Real Estate Investors Slammed with Shocking Capital Gains Tax Hike
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- เผยแพร่เมื่อ 22 เม.ย. 2024
- Real Estate Investors Slammed with Shocking Capital Gains Tax Hike
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►► Ironically, the most talked about and widespread change to the Toronto Real Estate Market in the 2024 Canadian Federal Budget wasn't from any of the changes made directly to the real estate market itself. The Liberal government sent shocking news to Canadians when they recently released the 2024 Canadian Federal Budget.
Canadians will be slammed with a big time capital gains tax hike. The proposed Federal Budget increased the capital gains tax inclusion rate from 50% to 67%, and this will undoubtedly have a huge impact on Real Estate Investors and the Canadian economy as a whole. Be sure to tune into this episode of Prime Properties TV as I break down the effect of this capital gains tax hike on your investment properties and the Toronto Real Estate Market overall!
#TorontoRealEstate #TorontoCondoMarket #TorontoRealEstateMarket
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When the government makes more from your real estate investments than you do, then the system is broken..
(
I agree with you if your tax dollars went somewhere I have no problem paying them but we have no hospitals. No police. And every road in the city is constantly under construction and not usable.
Preach!
Ukraine needs our Money
Yea, right, all this because of Ukraine, not of unprofessional Canadian government 😂
@@olgazarva9643both of these things go hand in hand
Most capital gains are just inflation i.e., nominal gains. So this tax is regressive.
You should never sell your investment property because of taxes.
Wrong thing to do if you don’t have to sell.
"This is not new..." NO it is relatively new. Well in the 1960s capital gains tax was zero. Capital gains tax was introduced in 1972.
Much of the "gain" you are receiving is nominal in nature including inflation. Only real income gains should be taxed. This is regressive!
Remember if you own an investment property in your name as a couple - with both of you on title... you capital gain is shared with your partner... so your effective limit is $500,000 of gains before the higher inclusion rate kicks in. CRA doesn't look too closely at attribution... so you can share the gain 50/50 with your partner.
Correct!
can you do it every year or only once per person?
@@arthurf8642 Everyone can claim up to $250,000 every year in capital gains tax - at the 50% inclusion rate.... any amount above that will be at the 66% inclusion rate... to be clear, that does not mean taxed at a 66% rate... it means 66% of the amount you gained above $250,000 in any given year will be taxed at your marginal tax rate... your marginal tax rate will certainly be at 50% + given that level of income
Government spend so much money putting on budgets on refugees , social assistance from other people coming to canada . When the locals are all still struggling.
It’s true that after the deadline supply will go down. But more importantly, demand will also drop because of the lower returns on investment because the taxes act as an expense as do rising interest rates. This will lower the prices of investment properties and take “flippers” out of the market. This is great for future buyers as house prices are too high from all the helicopter money handed out by the B of C.
This is not going to do anything, capital gain will go to CDA. 1 million profit, 500k to cda. 330k ta taxable @11% it's only 36k for the corporation.
If two ppl own a property 50% 50%, and make a total capital gain of $400k, can it be divided by 2? Then is the capital gain for each person $200k?
if both on title and married likely and both contributed to the "asset". As pe rmy accountant, but consult yours.
This is going to affect everyone as it will cause investors to stay away from Canada and no one will want to invest in the country ! Communism and crime is on its way so I hope everyone is happy !
Communism is way better democracy
Lower incentive to start a business now.
Interesting that you would think that capital gains tax increase is fine. I guarantee in the next few years people's primary homes will be up for the taking. This is a purely a shift of wealth. Take a look at the amout of money that this new tax will collect. That wealth which would of been passed down within families is now disbursed. How is that fine??
Itll probably change in the future. Just dont sell now.
That was mentioned last year it is coming for sure
I’m in the process of selling an investment property and this change will take money off my bottom line!
Yeah bro money is needed for ukraine and climate.
Move closing up before June 24th. If you have equity consider a short term VTB to get the deal done.
Can we do asset swap? Let’s say I put property under a company name and buyer has 800k worth of trust fund. He transfer me the trust fund, I transfer the company to him. There is no direct money involved and asset still stay with company . I just sell the fund gradually. Like Trump said hard to make rich pay taxes
"putting" a property underneath a corp is a disposition. Unless its already there and you sell shares of the corp.
If all Investors were well capitalized and had a plan for the long term they would just do the never sell just refinance option. But that's not what most people planned for when they fomo bought precons over the last 10 years. Way too many weak hands that are yet to fold.
if you bought 10 years ago, youre in the black so its fine. 5 years ago, maybe break even.
