Hoovered

Back when Victoria was the Regina nobody paid capital gains tax. No income tax, either. But property taxes were common. Plus customs duties, tithes and even (sometimes) a tax on windows (one reason old houses of a certain period have so few).

These days we tax everything that moves. ‘Carbon’ is the latest. Taxes are due when you make money, spend it, save or invest it. They come with owning real estate, plus when you buy or sell it. And lately there’s been a sizeable amount of confusion about the latter.

For the past few years Canadians have had to report residential real estate transactions and prove they were entitled to an exemption from capital gains tax on a principal residence. Fine. You know what a PR is, of course. House, condo, cottage, cabin, co-op – whatever you normally and habitually live in. During any one year you can designate a property as the PR and pocket profits from its sale without adding half to your taxable income.

Almost.

A problem arises with rental suites. In fact in Friday’s post when I suggested a confused moister pay her parents rent for carving out a separate space in the family home, the CRA auditors who read this pathetic blog objected. They reminded us that having a rental suite could screw over your chances of a tax-free sale if alterations were made to the house to accommodate the suite (like adding a bathroom or putting in an entry door). True enough. The tax-free status is kaput as well if you claim capital cost allowance (CCA) on a property or if you rent out most of your house and live in only a portion of it.

(In this case – in the real world – modifying a home to shelter an adult child who also happens to gift her parents money to share monthly expenses is not what the CRA cops are worried about.)

As you might know if you’ve ever deal with the revenuers, the rules are fluid, gray, fuzzy and subject to continuous change by both statute and case law. The safest course of action is to not rent out any space in your house. If you do, you must declare the rent and add it to your other sources of income, taxed at your marginal rate. That’s a no-brainer. Not declaring it is tax evasion. If caught, you will fry.

More confusing is this capital gains exemption thing. It’s been assumed for a long time that if you (a) made no physical changes to your property in creating the suite, (b) claimed no CCA and (c) the rental activity was ancillary to the main purpose of the house – your living there – then no erosion of your principal residence exemption from capital gains would apply.

Well, not so fast.

Turns out a recent court case has set the bar lower. A judge ruled a guy with a house outfitted with a basement suite that he never rented, took no income from nor ever offered to any tenant or guest had to pay capital gains on that entire level of his place when he sold. The reason came down to the definition of a home. The judge said it’s where you hang and carry out the daily functions of living. An empty suite (even if in the same building) that an owner does not use therefore doesn’t form part of the home. Any profit made on the real estate must be apportioned to the two areas of the house – the residential part and the unused suite. One tax-free, the other taxable.

Suites are epidemic now, of course. Given the cost of real estate, hauling in a renter is the only way a lot of people can swing home ownership. Vancouver, for example, has the highest proportion of residential suites in North America. But it’s probably a safe bet a huge whack of these amateur landlords are also tax cheats, failing to report the income they use for mortgage payments and property tax. The CRA has one of its famous ‘projects’ set up to ferret out and slap around such households. The interest and penalties – atop income tax owing – can be enough to ruin your day. Or year.

As for capital gains, you can only claim the exemption on a PR by filing out the schedule attached to your personal tax return. Be aware it’s a legal document. No do-overs allowed. And now that all addresses are catalogued with the revenue cops, any property with a rental history is known.

When the principal residence exemption registry was announced the feds fibbed, saying it was another safeguard against foreign owners. But obviously not. In the years to come you’ll understand much better why governments want to know everything about your real estate.

Victoria would not be amused.

117 comments ↓

#1 The Real Mark on 05.19.19 at 3:41 pm

None of this matters since the market peaked in 2013.

There has been no inflation in values, just deflation.

Deflation, pain, and Ross Kay. I love that man.

#2 Mr Happy on 05.19.19 at 3:59 pm

The father of a good friend of mine recently passed away. His will was horrendous in that all his money rolled as shares back in to his company. (10 figure company) You know, for the kids. Well, that made everything taxable and the kids are now facing a tax bill in the 6-7 digit form. I told him: “sorry dude, but when the Reaper comes? He is holding hands with the Tax Man”!

#3 The Real Mark on 05.19.19 at 4:08 pm

This is why I don’t set up a similar situation with my own parents. I would hate for them to pay capital gains on this beautiful house in the Bramptons for simply providing me a separate entrance for the basement. But I do live in this basement, and very well.

#4 Victoria Real Estate Update on 05.19.19 at 4:19 pm

Canada’s “it’s different here” cheerleaders think Canadian policy makers are in complete control of our massive housing bubble. (Canada has had a housing bubble since 2008 (or earlier) – the result of bubble-blowing policy.)

And Canadian “it’s different here” cheerleaders think our gigantic housing bubble (and the “wealth effect” associated with it) can be permanently maintained. (This would be a first in world housing bubble history.)

Falling house prices don’t concern them. They think policy makers will simply swoop in with more stimulus – at the perfect time – to reverse falling house prices and restore Canada’s 20-year “wealth effect” party.

Canada has had near-zero rates for 10 years (emergency rates for that long wasn’t the plan in 2009). As Garth noted in 2008: “Interest rates at zero are deathly worrisome, since they show central bankers are all out of bullets.”

But the Bank of Canada’s “all out of bullets” problem doesn’t worry Canada’s “it’s different here” cheerleaders. No sir. They think “negative rates” will be the next fix that will keep the party going and that those who don’t buy now will “miss out” again and again.

However, as Garth noted in 2016, if Canada does bring in negative rates it will not turn house prices around:

“Third, if the Bank of Canada ever does drop its key rate to zero or below, there’ll be nothing to celebrate. The economy will be diving into a recession with rapidly-mounting unemployment and a hit to the value of your real estate. Like in Japan – where rock-bottom rates (10-year mortgages have been 0.85%) and massive government stimulus, and now negative rates, have not reversed a 40% decline in house prices.”

