Capital Gains Tax on Primary Residences

[ExFlyer]

The Feds, last year, were thinking of capital gains tax on your principal residence. This kind of went away but seems to be resurrecting.

The feds gave away so much money in the past 2 years and now with the alliance with the NDP, will be giving away even more. Less and less people working (judging by all the help wanted signs and advertisements everywhere) mean less income. Even adding more carbon tax and then saying they will give it back makes less sense now than it did in the beginning. They are running out of revenue streams. Bottom line, they need revenue and capital gains taxes on primary residences is a big opportunity.

The prices of housing (which affects the rental market too) is going higher all the time making affording a house near impossible for most Canadians. Minimum down payments and mortgage stress tests are making it difficult too.

While most say they cannot afford a home, sales of homes is at an all time high. Someone must be able to afford them.

To me, this issue is far more important that Bill C-10: Act to amend the Broadcasting Act and to make consequential amendments to other Acts, which many on this forum are talking about.

https://ottawasun.com/opinion/columnists/lackie-real-estate-capital-gains-tax-should-be-non-starter/wcm/cae0e3fd-7e2a-4967-9875-07835f9cd9f2

Edited April 3, 2022 by ExFlyer
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[Michael Hardner]

I don't understand how such a thing helps us.

[eyeball]

50 minutes ago, Michael Hardner said:

I don't understand how such a thing helps us.

I can see such a tax applying to a property that isn't your primary residence or on amounts that take the selling price over a million bucks or above asking price or something.  Commercial property that is owned by a company will be taxed.

Maybe if they allowed us to deduct mortgage interest from taxable income.  

[Army Guy]

6 hours ago, ExFlyer said:

The Feds, last year, were thinking of capital gains tax on your principal residence. This kind of went away but seems to be resurrecting.

The feds gave away so much money in the past 2 years and now with the alliance with the NDP, will be giving away even more. Less and less people working (judging by all the help wanted signs and advertisements everywhere) mean less income. Even adding more carbon tax and then saying they will give it back makes less sense now than it did in the beginning. They are running out of revenue streams. Bottom line, they need revenue and capital gains taxes on primary residences is a big opportunity.

The prices of housing (which affects the rental market too) is going higher all the time making affording a house near impossible for most Canadians. Minimum down payments and mortgage stress tests are making it difficult too.

While most say they cannot afford a home, sales of homes is at an all time high. Someone must be able to afford them.

To me, this issue is far more important that Bill C-10: Act to amend the Broadcasting Act and to make consequential amendments to other Acts, which many on this forum are talking about.

https://ottawasun.com/opinion/columnists/lackie-real-estate-capital-gains-tax-should-be-non-starter/wcm/cae0e3fd-7e2a-4967-9875-07835f9cd9f2

Here in NB most New Brunswickers have already been cut out of the market, with the average wage of 36 k a year, housing has sky rocketed during the pandemic, with people from the major cities moving to the Maritimes , flush with cash from selling their million plus dollar homes because they can work from home , from any where really....most of these new home buyers are from Ontario... well over 70 % now... home prices have doubled in the last 2 to 3 years 480 k gets you a 1400 sq foot bungalow ... so a million plus dollars gets you a lot of home here...hence the bidding wars, that drive the prices up more than 50 to 100 k more...to make it more complicated , lumber prices are out of this universe right now at 250 dollars a square foot of living space...so one no longer can afford to buy or build... and rents well they want to make a buck as well, and our gouging the eyes out of everyone that comes into the building ..

Those city folks that come here soon come to the conclusion that life's pace here rarely gets above 10 KM an hour...unless you hear hold my beer and watch this, nothing is changing anytime soon. 

 

 

[Michael Hardner]

What's the saying... Hate the game not the player

[Moonlight Graham]

6 hours ago, Michael Hardner said:

I don't understand how such a thing helps us.

Its not supposed to help homeowners, its supposed to help the government revenues so they can pay for their handouts.

But people like handouts and don't like taxes.  So to stay elected, the gov will probably just keep charging it to the debt because Canadians don't care if other people pay for their free stuff.

[eyeball]

51 minutes ago, Moonlight Graham said:

Its not supposed to help homeowners, its supposed to help the government revenues so they can pay for their handouts.

But people like handouts and don't like taxes.  So to stay elected, the gov will probably just keep charging it to the debt because Canadians don't care if other people pay for their free stuff.

They could tie it directly to housing subsidies or construction of affordable housing. What about deducting mortgage interest at tax time to offset the capital gain tax.

