The big suck

Steve and Trevor sold me a house a few years back. It was memorable since we did the deal on Canada Day. And those were the gentle days, before governments had become so mean and hungry.

S&T made a business of buying original brick boxes in North Toronto, blowing out the back for the ubiquitous granite-kitchen-and-great-room addition, sprinkling potlights, then selling a few months later for twice what they paid. When it was still respected to be a capitalist, entrepreneur and risk-taker covered in drywall mud that was perfectly okay.

Today they’d be criminals. Tax cheats. Victims of a state insatiable for its pound of real estate flesh.

As the 2-4 weekend was about to start the CRA put out a boastful media release crowing about the way its recently Hoovered renovators, speckers and flippers. In the past three years the revenuers tore through 30,000 files on property deals, finding an extra $592 million in taxes and slapping on almost $44 million in penalties. Lately those penalties have been increasing annually by almost $20 million.

In the crosshairs are guys like ones who sold me that property.

“Property flipping is not illegal,” says the CRA. “Canadians have the right to purchase and sell property for a profit. However, the income resulting from these transactions is considered business income and must be reported to the CRA.”

That’s right. The money made improving a property you subsequently sell for more than you paid (or invested in) is considered income. That’s drastically unlike buying a weed stock that triples in value in 120 days which you can unload, claiming the profit as a capital gain. The reno profit is lumped on top of any other income you might have, 100% taxed at your marginal rate. In contrast, the capital gain from the weed stocks is a gift. Half the profit is completely tax free and the other half is taxed at your personal rate.

So, $200,000 in profit made flipping a house for someone with an outside income of $80,000 would result in overall tax of $64,120 and a marginal rate of almost 48%. But if the same person made the same gain on a stock, the year’s tax bill would be $40,800 and the marginal rate 5% lower. Besides, no drywall mud. No permits. No trades. No financing. No labour.

What about the defense that the renovated house was actually the principal residence of the guys who fixed it up, and therefore should be exempt from any tax?

No more. The Canada Revenue Agency says that ship has sailed.

“Individual renovators buy real estate, renovate it, live in it for a short time, and sell it so they can claim the principal residence exemption several times in their lifetimes,” says Ottawa. “The CRA acquires and analyzes third-party data and has found that some flips are not being reported or are being reported incorrectly. The profits from flipping real estate are generally considered to be fully taxable as business income. The facts of each case determine whether such profits should be reported as business income or as a capital gain.”

In other words, the principal residence exemption is kaput. The profit will be taxed as a capital gain (ouch!) or income (holy crap!). This clearly-stated shift in emphasis should help everyone understand why the annual tax return now requires details of any real estate sale to be spelled out. We’re clearly on the path to a much more restrictive definition of what tax-free profits will be. Watch for that.

But there’s more. The CRA is also lowering the boom on AirBnB rental proceeds (taxed as business revenue and added to all other sources of taxable income). It is now requiring condo developers on Vancouver and Toronto to hand over records of assignment sales for units which change hands prior to completion, making these flips fully taxable – again, as business gains (not capital gains). By sending an “unnamed persons requirement” to the developer, the feds force them to surrender lists of owners – which means they can then go after them for unpaid HST.

Meanwhile, a separate project is hunting down the undeclared income generated by all those basement suites and glorified garage-laneway rentals in the Lower Mainland. Remember, kids, if you rent part of your house and make any structural alteration to do so (a new doorway, a separate bathroom…) the capital gains exemption for the property could be damaged or lost. In a hood where real estate values have tripled, or more, that could be costly.

Tax, tax and more tax. Apparently the budget didn’t balance itself after all.

167 comments ↓

#1 Exilled on 05.18.18 at 5:14 pm

Sir Garth:

It’s all good!!

#2 Disagreeable Dork on 05.18.18 at 5:15 pm

I normally agree with you Garth but not in this case . For people WORKING on renovating a property, its clearly a job and hence should be taxed as such. Given that they live on site should not allow them to get off completely tax free!! This one goes to the CRA!!!

#3 brian1 on 05.18.18 at 5:15 pm

Another shooting. How could he do this to his father, his mother and his family. If ever there was a call for torture, this would be one.

Bankers were skinnier in 1907. – Garth

#4 Exilled on 05.18.18 at 5:22 pm

Sir Garth:

In your Instagram top picture! Why is the doorway into the bank so small and arched so low? And the door leading outside so restricted?

#5 Sidelined Buyer on 05.18.18 at 5:23 pm

Holy, this is going to end in tears for some families…

#6 Retired on 05.18.18 at 5:24 pm

I’ve been paying 50% marginal for years while these flippers have been flapping through the crevices. No more. Comrade Horgan and Jacinda will sort this lot out while Dressup keeps handing out any remaining tax dollars. I am now retired on the Island in my early forties. I will eat beans, rice and daffodils while this all unravels. Full speed ahead. I mean down.

#7 tccontrarian on 05.18.18 at 5:25 pm

“That’s right. The money made improving a property you subsequently sell for more than you paid (or invested in) is considered income.” GT
————–
Even if you live in it for, say, 5+ years? Is there no provision to reflect different scenarios?
—————-

“That’s drastically unlike buying a weed stock that triples in value in 120 days which you can unload, claiming the profit as a capital gain.” GT
———————
Sorry Garth, sometimes I had to hold these for 6 months, or longer! And, there’s the ‘additional risk’ for these to lose 100% of their value (as opposed to ‘only’ 50% for RE).
————————————

“The reno profit is lumped on top of any other income you might have, 100% taxed at your marginal rate. In contrast, the capital gain from the weed stocks is a gift. Half the profit is completely tax free and the other half is taxed at your personal rate.”-GT
————————–

I’ve tried to explain the preferential Tax treatment of Cap.Gains income vs grunt-work income, and most people just don’t get it. I’ve given up!
“Too risky”, they say about the stock-market. To this, my favourite reply is: “the biggest risk of all, as far as I’m concerned, is to stay ignorant!”

TCC

#8 crossbordershopper on 05.18.18 at 5:30 pm

socialism in the end is a bad thing, the rich arn’t happy, the poor arn’t happy and everyone else in the middle just goes to work for very little above the guy who doesnt.
CPP is a perfect example, work all your life and contribute for a 700 month cheque at 65, where the clown who didnt do anything signs up for maximum GIS.
Justin has been talking to his father for way too long, and the world will change in 20 years compared with the past, when this fiat currency game ends its not good for anyone, we are in the last 20 years of this game,
Canada simply doesnt have enough rich people to pay taxes thats why they really squeeze the middle class, since the poor have nothing to take.
so this is a mild canadian version of estate planning, the prinicpal house is the last big asset to start attacking.

#9 James on 05.18.18 at 5:33 pm

So it’s necessary to understand a few basic accounting principles here. What you are talking about is a “builder” per the tax code, and there is nothing new about that. This has nothing to do with the abolition of the personal residence exemption. If someone buys a home to renovate and sell this is a business activity and taxes as such. Any accountant could explain the difference and that this is not new. What is new is that they are going after what has always been taxable income -profits on flipping -but which evidently no one has been reporting.

Point in case: there has been no change to the underlying tax codes, has there? So what you’re up in arms about is new means to enforce old laws.

Who said anything about being up in arms? As stated, the news is enforcement. Calm down. – Garth

#10 Smoking Man on 05.18.18 at 5:34 pm

I’m a beast…..

No sleep and still going hard gartho..pics on twitter.you know this won’t end well for me if you have been following my linked in rants.

Not every one can do this…..

T2 sucks.. I’m coming back to Canada after he’s crying in a room, alone and blaming Russians ..

#11 crowdedelevatorfartz on 05.18.18 at 5:37 pm

Interesting topic.
I have an acquaintance who has been buying, renoing and flipping “principal residences” for at least a decade.
His wife runs it like a business, designing, hiring trades, getting permits, etc.
Then they tax free flip and she pulls her “salary” out of the profits and they repeat….
I mentioned the possible tax implications to them and they said “never happen”, “everyone does it”, ” How will they find us”…..on and on and on.
10 “primary residences” in 10 years seems like a bit of a CRA red flag to me ……..
I’m sure they’re not so smug now.

#12 Musty Basement Dweller on 05.18.18 at 5:38 pm

As a musty Basement Dweller from the left coast I fully support the described CRA initiatives.

#13 Screwed Canadian Millenial on 05.18.18 at 5:40 pm

Maybe if we didn’t cut corporate tax rates in half over the past few decades, the government would have sufficient revenues and we would not have racked up all these deficits and debt over the years. Cause and effect. Suck and blow, as Garth puts it so romantically. Government has to get the revenues from somewhere, you don’t want higher wages for workers which would increase tax revenues, so it might as well go after housing speculators.

Conservatives think money grows on trees and we can just run massive deficits forever and sell off valuable public assets like Harper and Harris did. Like Trump is doing and has taken to a whole other level.

I would much rather we get it from tax on corporate profits.

http://projects.thestar.com/canadas-corporations-pay-less-tax-than-you-think/

inb4 but hurrdurr cut spending!

I would gladly cut CPP and OAS payments in half. And also limit boomer healthcare spending. Entitlements for the elderly are killing us. No surprise that’s the Conservative voter base.

Don’t get mad at me. The truth hurts sometimes.

#14 James on 05.18.18 at 5:41 pm

One more clarification: when you buy an asset for use, it’s capital. When you buy it to resell-as is it with improvements, it’s inventory.

As I said basic knowledge of accounting principles under ASPE or IFRS could tell you this. Unless you want to purposely feign confusion over the matter, when as the ex-Minister of Revenues you should understand the difference between capital and inventory.

