Increased Capital gain inclusion rate
12-18-2021, 11:02 AM
#16
Rennlist Member
Thread Starter
Changing the CG exemption on a principal residence would affect most - hence why I am concerned about the former.
M
12-18-2021, 11:07 AM
#17
12-19-2021, 06:49 PM
#19
Rennlist Member
Thread Starter
Anything is possible, but I think a prospective change to 66% or 75% is the most likely outcome - question of when.
I'll plan accordingly,
M
I'll plan accordingly,
M
12-19-2021, 08:28 PM
#20
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Watch organizations connected to Trudeau and his friends and start selling when they start selling. Of course, they would not trade on insider info because that would be highly illegal, but someone will probably have some "strong intuition" they can't resist
. It worked out well for me when I followed Trump's buddies during some market-influencing events that he was involved in. Pure luck, of course, but if a superstition works so well, I'll keep it.
12-20-2021, 12:12 PM
#21
Race Director
Retroactive increase in cap gains inclusion is extremely unlikely because it invalidates many business decisions, opening government to lawsuits - that would be not very different from changing building code in the middle of construction after approving the plans.
Watch organizations connected to Trudeau and his friends and start selling when they start selling. Of course, they would not trade on insider info because that would be highly illegal, but someone will probably have some "strong intuition" they can't resist. It worked out well for me when I followed Trump's buddies during some market-influencing events that he was involved in. Pure luck, of course, but if a superstition works so well, I'll keep it.
Watch organizations connected to Trudeau and his friends and start selling when they start selling. Of course, they would not trade on insider info because that would be highly illegal, but someone will probably have some "strong intuition" they can't resist
. It worked out well for me when I followed Trump's buddies during some market-influencing events that he was involved in. Pure luck, of course, but if a superstition works so well, I'll keep it.
12-20-2021, 03:06 PM
#22
Burning Brakes
Taxation of principal residence not so easy.
Not saying it cannot be done or that tax policy is ever fair.
If you tax capital gains on principal residences do you now allow for deduction of interest on debt used to purchase the principal residence.
After all interest is deductible for other assets that generate capital gains.
Not saying it cannot be done or that tax policy is ever fair.
If you tax capital gains on principal residences do you now allow for deduction of interest on debt used to purchase the principal residence.
After all interest is deductible for other assets that generate capital gains.
12-20-2021, 05:44 PM
#23
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The biggest problem with principal residence capital gains taxation is that it effectively prevents people from moving. Let's say you bought a house that grew in value from 1M to 2M, and you need to move for work. A replacement would cost 2M because all houses got more expensive. But you will have much less than 2M after selling the current house and paying all the transaction-related costs AND cap gains taxes, especially if inclusion rate is increased. People not being able to relocate as easily creates additional friction in the economy making more people stay out of work or in lower-paying jobs. So everyone makes less money and tax revenue goes down as a result.
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reacp911 (12-22-2021)
12-20-2021, 05:52 PM
#24
Instructor
Taxation of principal residence not so easy.
Not saying it cannot be done or that tax policy is ever fair.
If you tax capital gains on principal residences do you now allow for deduction of interest on debt used to purchase the principal residence.
After all interest is deductible for other assets that generate capital gains.
Not saying it cannot be done or that tax policy is ever fair.
If you tax capital gains on principal residences do you now allow for deduction of interest on debt used to purchase the principal residence.
After all interest is deductible for other assets that generate capital gains.
12-21-2021, 10:32 PM
#25
Rennlist Member
Thread Starter
Taxing the principal residence exemption is politically toxic (and highly problematic to implement with valuations etc.) I don't see it happening unless/until/ever we see a widely supported wholesale re-do of the the tax code. None of that is on the radar IMO.
Increasing taxes by 50% (from 50% to 75% inclusion rate) would net coffers an estimated $50B over 5 years. Easy money if you asked me, considering this would impact just a tiny sliver of electorate.
That's fine, as long as you know it's more probable than not, so you can act accordingly.
PS - I spoke to a few financial advisor buddies - no one is proactively addressing this with their clients - if you need detailed tax planning, you need to do it yourself IMO.
Cheers
Matt
Increasing taxes by 50% (from 50% to 75% inclusion rate) would net coffers an estimated $50B over 5 years. Easy money if you asked me, considering this would impact just a tiny sliver of electorate.
That's fine, as long as you know it's more probable than not, so you can act accordingly.
PS - I spoke to a few financial advisor buddies - no one is proactively addressing this with their clients - if you need detailed tax planning, you need to do it yourself IMO.
Cheers
Matt
12-22-2021, 10:57 AM
#29
12-22-2021, 11:03 AM
#30
Race Director
Taxing the principal residence exemption is politically toxic (and highly problematic to implement with valuations etc.) I don't see it happening unless/until/ever we see a widely supported wholesale re-do of the the tax code. None of that is on the radar IMO.
Increasing taxes by 50% (from 50% to 75% inclusion rate) would net coffers an estimated $50B over 5 years. Easy money if you asked me, considering this would impact just a tiny sliver of electorate.
That's fine, as long as you know it's more probable than not, so you can act accordingly.
PS - I spoke to a few financial advisor buddies - no one is proactively addressing this with their clients - if you need detailed tax planning, you need to do it yourself IMO.
Cheers
Matt
Increasing taxes by 50% (from 50% to 75% inclusion rate) would net coffers an estimated $50B over 5 years. Easy money if you asked me, considering this would impact just a tiny sliver of electorate.
That's fine, as long as you know it's more probable than not, so you can act accordingly.
PS - I spoke to a few financial advisor buddies - no one is proactively addressing this with their clients - if you need detailed tax planning, you need to do it yourself IMO.
Cheers
Matt
Increasing the capital gains inclusion rate just increases the divide between those on gov pensions and the self employed who generally use the sale of their business to fund their retirement and there are a LOT of business owners who are wanting to sell.
Not good a good message to send if the desire is to increase business investment.
Taking into account inflation many of these tax gains are actual losses.
NZ, Switzerland, HK, Singapore, Barbados etc do not tax capital gains at all.
It’s the worst tax: Other countries are eliminating it and Canada should, too
https://financialpost.com/opinion/it...ada-should-too
Canada needs economic growth to pay for the Covid debt hangover. Having said that I fully expect the federal Libs to jack taxes, reduce incentive to take on risk, and slow the economy into recession because reducing capital gains taxes, or even leaving them alone, isn't "fair."