If it was just a straight cash grab then sure, forget the whole thing. But perhaps with the right caveats and guard-rails like I've mentioned it could be made to work.

[Michael Hardner]

48 minutes ago, eyeball said:

They could tie it directly to housing subsidies or construction of affordable housing. 

No, the problem is too big to fix through affordable housing builds.

[Army Guy]

2 hours ago, Michael Hardner said:

What's the saying... Hate the game not the player

Yes the game sucks, and everyone is just looking after their families by making upgrades..... just wish the would move the game back to Ontario...Not sure what is going to happen when industry want to have their people in offices again going to be a few broken hearts from Ontario and a lot of cheap housing unless they can get into what ever small offering we have for jobs... not likely but possible

[eyeball]

2 hours ago, Michael Hardner said:

No, the problem is too big to fix through affordable housing builds.

Maybe all on its own as a universal fix-all but targeted applications where appropriate it seems to work just fine, in small villages for example.  We have a couple of these where I live that were built thru private/public partnership with both provincial and federal funding years ago.

Another avenue that adds a little housing to the mix is by requiring resort developers to include construction of affordable housing in their developments.   

[Michael Hardner]

8 hours ago, eyeball said:

Another avenue that adds a little housing to the mix is by requiring resort developers to include construction of affordable housing in their developments.   

My city has millions of renters, average property value of $1M and median income under $60K

 

The math doesn't work.

[Nationalist]

This is what it looks like. A cash grab.

Gee...any Libbies having buyer's remorse yet?

[ExFlyer]

18 hours ago, eyeball said:

I can see such a tax applying to a property that isn't your primary residence or on amounts that take the selling price over a million bucks or above asking price or something.  Commercial property that is owned by a company will be taxed.

Maybe if they allowed us to deduct mortgage interest from taxable income.  

If they allowed interest on mortgages to be tax delectable like the Americans, it would definitely help the ability to buy a home. More people could afford a home, even the lower incomes folks and then builders would be enticed into building cheaper affordable homes.

Edited April 4, 2022 by ExFlyer

[dialamah]

15 hours ago, Moonlight Graham said:

Canadians don't care if other people pay for their free stuff.

This makes no sense; It's not like only 10 Canadians are working, and the other 37+ million are getting handouts.  Most Canadians work and pay taxes, so it's not like they're getting "free stuff", even if they get a tax break or something subsidized.  The only people who are given "free stuff" (ie they don't pay taxes) are people who are unable to work, either permanently or temporarily.  

If the government really wanted to fill their coffers, they'd focus on corporations, not workers. 

Edited April 4, 2022 by dialamah

[eyeball]

3 hours ago, Michael Hardner said:

My city has millions of renters, average property value of $1M and median income under $60K

 

The math doesn't work.

Neither socialist intervention or market forces on their own appear to be effective but I think combinations can work.  

But the topic is more about the tax which I'm assuming will be on top of all the other measures taken like reigning in foreign ownership, adding more burden on owners of multiple dwellings etc.

I think any ability to deduct mortgage interest if that was an option will have to be restricted to mortgages on primary residences only or real estate will become even more of an investment vehicle than a basic need.

 

Edited April 4, 2022 by eyeball

[West]

Depopulation by design. Make the burden so high on families that they have no choice but to not have kids. 

[Army Guy]

48 minutes ago, dialamah said:

This makes no sense; It's not like only 10 Canadians are working, and the other 37+ million are getting handouts.  Most Canadians work and pay taxes, so it's not like they're getting "free stuff", even if they get a tax break or something subsidized.  The only people who are given "free stuff" (ie they don't pay taxes) are people who are unable to work, either permanently or temporarily.  

If the government really wanted to fill their coffers, they'd focus on corporations, not workers. 

I disagree, we are bringing in more and more social programs that really are a nice to have and not a need. Take child care program one must make under 36 k a year to qualify and they are creating only a couple thousands new spaces in each province....or now the high speed intra net for seniors and those on social assistance already.... 

I can understand people requiring a leg up sometimes in life , like welfare, even unemployment but today we seemed to have a social program for everything, and everyone, and for the most part Canadians are not concerned what it costs, unless it is something they don't care about, like military spending "to expensive", indigenous land claims, to expensive, NATO, Norad, Infra structure projects, health care, education, Veterans the list goes on and on... and my opinion is unless Canadians are getting a piece of the pie, they do not care on way or another...  Just becasue we pay taxes does not entitle anyone to receive anything back... I thought Income taxes was the cost of running the country, not every ones home... once again my opinion. 

