living in their own !

[limit time]

They have to make the hard working Canadian pay for the lazy lefties universal income somehow, sneaking another tax in on the hard working makes sense, no one on any of the liberals handouts are going to be buying or selling a home let alone living in their own !

they need 1/2 billon to pay for your guns...

[northof49]

Scheer should have been all over this

[mr604]

capital gains on a principle residence? absolute stupidity.... taxing people for saving money and getting ahead?...what is wrong with flipping houses?....does anyone think taking on hundreds of thousands in debt....dealing with city permit officers....dealing with contractors.....realtors....buyers...is easy? Don't get me wrong I am not a house flipper but condemning those that do, or presenting them as making easy money is just bullshit....the tax free residency concept encourages Canadians to buy houses...to get ahead. The only reason house flipping is possible or appealing is due to low interest rates.....artificially low....brought to you by manipulation by governments and central banks....when money is cheap and more importantly artificially cheap then too much risk is taken.....just try flipping...or even buying a $700,000 house in a 7% to 9% prime interest rate.....the shit all these politicians spread is so outrageous...stop trying to take money from hard working risk takers and any other citizen and stop wasting the tax dollars they already scam off them

[j270wsm]

Everything above also makes it easy for foreign people to do the same and drive up the market

[campking]

I found out about it in a pamphlet that was delivered in my local paper and it is highlighted in red so not sure why he did not bring it up in the debate I sure the hell would have, IMO it would have swayed a lot of vote that maybe were on the fence it sure did me.

[campking]

Scheer should have been all over this
I found out about it in a pamphlet that was delivered in my local paper and it is highlighted in red so not sure why he did not bring it up in the debate I sure the hell would have, IMO it would have swayed a lot of vote that maybe were on the fence it sure did me.

[Ride Red]

You already have to pay capital gains on any principle residence if sold sooner than 2 years occupancy. Implementing any other tax as the OP has suggested would cripple our housing market and drive us into recession stagnating any future growth potential short of the wealthy. That’s another reason to get off your ass and vote, plus encourage/help others to do the same.

[northof49]

Darn rights. Should have been pumping this in the “can’t trust JT ads on TV” as well....would have gained a ton of attention for sure.

[Ride Red]

https://mobile.twitter.com/CPC_HQ/status/1172231218378747904

Read for yourself.

[GreyDog]

If I sell my principal residence (also my only residence ; if I don't count the travel trailer) I will have to pay capital gains on the bulk of the property. If I had enough money to build a private golf course, spa and swimming pool, for instance, I might not have to since I would need the property to enable my lifestyle. There are a number of issues which make it mandatory to vote Conservative (like getting a leader who is not a clown on the international stage) but this isn't one of them. No government will decide to forego taxes; especially taxes on the middle class. I have always maintained, the only difference between right wing and left wing governments is in where they put the money they take from us. GD

[srthomas75]

[QUOTE=GreyDog;2123285]If I sell my principal residence (also my only residence ; if I don't count the travel trailer) I will have to pay capital gains on the bulk of the property.


why would you need to pay any capital gains on this?

[boxhitch]

If you follow tax cases people have been assessed for capital gains on principle residences sold that are on property with more than 1.2 acres. The premise is they bought that much land as an investment, thus it's taxable.

""No. 5: Restriction on the amount of land
The size of land where your primary home sits cannot be greater than one-half hectare (or 1.2 acres) of land. So, if you bought a 10-acre farm and lived in the farmhouse, you wouldn’t have to pay tax on the appreciated value of the farmhouse or on 1.2 acres of the land—because they’d quality for the exemption. However, you would have to pay capital gains tax on the appreciated value 8.8 acres. Now, the CRA has said that you can get apply for a tax exemption on parcels of land that are greater than 1.2 acres, but you will need to prove to that the additional land was required for your use and enjoyment of the property.""

https://www.moneysense.ca/spend/real-estate/8-questions-about-the-principal-residence-tax-rules/Sounds bizarre. Who decides what my 'use and enjoyment' constitutes, whether the land is 10 acreas of pasture or nothing more than distance to a neighbour. idiotss

[ActionJackson017]

I thought the whole principal of no capital gains tax on sale of a principle residence is that unlike in other jurisdictions, mortgage interest is not tax deductible in Canada. So, if they wanted to put a tax on sale proceeds, would they then not have to offset this over the years by allowing for home owners to claim a tax deduction during each tax year. What's the point?

Libs are making critical errors this election, ostracizing law abiding gun owners (significant proportion of population) and now home owners who've already worked their asses off to put a roof over their head.

[northof49]

All the money they keep throwing around like fairy dust to special interest groups and other countries has to come from somewhere.....where else they gonna get it. More taxes!! This will be a reality if they get back in.....and sold to the masses with a spin that it is to slow the increasing house prices to help all those younger (voters).....uhmmm.....generations, afford a house.

[HappyJack]

[QUOTE=GreyDog;2123285]If I sell my principal residence (also my only residence ; if I don't count the travel trailer) I will have to pay capital gains on the bulk of the property.


why would you need to pay any capital gains on this?

It's the new rules put in by the Liberals.....if your home is on more than 1.2 acres of land you have to prove the land was necessary otherwise you will have to pay capital gains tax on all the land beyond 1.2 acres.

[Edzzed]

A few years back we bought a 2nd house. We put 25,000 into fixing it up and sold it. We made a profit of 60,000 so when it came time to do our taxes my wife was concerned about capital gains taxes. The question on the form was did you sell all or part of your principal residence. I answered NO because that was the truth. We sold our secondary residence. We then bought a nicer secondary residence to which we are now fixing up.