The fact of the matter is – housing bubble history (Japan as an example) shows us that once a bubble country’s major price correction has started, adding more bubble-blowing policy to turn prices around doesn’t work. (Every bubble country in history tried to stop its major price correction and failed.)

In other words, the inevitable can’t be stopped. And house prices always revert back to that country’s long-term historical mean (to the level where its long-term price-to-income ratio is restored).

And for Canada that means one big price decline, the size of which few have imagined possible.

#5 The Real Mark on 05.19.19 at 4:26 pm

“#4 Victoria Real Estate Update on 05.19.19 at 4:19 pm”

Where do you find the time to write so much nothing, regularly? Do you have prewritten comments and points? You must. Most of what you post is basically a copy-paste of what you’ve been going on about for years.

First of all, everyone knows real estate peaked in 2013.

Secondly, stop, it’s just too much. Really.

#6 The ryguy- In cabo on 05.19.19 at 4:26 pm

Ouch..if the CRA actually went through with this..wow, I can’t even fathom the amount of people that would be screwed. So much for that move up buyer concept.

#7 Debtslavecreator on 05.19.19 at 4:27 pm

They are going to tax ALL “gains” on residences
Except that much of the so called gain over the last 10 years was mainly due to fraudulent monetary policy and govt subsidies via CMHC insurance and tax credit
Applying a real tax on the imaginary gain is how they steal your stored savings
The massive historic debt bubble is what devalued your money but you see it as “rising” house prices
The prices of RE were mainly driven by this massive pile of non productive debt so taxing it will leave you with less loonies to pay the sharply higher groceries and other costs of living
So they will keep coming at RE -after all that’s where the “money” er… debt is
We live in an out of control country – no real property rights and out of control govts. The actual tax base of Canada is around 40% – that is about 60% of the working age population does not contribute anything toward the costs of govt net of benefits rec”d and factoring our the large public sector and its growing army of retirees
Some countries such as Belgium are under 30% and dropping

#8 georgist on 05.19.19 at 4:29 pm

Great stuff. Please tax unearned gains from rentiers.

As noted, there is nowhere to hide, very easy to prove who owns a piece of land.

Sitting ducks. Now reduce income tax please, and focus on unearned income.

#9 NJGeezer on 05.19.19 at 4:35 pm

“These days we tax everything that moves.”

Yes Garthmeister, you Canadians excel at this.

#10 Flop... on 05.19.19 at 4:48 pm

The most pressing question for me is what the bloody hell is going on with beer label on the brew I am currently drinking?

https://www.deschutesbrewery.com/beer/twilight/

I went to Martha Stewart’s blog first, but she said to visit the beer, babes, balanced and dog blog down the hall.

On the one side you have what appears to be a dog on a leash, and on the other side its shadow a hyena on a chain?

What’s your guy’s take?

I will drink the six pack and see if the answer comes to me in a moment of Smoking Man aka Nicotine Nutjob clarity…

M44BC

#11 JacqueShellacque on 05.19.19 at 4:50 pm

Eventually broke gov’ts will tax all assets. It’ll start with a wealth tax on financial holdings, and once they realize that almost no one has anything other than debt, they’ll assume a household has a certain amount of assets such as the stuff in the house and tax that.

#12 crossbordershopper on 05.19.19 at 5:00 pm

DELETED

#13 Bytor the Snow Dog on 05.19.19 at 5:13 pm

That window tax must have been a real pane…

#14 old dinosaur on 05.19.19 at 5:14 pm

Like Maggie Thatcher said so long ago….

“Socialism is wonderful until you run out of other people’s money”

They ran out long ago and are now trillions in debt with no hope of ever paying it back….

Thus when you have an expenditure and debt problem you create new revenue…

Welcome to the socialism you all love so much…

Wait? you mean it affects me?
Just wait

#15 old dinosaur on 05.19.19 at 5:16 pm

In Halifax a number of years ago city council spun off Halifax Water and created a ditch tax to fund new projects….

If water from your property hits a city ditch you taxes for the ditch.

Yup Haligonians pay a tax on rain

#16 Shawn Allen on 05.19.19 at 5:17 pm

Few have any sympathy whatsoever for the taxes that others pay.

I’ve always figured that having to pay a lot of taxes was not such a bad problem to have.

Matthew 22:21 Jesus said “Render to Caesar the things that are Caesar’s…”

#17 The Real Mark on 05.19.19 at 5:18 pm

“#1 The Real Mark on 05.19.19 at 3:41 pm ”
“#3 The Real Mark on 05.19.19 at 4:08 pm “

Nice try fake “The Real Mark”. Seriously, get a life..

#18 Farmer Joe's Son on 05.19.19 at 5:20 pm

How does all of this apply to renting out the family farm land? Does that put a spike in the tax free capital gains as well?

#19 The Real Mark on 05.19.19 at 5:25 pm

“In other words, the inevitable can’t be stopped. And house prices always revert back to that country’s long-term historical mean (to the level where its long-term price-to-income ratio is restored).
And for Canada that means one big price decline, the size of which few have imagined possible.”

Good post. Which is why we’re probably headed back to 0% Bank of Canada policy rates. Although it seems that Poloz is hell-bent on precipitating a systemic crisis prior to such. Yield curve inversion almost always means a recession is imminent, and the yield curve, as well as many other macro data points, are screaming for the need for rate cuts.

Its also worth pointing out that mean reversion implies that there will be some time spent well beneath (or above) the mean, to compensate for time spent above (or beneath) the mean. So if the long-term median house price to median income is approximately 3, and we know its been sitting at 5-6X (or more in some cities), it logically follows that there will be some time spent well beneath the mean. People with the virtue of patience and an eye to relative value will make out like bandits going forward.

