The capital gains tax, explained

When the federal government released their 2024 budget last week, they changed the capital gains tax for the first time in a quarter-century. The tax is set to bring in $19.3-billion dollars, and the government says it’ll only impact the wealthiest of Canadians. But many are disputing that.

Salmaan Farooqui, a personal finance reporter with the Globe’s Report on Business, is on the show to tell us about the basics of capital gains and how this tax might affect Canadians.

[therealbenjaminfranklin]

It is a crime to be successful in Canada and taxes is the penalty

[Mike_from_Canmore]

Being taxed on making money is absurd in the first place.

[klnrklnr]

gotta laugh at all the pearl clutchers cryin' about paying marginally more cap gains after the first $250 profit.

[jbt]

How can your guest suggest that RRSPs are exempted from Capital gains tax? All of the capital growth of your RRPS investments are taxed upon withdrawal at an inclusion rate of 100%. All of it. Deferral is not the same as exemption.

[AMALIKKERYM]

Thank you, Globe and Mail, for helping to address the ignorance about the changes and disinformation.

[johnlandry]

So why would anyone want to invest in Canada?

[lori]

They have already floated the idea of Capital Gains Tax on Primary Residences - Unbelievable.

[frtnyid]

Canada struggles to gain investments already.

[kniknayme]

My moms neighbours are getting kicked out because the owner of the house wants to divest all their real estate holdings to avoid the tax increases. So LIberal/NDP coalition its not just the rich that this tax affects.

[matthewtimms]

Taxation is the penalty for being a productive member of society.

[meetup]

They set the target too broadly. Among them are NOT-0.1%-wealthiest people and to-be-retirees. Basically their propaganda of tax on 0.1% is a lie because everyone retires in some way or another.

[krazyivan]

It's time to downsize the canadian government

[Joesmith-dtsy]

Capital gains explained, you make money, the government takes it, so simple.

[cindycheung]

All these extra costs for corporations are going to be passed down to employees. Companies are already struggling to pay employees, now with this, everyone is on the edge of their seats hoping they wont be let go ☹ let alone any raises 😭

Maybe in a booming economy, this move is ok, in an economy with steady GDP decline, this will only hurt Canadians even more…

[barthanson]

I used to agree with a capital gains tax here in New Zealand because as a home owner I thought it was fair to pay tax on money I had gained, especially being gained on something non-productive and possibly speculative.
I no longer hold this view. A. A person, couple or family's home is a necessity and was never intended to be productive. B. The gain is not realized until the property is sold but what if you are forced to sell at a loss? Is there a rebate, compensation or anything that recognizes a loss of capital gain? No... therefore it's a NO to CGTax from me. Hey! and what about inflation! Inflation is caused by the govt. printing and/or borrowing money and this erodes the value of money, meaning houses are forced to rise in cost to adjust for the erosion in the value of money!

[geraldinepark]

So what happens if you sign as a mortgage guarantor for your child who otherwise could not get a mortgage during the crippling interest rates, but do not wish to benefit from it as an investment. I.E. your child sells the house to move but you do not get the benefit from any increased value of the house?

[jojin]

This is quite informative. Thank you for putting this together.

[fredgould]

So if you invested in real estate you’re screwed, so if you own a cottage you’re wealthy now, and the amount of Canadians who own cottages is not insignificant

[sharonflemming]

Yeah it’s the the families who aren’t wealthy who bought cabins years ago to use as recreation and pass on to their kids and now cannot because their kids cannot afford the capital gains… it’s ripping families apart….

[loklikme]

This is confusing. Your telling the viewers that the whole amount is taxed??? 50%up to 250, 000 and 2 third when its $1m This is my understanding of the new CGT and correct me if I'm wrong. The first $250, 000 in capital gains, an individual taxpayer would continue to pay tax on 50 per cent of that gain. For every dollar beyond $250, 000,  two-thirds would be taxable. For example half of the 250, 000 is taxed at marginal rate you keep 125000 plus what left after the other 125, 000 being taxed. When your CG is more than 250, 000 let's say by another 100, 000. The 2 third of the 100, 000 which is 66, 666 will be taxed at the margin rate. This country have natural resources and the best one the government always choose are the people pockets. Good luck everyone