Tax

Solutions Lab proposes new federal tax on homes worth more than $1M There is considerable public concern about the level and continued increases of house prices. For several years, CMHC has been funding Solutions Labs about that and other housing issues. Solution Labs “fuel bottom-up collaborative innovation by bringing diverse groups of people together in search of new ways to solve complex housing problems.” The Lab led by Generation Squeeze (“GS”) is called "Wealth and the Problem of Housing Inequity across Generations". The Lab has just reported with ideas they think will make housing more affordable, and make the housing system [...]

Because of the new influence of the NDP, there are new and serious risks, and opportunities, for rental housing providers at the federal level. The key new risk is higher taxes on capital gains on the sale of rental property and other investments. In their election platform, the NDP promised to raise the capital gains inclusion rate (CGIR) from 50% to 75%. Such a change would raise corporate taxes on capital gains by 50%. The change would increase the income tax individuals pay on capital gains by 50% or more, depending on the taxpayer’s other income. See the table [...]