[dialamah]

7 minutes ago, Army Guy said:

now the high speed intra net for seniors and those on social assistance already.... 

It's internet, but not high speed.  It's probably cheaper to do that then ensure people aren't on the verge of starvation every month.

 

16 minutes ago, Army Guy said:

Just becasue we pay taxes does not entitle anyone to receive anything back... I thought Income taxes was the cost of running the country, not every ones home.

Why shouldn't taxes pay for alleviating some of the discrepancy among earners?  For example, my coworker, a single parent, and I have government jobs - we make below "middle class" wages.  I'm doing ok, because I have a partner and no kids.  But she's trying to raise her daughter on the same wage.  She can't afford to buy so she rents - in metro Vancouver.  She can't afford a car so she uses transit.  I don't think she's bought herself anything new to wear in 5 years - all her money goes to living expenses and her daughter.  Why shouldn't she get a hand?  

The adage  "get an education for a better job" results in highly educated people working poor paying jobs because poor paying jobs are a lot more plentiful than high paying jobs. And someone has to do those jobs, too.

There are many things gov spends money on that I disagree with.   But I support programs that help those who cannot work, or who worked all their lives and now find themselves living in poverty.  Neither group should have to find themselves out begging at the end of the month.  I support programs that help even out the huge disparity in incomes between most of us and the top 10% (although not to the extent that there is no difference.)

Spending that helps people is more important than spending that helps institutions like NATO or the military or corporations, imo.

[Army Guy]

1 hour ago, dialamah said:

1....It's internet, but not high speed.  It's probably cheaper to do that then ensure people aren't on the verge of starvation every month.

 

2...Why shouldn't taxes pay for alleviating some of the discrepancy among earners?  For example, my coworker, a single parent, and I have government jobs - we make below "middle class" wages.  I'm doing ok, because I have a partner and no kids.  But she's trying to raise her daughter on the same wage.  She can't afford to buy so she rents - in metro Vancouver.  She can't afford a car so she uses transit.  I don't think she's bought herself anything new to wear in 5 years - all her money goes to living expenses and her daughter.  Why shouldn't she get a hand?  

The adage  "get an education for a better job" results in highly educated people working poor paying jobs because poor paying jobs are a lot more plentiful than high paying jobs. And someone has to do those jobs, too.

There are many things gov spends money on that I disagree with.   But I support programs that help those who cannot work, or who worked all their lives and now find themselves living in poverty.  Neither group should have to find themselves out begging at the end of the month.  I support programs that help even out the huge disparity in incomes between most of us and the top 10% (although not to the extent that there is no difference.)

Spending that helps people is more important than spending that helps institutions like NATO or the military or corporations, imo.

According to the CBC it is high speed intra net, but lets just say it is plain intra net, why is this a much needed social program...and just a side note their are already social programs out there right now meant to ensure nobody is starving to death.... It is a cheap distraction , we know we have issues with health care, education, programs for veterans, but lets not put anything into them....lets give you 20 dollar high speed intra net, becasue of everything missing in our lives intra net is the number one priority...next to of course day care, and the list of other social programs that are a want and not a need.... 

Quote

Hundreds of thousands of low-income seniors and families will soon benefit from $20-per-month high-speed internet as part of a partnership between the federal government and more than a dozen internet service providers, CBC News has learned.

Federal government to announce high-speed internet for low-income seniors, families (msn.com)

You know there are millions of sad stories out there, but in reality we can not help everyone....Look I'm not going to tell you or your friend how to live their life's ...But i will tell you,if things are not working out right now , what makes you think it is going to change in 1 or 5 years time...want change then change things that are not working... the job fairy is not going to find you or her and say holy shit girl, i got a sweet job for you, we are going to look after you really good...unless your in the movies....and your name is JALO

Education is key, if you spent a million dollars on a history major, or arts major, then i would say choices choices choices...nobody forced you into those choices, but they are your choices...or perhaps choosing work over education but it is a personal choice so why would the average tax payer have to pick up that tab....

And i wonder how much high speed intra net is going to help you when you home is threaten by a flood or Forrest fire and DND has to respond in equipment 40 years old. There has to be a balance , and today there is none, but not everyone's priorities are the same,  some may say high speed intra net is more important than funding our military, or our veterans, but then again Canadians are like chirping birds and are not going to be happy unless there is something in it for them...

 

[dialamah]

29 minutes ago, Army Guy said:

You know there are millions of sad stories out there, but in reality we can not help everyone..

This attitude is what I hate most about the Conservative ideology.  