The wealth of Canada and its productive capacity will have to be expressed somewhere else other than the “FIRE” investments that have performed so well over the past few decades. I suggest that out of favour sectors and asset classes will be the chief beneficiaries of such a grand rebalancing.

#20 The Real Mark on 05.19.19 at 5:34 pm

“#17 The Real Mark on 05.19.19 at 5:18 pm
“#1 The Real Mark on 05.19.19 at 3:41 pm ”
“#3 The Real Mark on 05.19.19 at 4:08 pm “

Nice try fake “The Real Mark”. Seriously, get a life..”

You aren’t the only ‘real Mark’. If you want to truly have your own identity try using something unique. I have a few suggestions:

– Ye of too many words
– peaked too early
– deflation of the brain
– president of the Ross Kay fan club

#21 Mike leblond on 05.19.19 at 5:37 pm

https://www.theglobeandmail.com/real-estate/vancouver/article-bubble-trouble-in-vancouvers-housing-market-pain-has-set-in/
“Realtor Mark Wiens is already seeing his clients swallow hefty losses. One recently sold for $2-million below the home’s assessed value of $6.2-million. Another turned down an offer of $4.5-million for his West Side house last year only to relist it this year for $2.39-million. The “best-case scenario” for a third is a $350,000 loss on the condo bought for $1.1-million less than a year ago.

#22 Alberta Ed on 05.19.19 at 5:40 pm

Since water is a far more powerful greenhouse gas than carbon dioxide, we can assume that Sock Boy has plans to tax it, too.

#23 Chaddywack on 05.19.19 at 5:42 pm

Also keep in mind that if you piss off your tenants by trying to unjustly seize their damage deposit or make their lives otherwise miserable they might just send a little lead off to CRA about your rental property.

I sure hope you’ve been declaring the income and CRA will know about the status of your house when you sell.

https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/suspected-tax-cheating-in-canada-overview.html

#24 Damifino on 05.19.19 at 5:43 pm

In the years to come you’ll understand much better why governments want to know everything about your real estate.
—————————————

And really, how long could such an enormous source of potential revenue remain untapped?

It’s like the CRA just discovered ‘tax fracking’ and plans to make the most of it. They’re going to need it when the carbon taxes are rescinded.

I’m so happy to have left the residential real estate game behind ten years ago. It used to be so much easier.

Used to be…

#25 -=jwk=- on 05.19.19 at 5:43 pm

@#4
Japan has no immigration – basically zero – and a negaitve birth rate. that’s a long term recipe for a receding economy. USA also has a much lower (legal) immigration rate than Canada.

So Canada is different – will that change anything?

#26 Long Branch Apprentice on 05.19.19 at 5:44 pm

The easiest way to win the Federal election in the fall is to promise a cancelling of all, or part of student for Gen. X’ers and Millennials.

Would be a very good boost to the economy too.

No party will even discuss it, in my opinion. If they do, many ears will listen.

Even you’ll have to agree, James.

#27 islander on 05.19.19 at 5:46 pm

“a safe bet a huge whack of these amateur landlords are also tax cheats, failing to report the income they use for mortgage payments and property tax”

Ahhh….ya think so?

#28 Lee on 05.19.19 at 5:46 pm

I assume you mean after altering the house (ie by adding an entry door to create a suite) it loses its tax-free status for future capital gains but not past ones? Otherwise, quite a bonanza for the government. I think that is an important qualifier. Lot of landlords get pinched on this one in old age.

#29 TurnerNation on 05.19.19 at 5:47 pm

Pay your fair share slaves!
The global NWO companies running our show like Google Netflix Apple Amazon pay virtually no tax relative to their revenues.
All receive local tax breaks and tax jubilees our local elected officials hand out like candy.

Overt scams and money pits like Tesla Uber Lyft also qualify for “green” tax and subsidies handouts.

GM bought an early stake in Lyft. You know that big car company …which was bailed out using taxpayer dollars?

The scam is circular. Our elites are roaring with laughter now. So funny.

#30 That's All, She Wrote on 05.19.19 at 5:55 pm

“Victoria would not be amused.”

Well, five years after Vickie ascended the throne, she signed into law the reintroduction of the income tax, which hadn’t existed since the end of the Napoleonic wars.

The income tax remained in place until well after her death. Still, most of the HM government’s revenue during the period came from tariffs.

This Heritage Moment was brought to you by the red squirrel and the common shrew.

Not in Canada. – Garth

#31 Flop... on 05.19.19 at 6:02 pm

3 beers down.

Still not seeing the meaning…

M44BC

#32 crowdedelevatorfartz on 05.19.19 at 6:09 pm

@#10 Flop
“On the one side you have what appears to be a dog on a leash, and on the other side its shadow a hyena on a chain?”

+++++

The shadow looks like a wolf to me…
Apparently the beer, like the CRA, turns normal people into beasts….

#33 Long-Time Lurker on 05.19.19 at 6:20 pm

#55 History on 05.18.19 at 10:37 pm
#18 Long Time Lurker – The President of Germany was Paul Von Hindenburg in 1932, and Hitler never came to power until 1934.

>Yeah, I’m not sharp on the details. Hitler got named Chancellor by Hindenberg after the Reichstach (?) voted, right? There’s a photo in the book (vol 1?) of the two of them together in a car driving through a crowd and Hindenberg sure doesn’t look happy.

Also, it’s A History of the Twentieth Century — not The.

#34 VanLoserRenter on 05.19.19 at 6:22 pm

We’re renting an entire house (Shaughnessy!!) including a 2 bed basement suite, which we are about to start showing to students.

I guess this rental income will be taxed the same way- but worth calling the bean counters to confirm I think.

#35 Howard on 05.19.19 at 6:33 pm

What will happen if the BC NDP gets around to granting the renter tax credit it promised in the last election? Every renter in BC will self-declare in order to get the credit. The tax cheating landlords will be instantly outed. I can imagine a good number are now trying to renovict their tenants to avoid such a scenario.

