Investing

Changes to Capital Gains Tax in Next Budget?

  • Last Updated:
  • Mar 31st, 2017 5:21 pm
[OP]
Newbie
Dec 17, 2009
27 posts
2 upvotes
GTA

Changes to Capital Gains Tax in Next Budget?

Hi All,

Sorry for the "click-bait" title. Obviously, pure speculation.

However, in speaking to some friends who work in the Finance industry, some Baystreeters are getting worried about changes in the upcoming budget.

Your text to link here...
Your text to link here...

Your thoughts? Would any change create a panic of selling or holding?
199 replies
Jr. Member
Mar 22, 2017
106 posts
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By then, it would be too late. Changes to income tax inclusion rate in the past was effective day of the announcement.

Globe and Mail reporting any major change to taxes will not be happening this year, as Morneau is waiting out what the U.S. will do with their reforms
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Feb 19, 2010
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torcraw2014 wrote:
Mar 13th, 2017 6:21 pm
By then, it would be too late. Changes to income tax inclusion rate in the past was effective day of the announcement.

Globe and Mail reporting any major change to taxes will not be happening this year, as Morneau is waiting out what the U.S. will do with their reforms
If only Junior would follow the Americans' lead on carbon taxes...as in there aren't any. Putting Canada at a greater competitive disadvantage is ludicrous. Somebody should explain the concept to Boy Blunder.
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Jun 1, 2006
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I would not be surprised if the capital gains were changed in the coming budget given the current Liberal government is left of center.
Have a nice day!


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Jun 27, 2007
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Just to be safe, will book profits in major winners and immediately buy back. Imo, its prudent thing to do.
After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: it never was my thinking that made the big money for me. It was always my sitting. Got that? My sitting tight!
Member
Dec 13, 2014
334 posts
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Hampstead, QC
dlhunter wrote:
Mar 19th, 2017 10:06 am
Just to be safe, will book profits in major winners and immediately buy back. Imo, its prudent thing to do.
Hate to tell you, but you are too late to do that...Last day to sell and crystallize was Friday if they announce on the 22nd...Settlement date is what is used and not trade date. You will be stuck with the new tax rate unfortunately. I warned people of this on another thread.
Lets just hope this does not happen, although I am pretty sure it will from the sources I have spoken to. Markets will be affected negatively on this.
Jr. Member
Mar 22, 2017
106 posts
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[quote=leflower post_id=27592930 time=1489941374 user_id=1083095
Lets just hope this does not happen, although I am pretty sure it will from the sources I have spoken to. Markets will be affected negatively on this.[/quote]

Who are these sources? Higher up insiders at Globe and Mail, and Maclean's are hearing they will hold off, and a lot of this is just rumour spreading and speculation (although it doesn't help when the Globe's own columnists are among the speculators spreading the rumours). Maclean's noted neither Morneau nor any actual Liberal Party insiders have given hint or tried to sell it on the usual talk shows, which they have always done with other significant changes that actually happened. This might be a distraction for some other less significant changes they will announce to make those seem less bad.

If there was more truth to this, markets would have been affected negatively already.
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Jun 27, 2007
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leflower wrote:
Mar 19th, 2017 12:36 pm
Hate to tell you, but you are too late to do that...Last day to sell and crystallize was Friday if they announce on the 22nd...Settlement date is what is used and not trade date.
You are right, its settlment date. Well, will hold long term where possibleGrinning Face With Smiling Eyes
After spending many years in Wall Street and after making and losing millions of dollars I want to tell you this: it never was my thinking that made the big money for me. It was always my sitting. Got that? My sitting tight!
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Feb 19, 2010
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dlhunter wrote:
Mar 19th, 2017 3:15 pm
You are right, its settlment date. Well, will hold long term where possibleGrinning Face With Smiling Eyes
Source?

If you sell before budget day, unless Morneau makes the change retroactive which isn't likely, you have effectively sold your shares when the trade is executed, meaning that you have until the day before the budget to pull the trigger. I'd be surprised if the settlement date is the effective date as has been mentioned here but I'm happy to see some evidence of it.

Having said that, I'm not letting the tax dog wave the investing tail so maintaining the status quo as an overall investing and income realization strategy. Besides, the Conservatives will turf out any change to the inclusion rate when they take office in a couple of years. :)
Deal Addict
Feb 9, 2009
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If they are stupid enough to raise taxes when Trump is going to reduce them by the wide margin, our economy will deserve to die a death like France's is starting too right now when they started this "rich the tax" bs.
Member
Dec 13, 2014
334 posts
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Hampstead, QC
Sanyo...you are correct...but Trudeau is a socialist...rob the rich ( and middle class ) and give free money away to those in the lower classes. My source is a partner at Deloitte high up in taxation, and a head of private banking for one of the largest brokerages.
I have reacted to the potential changes...as no way in the world I would pay 40% taxes on gains...I really hope this does not happen even if it will benefit my RY short tremendously.
Jr. Member
Mar 22, 2017
106 posts
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leflower wrote:
Mar 19th, 2017 9:58 pm
My source is a partner at Deloitte high up in taxation, and a head of private banking for one of the largest brokerages.
Does he/she have sources or connections within the Liberal government itself? If not, then it's also speculation. The Globe & Mail and Maclean's parliamentary bureaus, with insiders in the government itself, have indicated there's a good chance they are holding off.
Member
Dec 13, 2014
334 posts
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Hampstead, QC
They need money badly and this is a cash cow...My feeling is its 90%...my 2 sources are saying 75%, so YES, it is speculation.
I would doubt it would be retroactive and as I mentioned your last day to sell was Friday. Lets just wait and see.
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Aug 8, 2012
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leflower wrote:
Mar 19th, 2017 10:10 pm
They need money badly and this is a cash cow...My feeling is its 90%...my 2 sources are saying 75%, so YES, it is speculation.
I would doubt it would be retroactive and as I mentioned your last day to sell was Friday. Lets just wait and see.
You just gave them money by triggering capital gains ;)

Meanwhile everyone who postpones selling indefinitely after any inclusion rate change will not be feeding their cash cow :)

Maybe that was their plan - head fake, get people to sell and pay some taxes now.

I'll stick with the 0% tax I have to pay by not selling.
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Feb 9, 2009
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leflower wrote:
Mar 19th, 2017 9:58 pm
Sanyo...you are correct...but Trudeau is a socialist...rob the rich ( and middle class ) and give free money away to those in the lower classes. My source is a partner at Deloitte high up in taxation, and a head of private banking for one of the largest brokerages.
I have reacted to the potential changes...as no way in the world I would pay 40% taxes on gains...I really hope this does not happen even if it will benefit my RY short tremendously.
Nothing like catering to the poor to get votes -- if they get the stranglehold, no doubt this country will just become the next Greece...and with all the tech investments and such the Libs want to woo in, doing this would be a stupid stupid move.

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