Family cottagers to bear the burn of capital gains tax increase: Cottage Life editor
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- เผยแพร่เมื่อ 5 พ.ค. 2024
- The government is wrong to assume that the capital gains tax will not affect anyone other than the wealthiest 1% of Canadians living in cottage country, argues Michelle Kelly, Editor at Cottage Life.
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I think it's time to make it more appealing for potential buyers. Real estate can be quite the rollercoaster! the stress and uncertainty are getting to me. I think I'll cut rents to attract potential buyers and exit the market, but i'm at crossroads if to allocate the entire $680k liquidity value to my stock portfolio?
"Overall, buyers hold a lot of the cards right now, and sellers are having to give out more concessions to close a deal." All the best, buying on sale is actually one of the best ways to invest in stocks, and advisors are ideally suited for such task
Until the Fed clamps down even further I think we're going to see hysteria due to rampant inflation. If you are in cross roads or need sincere advise on the best moves to take now with financial markets will be best you seek a fin-professional with fiduciary responsibilities who knows about mortgage-backed securities for proper guidance.
this sounds considerable! think you know any advisors i can get on the phone with? i'm in dire need of proper portfolio allocation
There are a handful of experts in the field. I've experimented with a few over the past years, but I've stuck with ‘’ Melissa Terri Swayne” for about five aiyears now, and her performance has been consistently impressive. She’s quite known in her field, look-her up.
She appears to be well-educated and well-read. I ran a Google search on her name and came across her website; thank you for sharing.
No one is scrambling to sell their cottages. Give me a break.
The 3 car garage cottage shown is nicer than the average home and on a lakeshore. I think they knew they were going to face a capital gain even before the pandemic which has doubled prices. Adding 16% inclusion is a surprise but nowhere close to what the pandemic did.
Most of cottages come from Toronto who voted Trudeau in power so don’t feel sorry for them
The irony of it is ... err... rich.
Crazy the tax impact on cottage sales gets so much news coverage. What does it work out to, like an extra few percentage points overall ?And this guest positioning it as “66% “ tax is being incredibly disingenuous.
The wealthiest 1% of Canadians don't live in Canada. They are not stupid.🤭
Trudeau has done an amazing job dividing Canadians. Read the comments here and you can see the socialists want more government taxes. It’s not the lack of taxes that’s the problem in this country. It’s the absolute irresponsible spending and corruption with those connected to government that is the issue. But Trudeau has gaslit everyone to look elsewhere than his own incompetence
Agree
After 40 years we still have idiots insisting that wealth will trickle down any year now lolololol
Do you think it was any different under Harper? You divide yourself with your lack of tolerance towards others.
@@mikeb5664 but, but, but but, Harper. You’d think after 9 years of this disaster people would wake up. Are you that brainwashed?
@@mikeb5664 Yes it was different under Harper. I can tolerate a lot of things, however when there is out right incompetence in government that's a totally different situation. Nine straight years of deficit budgets, doubling the national debt in 9 years, uncontrolled immigration among other things which has screwed up the Canadian economy for years, yes it is very different from Harper.
So now the cottage community doesn't want airbnbs? They dont want " new people" in theyre perfect community?
Realtors are worried
Have they already used their 1.25 million lifetime capital gains exemption?
This is not enough, peoples are buying houses from builder and flipping and many people have 3 or more houses and all this investor have many empty houses and create a hot market and sell them to make more tax free money , they just move to that property before they sale , I think government should bring a capital gain tax to all property, if anyone own 2 or more property and end up selling them they should be pay tax , there are so many lopped poles , the lawyer play a game too, I know this housing mafia plus the builder plus the investor donate to political party and influence by lobbying, guess what why all of sudden government open visitor visa and all kind of visa , it's just because they want to create a market that is hot , rental is all times high , insane
Sheesh.... It nets out to an additional 8% ish tax on the gain amount over $250k. If that's make or break then the original tax would have also been insurmountable.
I have developed the mechanisms to measure changes in currency. I go back about 23 years. I legally restate the cost of property to be in equivalent dollars as date of sale. For example the property cost in 2000 needs to be multiplied by about 5 to get to 2023 dollars. More for 2024 dollars. This drastically reduces capital gains or eliminates them. There is nothing the IRS, CRA or IRPEP can do about this. They will never let it go to court.
Can't air bnb it, at least in BC now; you can't go there because you have to work extra days to pay for your high interest mortgage on it; and now an additional tax even if it's additional 8% will likely leave people owing money to the bank. Tax the rich; but the rich is you!!!
Well if you can afford 2 places then pay the taxes.
1. this misrepresents how cap gains works she gets around this lie by framing it as a fear of others without clarifying the reality of how this works.
2. if you have a vacation property you are not poor.
People not getting all the money they thought they were going to get please advise where the sadness I am supposed to have for these people?
Absolutely insane. This is ridiculous. You would think this. Commentator was describing monks here.
oh but you'd rather the government take that money instead.
@@freedomliberty83 no. I don’t want the government to get it. If the government didn’t profligate spend then there would be no need to come for the money. I voted sleepy steady Economist Harper, then I voted Sheer, then I voted O’Toole. I am but responsible for the government coming for the cottage money. Elections have consequences. Maybe the sleepy boring Economist that had a budget surplus in 2015 was not bad.