#36 Howard on 05.19.19 at 6:37 pm

#25 -=jwk=- on 05.19.19 at 5:43 pm
@#4
Japan has no immigration – basically zero – and a negaitve birth rate. that’s a long term recipe for a receding economy. USA also has a much lower (legal) immigration rate than Canada.

So Canada is different – will that change anything?

————————————————-

Japan’s GDP per capita has not declined and it enjoys one of highest standards of living in the world.

The US immigration intake per capita is a good 60% lower than Canada’s. You make it sound like the difference is trivial.

#37 Nonplused on 05.19.19 at 7:00 pm

I am sure the government won’t stop with “tax creep” until the effective tax rate in this country is 110%.

What happens, for example, in the situation where you have a suite in the basement but it isn’t rented out for a number of years because your children are using the bedrooms (that happened to me as my kids got older, the suite essentially became more living space that happened to have a second kitchen in it).

And how do you figure out what portion of a principle residence is subject to capital gains taxes and what isn’t? For example, the assessment for aforementioned property put something like 80% of the value on the land as the structures were so old. And then when you factor in that improvements to a basement are the cheapest square footage you can add to a house, what is that suite really worth? To suite my basement all I had to do was redo the bathroom so that the entrance was inside the suite, put in a privacy door, and a kitchen, the rest of the improvements had been done years ago and were already suitable. I think I touched up the paint. Putting in the kitchen really required nothing more than taking out the existing wet bar, buying a bunch of prefab cabinets, some used appliances, and some electrical work (kitchens need a lot of power). Total cost was probably around $10,000. So how much should this suite count towards the total capital gain of the house? How can it even be considered significant? Do you go 10,000/180,000 times the capital gain? The capital gain was substantial at about $260,000 but my formula would imply the improvements to the suite accounted for about 1/18 of that value so $14,000. At a 50% capital gains inclusion rate that would be $7,000 and at a 50% tax bracket that would mean all this humping around for $3,500. And much of the capital gain resulted from other improvements done to the property that did not affect the suite. How do we deduct those out? I spent a lot more money upgrading the main floor and the yard than I did on the suite.

The tax system in this country is truly out of control. There are so many different taxes already that it takes an expert to keep track of it all. Back in Preston Manning’s day he summed it up best by (jokingly) summing up his proposed simplification of the tax system: “Step 1: state your income from all sources. Step 2: Send it in!”

#38 Linda on 05.19.19 at 7:00 pm

The tax ruling on the empty (unused) suite – how does the court know the owner doesn’t use the space? Would the exemption apply if the owner states s/he used the space for whatever reason? Man cave, home office, storage?

Seems to me this is a slippery slope of a definition, allowing a legal loophole to deny a property owner the benefit of capital gains & maximizing the ability to harvest yet more taxes. Though I suppose there is no reason why a government in search of yet more money can’t simply revoke/terminate capital gains exemptions altogether.

Consequences besides losing the capital gain exemption would be either becoming a landlord with all the hassles that entails including paying yet more tax on the income; ripping out the suite – this supposes that once it is gone the capital gains exemption would eventually be restored?; or selling & taking the loss, except who would buy if they don’t want to have tenants/be landlords/lose capital gains in turn? I for one wouldn’t want to buy that packet of tax woe. Or if I did decide to purchase would have my offer reflect the capital gains loss I’d be taking on.

#39 Karl Ludz on 05.19.19 at 7:06 pm

DELETED

#40 Kenny H on 05.19.19 at 7:30 pm

The BoC has really only two choices: keep rates low or in the event of another 08, go into negative territory or raise them. The former will put many people underwater and maybe also harm the banks. The latter will keep destroying the buying power of the currency as the rates are below the rate of inflation.

Also, another example of why we need to change the way the CRA operates. Maybe get rid of this theft agency.

#41 Exodus 2020 on 05.19.19 at 7:33 pm

Capital gains tax exemption is unfair in my opinion. To level the playing field tax all capital gains but give a tax deduction to mortgage interest. That way when people upsize they can draw another mortgage and benefit from an income tax deduction instead of crying the blues that they get set back for moving up. And if you ask what about retired folks who don’t want a new mortgage or don’t pay enough income tax to benefit from tax deductible mortgage interest…. they should be downsizing anyway rather than hoarding real estate!

#42 Yuus bin Haad on 05.19.19 at 7:44 pm

The poodle bites …

#43 Flop... on 05.19.19 at 7:53 pm

crowdedelevatorfartz on 05.19.19 at 6:09 pm
@#10 Flop
“On the one side you have what appears to be a dog on a leash, and on the other side its shadow a hyena on a chain?”

+++++

The shadow looks like a wolf to me…
Apparently the beer, like the CRA, turns normal people into beasts….

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

5 beers down.

One to go.

What about people and dogs are wilder when the sun goes down?

One to go and hopefully I will sort this out.

Might have to switch to Scotch to discover the meaning of life since Garth is stalling.

I also have some Moonshine a buddy brought back from the States to use in an emergency.

Do the Liberals tax hangovers…

M44BC

#44 TurnerNation on 05.19.19 at 7:58 pm

Flop you need a live Parascope feed for your rants, sobar of course.

#45 yvr_lurker on 05.19.19 at 8:05 pm

Am curious to find where I can read online about this particular case Garth is commenting on with the basement suite.

Is it

https://househuntvictoria.ca/2016/10/07/do-you-have-to-pay-capital-gains-tax-on-your-suite/

beacuse if so, there were other complications in this particular case.

I have a hard time believing that if the place sat vacant that any court would deny the capital gains excemption on the whole property. Makes no sense; person could have used the basement for his drumming sessions and band practice, for storing his ski stuff, who knows…

Please show us the link on where you found this case from so that we can all read it…

#46 Drill Baby Drill on 05.19.19 at 8:20 pm

I know where garth is going with this. The CRA is ultimately going after any appreciation in a hokes value when sold.

