Is Trudeau proposing to introduce capital gains tax on sale of primary residences?

Andrew Scheer and Justin Trudeau.

” This is extraordinarily bad policy that will hurt Canadian families”

Andrew Scheer and Justin Trudeau.

CONSERVATIVE Party Leader Andrew Scheer in a letter dated August 26 to his supporters claimed that Toronto Liberal MP Adam Vaughan, who was the government’s specially appointed advisor on housing and urban affairs, “wants to introduce a capital gains tax on the sale of primary residences.”

Scheer said it was “an alarming proposal that has leaked out from inside Justin Trudeau’s government, one that would hurt homeowners and make life less affordable for families across Canada.”

Under this new policy, there would be a new sliding scale tax rate applied to capital gains on home sales: a 50% tax after one year of ownership, 25% after two years, 15% after three years, 10% after four years and 5% after five years.”

Scheer said: “This is extraordinarily bad policy that will hurt Canadian families. It won’t control housing prices. It will just make the dream of home ownership more difficult for those who can already least afford it.”

He added: “This new tax will affect people who move for a new job, people who buy a home because they need a place to live right away, but are hoping to find a larger permanent residence, people who have a sudden change in family status because of marriage, divorce or children. There are many reasons for someone to buy a house and sell it in less than five years, and they shouldn’t be punished for it.”

Scheer said Trudeau has already raised taxes on 81% of Canadian middle-class families by an average of $840, and warned Canadians that this latest tax hike could be much more costly.

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18 COMMENTS

  1. We asked 5 active clients looking to buy whether this matters to them, and all of them were not in favor, not to mention every single person who owns that we asked who said the same. Enough taxes on Canadians please, especially unnecessary ones.

  2. We are taxed to the hilt in this country. Military and RCMP are transferred usually every 4 years, if not sooner. This would really screw them over. Thanks Trudeau.

  3. He cant get in for another 4 years or this country will never recover and our kids will suffer for generations to come.

  4. This is terrible and outrageous. The real estate industry would suffer. Alot of people use the money from their home to pay for their care in their golden age. Get rid of Trudeau. He is a disaster to Canada.

  5. Trying to put a capital gains tax on a private residence is on par with trying to reduce a senior’s pension. Political suicide for any political party, particularly the Lieberals in this case, to try this.

  6. It’s not just the government robbing us blinded. Banks, landlords, ins companies, vital statistics, cell companies, grocery chains to name a few take and take and take. After 75 percent is taken off in taxes from your chq the rest of the greedy corporate theifs swoop up the rest. But us Canadian’s won’t do anything about it ” eh “

  7. This is absolutely outrageous . %50??? What if the economy plummets again and those who thought buying a house was an INVESTMENT , are in a situation forcing them to move within 5 years and they literally loose EVERYTHING !!! Pathetic!!

    • Sasha, They wouldn’t lose everything. The tax (if ever made law) would, according to the article, be on only the increase (if any) to the value of a home, then taxed on a reduced sliding scale depending on how long the person owned the home, and then only half of a capital gain is taxable. I wouldn’t want to have to pay any tax either, but just to clarify, people wouldn’t lose everything.

  8. This is complete BS. A fabrication by the Tories. No chance this is part of the Liberal plan. Remember last campaign when the Tories speculated that Trudeau was going to eliminate pension income splitting? Wake up people and don’t be so gullible.

  9. Rattan, thank you for posting the item from iPolitics calling out the Conservative leader for his speculation – which is absolutely false and without any foundation – about a tax on the sale of principle residences. It was a clumsy attempt to make people angry.

  10. Why don t we just give them everything. Let them feel free to piss it away. They don t care. They don t need to they have pensions!

  11. How likely is it the ipolitics article is written by a Liberal group? If there is no truth to the matter, why does one now have to disclose principle residence sales to the CRA? Seems it may be the first step to implementing such a tax. Justin has embarassed the country too many times. Socks and selfies are his priority. And giving “hug therapy” to terrorists.

  12. Adam Vaughan can say it’s not Liberal policy (though the heading on the document says “Party Proposal 2”), but I recall official Liberal policy in 2015 election was for three modest deficits, followed by a balanced budget. How did that go?

    Can’t trust these guys as far as you can throw them.

  13. The point here is that whether this is true or not average Canadians are burdened by old taxes, never mind new ones.I think politicians need to hear this.We don’t want our future generations to be swamped in debt where the government has only one option.Look for more ways to tax.It’s a vicious circle. The past 4 years politicians have been fiscally irresponsible.It is hard to imagine they can think outside the box to correct the overspending. There have been numerous stories of late about offshore holdings.To date there has been no consequence to the holders or those who have created scams for tax evasion.Maybe it’s time to seriously look here for more revenues and deterrents.

  14. I have lived in my current house for two years and have to move due to bad neighbors. It would be very unfair for me and my husband to have to stay in a house for 6 years when the neighbors have made our house a living nightmare since 3 months of moving in. If this passed we would no longer be able to afford a house if we moved.

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