#15 Brian Ripley on 05.18.18 at 5:42 pm

Meanwhile, a separate project is hunting down the undeclared income generated by all those basement suites and glorified garage-laneway rentals in the Lower Mainland… Garth

My long term Housing Starts chart is updated and now projects BC starts will be down -4% Y/Y
ie: fewer Airbnb and unlicensed suites. (CMHC has Vancouver’s vacancy rate at less than 1%)
http://www.chpc.biz/housing-starts.html#Annual

Projected Year End 2018 Totals​
Canada = 202,467 (+4% Y/Y)
ON = 75,027 (+12% Y/Y)
​BC = 42,470 (-4% Y/Y)
​QC = 41,313 (+10% Y/Y)
​AB = 27,199 (-11% Y/Y)

#16 Bob on 05.18.18 at 5:45 pm

This is fantastic news! I never thought I’d be cheering on the CRA, but great job guys! Tax those scumbags into oblivion!

#17 Eco Capitalist on 05.18.18 at 5:47 pm

Fourth paragraph, I think that is meant to be 592 million in taxes and 44 million in fines/penalties?

Which is a LOT of fines.

#18 David on 05.18.18 at 5:52 pm

Presumably Garth you are fully and 200% supportive of CRA’s decisive actions to combat the tax cheats. Same goes to you service employees who demand 20% tips but feel it’s your right not to claim it. Big data is here. Oh, and don’t even think about going out of country while claiming EI benefits, cause the border data flows to ESDC and service Canada. Finally we have a CRA administration serious about combatting fraud.

#19 renter in Surrey on 05.18.18 at 5:56 pm

Finally CRA enforcing Income Tax Act.
I’d say they need to audit last 10 – 15 years of transactions at least.

Being “risk-taker covered in drywall mud’ is still respectable, it has nothing to do with ITA.

Oil rig employee wrestling with steel pipes at -40’C in Alberta pays income tax on every cents of earning (minus appropriate tax credits and deductions), why flippers shouldn’t? He is risking loosing his fingers or life, I’d say it’s more important than money.

Having said that, we pay too much damn taxes here in Canada.
It has to change.

#20 Ace Goodheart on 05.18.18 at 5:56 pm

Who personally owns an income property? Does anyone seriously still do That?

It’s all about numbered corporations, roll overs and retained earnings.

The wealthy long ago set up a system to protect their money while they tax everyone else to death.

Just use the system they built for themselves (cough…and you the general public that they pretend to have their children/politicians represent).

The system is rigged.

But who says you have to play by the rules?

#21 Alan Dee on 05.18.18 at 5:58 pm

Your copyright notice on the bottom of you web site pages looks to be out of date:

Copyright © 2007-2017 Garth Turner. All Rights Reserved.

I guess I focus on crap that matters. – Garth

#22 brian1 on 05.18.18 at 6:07 pm

I’m sorry, but it had to be said.

#23 FOUR FINGERS WATSON on 05.18.18 at 6:11 pm

#10 Smoking Man
T2 sucks.. I’m coming back to Canada after he’s crying in a room, alone and blaming Russians ..
…………………..

I would love to be alone in a room with T2. He would be crying, but he wouldn’t be blaming Russians.

#24 Shawn on 05.18.18 at 6:11 pm

Buy US small caps

#25 When the Whip Comes Down on 05.18.18 at 6:17 pm

Lol, well, I guess that, like, sucks. Perfectly titled blog entry. Love it.

#26 Alex on 05.18.18 at 6:23 pm

The solution is obvious: abolish the capital gains exemption. Treat all income the same, regardless of whether it came from honest labour or sitting on assets.

#27 Suede on 05.18.18 at 6:24 pm

So much money is going to head into stocks in the next decade.

Will be fun to watch.

in 10 years, cap gains will be heavily taxed and we’ll be like Sweden, disclosing everyone’s tax return publicly.

#28 Smartalox on 05.18.18 at 6:29 pm

It’s about goddammned time those free-riding flippers got tagged to pay their fair share. I’m not sorry about this. You said it yourself, this announcement reflects increased by ENFORCEMENT of tax laws, not the introduction any particularly NEW laws.

The best are the assignment flippers: first, the developers tried to take the CRA to court to avoid releasing so-called ‘confidential’ information on purchasers. But the courts pointed out that developers had no claim to privilege, and information relayed to CRA remained confidential, provided that it was not released publicly.

Another thing to consider: the rules state that assignment BUYERS are liable for paint taxes on assignments if the seller of the assignment exits the jurisdiction without paying the taxes owed. In fact, the rules state that the buyer hold back a portion of the sale price to cover those taxes. I fear a lot of amateurs will learn that one the hard way.

This move to increase enforcement will do more to burst the RE bubbles in this country than B20, foreigners tax, and lower amortization combined.

#29 georgist on 05.18.18 at 6:30 pm

Most people who profit from property are not doing a quick buy/upgrade/flip. They hold and then sell as speculators in rising land prices.

I have no problem with someone buying at 100k, adding say 50k value and selling at 170k (let’s say they bought at slightly under a fair price).

The problem is people getting huge gains because of the increase in the value of the land due to either speculation due to banks printing like confetti or due to value added by society (such as a new subway). They have done nothing. Tax them out of existence.

#30 Bob Dog on 05.18.18 at 6:30 pm

It would all be much simpler if the criminal central banks just let interest rates fluctuate instead of lending money far below the rate of inflation.

#31 Moses71 on 05.18.18 at 6:35 pm

Nothing wrong with upping the ante on existing laws’ enforcement tactics. Anyone who has flipped a house in the past were surely looking over their shoulder for a bit post sale. The laws were already there for many years already. If you don’t like it, lotsa countries won’t tax you on your house flipping income, I’m sure. Have at her. They’ll bite you in other ways. Or you could listen Garth ha

#32 Willy H on 05.18.18 at 6:36 pm

When an unhealthy % of your GDP and economic growth are predicated on over-valued residential real estate, with thousands upon thousands of greater fool lemmings willing to pay as much as they can borrow to get in, you have a serious problem. This blog has been peddling this mantra for far too long.

No wonder the B20 hounds were released and it should be no surprise the fox-like CRA is going after their pound of flesh.

Tax avoidance is perfectly legal, tax evasion is another story folks. This not about capitalism vs the nanny state. It’s about blatant in-your-face tax evasion.

Hope the CRA chases these speckers, flippers and amateur landlords right down the dark holes they crawled out of, as this market spiralled out of control.

#33 -=jwk=- on 05.18.18 at 6:37 pm

In other words, the principal residence exemption is kaput.

Oh, please. The free ride for flippers is kaput. About time. And you wanted high income sole proprietors to be able to incorporate so that wouldn’t be income too!?

Conservative definition of income tax: something everyone else should pay except me.

I think less of you for isolating nine words out of context. – Garth

#34 Homeless in B.C on 05.18.18 at 6:40 pm

Got the voicemail from CRA yesterday. Officer Eric Martin tells me I have broken the tax law and will be taken to court and I should contact them immediately. So I called the number 613 975 9973 and sure enough the guy that answered said “CRA” I said I got his message and was worried. He asked my name so I told him it was Heywood Jablome and sure enough he had my file! Who knew? Officer Martin told me I was going to be taken to Canada Court for my criminal conduct. I told him I was going to hunt him down and turn him into road kill as he was a POS. He hung up, so I called him back and got on him some more. He hung up again. How are these goofs going to get any money if they keep hanging up on people? I still have a few bucks on my calling card so will call him again tomorrow and the day after. I might Facebook his number and get the whole world to call him. ha ha
A good weekend to all.

#35 Smartalox on 05.18.18 at 6:41 pm

Capital gains vs. Income:

Capital gains receive preferential tax treatment because they are earned by risking something that you already have. Capital can sit unrisked in savings (earning fully taxable interest) or it can be invested at greater risk for greater gain. I know which one I prefer.

Income from employment is taxed fully, because it’s seen as low risk: we tax wealth, and not health, so since you don’t have anything until you earn it, there’s no risk of losing anything you already own, by working. The risk to your health, from working, and the cost, is entirely different.

#36 Smartalox on 05.18.18 at 6:47 pm

One more thing to remember when talking about taxing housing flips for profit: the taxes are paid on PROFITS. Renovators to deduct the costs of materials and labour (sweat equity) incurred to improve a property, even the commissions earned to sell a property, against the profits from the sale.

If the profits are marginal, the taxes are minimal.

If corners are cut, and prices inflated to boost profits, expect taxes to be boosted, too.

#37 Adrian on 05.18.18 at 6:51 pm

I agree that it isn’t okay for one group to earn a bunch of income without reporting it, or with only minimal taxation, while some else earning the same income by different but also legitimate means pays a much higher rates of taxation. But then, I would probably say that is just as true about the difference between capital gains (i.e. income for the wealthy) vs labour-based income.

(The rest of my comments are primarily about yesterday’s post & responses, though I tie it back in to today’s post at the end:)

1) Electrical grids are protected by fuses and circuit breakers that significantly limit expensive damage from an overcurrent event, whether from a tree hitting a line or a solar flare.

Furthermore, when it does go down there are numerous teams of professionals who specialize in getting it working again. It isn’t just the coffee & debit machines, but entire factories & facilities that stop functioning without electricity. If the grid stays down or becomes inconsistent, we have bigger problems than not being able to pay for coffee. This technologically advanced modern economy heavily depends on the grid functioning consistently.

2) Gold isn’t money or a hedge against inflation, but it IS a valuable commodity that acts as a hedge against (geo-)political uncertainty.

David Graeber’s research shows that metal coinage does well during eras of war & institutional breakdown, and they tend to switch every ~500 years with eras of virtual/debt-based money. We’re ~40 years into that now, but unlike past eras of virtual money the protections so far have been for creditors, not debtors.

3) Private bank loans creating deposit money is very definitely a problem for the economy. Higher private debt:GDP ratios are associated with slower growth, lower wages, & higher inekwuality. (The ‘cue’ on my keyboard broke, so ‘kw’ will have to do… my apologies.) And with private debt so large as a percentage of GDP, credit cycles now also dominate the business cycle & the macroeconomy.