#47 Drill Baby Drill on 05.19.19 at 8:21 pm

correction “homes value when sold.”

#48 Vampire studies (post grad) on 05.19.19 at 8:44 pm

5 Real mark (Whichever one that is)

“Secondly, stop, it’s just too much. Really.”

VREUs lack of original posts is kinda sad. All he/she
wants is their own RE in Vic, Canada’s second bubbliest
town. He is now down to cheering for a Japan scenario,
which isn’t very good for anybody.

Hopefully VREU has kept investing over the last decade
and now is balanced, diversified and liquid in things that are not related to Canada’s RE market.

#49 crowdedelevatorfartz on 05.19.19 at 8:52 pm

@#47 Flop
“5 beers down.
One to go.

What about people and dogs are wilder when the sun goes down?

One to go and hopefully I will sort this out….”

******

Two things.
6 Beer and you’re stopping the stubbies…. and you call yourself Australian? Tsk tsk

When the sun goes down …tonight the Full Moon rises…and the wolves howl.

#50 akashic record on 05.19.19 at 8:52 pm

Doesn’t the mantra say, that in the US mortgage interest rate is deductible, because their is no capital gain tax?

So Canadians, who suddenly lose their cap gain-free status, can in return claim mortgage interest deduction for the entire mortgage they paid for th non cap gain-free property?

Or the gov just double-shafts their citizens at will?

#51 akashic record on 05.19.19 at 8:56 pm

#48 akashic record

“their is no…” Darn… Smoking Man at least drinks…

#52 acdel on 05.19.19 at 8:57 pm

We have lost our will to fight back. I will never understand on how the general populace just gave in. I tried in my younger years.

Is our lives any better/easier now, fulfilling, happier, less stressful then let say (to those who were around) the 70’s?

Groups have tried to fight back but the general populace (including me, getting old and tired) have been assimilated (Star Trek :)); they won! Just move, get out of this country!

#53 millmech on 05.19.19 at 8:59 pm

#35 Howard
If I understand it correctly a lot of landlords would also be deducting interest, taxes, internet, heat, hydro, cleaners, towels, mowers, lots to deduct and any improvements made to their residents. The kicker would be that they may actually generate refunds for many of landlords as long as they have kept the receipts.

#54 acdel on 05.19.19 at 9:12 pm

#43 Flop…

Well Flop; you’re one up on me! Once the bottle of Scotch is open that is when the serious discussions will start but unfortunately Garth will have shut it down before then, Smart man! :)

#55 the Jaguar on 05.19.19 at 9:12 pm

“””—–Suites are epidemic now, of course. Given the cost of real estate, hauling in a renter is the only way a lot of people can swing home ownership. Vancouver, for example, has the highest proportion of residential suites in North America. But it’s probably a safe bet a huge whack of these amateur landlords are also tax cheats, failing to report the income they use for mortgage payments and property tax. The CRA has one of its famous ‘projects’ set up to ferret out and slap around such households. The interest and penalties – atop income tax owing – can be enough to ruin your day. Or year.”””———–

I’d be really interested to know what one of these ‘famous’ projects entails. Really hoping that the CRA doesn’t just target properties that allow for legally conforming suites to see if the owners are declaring any rental income, because overwhelmingly this activity takes place in homes that do not allow for secondary suites. The owners don’t care. Fire regulations and human safety be dammed. What’s particularly odious is that not only do some neglect to declare the rental income on their taxes, they use the unclaimed rental income to qualify for mortgage financing. Not speculation. Fact. If you need a starting point CRA just start with a place called “Surrey”. Throw the book at them. You have my full support.

#56 Drop Kick Arnold on 05.19.19 at 9:17 pm

It is all in the wording. People of BC are well polished tax evaders.

So, you NEVER call it a suite. It is a “summer kitchen” used by the principle with “random friends”

Learned that from the people of BC. Even your BC realtor will coach you on this. In fact, they will recommend a “hot plate” for the summer kitchen to evade everyone, including municipal bylaw against illegal suites, so you can have an illegal suite without contravening the bylaw.

BC Assessment scans new listings, pulled building permits, etc. to make sure the “wording” has not changed with their records…therefore; the “wording” in your listing not dare speak of a suite – otherwise, you know the drill – tax adjustment. Up, not down.

All about the wording.

#57 Dolce Vita on 05.19.19 at 9:19 pm

#20 The Real Mark

“#17 The Real Mark on 05.19.19 at 5:18 pm
“#1 The Real Mark on 05.19.19 at 3:41 pm ”
“#3 The Real Mark on 05.19.19 at 4:08 pm “

Nice try fake “The Real Mark”. Seriously, get a life..”

———————————————

TOO funny.

One of you can revert back to plain old “Mark” and the other can be the “Real Mark”. Or if both of you want the same name, settle it using this:

https://justflipacoin.com/

It’ll take a few back and forth “The Real Mark” (no you’re not, yes I am too) Comments, but I’m sure you can both figure something out.

Ya, I know boys…Buonanotte.

Good informative Blog today Garth, as always. I liked the:

“If caught, you will fry.”

THAT was good and it added that je ne sais quoi cachet to the Blog today.

———————————————

PS:

If Gov was serious about catching Landlord rental tax cheats, all they have to do is give a juicy deduction to Renters as long as they declare their Address and Landlord on their tax form.

#58 Stan Brooks on 05.19.19 at 9:29 pm

Debt and consumption based ‘economy’ has its limits.

There is no capital ‘gains’ or ‘appreciation of assets’, just tanking ever depreciating currency that creates illusion of ‘wealth’ and fits perfectly governments ‘confiscation through hidden taxes’ agenda.

