Should I Sell My Condo Before the Capital Gains Tax Increase?
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- Опубліковано 2 тра 2024
- Consumer question #3 from the May session of our popular consumer Q/A segment, ‘The Situation’!
Urmi once again asks John to respond to the detailed questions you send in about the real estate decisions you are making as you navigate through the Toronto area housing market.
Watch Question #1: Why is My Pre-Con Condo Worth Less Than What I Paid For It?
Watch Question #2: Is My Investment Condo Tax Free if My Son Lives in It?
If you would like to send in your questions to be featured on a future episode, please email askjohn@movesmartly.com
If you have a more specific or particular real estate situation to discuss with John and his team at Realosophy Realty, connect with John at movesmartly.com/meetjohn
Connect with Us
John Pasalis, President and Broker, Realosophy Realty, Toronto | Email: askjohn@movesmartly.com | Twitter: @JohnPasalis
Urmi Desai, Editor, Move Smartly | Email: editor@movesmartly.com | X-Twitter: @MoveSmartly
About This Show
The Move Smartly show is co-hosted by Urmi Desai, Editor of Move Smartly, and John Pasalis, President and Broker of Realosophy Realty. MoveSmartly.com and its media channels on UA-cam and various podcast platforms are powered by Realosophy Realty in Toronto, Canada.
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Don’t sell if you don’t have to. And keep your property forever if you can
There's going to be a lot of closings before June 25th. Lawyers are going to be very busy at the same time and then, back to very little activity...Since the market is slowly dying day after day. Thanks to the mean government !
Omg. That sounds exactly like our situation. Moved out of our 2 bedroom downtown 6 years ago, kept it as a rental, and envisioned downsizing one day or letting our kids live there if they went to school or worked downtown.
I DID NOT know that if we did move back and made it our primary residence that we would have to pay captial gains on the portion it appreciated during the time we rented it out! As an aside, we got our condo appraised when we moved out, so we would only pay capital gains on the difference from that point on right? Not on the original purchase price?
That's correct. During the years you lived in the condo as your primary residence, that gain is tax-free. You would only pay a capital gain during the years that it was not your primary residence. This means that when you move back in, you'll want to get another appraisal done so that you have the value of the property at the start and end of the period that it was being used as a rental
Got it. And would that capital gains tax be in the year we would hypothetically move back in? Or in a future year when we sell the property?
Quick question and I think I already know the answer. These capital gains don't apply if you are selling your current primary residence and moving into your new home? right?
Correct, the capital gains change does not apply to your primary residence. It would only apply to investment properties (and of course any other investment where capital gains were already taxed)
The government is so self-interested. The conservatives are a disappointment.
Yes sell! Because if you can't answer this question yourself you require assisted living.
This guy is soo ridiculous why would you say if your paying capital gains it means you've made a lot and it's not the end of the world!
Canada has the highest income tax brackets on the G7 meaning the money invested into a property was already taxed the the highest level....
To now turn around and take 67% of the profits of already taxed money which citizens risked in an investment is wild! Even if it's after the first 250 its still ridiculous considering the government can't keep cars on the driveway and criminals in prison. Why do they even deserve almost 67 percent on the dollar after already taking the most taxes of any country and also taking 53% of the most productive citizens salaries! Why?
First world problems. Shhh!
They don't "take 67% of the profits"... 33% is tax free... and the other 67% is taxable. So if your tax rate is 50%, you pay 0.5 x 0.67.
For gains less than $250K, it's 50% tax free... 50% is taxable.
@@user-rp9my9ki1n You know what I meant your right they still don't deserve anymore money. It's too much
To keep cars on the driveway and criminals in prison, theoretically. Hope that answers your question.
You do not understand how the capital gains taxation works. 67% is the inclusion rate above $250k, not the percent of tax you actually pay.