[Army Guy]

2 minutes ago, dialamah said:

This attitude is what I hate most about the Conservative ideology.  

Ok fair enough, lets hear a the solution, I'm listening, and interested in your answer..

 

[dialamah]

52 minutes ago, Army Guy said:

Ok fair enough, lets hear a the solution, I'm listening, and interested in your answer..

 

Solution is creating a system where people aren't reduced to begging on the street.  This would require considerable political will and the support of Canadians.  Right now, the government considers around $1200 per month enough to support someone who is unable to work - in a country where finding a bedroom in a shared house is $600 or more. 

Government could cut many unnecessary expenses, starting with MPs and Senators inflated salaries and pensions.  They could implement tax policies that forced multimillionaires and billionaires to contribute to the fellow citizens well-being, stop subsidizing industry.  

I'm not suggesting that people who can't work, or seniors, need an income that keeps them on easy street - but enough for housing, food and medication should be guaranteed basics.  I'm especially hurt when I see seniors, in wheelchairs and walkers, begging at stores and bus stations.  In a country as rich as Canada, nobody should be reduced to that through no fault of their own.

The problem isn't that we can't afford it, it's because there aren't enough of these people to be heard at election time, or over the sound of money changing hands between politicians and rich people and corporations.

And of course, the people who are comfortable enough financially to say "We can't help everybody", when the truth is they don't want to help.

 

[Michael Hardner]

@eyeball

 

Read this.  This is a house of cards, healed by cheap lending and easy games.. the only people who suffer are the poor right?

https://betterdwelling.com/canadian-cities-have-seen-up-to-90-of-new-real-estate-supply-scooped-by-investors/

[Army Guy]

3 hours ago, dialamah said:

Solution is creating a system where people aren't reduced to begging on the street.  This would require considerable political will and the support of Canadians.  Right now, the government considers around $1200 per month enough to support someone who is unable to work - in a country where finding a bedroom in a shared house is $600 or more. 

Government could cut many unnecessary expenses, starting with MPs and Senators inflated salaries and pensions.  They could implement tax policies that forced multimillionaires and billionaires to contribute to the fellow citizens well-being, stop subsidizing industry.  

I'm not suggesting that people who can't work, or seniors, need an income that keeps them on easy street - but enough for housing, food and medication should be guaranteed basics.  I'm especially hurt when I see seniors, in wheelchairs and walkers, begging at stores and bus stations.  In a country as rich as Canada, nobody should be reduced to that through no fault of their own.

The problem isn't that we can't afford it, it's because there aren't enough of these people to be heard at election time, or over the sound of money changing hands between politicians and rich people and corporations.

And of course, the people who are comfortable enough financially to say "We can't help everybody", when the truth is they don't want to help.

 

Not sure what to tell you, but it is expensive to make sure everyone is making a livable wage....take a look at universal income and what that study found... any where's between 480 bil a year with everyone in Canada receiving this benefit to as little as 131 bil a year with some major cuts to it...It's not a conservative thing it is a money thing...

... https://www.fraserinstitute.org/sites/default/files/how-much-could-a-guaranteed-annual-income-cost.pdf#:~:text=We find that providing a taxable %2424%2C000 a,program spending from 2019%2F

even with those cuts your not going to meet your mark to have everyone paid at a livable standard with no worries. And if we make the rich pay to much they just move their money off shore, like the Irving's did here in NB, so nobody can touch it...

If they are begging it is becasue they are not taking advantage of all the existing programs available to everyone, like food banks, government control housing etc... 

that might be part of the problem, but the majority of Canadians that can help don't want to waste their wealth on some body else...we are not that generous, people work hard for their money, they sacrificed to get to where they are today...everybody in Canada has access to the same opportunities as most others in this country...they made different choices, so i ask why should those that worked hard have to pay for those that made different choices....

Sorry i grew up on the poor side of the tracks , as many kids did, nobody gave us anything you wanted it you had to work for it....And i got all kinds of time for people who are trying to get ahead.... and thats all spoiled by those that are taken advantage of the system...here in NB entire generations of the same family collect welfare, not becasue there is no jobs, but why work if they are going to provide everything for free...and they treat it as it is a right of passage...and they don't even pay taxes.... zero... 

 

 

[Army Guy]

5 hours ago, dialamah said:

This attitude is what I hate most about the Conservative ideology.  

Thats unfair, for one the liberals have been in power for 8 years, and have done very little to easy your friends issues, in fact he is directly reasonable for increasing the prices across the board with carbon taxes, so it is not strickly a Conservative attitude... but rather a Canadian attitude