Two brown Adirondack chairs on a wooden pier with a yellow canoe. Across the calm water is a brown cottage nestled among green trees. Canada flag is waving on a pole.New rules for taxing capital gains mean quick decisions are required for cottages that families have owned for decades, and investment properties as well.
But maybe you don’t want to rush into anything. Historically, the capital-gains inclusion rate has many times been adjusted up and down. The rate went from half to two-thirds in the late 1980s and then up to three-quarters from 1990 to 1999. In 2000, it wasThe next opening for a change would be after the next federal election, which is expected by fall of 2025 unless the minority Liberal government falls earlier. People may want to hold on to secondary properties until after that election.
The taxable amount of a $500,000 gain under the new rules would be $291,750. That’s $125,000, or 50 per cent of $250,000, plus $166,750, which is 66.7 per cent of the other $250,000 portion of the $500,000 gain.Draft legislation for the new capital-gains rules has yet to be issued. But John Oakey, vice-president of taxation at Chartered Professional Accountants of Canada, said he believes it will be possible for capital gains to be split on the sale of properties co-owned by spouses.
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