Banks profits are ‘insured’ through CHMC.

Everyone is happy even the exceptionally stupid sheeple due to the felling rich effect from the housing super bubble …. until it isn’t.

No matter what BoC does we are to face the music and the flowers.

The economy based on debt will only decline while currency and savings is being destroyed.

No growth even in nominal terms, on the contrary, a real severe contraction due to under reported inflation.

The job market is an illusion as it does not take into effect wages (stagnant), the nature of the jobs (second third, part time). It is actually due to extreme pressure to households due to fast rising cost of living that they can’t cope with.

Of course after every exceptional excessive credit expansion a depression follows due to the contraction of credit. Just this time it is an inflationary depression. You consume less in terms of goods but measured in a worthless arbitrary currency it is actually ‘more’.

What really does the average sheeple own? Normally a piece of sub standard property by any measure (glass condo, corn flake particle board houses) at astronomical prices, paid with lifetime servitude, accompanied by significant property taxes and maintenance (precisely because it is of sub-standard quality).

Combined with fast rising prices of life essentials, lack of infrastructure, lack of pensions, bad weather… It really paints a pretty ugly picture that requires quite an astonishing brainwashing effort in order to maintain sheeple’s compliance and conformance.

Cheers to the architects of this giant debt slaves sweatshop (the Empire’s club connected ‘elite’).
Good job. Keep it up.

#59 Trumpocalypse2019 on 05.19.19 at 9:34 pm

ALERT

Trump now tweeting about “..the official end of Iran…”

https://www.cnn.com/2019/05/19/politics/trump-iran-threat-tweet/index.html

He is preparing for war, just as more blockbuster news is about to be released about his taxes and family. Perfect distraction. With nuclear consequences.

The Trump admin. has now gone almost 70 days without holding a White House press briefing. The Pentagon has gone over 350 days without a briefing.

Best modern parallel for this lack of accountability?

Stalin. Mussolini. Chavez. Hitler.

Ensure you have quick access to at least $5000 in cash tomorrow.

PREPARE.

#60 Flop... on 05.19.19 at 9:41 pm

I’m hoping to drink just enough Moonshine to understand where the boys from rural Ontario are coming from…

M44BC

#61 Hawk on 05.19.19 at 10:03 pm

It’s sad what Canada is becoming, a country of bitter hateful, envious, parasites constantly hoping that the government will squeeze ever more money from their fellow citizens.

It’s increasingly obvious that all that fake pretence of being against “rich foreigners” in favour of poor locals has all but evaporated and now the communist class like vampires seeks to turn on their own neighbors.

I will pray for the opposite, I will pray to God that everyone who wants to inflict misfortune —–(be it government taxation and oppression or any other kind)—— on another, out of envy, will themselves be afflicted instead (as severe punishment for violating the tenth commandment).

#62 50 YEARS OF MAPLE LEAF INCOMPETENCE! on 05.19.19 at 10:26 pm

What an inferior and uninspiring non-performance tonight by the Rapt Whores.

A game they had to win, decisively, gets dragged into double overtime , before they barely squeak out a victory.

Just like the city with all its incomplete subways and pothole repairs, Toronturds cannot get anything done on time properly.

You are not even close to being the “Milwaukee of Canada”, Toronto.

Think about that for a moment as you get ready to lose the series.

#63 Russ on 05.19.19 at 10:32 pm

Garth wrote:
“As you might know if you’ve ever deal with the revenuers, the rules are fluid, gray, fuzzy and subject to continuous change by both statute and case law. ”
===========================

I wouldn’t be so sure with your comment.

The CRA rules are fluid, fuzzy and grey. Yada, yada.

Glad to help.

Cheers, R

#64 the ryguy - In cabo on 05.19.19 at 10:33 pm

How big is the overlap between greaterfool and game of thrones?

Yeesh what a stinker, bran the broken..at least Ghost finally got the scratches he deserves.

#65 Lost...but not leased on 05.19.19 at 10:37 pm

IMHO, and as other wise folks on this blog have either bluntly stated or implied, this CRA attack is one of many forthcoming ala the “divide and conquer” class warfare strategy.

So – called “suites” do provide housing regardless of their legality…lets be real here…gov’t has failed miserably in providing affordable housing.

Turdeau and Co (desperate for votes this fall)want the renters Po’d at their landlords, possibly rat them out, whilst these same tenants will likely cut own throats as landlords simply bail from renting and vacancy rate near zero.

Everyone is in a lose-lose situation except Turdeau Moroneau and CRA .

#66 Lost...but not leased on 05.19.19 at 10:42 pm

GARTH:

Thou hast inspired another question oh wise sage

If people AirBnB (aka short term rental) their principal residence (PR), aren’t they in the same SOL re: capital gains/PR ….or even worse ?

aka CRA on- line investigating as we speak ????

#67 Vampire Studies (doctoral thesis) on 05.19.19 at 11:00 pm

61 Hawk

“…and now the communist class like vampires seeks
to turn on their own neighbors.”

Please note the upgrade. This will do just fine. Keep ’em comin’.

#68 Blutterfy on 05.19.19 at 11:12 pm

@#10 &#31 Flop

It’s a play on Jekyll and Hyde and the once popular Twilight series. An innocent looking dog is a werewolf in the shadows of hot summer evening. Also illuminating that alcohol can bring out the werewolves out of the wieners. Given your post history and what little I know of you, I suggest you pick a better more deserving beer suited to your good nature.

#69 Yukon Elvis on 05.19.19 at 11:22 pm

DELETED

#70 Leo on 05.19.19 at 11:51 pm

Could you please share a link to this court case or more specifics? Very interesting, and could be a massive implication for many owners out there, but there have been a few court cases that indicated PR exemption at risk from a suite, but very few real world cases. Are they just now pursuing them yet?

