Ask the Expert: Steve Garganis – With the capital gains tax hike on its way out, is this your chance to buy an investment property?
With the capital gains tax increase looking less and less likely, how should Canadians be thinking about investment properties? Is now the time to buy?
Earlier this year, the federal government announced that it will be deferring the effective date for the proposed capital gains inclusion rate increase to 66.67% from 50% to January 1, 2026.
The proposal to increase to the capital gains tax was first introduced last April applicable to gains above $250,000. (For gains below $250,000, the same 50% capital gains tax would apply.) However, the government didn’t have the opportunity to table the legislation before parliament was prorogued.
However, this capital gains tax increase would have left some people in a tough position.
Related: How capital gains taxes work in Canada
Some that entered into new construction agreements in 2022 were the most vulnerable, as they would have purchased when real estate values were inflated during the lower COVID-era mortgage rates. (However, this may not be the case for all, as property values in general, are down across Canada compared with 2022, with condos taking the biggest hit in Toronto and Vancouver.)
Family cottage owners and long-time property owners with larger capital gains would also be affected. Read More – Interview with Steve Garganis
I hope you will enjoy this article and if you have any questions or would like to discuss I am always available.
Your best interest is my only interest. I reply to all questions and I welcome your comments. Like this article? Share with a friend.
Steve Garganis: 416-224-0114; steve@canadamortgagenews.
