Some cottage owners up in arms, contemplating selling vacation homes | CAPITAL GAINS TAX

Canada's new capital gains rules are making waves in cottage country with some owners wondering if they should sell their vacation homes.

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[boarhog]

These cottages are far from "Middle Class" The average middle class couldn't afford the property taxes let alone the upkeep

[billfarley]

I'm 90 years old. My ancestors built a cabin in the Muskoka region over 100 years ago. Our lake had canoes, rowboats and an occasional 25 hp Evinrude traversing the area. I grew up in this cabin every summer as a boy. We always opened May 24th weekend and closed on Labour Day weekend. Water was hand pumped from the lake and was used for drinking, cooking (wood stove) and washing. The refrigerator was cooled by a block of ice. The toilet was an "outhouse." For me it was thru the 1930s and 1940s and as a young boy it was heaven on earth.
Then in the late forties developers took over the region and within ten years the water was polluted and the lake was overrun with large speed boats (200/400 hp) and many of the "cabins" were demolished and huge mansions erected passing as "cottages." Road traffic between Toronto and Muskoka became horribly congested along with public docks, beaches and campsites. Now I'm not naive to think change is wrong and everything should stay the same. However, looking over the years to present, if this was considered progress then we really blew it.
So right now in 2024 I don't have a lot of empathy for these whiny "cottagers" about their taxes or expenses to keep their "cottages" valid and liveable. What has happened in Muskoka and other parts of cottage country is totally gross. It's all about keeping up with the Joneses, not enjoying a simple, quiet week-end or weeks in the summer. (or winter for that matter) A pox on the lot of them.

[lplt]

how about you dismantle conglomerates who own whole city blocks and double the rent from previous owners

[moomagpie]

Lol those aren't 'cottages'.

[voidwizard]

Those are not cottages. Lakeside mansions is more like it. Definitely not poor.

[Alekkd]

750k Cottage... Yeah... no middle class earners making 100k house hold income have a 750k cottage and 750k house without having bought decades ago..

[lllZOMblll]

I'm sorry but what middle class Canadian can afford a place like that, plus another house!! That's insane!

[RB-]

So this is framed as not a rich person issue, then the example is someone selling a cottage for 750k

[Seawiiplay]

Y'all have spent the last decade destroying cottage culture with your mansions and now you complain about small tax hike :(

[uwyxkzb]

Those "cottages" are luxury homes and all the crying in the world won't draw a bit of sympathy from this taxpayer.

[farmersdotter]

“Cottages”. Those are ostentatious monster houses that are a far cry from the “cottages” families used to enjoy. If they think capital gains taxes are burdensome just wait until the kids start fighting over it because it’s become an asset class and not a place for families to come together and have fun.

[yesman]

Why should they give sooo much to the government over their long term investment. Absolutely ridiculous.

[yrzjfiw]

Mr. Foran don't mislead your viewers with incomplete math, and your statement that "those with more expensive cottages could have to pay hundreds of thousands of dollars more". For discussion purposes, let's assume a 50% marginal tax rate. In that case, a cottage owner will have to have a capital gains of approximately $2.75 million before paying "hundreds of thousands of dollars more" - that is someone who paid $250, 000 for their cottage that now sells for $3 million net of real estate commission. I doubt there are very many cottage owners in that situation.

[jsdrgvu]

No one middle class owns a vacation home in northern Ontario. They cost $$$.

[oiler]

Keep voting Liberal. This is what you get.

[oldmanlearningguitar]

Yeah, those cottages bigger than the average house are owned by the “middle class”.

“Pay hundreds of thousands of dollars more”????

Only if the cottage is worth millions more than when you bought it.

[DudeItsJag]

It's a tax inclusion rate not a tax rate. Which would mean a $500, 000 gain is currently taxed at 50% inclusion, so $250, 000 is taxed. Meaning the $250, 000 gain is added to your taxable income for that year and taxed at your marginal tax rate. This was very poorly explained in this video.

[XrpMaxii]

No thanks ill keep my property longer and enjoy the BBQs and beers out there with my family and friends.

[sticks]

Rich person poor person? The feeling that you don’t care if Trudeau changes the rules as long as it doesn’t affect you. That’s wrong thinking….

[kellieferguson]

Not exactly what I pictured when thinking of a cottage!