#71 Ponzius Pilatus on 05.19.19 at 11:54 pm

Gas in the Lower Mainland at 1.72 today.
Predictions are for an even 2 bucks during summer.
————
Feel sorry for the guy who has a 5 year lease on an F-150.

#72 jane24 on 05.20.19 at 1:26 am

I was also wondering about taxing AirBnB profits as it seems such an easy check for the CRA to make via AirBnB. When we stayed in TO 2 years ago we had an AirBnB suite in a crowded new condo on TO’s waterfront. Building seemed to be full of AirBnB suites.

We had to pay the money into an Irish bank account and not a Canadian one. Obviously the owner was not paying tax and at the rate we payed was earning a lot of untaxed money from this condo. If I was a Canadian tax payer I would be pissed. if I was the CRA I would be looking into it.

For our Canadian summer holiday this year we joined http://www.homeexchanges.com and will enjoy a lovely 2 bed apt in Montreal for nothing! In future generations they will probably tax house swaps and benefits in kind but they are not there yet.

#73 Smoking Man on 05.20.19 at 1:32 am

Game of Thrones finaly.
Never watch it, could care less.

My cousin’s kids on Facebook . Total SKW

They think the world will end in 12 years it’s the fault of straight white old men. Their dad’s are except.

We need to put camars in schools. The teachers are insane.

#74 Norm on 05.20.19 at 1:43 am

Am I being simplistic?
Failing to declare rental income is tax evasion. If the government established mechanisms to catch said evaders, without telegraphing the intent prior to, is that really the concern of those of us who are law abiding citizens?
Next step is for the government to force any property management provider wishing to continue operating, including AirBnB, to disclose historical rental income information for the past decade
– a happy Vancouver renter who doesn’t try to evade taxes with his investment income

#75 Smoking Man on 05.20.19 at 2:00 am

DELETED

#76 Jay Currie on 05.20.19 at 2:05 am

Oh boy, you are going to lose some or all of your cap gains exemption on your PR.

But here’s the thing, in Vancouver, at the moment, the lucky people who bought in 2017 are underwater. No capital gains therefore no exemption.

But what about capital losses? Can the losses on a PR be written off on sale? And if the suite is exempt from the capital gains exemption can it be used to create a capital loss? And could a homeowner create a capital loss merely by putting a seperate entrance and a $75 Craigslist stove in the basement?

All our tax policy assumes a rising market. Oooopsie.

#77 Howard on 05.20.19 at 3:14 am

#65 Lost…but not leased on 05.19.19 at 10:37 pm
IMHO, and as other wise folks on this blog have either bluntly stated or implied, this CRA attack is one of many forthcoming ala the “divide and conquer” class warfare strategy.

So – called “suites” do provide housing regardless of their legality…lets be real here…gov’t has failed miserably in providing affordable housing.

Turdeau and Co (desperate for votes this fall)want the renters Po’d at their landlords, possibly rat them out, whilst these same tenants will likely cut own throats as landlords simply bail from renting and vacancy rate near zero.

Everyone is in a lose-lose situation except Turdeau Moroneau and CRA .

———————————–

You seem to be saying that we should exempt a particular class of people from tax evasion penalties just…because?

#78 Ustabe on 05.20.19 at 4:33 am

…Is our lives any better/easier now, fulfilling, happier, less stressful then let say (to those who were around) the 70’s?

Mine sure is. Better and less stressful by far. No contest.

In 1970 I was 22, finished both university and a year long cross Canada gig as a roadie for a US rock and roll band.

Here I sit now, married to the same woman for 42 years, comfortable and don’t even have to be all that careful neither money-wise, food wise or lifestyle-wise. Adult sons doing great. I made it to (almost) the end in one piece and at peace.

I’ll tell you why I’m happy (and proud to live in Canada and call it my home) but that would take paragraphs. But I am. Truth be told I’ve never really had a time of it even as I lived and worked though recessions, austerity programs…what have you.

I was always a bit of a Red Tory but there used to be room for me and guys like me. We robbed a lot from the Liberal camp by being inclusive, socially progressive and as fiscally conservative as allowed. Recall it was a PC government that legislated Tommy Douglas’s med plan for instance. I remember all that…Doctors going to bleed away to the US, the end of Canada, the downfall of us all…same noise as today, just a different set of lyrics.

So, I’ve remained a red Tory but my Conservative vote is done. The current Cons have no use for me, apparently. They would rather make up disparaging nicknames and call that political discussion. Witness the current crop of attack ads being run currently by Scheer. I’m no Trudeau/Liberal fan but every time I hear a Con ad it solidifies my resolve to vote for anyone except a Conservative candidate.

So, I’m sometimes left of center, sometimes right of center and happy, well fed and don’t need Metamucil to get things moving in the morning. So far don’t need boner pills either. Not bad for 71, eh?

Meanwhile all of the folks who have moved hard right are getting ill. It is literally making you sick. Evidence is posted here daily. Daily in the news, daily on r/MetaCanada, daily on r/Canada, daily , daily, daily.

Political discourse should not include conspiracy theories, neighbour hate whether it be postal code to postal code or Province to Province, envy, ad hominem crap, etc.

That is bringing problems to the table, not solutions. That is whinging, moaning, cry baby weak sauce.

And its making you sick. You cannot immerse yourselves in the cesspool every day and expect to come out without some virus or bacteriological infection.

You may think you are happy, it is warm in there and lots of people giving validation but everything isn’t black or white, there is a lot of background out there in gray.

And a lot of that background is life…a life worth living and giving to but you miss it when you look upon your neighbour with suspicion, when you reject your workmate solely due to her politics, when you allow your dislike of the current state of affairs to fester and capture too much of your attention and time.

I think both major parties need a real wake up call this October. Lets all vote Green and see what happens, it can’t be worse than either of Liberals under T or the cons lead by Scheer.

