New tax in the works on the sale of your home

[oldtrucker]

Did you actually think you could win 6/49 on your house value increase, have a huge increasing wealth gap and not pay on it somehow?

[Sparki55]

There's seemingly endless changes to the tax code so what's another but that still doesn't raise it from speculation now does it? It seems like another election ploy like how it was used last time.

If last time you mean 2015, yes there wasn't any reason to speculate then.

Now, with the addition of reporting home sales on personal income taxes, the only reason to do that is to include it as personal income.

Would be no different if they asked for the $$$ amount for each car you sold. We would then assume taxing that would be coming. The problem with cars is they don't appreciate in value.

[Rejigger]

While that's true, he did say that he's in support of this tax if it targets short term flippers. Stands to reason he's not in favor of it now that he knows this tax will apply to all home owners. Those who downsize into a smaller home or retirement home, for example, will have to pay up.

Grandma's house is gonna be taxed upon disposition at date of death. That's going to cut into the inheritance money. Uh-oh, better take a closer look at this now!

~

I hope you were being sarcastic because we are right in the middle of this now with 'gramma's' estate. As far as we have seen, as long as her house was her principal residence at the time of her death, her estate will not pay a capital gain when we sell the house without taking it over as a non primary property for ourselves.

So, does anybody have a pertinent question or an accurate comment on this?

I would sincerely appreciate it if you do, and thank you very much for your kind attention.

You have nothing to worry about right now, nothing has changed yet.

But you will have to report the disposition of her principal residence on Schedule 3 (do NOT skip that) - this includes the year of purchase, cost and sale proceeds.
~

[Rejigger]

The problem with cars is they don't appreciate in value.

But the ones that do appreciate - old muscle cars, for example - along with boats, RVs, etc. are considered Personal Use Property and must be reported on that same Schedule 3. Government's gotta get their cut.
~

[Gone_Fishin]

Told ya!

[rustled]

The problem with cars is they don't appreciate in value.

But the ones that do appreciate - old muscle cars, for example - along with boats, RVs, etc. are considered Personal Use Property and must be reported on that same Schedule 3. Government's gotta get their cut.
~

What?

When did this requirement kick in?

[lesliepaul]

The problem with cars is they don't appreciate in value.

But the ones that do appreciate - old muscle cars, for example - along with boats, RVs, etc. are considered Personal Use Property and must be reported on that same Schedule 3. Government's gotta get their cut.
~

Have NEVER heard of this unless you are buying and selling more than 6 (I believe) vehicles a year. More than that and I think they consider you a vehicle broker or dealer.

With Transfer of Ownership papers from ICBC and you sell to a private individual in the U.S. (where the money really IS for collectable cars) you don't even have to tell them who you sold it to.

[Rejigger]

But the ones that do appreciate - old muscle cars, for example - along with boats, RVs, etc. are considered Personal Use Property and must be reported on that same Schedule 3. Government's gotta get their cut.

What?

When did this requirement kick in?

Hmmmm... let's see? How old am I? lol

"Although you have to report any gain on the sale of personal-use property, generally you are not allowed to claim a loss."

"Personal Use Property: Refers to items that you own primarily for the personal use or enjoyment of your family and yourself. It includes all personal and household items, such as furniture, automobiles, boats, a cottage, and other similar properties."

https://www.canada.ca/en/revenue-agency ... perty.html
https://www.canada.ca/en/revenue-agency ... seproperty

Other income that some people "overlook" reporting are earnings from the sale of puppies, kittens, etc.
~

[Gone_Fishin]

But the ones that do appreciate - old muscle cars, for example - along with boats, RVs, etc. are considered Personal Use Property and must be reported on that same Schedule 3. Government's gotta get their cut.
~

What?

When did this requirement kick in?

In 1972.

Under, you guessed it, Pierre Trudeau.

That bad apple tax-monger Justin didn't fall far from the tree.

[Catsumi]

Oh Pete! Where the hell are you? We miss your razor sharp wit and your diving rod that always went into the belly of the beast.
You saw clearly beforehand what the Lieberals were up to with homeownership and taxing us to death.

Return, and soon, please.

[Septuagenarian]

I hope you were being sarcastic because we are right in the middle of this now with 'gramma's' estate. As far as we have seen, as long as her house was her principal residence at the time of her death, her estate will not pay a capital gain when we sell the house without taking it over as a non primary property for ourselves.

So, does anybody have a pertinent question or an accurate comment on this?

I would sincerely appreciate it if you do, and thank you very much for your kind attention.

You have nothing to worry about right now, nothing has changed yet.

