Capital Gains Tax Hike - If You Own Investment Property, You May Be Paying More Tax When You Sell 🇨🇦

🇨🇦 Happy Canada Day 🇨🇦
The government has announced a capital gains tax hike effective June 25, 2024 for properties sold in Canada. Capital gains for both personal and corporate held properties have increased. If you own investment property, you may be paying a higher capital gains tax when you do sell. Who will this affect, and how will it impact the real estate market?
In this episode of Real Estate Chat, Robert Ede (www.unclebobexp...) and Johnder Perez (www.johnder.com) talk about the new structure of the capital gains tax. We discuss what personal held properties will be taxed when they are sold and trigger the capital gains tax, and how corporate held properties are also affected.
How will this new capital gains structure, swiftly slapped on by the current government, potentially affect real estate investors and the real estate market?
If you currently own investment property, what does it mean to you?
If you're planning to invest in property, what implications should you consider when it comes time to selling the property later on?
If you're a speculator... well...
Watch this episode to learn more about how the capital gains tax hike will affect you.
Read this article and watch this video as well to gain additional insight:
financialpost....

[@zangarkhan]

All capital gains does is to keep away supply. People will just pass down their homes to their kids or rent out vs. sell. Overall increase rental homes count and increase cost to buy a home. ALso does the loop home still apply where you can buy and sell a property the same amount to incur no tax?

[@johnderperez]

Not sure about the loophole but I'm sure if you somehow pulled that off, the government would find a way to figure out what you did and probably tax accordingly anyway. We need a tax accountant to answer that. A tax that penalizes gains would, I presume, reduce supply as you said -- why would anyone want to sell their unit and pay the extra amount now being charged capital tax on gains versus keeping it, especially if held in a corporation?

[@gmarks1559]

Bubble crash

[@CristianEnacheRealtor]

JUST DON'T SELL. IF THE NEW GOVERNMENT, LET'S SAY POILIEVRE WINS AND CHANGES THE LAW, ALL GOES BACK TO NORMAL. DON'T JUMP ON CONCLUSIONS AND SELL PUSHED BY THAT. BE WISE.

[@stephenfermoyle4578]

old news..we ALL know

[@johnderperez]

Yes, we were a bit late to the party on this one.