But the biggest problem with eliminating cash & government created money actually has to do with the effect that it has on non-bank balance sheets. The basic rule of accounting (i.e. “Assets – Liabilities = Ekwuity”) holds true for every individual, firm & sector, and also aggregates up to the (inter-)national level. Since banks MUST have positive ekwuity or else they’re bankrupt, the more we financialize the economy (i.e. the higher private debt-to-GDP goes) the more all of the non-bank sectors are forced into negative ekwuity (last time, I promise!).

That’s the real damage that can occur: allowing commercial banks to create all of our money as bank loans/deposits can bankrupt the non-bank sectors of the economy. In this I agree with you Garth, cash and other forms of monetized sovereign debt (e.g. commercial bank ‘Reserves’) are a MUCH better alternative to that. Of course, that also actually means we shouldn’t WANT the sovereign government’s budget to balance itself ;-)

#38 Newcomer on 05.18.18 at 6:55 pm

Clap, clap, clap! It’s about time.

We don’t let fishmongers buy fish at the dock, sell the fillets in their shops, and call the income a capital gain, so I can’t see why we were letting flippers do so for all those years.

#39 Linda on 05.18.18 at 6:57 pm

So how long will it be before homeowners will be taxed for any home improvements made during the period of home ownership? At this point in time I believe homeowners are ‘safe’ once they’ve occupied their principal residence for 3 years or longer. The day may come when those who have been asking why proceeds from the sale of a principal residence should be exempted from tax will get their wish & all housing will be subjected to taxation.

#40 Newcomer on 05.18.18 at 6:59 pm

#3 brian1 on 05.18.18 at 5:15 pm

You are on a finance blog advocating for the torture of a 17-year-old. That’s not OK. Go talk to someone, like a priest or a psychologist.

#41 unbalanced on 05.18.18 at 7:00 pm

In the past 3 years they have gone through 30,000 files . How far are they going back? Maybe they should hire some more people to catch the cheats. I know many people that have bought and sold every 2 to 3 years and made a killing.

#42 Shawn on 05.18.18 at 7:03 pm

US small caps > S&P500 > Emerging Markets > TSX > Europe

#43 Triplenet on 05.18.18 at 7:05 pm

Years ago I wrote code for a reciprocal agreement with RevCan and provincial gov’t. This was a transfer of all pertinent info for every real property transaction. ALL data. They’re finally using it.

#44 jim on 05.18.18 at 7:10 pm

“Meanwhile, a separate project is hunting down the undeclared income generated by all those basement suites and glorified garage-laneway rentals in the Lower Mainland”

Which would be most of the rental stock. I recall living there as a student, noting the great number of suites that were undeclared. It must be worse these days, with the mortgage load that families are carrying.

That’s going to have some implications for the market, since many families are using basement tenants to bring in extra income.

#45 John on 05.18.18 at 7:12 pm

JAMES

How slow are you? Garth is not arguing that this is wrong. He is stating the fact that CRA is now actually going after people … been going on a long time and they have done pretty much nothing. Now it’s changed. Maybe work on your reading comprehension…

#46 brian1 on 05.18.18 at 7:17 pm

Newcomer; Stop playing the victim game.

#47 WUL on 05.18.18 at 7:21 pm

This is good news. Existing laws should be enforced with vigour. If laws are not enforced, democracy is harmed. If the law is a bad law, repeal it.

I just returned from a week in Toronto on bidness. I had not been in Hogtown since the ’80s. I like going to Toronto. I did some business on Bay Street for the first time in my life and will add that to my CV. Meetings on the Islands, accommodation and fun in the Distillery.

Enjoyed the UP Express experience. Some of those houses that are visible from the tracks beyond the Bloor station should be free. Do people pay money for those houses?

This morning on my walk while awaiting the coffee shops to open I stood at Bay and King at 5:30 a.m. That intersection oozes immense power and darkness. There is nothing pleasant about that corner.

#48 Leftover on 05.18.18 at 7:22 pm

Real estate has long been tax evasion for the masses. Good on the CRA if they are enforcing existing rules.

We don’t need empty house or spec taxes, we only need to collect the taxes that are already on the books.

It’s about time.

#49 FOUR FINGERS WATSON on 05.18.18 at 7:24 pm

#41 unbalanced on 05.18.18 at 7:00 pm
In the past 3 years they have gone through 30,000 files . How far are they going back? Maybe they should hire some more people to catch the cheats. I know many people that have bought and sold every 2 to 3 years and made a killing.
………………

Right you are…I know people who have been doing that for fifteen years.

#50 Reality is stark on 05.18.18 at 7:27 pm

Government at it’s best.
Create a housing bubble with ultra low rates. Create a larger parasitic public sector. Tax the hell out of the artificial gains as you go back through transactions and suck the cash from the only area you can steal it.
Eventually everyone is left with nothing and the economy can’t support good jobs for the young.
Most people in the comments are blind to the way their governments are raping them over time.
Take the incentive out of the system and watch real poverty take over. Celebrating CRA revenue generation from job creators is nothing to be proud of.
Entrepreneurial people are the life blood of any nation.
Penalizing them doesn’t do you any favours. Ask a starving Venezuelan how it worked for them.

#51 Fish on 05.18.18 at 7:28 pm

I do not believe this Garth

#52 Wallflower on 05.18.18 at 7:30 pm

pointless having rules/laws, etc without enforcement mechanisms…. finally, some enforcement

#53 ANON on 05.18.18 at 7:30 pm

Apparently the budget didn’t balance itself after all.

Of course it didn’t. Because it can’t. :)
There is no money, only private and some public promises of more, piled upon more private and public promises of more. We need moar promises, or else. :)

#54 Darcy on 05.18.18 at 7:32 pm

Isn’t this just applying the rules? Not sure I feel bad for people if they were not paying the rightful tax they owe under the rules we all play under.

#55 RentYVR on 05.18.18 at 7:33 pm

@ Screwed Canadian Millenial

Or maybe the government should just spend less money and let us hard working taxpayers keep more of it?

#56 Democracy Is Mob Rule on 05.18.18 at 7:34 pm

#8 crossbordershopper on 05.18.18 at 5:30 pm
socialism in the end is a bad thing, the rich arn’t happy,
_______________________________________________
In theory, there aren’t any rich people in socialism, since everyone is equal. However, some are more equal than others. Fidel Castro was rich and probably happy. Part of his happiness was obtained by forcing others to live by his rules. That is every politician’s dream.

#57 AK on 05.18.18 at 7:34 pm

“S&T made a business of buying original brick boxes in North Toronto, blowing out the back for the ubiquitous granite-kitchen-and-great-room addition, sprinkling potlights, then selling a few months later for twice what they paid.”
——————————————————————–
It’s about time.

I’ve been paying capital gains taxes on my stock sales since 1987….

#58 MaxBerniersShorts on 05.18.18 at 7:41 pm

OK Garth, I’m confused. Haven’t you in the past slammed HGTV renoporn as fuel for FOMO? Haven’t you warned those renting a basement suite to declare the income? Now it sounds like your sympathizing with the Reno-flippers and AirBnBers?!

#59 Fish on 05.18.18 at 7:49 pm

Pretty simple, the government don’t eat hay
pay up

Happy 2-4 weekend
Don’t forget the Lovely wedding!!!

#60 DD on 05.18.18 at 7:52 pm

Let’s not forget that Trudeau has been threatening to increase the capital gains inclusion rate from 50%, and Jagmeet Singh is making no secret of his desire to increase cap gains to 75% and eliminate the principal residence exemption. Neither deserve to govern after next year’s election.

#61 Scamcouver on 05.18.18 at 7:53 pm

The amount of people that report in BC = 0.

That is right. Nobody tells the CRA anything.

I know they have increased staff in the CRA Surrey branch, but I will only start believing the crackdown once I start seeing people thrown in jail.

Everyone and their dog has an illegal rental in BC.

Just soft fraud. Don’t worry about it.

#62 i.am.cra on 05.18.18 at 7:56 pm

The rules for treatment of gains from property has always been in the Income Tax Act. People just did not discloase and self-assess their gains from property dispositions.

All gains are taxable, whether as business income or as capital gains. For a residential property, if the gain is determined to be a capital gain, then the next determination is whether the principal residence exemption applies to this capital gain to reduce the capital gain to nil.

#63 When Will They Raise Rates? on 05.18.18 at 7:58 pm

A friend of mine got this in the mail yesterday:

https://i.imgur.com/BHWOUuU.jpg

^ claims that there is “free government downpayment assistance” that enables you to buy a home with “no money down”

What the?

#64 Paul on 05.18.18 at 8:00 pm

What a bunch of whiners, divide and conquer. I pay taxes at X so everyone should pay the the same or more.
The Government just loves all the little people. EVERYONE pays to much. Instead of rubbing your hands at people getting bled let’s go after the basterds that are taxing Canadian’s on everything that moves!

#65 Conn Smythe on 05.18.18 at 8:00 pm

#279 Georgist

Georgie, Georgie, Georgie. I watched your video on Werner and duh, banks create money. That’s my whole point!!!!!!!!!!!!!!!!!!!!!!!!

What the bleep didn’t you get??????????????

What do you think fractional reserve banking is? Banks create money via loans on deposits, and it has a multiplier effect because once deposit A is made it multiplies through the system and creates multiples of its original value via loans. What didn’t you grasp of this? Yes, banks are more than just intermediaries.
Sheesh, that has always been the case! You need Werner to tell you that? Galbraith explicitly explains in the Age of Uncertainty and What Everyone Needs to Know about Economics this very process.

#66 Fish on 05.18.18 at 8:06 pm

OH YEAH, always NO POT
Together for ever The wedding!!!!!!!!