But you will have to report the disposition of her principal residence on Schedule 3 (do NOT skip that) - this includes the year of purchase, cost and sale proceeds.
~

Thank you. Yes, we have completed all of the report forms in rough (including being able to check box one) as well as all of the calculations to end up with zero tax.

But I will mention that one of our family members insisted that they had been informed by an 'experienced' advisor to 'gramma' that we would have to pay a "44 percent" tax on her principal residence after her death as, we believe, a way to buy us out for themselves with a lowball offer in order to take over the house. Then, up to now we were under the impression that our work on this would enable us to call their bluff. And that's why I felt a jolt after you said, "Grandma's house is gonna be taxed upon disposition at date of death. That's going to cut into the inheritance money. Uh-oh, better take a closer look at this now!"

So now may I ask you what you mean by, "right now, nothing has changed yet," because the sale and taxes are unlikely to go through until next year since there's a backlog of probates going through the courts in Alberta right now.

And thanks in advance for your answer.

[Sparki55]

But the ones that do appreciate - old muscle cars, for example - along with boats, RVs, etc. are considered Personal Use Property and must be reported on that same Schedule 3. Government's gotta get their cut.
~

Take me to jail, I ain't paying tax on a car I sell after keeping it in mint condition for 40 years.

[Septuagenarian]

Like, the OP's story is from July 17, 2020, and kelownaman's posted clarification is from the same date. Plus, from July 21, 2021, here's an article where, 'CMHC says (the) claim (that) it is researching (a) federal home equity tax is "misleading."' . . .

https://www.mpamag.com/ca/news/general/ ... ing/286435

So . . .?

[Rejigger]

You have nothing to worry about right now, nothing has changed yet.

So now may I ask you what you mean by, "right now, nothing has changed yet," because the sale and taxes are unlikely to go through until next year since there's a backlog of probates going through the courts in Alberta right now.

This little idea of taxing a principal residence has been coming up over the past few years. The requirement to report the sale of one's principal residence began in 2016. Rumours have been swirling since, and there are public accountants who are 'preparing' for it (discussions with clients, already reporting certain losses knowing they'll be disallowed but will argue for inclusion in the future). This is some of the latest hubbub ...

It was then that Conservative Leader Erin O’Toole raised the spectre of a re-elected Liberal government taxing the sale of primary residences.

“Mr. Trudeau, Canadians are worried you’re going to be taxing their primary home sales,” O’Toole said during the segment of the debate devoted to the theme of affordability.

“Your advisers have said it … it’s on page 14 of its policy book,” the Conservative leader said, speaking to Trudeau and referencing the Liberals’ election platform.

Starting with the 2016 tax year, Canadians have been required to report basic information about the sale of their primary home on their income tax return.

The notion of taxing capital gains on a principal residence has gained attention as Canada debates ways to tackle skyrocketing real estate valuations.

Some have proposed extending the capital gains tax to primary residences as a way to slow down home prices growth or even bring down prices.

https://globalnews.ca/news/8179648/trud ... residence/

It's speculation for now, but most people recognize that Trudeau likes to spend money and would like to collect more taxes.
~

[Septuagenarian]

So now may I ask you what you mean by, "right now, nothing has changed yet," because the sale and taxes are unlikely to go through until next year since there's a backlog of probates going through the courts in Alberta right now.

This little idea of taxing a principal residence has been coming up over the past few years. The requirement to report the sale of one's principal residence began in 2016. Rumours have been swirling since, and there are public accountants who are 'preparing' for it (discussions with clients, already reporting certain losses knowing they'll be disallowed but will argue for inclusion in the future). This is some of the latest hubbub ...

It was then that Conservative Leader Erin O’Toole raised the spectre of a re-elected Liberal government taxing the sale of primary residences.

“Mr. Trudeau, Canadians are worried you’re going to be taxing their primary home sales,” O’Toole said during the segment of the debate devoted to the theme of affordability.

“Your advisers have said it … it’s on page 14 of its policy book,” the Conservative leader said, speaking to Trudeau and referencing the Liberals’ election platform.

Starting with the 2016 tax year, Canadians have been required to report basic information about the sale of their primary home on their income tax return.

The notion of taxing capital gains on a principal residence has gained attention as Canada debates ways to tackle skyrocketing real estate valuations.

Some have proposed extending the capital gains tax to primary residences as a way to slow down home prices growth or even bring down prices.

https://globalnews.ca/news/8179648/trud ... residence/

It's speculation for now, but most people recognize that Trudeau likes to spend money and would like to collect more taxes.
~

Okay, thanks, so 'gramma's expert' was wrong, I guess.