New tax in the works on the sale of your home

[lesliepaul]

U2's Pride............."early morning September 21. a shot rings out in the Ottawa sky"

[fluffy]

Trudeau is going to cool the seller market because they won't get as much cash in the real estate ponzi scheme?

That's my understanding of it. Capital gains would be payable on homes bought and sold within a year to discourage speculators and "flipping" which is a huge driver in skyrocketing home prices. I can see potential problems around the fringes, like people suddenly changing jobs or transferring for work that requires a move, but those sort of instances would be rare and would be easily addressed through a review board that could issue exemptions in such special cases.

[Sparki55]

but those sort of instances would be rare and would be easily addressed through a review board that could issue exemptions in such special cases.

Just like there were exceptions for seniors living their remaining few years in Vancouver that were forced to pay huge levies for having properties worth over "x".

Or families who had to sell their handed down vacation property in the family for decades because of the spec tax.

There will be no exceptions.

[fluffy]

Just like there were exceptions for seniors living their remaining few years in Vancouver that were forced to pay huge levies for having properties worth over "x".

Or families who had to sell their handed down vacation property in the family for decades because of the spec tax.

The situations you speak of are Vancouver property tax issues, nothing to do with a federal tax. Now if they were to sell those summer cabins then they might just end up paying some capital gains, sure, but why wouldn't they on a second home ?

[kgcayenne]

Trudeau is going to cool the seller market because they won't get as much cash in the real estate ponzi scheme?

That's my understanding of it. Capital gains would be payable on homes bought and sold within a year to discourage speculators and "flipping" which is a huge driver in skyrocketing home prices. I can see potential problems around the fringes, like people suddenly changing jobs or transferring for work that requires a move, but those sort of instances would be rare and would be easily addressed through a review board that could issue exemptions in such special cases.

You know what’s weird: I have spent my adult life thinking the profit was already taxed if the home were sold within one year. Ummm yeah.

[Sparki55]

Now if they were to sell those summer cabins then they might just end up paying some capital gains, sure, but why wouldn't they on a second home ?

You missed the point. It wasn't fair to lump family cabins passed through a generation as a home specular, yet since the home sat empty to be enjoyed by the family when they wanted it was included in the speculation tax.

I'm stating the same misery will be extended to Canadians forced to sell a home in the first year of ownership, further stressing Canadians.

How would it be fair to purchase a home, pay sales tax on it, have it appreciate in value in 8 months, be forced to move for work, sell your home, pay tax on the increased value and then not be able to afford a new home because of all the tax you pay.

[rustled]

Now if they were to sell those summer cabins then they might just end up paying some capital gains, sure, but why wouldn't they on a second home ?

You missed the point. It wasn't fair to lump family cabins passed through a generation as a home specular, yet since the home sat empty to be enjoyed by the family when they wanted it was included in the speculation tax.

I'm stating the same misery will be extended to Canadians forced to sell a home in the first year of ownership, further stressing Canadians.

How would it be fair to purchase a home, pay sales tax on it, have it appreciate in value in 8 months, be forced to move for work, sell your home, pay tax on the increased value and then not be able to afford a new home because of all the tax you pay.

There's no guarantee there won't be a declining scale of taxes over five years, or some such - I think we can expect Trudeau will play coy until after the election.

The prospect of paying the tax may well push owners who must relocate into holding the home and renting it out short-term until one of the arbitrary tax deadlines pass, while they try to use it as collateral for another home in their new community - always a risk for everyone involved - or, if the collateral isn't adequate, they'll be forced to find a rental there. Doesn't seem likely to do much for affordability, though.

[Sparki55]

The prospect of paying the tax may well push owners who must relocate into holding the home and renting it out short-term until one of the arbitrary tax deadlines pass, while they try to use it as collateral for another home in their new community - always a risk for everyone involved - or, if the collateral isn't adequate, they'll be forced to find a rental there. Doesn't seem likely to do much for affordability, though.

Exactly. This isn't about fixing home prices, tho that will be the sell they use to convince their voter base. The real reason is to double-dip into one of the largest GDP portions of our economy to pay back debt.

[Veovis]

That's my understanding of it. Capital gains would be payable on homes bought and sold within a year to discourage speculators and "flipping" which is a huge driver in skyrocketing home prices. I can see potential problems around the fringes, like people suddenly changing jobs or transferring for work that requires a move, but those sort of instances would be rare and would be easily addressed through a review board that could issue exemptions in such special cases.

You know what’s weird: I have spent my adult life thinking the profit was already taxed if the home were sold within one year. Ummm yeah.

That is correct they are taxed already if sold in less than a year, no new tax needed to "Cool the market". If only JT's supports thought of monetary policy they would have known things like that. If you buy a second house you will also have to pay tax on either it or your home when one of them are sold.

The reality is the current Liberals have been eying people investments, bank accounts and houses as a nice pile of money for them to take and funnel back to themselves and other rich friends, one of them was just foolish enough to announce it.

[fluffy]

I'm stating the same misery will be extended to Canadians forced to sell a home in the first year of ownership, further stressing Canadians.

How would it be fair to purchase a home, pay sales tax on it, have it appreciate in value in 8 months, be forced to move for work, sell your home, pay tax on the increased value and then not be able to afford a new home because of all the tax you pay.

There's a lot of speculation there, what are you basing it on ?

[Sparki55]

There's a lot of speculation there, what are you basing it on ?

The topic.

Liberals will likely move to tax home sales in the near future as exposed by a liberal member.

This is all just talk right now but talk is good it lets us all know where we sit. I reject the idea of taxing principal home residence taxes.

[fluffy]

I reject the idea of taxing principal home residence taxes.

Fair enough. If a new tax is designed to target only those focusing on short term profit in the housing market then I support it.

[Rejigger]

Two or three years ago I noticed a question while doing my income tax. It went something like this,
Did you sell your principal residence last year?

When I mentioned it on this site, the Liberal minions jumped all over my concerns.
No, no, no. The government will never tax the "profit" on the sale of your home.

The government will not tax the profit if you sell your principal residence.
That would be political suicide.

The government has been working on this for a long while, implementing the reporting requirement on Schedule 3 (capital gains reporting schedule) of our personal tax returns in 2016.

Since its introduction, some Public Accountants have been reporting any losses on a client's principal residence on that very schedule for the express purpose of using it against future gains reporting requirements. It's being taken seriously in public accounting circles. Suicide or not, it looks like it's coming. Vote accordingly.
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[lesliepaul]

I reject the idea of taxing principal home residence taxes.

Fair enough. If a new tax is designed to target only those focusing on short term profit in the housing market then I support it.

...........you must be new to politics in Canada........"target only" in political jargon means "carpet bomb".

[Rejigger]

I reject the idea of taxing principal home residence taxes.

Fair enough. If a new tax is designed to target only those focusing on short term profit in the housing market then I support it.

Those who 'focus on short term profit' have been required to report that kind of income for years already (forever?). This is a new tax that the government has been working on since at least 2016.

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