#79 Guelph renter on 05.20.19 at 6:09 am

“Given the cost of real estate, hauling in a renter is the only way a lot of people can swing home ownership”

There are a huge number of investment landlords in Guelph (univ town). The current trend is that the basement and main house are rented separately. It seems the high prices need that to break even. Rents have sky rocketed (2300 (main) + 900 (basement)) for a good neighborhood.
We have given up all hopes of buying here. But now renting is also getting out of hand. Wish we could get out of GTA. Would do that in a heart beat if I could.

#80 Ponzius Pilatus on 05.20.19 at 7:52 am

The not so Dolce Vita:
https://m.spiegel.de/video/jugendarbeitslosigkeit-in-italien-video-99027115.html
——–
25% youth unemployment in Italia.

#81 ArcticOutback on 05.20.19 at 8:31 am

‘Long Branch Apprentice on 05.19.19 at 5:44 pm
The easiest way to win the Federal election in the fall is to promise a cancelling of all, or part of student for Gen. X’ers and Millennials’

‐——-

Cancellation of student debt across the board is not fair to those students who worked part time throughout the school year and 6-7 days a week during summer breaks in order to graduate with little debt or debt-free. I was one of these students whose parents slightly above-average income excluded me from OSAP but my family had no means to pay for me so I was on my own.
I saw many students knowledge that they enjoyed ususing their OSAP to fund excess activities while they partied during their spare time during school.

Tuition has become much more expensive in time and any Government program should be focused on lowering tuition for all Canadian students.

#82 Incubus on 05.20.19 at 8:49 am

“Any profit made on the real estate must be apportioned to the two areas of the house – the residential part and the unused suite. One tax-free, the other taxable.”

So he can claim expenses related to this unit.

No. – Garth

#83 Tony Lukaku on 05.20.19 at 8:53 am

Hi Garth,

If I have no intention to sell but I just want to do a basement renovation (preferable including washroom) in the future on my primary residence. I will never rent the basement out.

Could you please let me know whether I still get the exclusion on the capital gain tax? The amount of exclusion is equal to buy a small condo. I need the advice. Could you write a blog article on that? Thank You!!!

#84 dharma bum on 05.20.19 at 9:31 am

#77 Ustabe

I think both major parties need a real wake up call this October. Lets all vote Green and see what happens, it can’t be worse than either of Liberals under T or the cons lead by Scheer.
——————————————————————-
True. Couldn’t be worse.

Won’t be any better, either.

Voting Green, Red, or Blue won’t make any difference to the daily lives of Canadians.

By voting one way or another, all we are doing, as voters, is giving cushy jobs to one set of useless morons vs another set of useless morons, who ultimately spin their wheels, spew meaningless rhetoric, pander to special interest groups with empty promises, and have zero significant effect on anything that is meaningful to us.

Canada is run by an administrative unstoppable monster of a tax machine that automatically continually increases the rates and broadens the base of taxable items and income sources.

We will endlessly be squeezed financially, no matter what colour party gets voted in for their turn of a “money for nothing” gig.

Live your life as best you can.
Ignore the noise.

No government in Canada will ever help you.
Governments will only hurt you.

Generation after generation, we are being financially squeezed to death as our successive governments find new ways to blatantly squander our hard earn pennies.

Tax. Is. Theft.

#85 Felix on 05.20.19 at 9:48 am

Vacuuming up unwanted canines is not actually a very efficient way to help eradicate this useless species.

Instead, try luring the moronic nuisances by standing sideways holding a treat and moving away from them, not towards them. Have a slip lead ready for capture.

Since their very low IQ makes dogs pack animals just like FOX News viewers, you may also try to trick them by using another friendly dog to attract them, then capture them.

Once captured, take the four legged evolutionary dead end to a South Korean restaurant, where they will know exactly what to do with it.

#86 Howard on 05.20.19 at 9:50 am

#80 ArcticOutback on 05.20.19 at 8:31 am
‘Long Branch Apprentice on 05.19.19 at 5:44 pm
The easiest way to win the Federal election in the fall is to promise a cancelling of all, or part of student for Gen. X’ers and Millennials’

‐——-

Cancellation of student debt across the board is not fair to those students who worked part time throughout the school year and 6-7 days a week during summer breaks in order to graduate with little debt or debt-free. I was one of these students whose parents slightly above-average income excluded me from OSAP but my family had no means to pay for me so I was on my own.
I saw many students knowledge that they enjoyed ususing their OSAP to fund excess activities while they partied during their spare time during school.

Tuition has become much more expensive in time and any Government program should be focused on lowering tuition for all Canadian students.

—————————————

Agree completely. What a boneheaded idea. Cancelling existing student debt would be the latest stake to the heart of savers in Canada. Prudent graduates subsidizing profligate graduates. How much more abuse can savers possibly take?

#87 Howard on 05.20.19 at 9:52 am

#77 Ustabe on 05.20.19 at 4:33 am

A Red Tory is simply a leftist. I don’t know why you’re so annoyed that the only remotely centre-right party in Canada doesn’t bow to your definitively non-conservative values. You already have 3 leftist parties with seats in the House of Commons to choose from.

#88 Felix on 05.20.19 at 10:25 am

Further to the above, due to their pack animal low IQs, you might also try luring dogs by treating them as condo investors, offering them and their deluded human masters free food for a year to buy an overpriced skybox.

Much better way to capture and dispose of them than vacuuming, which leaves a bigger carbon footprint.

#89 MF on 05.20.19 at 10:44 am

83 dharma bum on 05.20

Nothing worse than this sort of all hope is lost cop out with a litany of mundane complaints comment.

Don’t like the parties get involved? Run for a position yourself. Form a new party. Anything is better than complaining, and even worse, becoming disengaged.

Oh look another person complaining of taxes. