It's very clear that they want to tax the sale of your home. In recent years the federal government has made it a requirement to disclose the proceeds from your home sale on your tax return (still tax free) so they could get a grip on how much potential revenue there may be and to aid them in designing a plan. CMHC is funding a study to examine and suggest proposals for this new form of taxation.
Real Estate is a major driver of the economy. This is how your home is already contributing to the government coffers:
- GST - every new home build and renovation has a component of GST in the purchase price of the home or job and the materials involved.
- Construction Profits - the construction and revovation processes contribute taxes from profits earned by contractors, material suppliers and payroll taxes for employees of these companies.
- Property Taxes - every year homeowners pay a property tax for the priviledge of owning a property. In most cases it is a least 0.5% of the assessed value and usually more. The property tax is the best argument against a capital gains tax on your primary residence as you are already being taxed at a significant rate for ownership.
- The money you use to pay for your home is after tax dollars and purchasing a home is not a tax write-off like in the US for example.
Do you think the government should be taxing the equity in your home when you sell or is enough, enough?
Here is a link to a petition by the Canadian Taxpayers Federation for no home equitey tax. If you agree please take the time to sign. They need to hear from you or they will assume you think it's OK.
- Parry Lagler