#67 HCG on 05.18.18 at 8:11 pm

New LOC backed by CMHC mortgages… so B. Morneau using tax-payer funds to bail out $HCG yet again.

2008 Canadian banks got $114B in bail-outs including secret amount from bank of canada.

#68 tccontrarian on 05.18.18 at 8:12 pm

@ Tater
—————–
“Quite happy with my returns. Alpha is in the high teens, total return is lows 20s with Sharpe and Sortino above 1.

And you’re dead wrong about return being the only useful metric. As an example imagine 2 strategies, one that returns 20% with 15% standard deviation and another that returns 10% with 5% sd.
All else equal, the second strategy is far superior as you can leverage it to get the same returns with less risk*. This is a simple example, that doesn’t take into account liquidity, financing cost etc, but still illustrates the point.

Decomposing performance in to it’s various components tells you whether you have skill in selecting securities or not. And it has nothing to do with art vs science. George Soros knows what his risk adjusted return is (he’s very much art) and so does Jim Simmons (as science as it gets).

*I’d argue that risk can’t be defined by SD alone, but this example gets the general point across.”
——————————————————–

Thanks for the thoughtful replies, Tater. At least now you’re in ‘communication mode’, void of attitude belittling others who use other methods.
I don’t profess to know it all and make it a point to assume that I’ve ‘missed’ something – I tell myself that Mr. Market wants it all back and is up to some ‘trick’! Sure beats complacency!

“…imagine 2 strategies, one that returns 20% with 15% standard deviation and another that returns 10% with 5% sd.”
I perform similar ‘computations’, of sorts: I usually don’t buy anything (single equities or ETFs), that doesn’t have a very good chance of doubling (over 12-18 months). And I’m prepared to buy lower, and lower, for as long as the trend continues lower, even if I find that I’m ‘down’ by >30%. The math shows that upon trend reversal, 200-300% gains are possible (even likely).
I did precisely this with Teck Resources and ended up with >300% gains between 2015-2017!
Best to do this with ETFs though, as individual equities can go bust (Peabody Energy, for instance).

Anyway, show some respect and we can have a conversation, even if we disagree. Otherwise, is there a point??

TCC

#69 OSFI on 05.18.18 at 8:12 pm

How is OSFI allowing this HCG LOC BS?

You people serve vested interests and not the Canadian people.

Obviosuly Warren Buffett wants no part of the new $HCG line.

#70 Conn Smythe on 05.18.18 at 8:14 pm

#47 WUL

“Houses that are visible from the tracks beyond the Bloor station should be free. Do people pay money for those houses?

This morning on my walk while awaiting the coffee shops to open I stood at Bay and King at 5:30 a.m. That intersection oozes immense power and darkness. There is nothing pleasant about that corner.”

People pay big buckeroonies for those houses on the Bloor subway line. Bay and King oozes power because it is the financial center of Canada. Glad you enjoyed your stay and you all come back now!

#71 crowdedelevatorfartz on 05.18.18 at 8:26 pm

@#13 Screaming Canadian Millenial
“I would gladly cut CPP and OAS payments in half. And also limit boomer healthcare spending. Entitlements for the elderly are killing us. No surprise that’s the Conservative voter base. ”
++++++
Its a shame about global warming….because you could have stuck them all on the iceflows in the Arctic for the polar bears to eat…….

#72 cd on 05.18.18 at 8:27 pm

Does the government report what it does with the penalties? If that $44 million went to something like making sure we didn’t have homeless people on the streets, then maybe we could live with it.

#73 Al on 05.18.18 at 8:31 pm

Good that they are enforcing the laws. As usual they choose to enforce the laws that mostly affect the proletariat, the ones that can’t afford to fight back, nor have any individual influence. The big money is still safe.

#74 Conn Smythe on 05.18.18 at 8:32 pm

Happy Victoria Day Weekend blog dogs! Only fitting that CRA let off its fireworks on this weekend. That sound you hear across this fair land is the weeping and gnashing of teeth of house flippers who are now going to get roasted at the CRA altar…

#75 Lobster Man on 05.18.18 at 8:37 pm

#12 Musty Basement Dweller,

Your Provincial NDP Government is supposed to provide an annual grant of $400 for BC renters. When they do deliver this “promise”, make sure you apply for it. In exchange for the grant you need to tell them where you live/rent, the rents you paid etc. And make sure you ask for receipts from your landlord.

Now, you just help plug a “hole”; there is no more leakage on this one.

LM

#76 mike from mtl on 05.18.18 at 8:37 pm

I know it will never happen but whomever gets (reasonable) flat tax, gets my full support!

For sure the groups of accountants, rich useless bums and RE agents would object but all this needs a massive simplification.

FLAT 10% on everything – done. Who cares about arbitrary primary residences, RRSP, Cap-gain, dividends, self-incorporated and all that crap? All this dumb exceptions and rules in the tax code because of special interest groups.

Dollar is a dollar is a dollar.

#77 crdt on 05.18.18 at 8:39 pm

I agree. Tax them fairly like everyone else. I can’t tell you how many people have become commoditized as place holders while the “developers” finishes other flips. Then, they quickly uproot families so the dumpster could get filled with the unattractive bits of the old abode, to reel in possibly the next flipper. If it was more like a business, only the professionals, rather then raging egos would be able to get involved. I can guarantee that getting regular tax free bubble style windfalls makes one a rather smug fellow, and it is everywhere here in the Lower Mainland.

Maybe even the quality of the work would be better as you would have way more recourse then seeing if fly by the seat of the pants guy is still a viable entity, or feels like accommodating you.

I can only imagine how many of those sweet tax free dollarios flooded the local luxury car showrooms. I am sure the fool was soon parted with his money, while some sad dude is making large payments at the expense of his health and quality of life till death do them apart.

Sad… So glad Crusty is no longer driving this bus…

#78 Anoldretiredguy on 05.18.18 at 8:39 pm

#43 “Triplenet”
I also spent almost 20 years working in the Land Registry System working on something similar. Linking Buyers and sellers to various organizatons. Most people believe there is no connection to themselves and where the Property Originated, funding, Legal, ETC. As Garth has pointed out in a previous post it is all connected and has a paper trail.
As a earlier poster said “There is NOT staff” hit the nail right on the head.

#79 NoName on 05.18.18 at 8:42 pm

#37 Adrian on 05.18.18 at 6:51 pm

grid this and that

750kV 3f 350-500 tons transformer that might go off in case of solar flare or just because fatigue is not shelf item. i can see one sitting around but not two…

At one of my jobs i witness making 3 or 7 transformer cars being made, best welders to work on them, am talking handful of people were allowed to work on them, no room for error, weld, x-ray, repeat.

car 4min30sec (car build i was there)
https://www.youtube.com/watch?v=wwmEF-iOXhk
is that tunel???
https://www.youtube.com/watch?v=HISgGtVRS8I

one more (ill ask my buddy when they were building those)
https://www.youtube.com/watch?v=KLMXfrc71Vw

very big train car
https://www.youtube.com/watch?v=rqLwe-Qs4wc

#80 Jay on 05.18.18 at 8:45 pm

Lucky # 13 SCM
Thanks for the long weekend chuckle!
Ontario has the largest sub sovereign debt on the planet. Must be from the last 15 years of Conservative deficits…er…what? It was the liberals???
Conservatives sell public assets like Hydro 1…errr… Liberaled again!!
Uncompetitive tax rates equal no corporate investment. It’s kind of a competition thing between jurisdictions. Governments kind of prefer lots of employees paying income tax because they get the revenue regardless of the company performance as well as the “win” of jobs. That’s why there are corporate income tax breaks. Are you still following along?
Lastly, Conservatives don’t think money grows on trees. That belief is orange and red. Perhaps you might consider reducing cost instead of raising tax but judging by your posts that is a stretch.
Hint: overtax corporations and they leave. The jobs follow.

#81 Ian on 05.18.18 at 8:49 pm

Why is SCM back on here?

I’m in diversity training. – Garth

#82 crdt on 05.18.18 at 8:50 pm

Not sure if it is by design, but this sort of seems like harvesting by the government. Let the market run its course with the assumption that living at a place for a period of time covers your tax liability, the ‘saved tax’ then helps you leverage into more, exponentially increasing your tax liability. Rinse, repeat. When the RE taxes and fees fade at the end of the bubble, a new boom in retrospective taxation begins. Imagine how many new opportunities for massive tax collections this creates? I bet flippers are flapping their hoo hoos right now.

#83 tccontrarian on 05.18.18 at 8:53 pm

“Current valuation ratios for households and businesses are high relative to historical benchmarks … we find that the current price-to-earnings ratio predicts approximately zero growth in real equity prices over the next 10 years.”
*********************************************

Yeah, yeah…all those doomsday pushers!

Or…

from:

The Federal Reserve Bank of San Francisco

https://www.marketwatch.com/story/sp-500-should-be-1000-plus-points-lower-than-it-is-today-strategist-rosenberg-says-2018-05-12

#84 LP on 05.18.18 at 8:56 pm

#10 Smoking Man

Sorry SM; we all talked it over and decided not to take you back. But do keep writing okay?

#85 georgist on 05.18.18 at 8:57 pm

Both of the Galbraith works you cited were in the second half of the 1970s, just a few years after the world came off the gold standard (which several have said was the end of FRB).

Did Galbraith really understand when he wrote these works what had been set in train by the end of Bretton Woods? I’m sure he was very capable, but to predict what would come to pass later, once computing power became cheap enabling tracking and issuance of unlimited credit. That really would have made him a visionary!

So I’m really not sure citing these works versus that of more recent economists is such a great idea.

#86 Lost...but not leased on 05.18.18 at 9:03 pm

#11 crowdedelevatorfartz

10 reno flips in 10 years?

How do they avoid scrutiny ? Somebody asleep at CRA offices ?

