Happy Monday Morning! Inflationary pressures in Canada subsided, with headline inflation for the month of January coming in at 2.9% year-over-year, well below economists expectations of 3.3%. The Bank of Canada’s two preferred core inflation measures both decelerated, averaging 3.35% from a downwardly revised 3.6% a month earlier, also slower than the 3.6% pace expected by economists. A welcoming relief for homeowners facing mortgage renewals this year, and politicians facing upcoming elections.
Steve, a casual reader might misinterpret your comment about the 50% CRA tax in addition to Eby's 20% flipper tax thinking that 70% of profits will be taken. Of course the Feds don't take 50% of the capital gains, but TAX 50% of the profits. If you are in the 40% tax rate, the Feds would want 20% (.50 x .40). The final implementation of Eby's proposal could take a full 20% of the cap gains or include it as cap gains on the BC portion of our annual Fed+Provincial taxes. In this latter case the flipper tax would net out lower than 20%.
Great information! Thanks Steve!! Does the government track the number of pre-sales that are resold (prior to completion), and do they track whether those sales were declared a primary residence or an investment property? Just wondering the percentage of pre-sale owners who are paying capital gains tax (or not) when they sell their pre-sale units before closing? Also, do we know how many of the same buyers are buying multiple pre-sale units and how many owners buy again and again?
Yes the government tracks this now through a registry.
Currently flipping and unlikely to make 20% so why the thieves wanna take my 20?
What about REIT’s? There presence seems to coincide with changes to tax laws. Perhaps this has to happen at the federal level?
More taxes…that don’t do anything. What about the PTT. That should be investigated and audited as to what it goes towards.
Steve, a casual reader might misinterpret your comment about the 50% CRA tax in addition to Eby's 20% flipper tax thinking that 70% of profits will be taken. Of course the Feds don't take 50% of the capital gains, but TAX 50% of the profits. If you are in the 40% tax rate, the Feds would want 20% (.50 x .40). The final implementation of Eby's proposal could take a full 20% of the cap gains or include it as cap gains on the BC portion of our annual Fed+Provincial taxes. In this latter case the flipper tax would net out lower than 20%.
Great information! Thanks Steve!! Does the government track the number of pre-sales that are resold (prior to completion), and do they track whether those sales were declared a primary residence or an investment property? Just wondering the percentage of pre-sale owners who are paying capital gains tax (or not) when they sell their pre-sale units before closing? Also, do we know how many of the same buyers are buying multiple pre-sale units and how many owners buy again and again?