@jeffotoole4509 Yet you're crying about someone buying a cottage and profiting when they go to sell. I'd rather the cottage owner keep the profit than Trudeau continue to reach into our pockets.
@@freedomliberty83 did you read my reply? They have to get the money from somewhere?? A poor cottage owner or an investment property owner is easy pickings. You don’t pay tax if you don’t sell. Maybe a Conservative government will clean house 100k un needed workers and we can get the capital gains tax down. I would make that trade tomorrow
@jeffotoole4509 We wouldn't need these tax increases if Trudeau didn't keep over spending. I would rather eliminate the capital gains tax and reduce the size of government. Let people be prosperous.
🎻. The smallest violin possible
Oh no, some people bought a cottage for peanuts, and now it's 700k, and they are getting the big sad because a 500k profit will net you an additional 30k in taxes. Boohoo
No cottage in the family eh ?
@@stewartgillis4851me either, I want one
@@stewartgillis4851 if you have a 700K cottage, your estate can afford the extra tax. If your estate can't, you really shouldn't be holding onto a 700K asset in the first place.
@@darex0827 Afford it to support the Canadian Federal debt for maybe a month's worth of interest on it in total.
Sad that people think like that why does our government deserve more of our money. You can't get a doctor, they can't keep you safe, your cars are being stolen and front doors kicked in and yet your saying this government needs more of our money? For what exactly?
No. You have a cottage, you are well-off. Maybe not in the 1% but FOR F'ING SURE in the top 10%.
Is that a problem?
good she is not giving a tax adivce because she doesn't even know how it works and what exactly increases. Nonone (yet) pays 66% tax.
Cabins and homes in Canada 🇨🇦 are being built for the first time ever in its history
The guest should educate herself before come on the program. There is difference between tax rate and tax inclusion rate. And the hose didn’t correct her is terrible and promoting misinformation.
If you don't sell you don't pay.
When they pass away its sold
@@joka5345 no, those the inherit need to pay as if it was sold and pay taxes on the gains if they want to keep the asset.
@darex0827 if they want to keep it, it just needs to be transferred ownership before the parents die no?
If your parents leave you a secondary place of residence, such as a vacation home, as part of their estate, the capital gains taxes will be your (or their estate’s) responsibility to cover before you can take over ownership 😮
Best part about this is there are no proceeds so your on the hook for a $hit ton of money
If you sell your primary residence and rent tell your parents pass away is the only way around.
Then it’s primary residence
@@marshferguson4737When it's transferred there is a deemed disposition and the tax must be paid.
Boo friggin hoo
you will own nothing and be happy
Don't BUY
Keep voting for Trudeau tho.
Gotta capitalize on the transfer of wealth
So many negative comments. Wow. So many jealous people. Just because a family bought a cottage back in the 70's or 80's doesn't make them rich. Get over it. Many just want to pass their memories and time invested into the land and the community they built onto their kids. Why is this penalized by tax and narrow minded folks? Lame. Also, I wish Bloomberg would show a real life cottage rather than a cottage mansion when discussing real (cottage) life....🙄
How will they lose their cottages? People need to start letting go of some equity or everyone will be homeless. If you pass it down and dont sell it theres no tax to pay. If theyve gained 100s of thousands why cant they afford an extra tax? Im very confused on this!
There is a tax to pay when it's passed down. There is a deemed disposition by the estate of the owner before the title is transferred.
@@jptrainor ok thanks
I dont understand who buys cottages for flipping. Like I understand when rich people buy all of the inventory in cities with fake money so they can off load it to young guy or girl to enslave them for rest of their life. Like if I ever wanted to buy a cottage it wont be for flipping it would be mostly for vacation. And if somebody bought cottage for flipping then they deserver this.
It makes them think, for the first time, about the capital gains tax that will be owing when the cottage owner's estate is settled and now they're panicking. They would have panicked before too, if they had thought about it.
Oh no! The rich have to pay taxes!!!! I can’t afford a single home to live in. Cry me a river.
You don't understand... these are people who donate books to the local library.
@BowtieJDP if someone has a cottage that doesn't mean they are rich. After pandemic a lot of young people bought cottages using their line of credit (second mortgage against their primary residence). The interest rates went up and now they have 2 mortgages with a high interest. Now they have to sell the cottage because they cannot afford it anymore and on top of this they have a new increased capital gain. They are not rich. They have a lot of debt. People who have cottages for a long time they are ok. They are not selling they are leaving the cottages to their kids.
Trudeau has played you for a fool. He’s got you looking at others instead of his own incompetent spending and corruption. But you will blame someone else because of your envy. Do you like being gaslit!
@@TO-YA-LA-TOYA Not really a great argument. They odds of them having a gain over $250k in a few years is pretty small. Hence no impact.
@@TO-YA-LA-TOYA they are rich as hell if they are getting 250k TAX FREE gains and if they made such a terrible decision to buy something they can’t afford on a line of credit the 250k TAX FREE GAINS should cover it. If they are in a loss position they don’t owe taxes.
Cry me a river.