Maybe if we had focused on fostering entrepreneurship more instead of convincing everyone that real estate was a safe bet asset then we would be in a better place.
The mass commodification of real estate instead of genuine productivity and entrepreneurship put us here.
The baby boomers are already the richest generation and for the first time in history, they’re getting richer and the youngest are getting poorer.
Something had to give, and I’m all for the capital gains.
If you’re privileged enough to HAVE capital gains, you’re privileged enough to pay the taxes on your passive income.
it is true, cap gains is a money problem lol
Throw Trudeau and Dy. PM out....
How can any adult/professional continue to include government in the equation.
Wake up....50% of all government services/FTE's reduce...that it...
Any other questions, that easy.
Critically think the culture shock and shift in citizens understanding of gov role.
.
Future buying of investment properties will be affected ..i think thats the jist of it all
Not that much imo
Maybe it is time to stop treating the basic necessity as a profit building scheme..
Yes !!everyone should build their own house. No developers to make profit. Just start digging a basement by hand and ask your neighbours to help you build. And when you sell the house only sell it for what it cost you to build. No more speculators. Then get some of your friends to help you build an apartment building and a high-rise. Make sure nobody makes a profit.
What about food?
I’m just a middle class with one rental property. Hoping to get extra income for retirement due to inflation. My government pensions will not be enough to enjoy life.😢
1 property is already good. Congrats! If you dont sell and just retire with a paid off rental property, the rental income is better than some pensions
@@PrimePropertiesTO Thanks. Paid off my residential house and rental property long time ago.
This is definitely the buying signal in my mind.
Buy in June and take advantage of the scared sellers.
Then rate cut in July and instant appreciation.
😂 There won't be any. The Federal reserve is probably not cutting this year. BoC can't afford to cut without collapsing the CAD.
@@jeffrey1411 It will depend on the inflation data. It may not be July but if CPI falls at the current pace, we'll have cuts by September for sure. I truly think we've hit peak fear and buying in June before the tax deadline is when buyers will get the absolute best deal for a very long time to come. I'll be buying in June for sure.
How so?
@@PrimePropertiesTO Investor selloff in June due to capital gains tax, LTB fears, low cap rates, bad Spring market.
A few months later rate cuts will recover all those losses. Buyers should buy in June, this is the moment we've been waiting for.
Buy in 2027 and take advantage of desperate debt burdened RE speculators that are forced to sell for years
There will be years worth of inventory with 2015 or lower prices
Better than 2011 US or 1995 Japan
Maybe not as bad as 2023 china but close
The government may be indirectly aiming for fewer individuals to view real estate solely as an investment and instead encourage investment in productivity. Real estate doesn't inherently boost productivity; in fact, it often detracts from it. Consider this: generating virtual profits through "creating nothing" contributes minimally to Canada's advancement. In reality, it predominantly benefits real estate owners, simultaneously serving as a wealth transfer from younger to older generations who purchased before significant price hikes.
Correct but you need landlords to provide housing none the less because the government doesnt.
@@PrimePropertiesTO you don't need wannabe landlords bidding up the prices of real-estate to merely rent it back to those that can't afford to buy it, because they in fact add or create nothing, if anything that business model is just a wealth transfer. What you actually need is "developers to build housing" you have to increase the inventory to be a net positive.
Would you build at these high interest rates and lack of demand? What's the incentive here? This government is a socialist disaster
Capital gains tax should be 95% on 3rd and 4th homes
Obviously a bit of hate based on a lot of misunderstanding
Rental properties are needed.
They are essential.
There may be fewer now....
So if you cannot afford to buy a home.
If there are no rentals, because of the high capital gains you want to impose.
Where would you live? In a tent?
Shit son
Definitely a lot of crying..... cap gains are the lowest taxed form of income already..... and this doesn't kick in until you make more than 250k. Which basically means it doesn't really start to hurt until you are up over 400k in cap gains... who does this affect?? Not many people.
And even if it affects you, you are breaking rule #1.... aka never sell, just refinance.
Says the lifetime renter
@@keepitreato uh no I've owned since the 90s....
I agree...never sell!
Most were expecting a lot more than 400k in gains. This added inconvenience of higher taxes on real estate investing just make it more risky. Reward is not enough.
All people who have done well buying a home at an affordable price will pay a lot more tax when they sell their property. This tax affects those who are rich and the middle class. It makes people less likely to sell their home.
Zhen, Be quiet and pay your taxes. You made enough investment money
hard to be quiet when I have a youtube channel 😆