Real Estate

And so it begins... Ontario finance minister wants higher capital gains taxes on house flippers

  • Last Updated:
  • Mar 21st, 2017 9:42 pm
[OP]
Newbie
Jun 30, 2009
55 posts
24 upvotes

And so it begins... Ontario finance minister wants higher capital gains taxes on house flippers

https://www.thestar.com/news/queenspark ... ation.html

So this should prove interesting because there was speculation on what would be in the federal budget. Now with Ontario asking for this, does anyone think it's likely to happen?
24 replies
Jr. Member
Apr 27, 2014
183 posts
50 upvotes
Mississauga, ON
FYI he wants higher capital gains inclusion rate for non principal residences. If you are flipping houses as a job the income is not capital gains.
Jr. Member
Jun 24, 2011
146 posts
54 upvotes
West Lafayette, Indi…
I've been saying from the beginning PRE should be capped at $1Mil profit. Capital gains should be at 75%.
Deal Addict
Dec 5, 2006
3942 posts
327 upvotes
Markham
expatflame wrote: FYI he wants higher capital gains inclusion rate for non principal residences. If you are flipping houses as a job the income is not capital gains.
Most of those people live in the house
Deal Addict
Jul 3, 2011
3876 posts
1079 upvotes
Thornhill
Much ado about nothing or cause for worry?

The inclusion rate was bumped up to 75% in 1990 from 67%. The housing market peak was over and started to decline

It stayed there for a number of years then dropped back to 67%. The housing market was a couple years into a recovery at this point

And then to where we are now at 50%. The market of course hit the stratosphere.

I personally have no problem with ether an increased cap gains for flippers.
Deal Expert
User avatar
Dec 7, 2012
22727 posts
4649 upvotes
GTHA
Would a tax on house-flippers cool off the GTA housing market?
Some economists say the government could help to control the rising cost of real estate in the hot Toronto housing market by introducing a new tax.

Deal Addict
Feb 9, 2009
3380 posts
994 upvotes
foreign tax of 50% or more.. clap clap clap clap clap
Deal Addict
Nov 26, 2004
1926 posts
176 upvotes
So those who invested their down payment in the equity market is going to get hit as well.
Deal Addict
May 31, 2007
3558 posts
527 upvotes
William W wrote:
Mar 20th, 2017 8:49 pm
So those who invested their down payment in the equity market is going to get hit as well.
Yes if you have a non-reg stocks/mutual funds, capital gains tax will increase.
Newbie
Feb 10, 2017
23 posts
16 upvotes
LOL yes take the advice of a real estate agent. 100% objectivity.
Deal Addict
May 31, 2007
3558 posts
527 upvotes
expatflame wrote:
Mar 20th, 2017 5:50 pm
FYI he wants higher capital gains inclusion rate for non principal residences. If you are flipping houses as a job the income is not capital gains.
That's right. If the CRA finds you are flipping houses/condos and not living in them for a long period of time, 100% of the gain will be reported as income and taxed at your marginal tax rate. (ouch)
I'm curious of the CRA really cracks down on this.. yet.
Newbie
May 26, 2008
64 posts
52 upvotes
jonkoktosen wrote:
Mar 20th, 2017 9:10 pm
Domestic speculators, 15,000 of whom recently attended the Canadian Real Estate Wealth Expo in Toronto .
The most shocking for me is the pitches for second lien lending. Basically encouraging people to borrow against their home equity, and lend to buyers that the banks have turned out, for a guaranteed profit, because of course it can only go up.
Jr. Member
Apr 27, 2014
183 posts
50 upvotes
Mississauga, ON
smartie wrote:
Mar 20th, 2017 6:09 pm
Most of those people live in the house
Living in the house doesn't exempt the income from being treated as ordinary income for so called flippers. In general true flippers people who might do a couple of units per year or more will have gains included as income not capital gain.
× < >
Rotate image Save Cancel

Top