The topic of principal residence “minimum occupancy”.. has been batted around…seems 1 YEAR is what CRA accepts, (but not on a serial basis).

I know certain groups will build new , sell and repeat, but every 2-3 years.

#87 Screwed Canadian Millenial on 05.18.18 at 9:11 pm

#81 Ian on 05.18.18 at 8:49 pm
Why is SCM back on here?

————-
Because this isn’t your safe space Ian. I’m trying my best to be very nice so I don’t hurt your feelings.

#80 Jay on 05.18.18 at 8:45 pm

Ontario doesn’t even have the largest debt to GDP ratio in Canada, let alone the rest of the world. You guys are just easily programmed robots who all parrot the exact same talking points without being able to think.

Quebec, NFLD, and NB all have higher debt to GDP ratios.

http://www.rbc.com/economics/economic-reports/pdf/provincial-forecasts/prov_fiscal.pdf

https://imgur.com/kx7QQTR

Mike Harris and the Ontario PCs broke up and privatized a perfectly good public utility, Ontario Hydro, in 1999. They shattered Ontario Hydro into pieces.

You guys just have no shame. Your entire ideology is all about how the private sector does things better than big bad gubment. So you get what you wanted, a privatized electricity provider, and then you have the nerve to complain about hydro prices?! Just goes to show what a joke of an ideology Conservatism is.

Quebec has an electricity provider fully owned by the province, Hydro-Quebec, and they have the lowest electricity prices in North America. But muh socialism!

Let’s not forget the worst deal in Canadian history. Mike Harris, Doug Ford Sr, Jim Flaherty, Tony Clement, John Baird, all those thieves that came up from Ontario PC government that gave away Highway 407 to a foreign conglomerate for 100 years. A HUNDRED YEARS.

#88 gfd on 05.18.18 at 9:12 pm

https://www.bnnbloomberg.ca/why-the-big-six-banks-could-prove-shorts-wrong-again-1.1079715

#89 For those about to flop... on 05.18.18 at 9:23 pm

Race to a million.

These guys felt it was necessary to just take 200k or 16% off the asking price of this Vancouver detached ,despite already being one of the cheaper options available.

Were asking 1.198

Now asking 998k

Assessment 1.24

It fell out of the ugly tree and hit every branch on the way down…

M43BC

https://www.zolo.ca/vancouver-real-estate/5002-manor-street

$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Feel free to make a donation.

Flop For Fox Fund…

http://www.terryfox.org/get-involved/ways-to-give/

#90 Always Right the First Time on 05.18.18 at 9:24 pm

People need to realize there is difference between a news release and reality. In reality very little will be done so people like the friends of post #11 are safe. CRA doesn’t have the resources or political or bureaucratic will to do any significant tax justice. I wish the news release was all true but I know better. Garth you know I’m right.

#91 Conn Smythe on 05.18.18 at 9:31 pm

#85 Georgist

Happy Victoria Day Georgist! Sitting on my patio, a roaring fire going and sipping some 15 year old Scotch! Speaking of the Scotch, Galbraith was of good Scotch stock and a genius. Do you understand how absurd your question on whether Galbraith understood Bretton Woods and its aftermath is? Do you realize Galbraith was at Bretton Woods and was considered Keynes high priest at Harvard? I think the problem is that you are confusing the gold standard meaning currency could be converted into gold and equating that to fractional reserve banking. When the US when off the gold standard in 71 it simply meant the Fed would no longer redeem currency into gold. Banks were doing fractional reserve banking before, during and after the gold standard. They do have limits imposed on them and do not have unlimited capacity to create money. Yet, through fractional reserves and it varies from country to country in terms of the fraction that must be maintained, their capacity is still great in creating money. What do you still not get about my points?

#92 FISH on 05.18.18 at 9:32 pm

Please , long weekend, and I’m blind, to see what

you are referring to, I would like a big dog so I able to

To see, all least I can smell them the flowers

#93 For those about to flop... on 05.18.18 at 9:35 pm

#81 Ian on 05.18.18 at 8:49 pm
Why is SCM back on here?

I’m in diversity training. – Garth

///////////////////

I’ll make three predictions for this long weekend.

Manchester United will win the F.A Cup 3-1…

Someone will take a hard fall at the royal wedding…

SCM will test the boss of this blogs patience for a couple of days and be banned for the 4th or 5th time ( lost count) by Monday lunchtime.

Last time I stayed out of the voting process, but if Garth makes a package deal to get rid of Mark as well for talking porkies about which year real estate peaked then I could be swayed to vote this time…

M43BC

#94 crowdedelevatorfartz on 05.18.18 at 9:45 pm

Stop the presses! Stop the presses!
I JUST found out some VALUEABLE informative insight through genetic generational testing( I know, I know, its usually used to find Serial Killers but I aquired the keys to the Lab)…… that Screwed Canadian Millenial and I are related!

Yes. I know thats hard to fathom.

But when I realized that SCM and my nickname
( Stinky Crowdie Man) are virtually the same…….?!?!?!
I had to check…..

I then began looking back amounst my long lost relations to see where we “joined” as “bruthas frum utha muthas”.
Ghengis Khan the Horrible Hun…yupper
The Medici’s….yes again.
Henry VIII….keep your head up!
Stalin…..”Uncle Stalin” to those who knew him.
Freddy Krueger….pseudonym for SCM’s Dad
CrowdedElevatorFartz……Freddy’s cousin

UncleFartzy has a nice ring to it.

Shocking butt true

#95 ANON on 05.18.18 at 9:52 pm

2-nd warning (for observers, not debaters):
I ain’t sharing NO popcorn!

#96 westcoastguy on 05.18.18 at 9:55 pm

There are some streets in Vancouver and suburbs that have absolutely no street parking in the evening cause there are three families living in every single house and they all have multiple cars.

Not that I wish this misfortune on anyone but routinely more often than not when a house is gutted by fire the news report always mentions a ridiculous number of people are now homeless always in the double digits …

#61 Scamcouver on 05.18.18 at 7:53 pm
The amount of people that report in BC = 0.
Everyone and their dog has an illegal rental in BC.

#97 For those about to flop... on 05.18.18 at 10:00 pm

Price Discovery Post.

Can someone do me a favour and tell me how much this relatively affordable option near where I live sold for nine days ago.

I had it in my folder and featured it once on the blog perhaps as an option for someone as it was one of the more presentable cheaper ones on the market and they seemed to have it priced to sell and it did just that in fairly quick order.

Asking 1.32

Assessment 1.35

Sold 9 days ago for?

Welcome to the neighborhood.

I should warn them ,sometimes when I haven’t had my morning coffee ,I forget which side of the road I am supposed to be driving on.

Just to be safe ,I drive down the middle…

M43BC

https://www.zolo.ca/vancouver-real-estate/5165-sherbrooke-street

http://grantandjasmine.com/mylistings.html/listing.r2262459-5165-sherbrooke-street-vancouver-v5w-3m3.75010793

$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Feel free to make a donation.

Flop For Fox Fund…

http://www.terryfox.org/get-involved/ways-to-give/

#98 FISH on 05.18.18 at 10:01 pm

Yeah TOTALLY feel flat had 2018

What I’m I ENTITLED to No love?

you have terrible hurt me

Bring flower, thanks

#99 GOLDENBOY on 05.18.18 at 10:01 pm

DAVID
Presumably Garth you are fully and 200% supportive of CRA’s decisive actions to combat the tax cheats. Same goes to you service employees who demand 20% tips but feel it’s your right not to claim it. Big data is here. Oh, and don’t even think about going out of country while claiming EI benefits, cause the border data flows to ESDC and service Canada. Finally we have a CRA administration serious about combatting fraud.

You CAN leave the country while collecting EI. You just have to report it. You will just not be paid while you are away (I have done this) I had a planned and paid for vacation before I was laid off.

#100 Ace Goodheart on 05.18.18 at 10:12 pm

Sitting on the back of my 56 International Harvester utility tractor. Warming her up. She is 61 years old. Never rebuilt. Never opened up. Factory flat four.

This old girl represents the lost days of American manufacturing.

Just listening to her purr calms me.

The past is better than the present.

We have not progressed.

#101 FCUFMA on 05.18.18 at 10:13 pm

I have a neighbour who rents out the bsmt but does not declare it on his tax. This has been going on for two years now. What are the penalties if caught? Financial and or criminal? I don’t care, it’s his life, but I think he is taking a risk

#102 Jay on 05.18.18 at 10:16 pm

#87 SCM
Hey are you Russell Peters? You’re hilarious!
Maybe check out how the “foreign conglomerate” is SNC Lavallin. Go buy their stock.
Quebec power…I wasn’t aware water derived electricity was from socialism! Thanks for the heads up!
Debt to GDP ratio? Sounds like you are a Morneaubot. Look at the absolute dollar number.
Let’s talk debt. Ontario owes the most as sub sovereign nation. Period.
Don’t worry, if the NDP wins I am sure all your numbers will become positive.
Let’s tax our way to prosperity. What could go wrong?

#103 What can I say about that? on 05.18.18 at 10:27 pm

Yeah, why should flippers be forced to pay tax. Not fair. Paying tax should only be voluntary for anyone that feels they’re getting a good return from government.

#104 Russ on 05.18.18 at 10:31 pm

Follow-up of yesturday’s discussion

There are three faithful friends – an old wife, an old dog, and ready money.
….. Benjamin Franklin

#105 Hoonigan on 05.18.18 at 10:33 pm

#87 Screwed Canadian Millenial on 05.18.18 at 9:11 pm

You guys just have no shame. Your entire ideology is all about how the private sector does things better than big bad gubment. So you get what you wanted, a privatized electricity provider, and then you have the nerve to complain about hydro prices?! Just goes to show what a joke of an ideology Conservatism is.

/////////////////////////

Biggest reason for out-of-control hydro prices in Ontario is the built-to-fail Liberal green energy policy.

Paying $0.90 /KwH for ‘Green’ energy and selling it for $0.15? Or exporting the excess capacity at $0.025 because you have to run non green generation at a constant rate to compensate for the peaks and valleys of solar and wind generation.

Signing ill-conceived contracts with wind generation companies/gas-fired generation plants for Billions of dollars then cancelling them and paying penalties with nothing to show for it?

Financing a ‘rebate’ on electricity bills and pushing the present cost to consumers down the road and downloading it and financing costs on to taxpayers?
(And let me tell you – if you are a ‘green’ consumer and do your best to conserve electricity, you should be pissed as you are going to be covering the cost of everyone else’s consumption down the road as a taxpayer!)

This has nothing to do with socialism/privatization, it has everything to do with government leadership decision-making based on politics/virtue signalling instead of sound business and engineering analysis.

Quebec has a massive benefit from hydro-electric generation in abundance and smaller demand. They have power to burn.

#106 For those about to flop... on 05.18.18 at 10:45 pm

Price Discovery Post.

Here is another one that just sold that I had in my price discovery folder.

The reason this Westside detached piqued my interest was it was listed for 23% less than assessed.

Asking 2.30

Assessment 2.99

Sold 25 days ago for?

The structure was only assessed at 25k but in reality it will cost the developers probably a 100k to get rid of it…

M43BC

https://www.zolo.ca/vancouver-real-estate/3817-w-15th-avenue

$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Feel free to make a donation.

Flop For Fox Fund…

http://www.terryfox.org/get-involved/ways-to-give/

#107 Ustabe on 05.18.18 at 11:02 pm

Just goes to show what a joke of an ideology Conservatism is.

What passes for Conservatism in Canada at any rate.
Its not my conservatism and I doubt it is even Garth’s.

Most of these guys seem to only want to bicker and fight one another while ignoring the reality of where the CPC actually is. Even the OCP..Mr Ford isn’t even up to full speed yet and he’s broken how many laws and promises? Ford, Scheer? Are you kidding me?

My Progressive Conservative Party of Canada, the one that worked with the CCF to bring universal healthcare to Canada, the one that brought forward the Port Hope Conference that argued for full-employment, low-cost housing, trade union rights, as well as a whole range of social security measures, including that government financed medicare system…this in the 1940’s!

That party doesn’t exist because this new hateful version of conservatism is really neo-liberalism bordering on fascism and allows these guys to be bully boys and tell you how manly they are and how snivel-y you are. And that is better than fixing conservatism in Canada, eh?

I was a paid member, donated and even worked as a bagman for the PC’s. I started out with Dief, stuck it out through Stanfield, up until Mulrony took the party to neo-liberalism and started (or finished off?) the decline into what we have today, culminating in MacKay’s selling out for helicopter rides and a hot wife. Haven’t given one hour or one dime to any political party since the 80’s.

Damn shame too, the old school PC’s were Tories in the old school sense, less USA, more England, etc. We’d have been far better off.

I’m glad I’m old, won’t have to put up with this crap for decades and I’m going to be able to leave my adult children enough that they won’t need to deal with it either…unless they chose to.

Anyway, keep on bugging them, SCM, even when you are wrong they need to be bothered by something other than their dependence on Metamucil and Viagra.

#108 For those about to flop... on 05.18.18 at 11:08 pm

Price Discovery Post.

Here is another half decent looking affordable option I featured on the blog as lifestyle option as opposed to paying a buck sixty for gas while commuting out to Surrey trying to save a few bucks for the next 25 years.

I said I would put some of these respectable looking houses up when they sold to see how close we are to breaking through the million barrier ,and tonight’s the night.

Asking 1.18

Assessment 1.07

Sold 15 days ago for?

At some point when half decent detached houses are back under a million it won’t make much sense to spend 850k on a heap of crap out in Surrey.

Still a lot of money ,but it has got to be better than being run off the road by angry truck drivers with hemorrhoids…

M43BC

https://www.zolo.ca/vancouver-real-estate/2243-ferndale-street

$$$$$$$$$$$$$$$$$$$$$$$$$$$$

Feel free to make a donation.

Flop For Fox Fund…

http://www.terryfox.org/get-involved/ways-to-give/

#109 Dolce Vita on 05.18.18 at 11:13 pm

I applaud CRA for finding and making the ne’er-do-wells pay their taxes (flippers, speculators, AirBnB suite owners, illegal rental suite owners – those that did not declare this income).

However, their interpretation of a Principle Residence and its taxation as explained by Garth today is plain WRONG (i.e., someone lives in the property for a prescribed period to avoid taxes and then sells their property).

If true that rate increases will cripple many recent and overleveraged homeowners and they will be forced to sell to avoid economic ruin, then will CRA tax them as well and to add to their economic misery (i.e., beating a dead horse)?

There is a point when CRA’s “holier than thou” tax approach to flipping becomes immoral.

Immoral in the sense that CRA will well know that these people will not be able to afford defending themselves in court.

CRA has a history of preying upon people like this and for that very reason.

Good you fired the warning shot about this today Garth. Good indeed.

#110 Dolce Vita on 05.18.18 at 11:26 pm

$592 MM + $44 MM ÷ 30,000 =

$21,200 per file.

Small pickings per file on average.

Looks like the CRA is going after the “little guys/gals/somewhere in betweeners” and not the wealthy that can defend themselves in court.

10,000 files per year. Interesting to know how many Civil Servants worked on the files?

Multiply that by $21,200 to determine if the Civil Servants actually covered their salary + a healthy bump for benefits.

If true, well, “sunny days” indeed; although, I doubt it.

#111 Last of the Boomers on 05.18.18 at 11:48 pm

#95 My family rents a basement suite in West Vancouver. Our out of country landlord served us notice a month ago as he would like to take the basements suite to retire and rent out the upper floors for bigger bucks.

We have been living here for three years. When I filed my taxes I was always miffed that my accountant would never let me put basement suite in the address ( I knew my landlord was not claiming my rent paid as income and I wanted to make sure it was clear my family were basement dwellers). So, I signed up for online access to My CRA account and was easily able to change my profile address to “bsmt” thus providing CRA with valuable equalizing info. We renters need to stick together!

P.S. How long will CRA go back for these property flipping families? I know families who have done this for decades in Whistler. Buy, build, flip. No spec tax.

#112 3s on 05.19.18 at 12:05 am

Not one of these taxes are applicable to a person using property for what is is meant to be, shelter, a home, a base for building a family unit.

#113 jane24 on 05.19.18 at 12:28 am

Garth I am not sure from the tone of this post if you are pro or con flippers being hit but it needs to be done. This has been going on for 30 years and has always been unfair to regular working stiffs; BUT I’ll only believe when I hear it happening. Let’s face it 30,000 files represent somewhere like Richmond Hill only, how about the rest of the country? Always wondered why computers in various depts in various provinces can’t link in to each other.

Yes Air B&B rentals need a tax due hit too as the last time I rented a TO flat from this site the owner wanted me to pay my UK money into a bank account in Ireland in pounds not euros or Canadian $. That says it all.

5 am here so off to put bunting in my front garden for the Royal Wedding Street party. The bride has been married twice already so her third trip down the aisle (first marriage annulled, second divorce), plus is an American actress that used to live with a porn star. Big royal wedding is bad taste all round. We can all see where this is going but apparently Harry can’t. Never mind a lovely day for an end of the driveway BBQ with many beers and interesting times ahead.

#114 Future Expatriate on 05.19.18 at 12:30 am

Yay!! Buildings that should have been torn down long before 1950 will never be flipped again!!

Cue the bulldozers!!

#115 Overheardyou on 05.19.18 at 1:00 am

Wow, I’m surprised how many people on here encourage law enforcement. I can’t wait to show you guys the new service I’m building!

#116 Steve French on 05.19.18 at 1:15 am

Trigger warning for Snowflake Smoking Man!

—–

Kathleen Wynne was the premier we didn’t deserve

” I suspect Wynne will emerge in hindsight as the bold leader of the most capable and effective government Ontario has enjoyed since the heyday of the fabled Big Blue Machine. She will be remembered as the best of her generation, representing Ontario at its best”

https://www.thestar.com/opinion/contributors/2018/05/17/kathleen-wynne-was-the-premier-we-didnt-deserve.html

#117 Exodus 2020 on 05.19.18 at 1:38 am

Principal residence capital gains exemption should be eliminated and replaced with tax deductible mortgage interest instead. It would be way more fair and easier to monitor.

#118 PeterfromCalgary on 05.19.18 at 1:53 am

Someone has to pay for all those crazy outfits Justin wore in India.

#119 By renter on 05.19.18 at 2:34 am

Flop,
A good one for your pink folder…
5988 Walker Ave in Burnaby.
It is in my neighbourhood and I can’t believe someone was ever willing to pay over $1.9 for it. Madness.

#120 Smoking Man on 05.19.18 at 2:59 am

Welcome back SCM

I missed you. oxoxox

#121 Adrian on 05.19.18 at 3:27 am

RE: Smoking Man.

Don’t come back dude. Canada has enough crazy trump fans. We don’t want you.

#122 Oft deleted much maligned stock.picker on 05.19.18 at 6:42 am

DELETED

#123 Steven Rowlandson on 05.19.18 at 6:54 am

“So, $200,000 in profit made flipping a house for someone with an outside income of $80,000 would result in overall tax of $64,120 and a marginal rate of almost 48%. But if the same person made the same gain on a stock, the year’s tax bill would be $40,800 and the marginal rate 5% lower. Besides, no drywall mud. No permits. No trades. No financing. No labour.”

Plus no committing genocide by pricing Canadians out of Canada for profit violating article 2 sections c and d of the genocide convention.

I suspected you need help. Just confirmed. – Garth

#124 Shawn on 05.19.18 at 7:41 am

Despite the recent attention energy and commodities are getting in the financial media, I would continue to overweight US tech and US equities in general. QQQ, VGT.

