Home Equity Tax

There has been talk of this being in the works for a few years now. It's being talked about more and more these days. If this were to ever happen. I would sell my house and move into one of my rentals before the tax came into effect if it was anything major.

Catnippy wrote: ↑ Will this happen? Taxing of sale of primary residence? My home is a major part of my retirement savings.

https://www.taxpayer.com/petitions/no-h ... 1_rintJdXM

You and many others. It would be political suicide for whichever party that does it.

I can see this happening for homes > then a certain value ie $5mil. In the end the government just blew so much $$ in pandemic spending they will be very desperate to get tax revenue up and they will not be able to get all that through growth...more taxes are coming

Maybe a threshold amount and also houses purchased after a certain date is subject to that tax but for it to go retro back to all houses, that would destroy a lot of people's retirement plans. Imagine buying in the 90s when houses in the GTA were like 200K and now it's 1.4M...

I think it's unlikely for it to come to fruition.

Usually with tax laws (Not an accountant) they are only active from the day they come law.
So if you bought a house in 1990, and sold in 2030, and let's say the law only came to fruition 2028:

Primary Residence Exemption from 1990 to 2030
Capital Gains from 2028 to 2030

So, you'd only be paying capital gains for the 2 years. You'd have to come up with a fair market value in 2028 etc... I wouldn't worry too much.

Also, a change of this magnitude would need to be phased in over at least 2-3 years...

The larger issue of how it can affect you, is that property prices might not grow as much as they used to, because people would start buying their primary residence ONLY as a primary residence and less as an investment vehicle/retirement plan.
Eg. You can live comfortable in an $800K, but you buy a $900K cause you have an extra $100K laying around you know the gains on the extra $100K are 'tax free' under the PRE.

So, don't worry too much!

We should expect new and higher taxes like we have never seen before. Our people have become too comfortable with all of the spending that has gone on and the government feels completely within their right to tax us however they feel necessary. The middle class is shrinking and pretty soon there will only be too classes.

It is surprising how many of our fellow voters are actually okay with increasing taxes because somehow they feel like others should be punished for what they don't have.

Political suicide is not a concern and there is zero worry for everyone's favourite party being re-elected.

Certainly possible.

Tax and waste, Trudeau blew so much money in pandemic, need some help to balance budget by itself.

And certainly to make every equal is all about to make everyone equal poor, guaranteed.

Catnippy wrote: ↑ Will this happen? Taxing of sale of primary residence? My home is a major part of my retirement savings.

https://www.taxpayer.com/petitions/no-h ... 1_rintJdXM

They can tax on the capital gain, I.e. the profit btw sale and cost.
In this low interest environment, people can only save in their home, hence all the retirement saving is there.

The goal is to make us all happy but we won't anything. Not being funny or facetious. They told us so much. For those who own property, the plan will be to make the taxes so high that they eventually have to sell. An equity tax has already been introduced in BC and now they can play with the levers whenever and however they so choose. Sadly, though, any funds collected will only fund a UBI that will fund a very, very modest lifestyle and the rest will be scooped up by those who make the rules.

choclover wrote: ↑ The goal is to make us all happy but we won't anything. Not being funny or facetious. They told us so much. For those who own property, the plan will be to make the taxes so high that they eventually have to sell. An equity tax has already been introduced in BC and now they can play with the levers whenever and however they so choose. Sadly, though, any funds collected will only fund a UBI that will fund a very, very modest lifestyle and the rest will be scooped up by those who make the rules.

This is a total scam - first having paid almost half of the price of the home in mortgage interest and now they taxing us on our residential primary home? Why can they find out who is flipping homes and tax those only?