Semiconductors will likely lead the sector again – SMH.

In $CAD just buy VFV and forget it.

Forget Canada and Europe. Some EMs are decent (South Asia, India). But generally speaking we’re in a prolonged period of US equity outperformance.

The financial media, BAML & fund flow data continues to show lack of conviction among fund managers for US equities. The US remains the contrarian trade. Stay with it.

#125 Rusty on 05.19.18 at 7:57 am

Wynnies want ya’ll flouridated

https://www.watercanada.net/ontario-ban-municipalities-from-removing-fluoride-from-drinking-water/

#126 Ian on 05.19.18 at 8:10 am

I give it four days until SCM AND Mark are both gone. Garth will get fed up for the sixth time on the former, and finally get fed up with ‘Mr 2013’ on the latter.

And no, it’s not because I think this is my safe space. It’s because you’re both ignorant clowns.

1) I look forward to the continued growth of solar power in Ontario, so we can finally close the unionised debacle that is the original Ontario Hydro, which has done nothing but pay employees above market rate and hold taxpayers hostage. Bye bye union power, and it can’t happen quickly enough.

2) The LCBO will be privatised as it should be. More choice for consumers and get government out of the private sector. Another union that needs to disappear.

3) I talked to Doug about reducing the small business tax rate to zero. In Alberta it’s only 2.5% so it’s time to make it zero. You know, job creation…so even SCM will be able to get a job. Maybe.

What else are you confused about? Oh yes…

4) Government needs to be much, much smaller.

5) Marginal tax rates are the worst form of communism ever and need to be flattened, so employees pay less tax. Nothing could be more fair.

Hope the wifi is working for you at the McDonalds today, and you don’t get arrested for not buying anything like those guys in Pennsylvania.

The Ontario PCs will win close to 100 seats. Put that in your safe space. And get the f off this blog. You don’t have anything to do with real estate and just come here to agitate.

#127 Ian on 05.19.18 at 8:19 am

Now that I’ve had my morning coffee and am feeling better, this was a really good post and an important issue.

In the GTA there were many speckers, Shysters, et al who were flipping condos where the developer assured them their names wouldn’t be revealed. Well, the developers got sued and now the people who thought they wouldn’t get found out are in deep shit. I’m glad the CRA is addressing this. I see an attitude in certain individuals in the GTA who take the view that paying taxes is for stupid people.

Fixing tax evasion is a completely different issue from governments introducing dumb new real estate taxes.

#128 Howard on 05.19.18 at 8:33 am

Uh no your friends S&T wouldn’t be considered criminals as long as they declared the flip profit on their tax returns.

What kind of blog post is this? Are you saying the CRA should just ignore the laws governing RE sales?

Now where did I state that? – Garth

#129 Sir John A. Macdonald on 05.19.18 at 8:57 am

Happy Victoria Day weekend Garth! Keep up the splendid work on helping Canadians get their financial house in order. You would have been a key member of my cabinet. Well done sir!

#130 Gravy Train on 05.19.18 at 9:17 am

#101 Jay on 05.18.18 at 10:16 pm
“Let’s tax our way to prosperity. What could go wrong?”

Thought you might like the following quote:
“I contend that for a nation to try to tax itself into prosperity is like a man standing in a bucket and trying to lift himself up by the handle.” — Winston Churchill

#131 Yorkville Renter on 05.19.18 at 9:30 am

#26 – regardless of whether it came from honest labour or sitting on assets.

This is why I’ll never ever vote NDP… “honest labour” is a BS statement, and implies making $$$ with brains is dishonest. Such disrespect for intellect when it earns income, but being smart is OK any other time.

It’s childish to say and filled with jealousy/hate.

#132 Shawn on 05.19.18 at 9:34 am

There is also widespread disbelief that S&P500 earnings can continue to accelerate. I would take the contrarian view here also.

#133 Exodus 2020 on 05.19.18 at 9:37 am

“So, $200,000 in profit made flipping a house for someone with an outside income of $80,000 would result in overall tax of $64,120 and a marginal rate of almost 48%. But if the same person made the same gain on a stock, the year’s tax bill would be $40,800 and the marginal rate 5% lower. Besides, no drywall mud. No permits. No trades. No financing. No labour.”

But with houses there is a corruption problem , for instance drug dealers buy a piece of crap, renovate with cash to increase the value, sell and pay tax on the proceeds and then the money has been laundered. Can’t do that with stocks.

#134 georgist on 05.19.18 at 9:44 am

Conn, I guess we aren’t going to agree on this part as we are simply talking past each other on this.

Can we at least agree on the wider point that rentiers are dirty filth and that we should tax land, not labour :-)

#135 dharma bum on 05.19.18 at 9:52 am

Tax, tax and more tax. – Garth
——————————————————————–
When taxes are too high,
people go hungry.
When the government is too intrusive,
people lose their spirit.

Act for the people’s benefit.
Trust them; leave them alone.

-Lao Tzu-
(Tao Te Ching, chapter 75, translation by Stephen Mitchell)

#136 Millennial Realist on 05.19.18 at 10:04 am

Wow!

Crooked Doug Ford, former drug dealer, has a candidate hack into database to steal info used for voter targetting in 905 region.

http://nationalpost.com/news/politics/internal-theft-of-data-on-60000-customers-of-ontarios-private-407-freeway-could-be-linked-to-pc-party-recruitment

Sounds a lot like Trump/Russia, but right in our own back yard!

Even right wing media agrees this will destroy the PCs.

http://nationalpost.com/opinion/christie-blatchford-wynne-is-right-doug-ford-should-call-in-police-to-probe-407-data-theft

The Boomer/Tory cartel is about to be erased forever. Millennials will be in charge of everything, very soon.

We promise you Boomers we’ll do the opposite of everything you have done.

So things will be just fine :)

#137 Rexx Rock on 05.19.18 at 10:05 am

In the near future anyone who rats out on tax cheats will get a percentage of total tax income not declared.The tax cheater will have a certain time to pay up or will have assets frozen and will have their wages garnished.No jail time unless you refuse to pay.This should have been implemented years ago.

#138 Adrian on 05.19.18 at 10:27 am

#120 Adrian on 05.19.18 at 3:27 am

Not me, Garth. Why do you let someone use the same handle when it’s clearly a different email? This isn’t the first time, either…

#139 Bytor the Snow Dog on 05.19.18 at 10:33 am

#115 Steve French on 05.19.18 at 1:15 am sez:

“Trigger warning for Snowflake Smoking Man!
—–
Kathleen Wynne was the premier we didn’t deserve
” I suspect Wynne will emerge in hindsight as the bold leader of the most capable and effective government Ontario has enjoyed since the heyday of the fabled Big Blue Machine. She will be remembered as the best of her generation, representing Ontario at its best”
https://www.thestar.com/opinion/contributors/2018/05/17/kathleen-wynne-was-the-premier-we-didnt-deserve.html
————————————————-

Wynne writes her own articles now? Who knew?!

#140 NoName on 05.19.18 at 10:55 am

off topic interesting

https://www.youtube.com/watch?v=T9Tg2QtpP7A

#141 Balooney sandwitch on 05.19.18 at 11:15 am

I think the fairest way would be to close the Principal Residence loophole and tax the PR at cap gains rate. This will reduce RE speculation and endless sheneganians. All renovations / improvements will have to declared to claim a deduction (this will also legitimize a huge portion of the “cash” renovation industry and boost HST).

#142 TurnerNation on 05.19.18 at 11:45 am

Facts about Kanada.

Second highest tax rates in G7. Behind only France.
(Pass the Freedom Fries avec French’s red stuff? )

Lowest hospital bed to population ratio among developed countries.

Boomers better get used to writhing in the hallways under this UN agenda. T2 opened doors to all oldster relatives of those here.
And 10,000 people every few months just walking across our border as the cops ordered to stand down.

(Just try and cross it as a legit productive tax payer. ..you’ll get the white glove treatment (touch your toes sir.))

https://torontolife.com/city/woman-waited-47-hours-surgery-broken-bones-cracked-ribs-internal-bleeding/

#143 Midnights on 05.19.18 at 12:23 pm

Smart…
https://www.thestar.com/news/gta/2018/05/15/downtown-rent-is-out-of-control-so-these-four-guys-are-moving-to-forest-hill.html

#144 akashic record on 05.19.18 at 12:41 pm

DELETED

#145 Damifino on 05.19.18 at 12:46 pm

#137 Adrian

Why do you let someone use the same handle when it’s clearly a different email?
———————————-

I think it’s because checking every handle of every post for consistency with previously used email addresses goes beyond the administrative overhead one should expect in a free daily blog.

BTW, this is the real Damifino speaking… or is it?

#146 Westcdn on 05.19.18 at 1:25 pm

My fifty cent potato.

I want to try to my luck to grow potatoes. We are talking Alberta. I dug out a small garden and killed the quack grass. Next, I went to check out the price of seed potatoes. They wanted 8 bucks for a dozen – no thanks. That was more than I wanted to pay to experiment. So the next time I went to buy groceries I bought a potato I thought had eyes – funny how I get them when I don’t want them. It is a dud but to be fair, I was warned that grocery potatoes are treated. It looks like I will have to bury my cheapness.

So a guy comes shortly afterward to ask me if I will support a community garden behind my house. I am all for it – maybe next year. It turns out he moved from California – I don’t why he is willing to freeze his butt for 6 months of the year.

It reminds of a story my father told me. His truck crashed through ice and the seat froze. The worst case of piles he ever have had.

#147 crowdedelevatorfartz on 05.19.18 at 1:33 pm

@#135 Millenial Delusionalist
“We promise you Boomers we’ll do the opposite of everything you have done.”
+++++
Soooo
I guess that means an NDP govt leading Ontari-owe?

#148 Russ on 05.19.18 at 1:34 pm

Adrian on 05.19.18 at 10:27 am

#120 Adrian on 05.19.18 at 3:27 am

Not me, Garth. Why do you let someone use the same handle when it’s clearly a different email? This isn’t the first time, either…
====================

Wow. Now I find out that I know two Adrian(s).

Thanks.

#149 crowdedelevatorfartz on 05.19.18 at 1:38 pm

@#144 Adrian

Why do you let someone use the same handle when it’s clearly a different email?
———————————-

he doesnt care?

Feel free to use mine….

I’m going cycling up to the Kinder Morgan protest camp to get some free “Brekkie”.
Its easy , dont bathe for a week, avoid shaving, wear camo clothing and a touque(regardless of the heat) and blame everything on nameless imperialists…..
works every time and the food selection isnt bad if you’re into vegetarian omlettes.

#150 Russ on 05.19.18 at 1:42 pm

Screwed Canadian Millenial on 05.18.18 at 5:40 pm

I would much rather we get it from tax on corporate profits.

I would gladly cut CPP and OAS payments in half. And also limit boomer healthcare spending. Entitlements for the elderly are killing us. No surprise that’s the Conservative voter base.

Don’t get mad at me. The truth hurts sometimes.
==========================

A couple of good points from you but no real solutions.

Why not eliminate all income tax as that will get rid of a bunch of boomer bureaucrats and lawyers?

Tax only expenditures. Boomers & corporations spend more than the poor so that’ll get ’em!

Every doctor visit should have a small fee, say, hit Grandma up for 10 bucks a visit. Cash only. Start small.

You’re way out in left field on CPP. It is funded by the employee and employer, not general revenue like OAS. If you don’t pay into CPP ya get nada.

#151 Lost...but not leased on 05.19.18 at 2:19 pm

#112jane24

Re: Royal Wedding…

I really don’t get it either…

Watched it on PVR….appears to me to be a big Public Relations and Political Correctness exercise.

Likely a loonnggg time till another royal wedding, and Queen Liz and Prince Phillip are near end of shelf life…so perhaps this puts a stamp on approved transitions from past “protocol”.

#152 Wrk.dover on 05.19.18 at 2:23 pm

99 Ace Goodheart on 05.18.18 at 10:12 pm
Sitting on the back of my 56 International Harvester utility tractor. Warming her up. She is 61 years old. Never rebuilt. Never opened up. Factory flat four.

This old girl represents the lost days of American manufacturing.

Just listening to her purr calms me.

The past is better than the present.

We have not progressed.

———————————

My 69 Troy (New York State) Horse Tiller with even the original spark plug sounds gross. 5HP Tecumseh, obsolete before it was patented. Strong like bull though.

All you folks that crave Muskoka black flies in your life should be in Southern Nova Scotia this weekend, same bite, lower price.

#153 SoggyShorts on 05.19.18 at 2:30 pm

#108 Dolce Vita on 05.18.18 at 11:13 pm
However, their interpretation of a Principle Residence and its taxation as explained by Garth today is plain WRONG (i.e., someone lives in the property for a prescribed period to avoid taxes and then sells their property).

If true that rate increases will cripple many recent and overleveraged homeowners and they will be forced to sell to avoid economic ruin, then will CRA tax them as well and to add to their economic misery (i.e., beating a dead horse)?
************************************
You know that you only pay tax on profit, right?
How are these people being crippled if they made a profit?

Also “beating a dead horse” refers to discussing a subject that has already been discussed enough. The expression you are looking for is “rubbing salt into a wound” i.e. causing additional pain.

#154 Rexx Rock on 05.19.18 at 2:42 pm

Heads up on traveling out of the Toronto airport this summer.Expect to wait an hour or more on the tarmac because of lack of border guards .They’ll all be at the border processing the thousands of migrants crossing into Canada.Heard this on the Micheal Campbell show CKNW 1070.Apply for CBS,you might get hired!

#155 Lost...but not leased on 05.19.18 at 2:45 pm

#108 Dolce Vita

Good points…

CRA is????
I often envision any given issue like a triangle
(i) PRO side
(ii) CON side
(iii) Gov’t

Re Housing and Real Estate…The general public was forced to take sides based on amalgams of Gov’t policy….ie many people have done quite well re RE(PRO side)…but has also left many on the outside looking in(CON side).

Surely the powers that be knew what would occur with low interest rates/loose credit.

Now that we have (i)PRO versus (ii)CON at each others throat…the Gov’t dives in like some sort of saviour, when in fact it was the devil that literally baited the predictable outcome.

Now…we see various Gov’t agencies like CRA smelling blood with one side cheering them on…when the main divisive issue of cheap $$$ should never have been allowed….err engineered to happen.

The CON side doesn’t get it..they are cheering for their own demise ala snake in the garden “Hi, I’m Gov’t and I am here to help you” effectively translates into another attack on the middle class in the goal to turning Canada another quasi -Sweden socialist hell.

PS..cause and/or effect…if CRA goes into overdrive…is this based on they realize the economy is tanking….or are they set loose as one of an arsenal of means to dampen the economy?

#156 Millennial Realist on 05.19.18 at 2:52 pm

If Doug Ford wins, expect an economic plunge for Ontario, probably within two years.

My sources in the tech sector say Amazon will say no to Ontario if Ford is in. Plus many other companies just aren’t prepared to tolerate months or years of regulatory confusion and uncertainty a la Trump when it comes to decisions about whether to expand or relocate operations there.

If Ford wins, just watch for the exodus to start. For those of you waiting for real estate to crash, Doug Ford will guarantee that, so enjoy.

#157 45north on 05.19.18 at 2:54 pm

Screwed Canadian Millennial: Let’s not forget the worst deal in Canadian history.

The Sept. 1 renewal clause extends the notorious 1969 deal until 2041, with prices paid by Hydro Quebec dropping from $2.20 per megawatt hour (MWh) to $2.00 per MWh.

http://www.cbc.ca/news/canada/newfoundland-labrador/upper-churchill-contract-renewal-means-less-money-for-newfoundland-1.3451376

I suppose that the topic of who can best manage power generation and distribution is somewhat important. The more important question is how can we produce more, cheaper, reliable and safe power? Right now the answer is we cannot. We can produce more power at approximately the same cost.

I believe we should seriously look at liquid fluoride thorium reactors. Here is Kirk Sorensen talking about liquid fluoride thorium reactors. He does acknowledge the nuclear disaster in Fukushima but says that his system is safer:

https://www.youtube.com/watch?v=N2vzotsvvkw

I see a pilot project. Perhaps in co-operation with other countries. Still the costs will be in the millions of dollars. The result would be an understanding of the technology and how it could be used.

The important thing is to realize the easy answers are gone. We’re not going to find another Niagara Falls within a 100 miles of Toronto.

#158 bill on 05.19.18 at 3:26 pm

More TT Vicar?
Isle of Man TT 2018 will begin on Saturday, May 26 and end on Friday, June 8 for those that are interested…

#159 bill on 05.19.18 at 3:47 pm

a lap of the Isle of Man with Peter Hickman
https://www.youtube.com/watch?v=sOZwHD7nrAY

#160 Incubus on 05.19.18 at 4:05 pm

““Individual renovators buy real estate, renovate it, live in it for a short time, and sell it so they can claim the principal residence exemption several times in their lifetimes,” says Ottawa.”

The question is what “short time” means?

I think, if you buy a house that needs renovation and you stay many years ~ 5. I seriously doubt they will run after you.

#161 Tony on 05.19.18 at 4:44 pm

Re: #155 Millennial Realist on 05.19.18 at 2:52 pm

I think everyone should tweet him on twitter. I tweeted him telling him if he gets elected to increase the home tax on foreigners or the cost of living in the GTA will quote go through the roof.

#162 Ben on 05.19.18 at 6:39 pm

I have no sympathy for house flippers.

I’ve seen it first hand in the GTA ‘hood. Contractor buys the house under the “daughter’s” name does the renos and tells the neighbours “she is moving in and loves the area… blah blah blah.” Renos are done and the house hits the market 1 week later. hmmmm….. Should they be exempt from cap gains… I vote “NO”. Seen too many contractors game the “primary residences” tax exemption.

CRA is just closing a loop hole that has been there for years.

#163 jess on 05.19.18 at 8:16 pm

How Maltese Online Gambling Became an ATM for the Italian Mafia

https://www.occrp.org/en/thedaphneproject/how-maltese-online-gambling-became-an-atm-for-the-italian-mafia

#164 Conn Smythe on 05.19.18 at 8:30 pm

#133 Georgist

Appreciate the humour and yes it does appear we are talking past each other. I don’t want to flog a dead horse but please succinctly state what your stance on fractional reserve banking is and what you think Bretton Woods was all about….throw in the gold standard while you are at it.

#165 Ace Goodheart on 05.19.18 at 10:10 pm

Elon Musk hat trick.

The guy is an alien.

Dating Grimes. Seriously my favorite pop artist of all time and he is having whoopee with her.

I am humbled.

The dude is a God.

So yeah his company is trashing my short predictions.

Never short Tesla.

And dream about Elon boinking my all time favorite pop star Grimes.

There are aliens among us.

There are still things I don’t understand.

Flesh without blood.

#166 Gravy Train on 05.20.18 at 10:13 am

#163 Conn Smythe on 05.19.18 at 8:30 pm
“Appreciate the humour and yes it does appear we are talking past each other. I don’t want to flog a dead horse but….”

Never get into a mud-wrestling contest, because, even if you win, the onlookers can’t tell you apart from your opponent! :)

#167 Richard Hertz on 05.20.18 at 5:02 pm

Hey, um, Garth, usually I agree with you, but like, what’s the rationale for certain kinds of income being taxed differently?

Like, philosophically, why shouldn’t there be a principle of “a buck us a buck”?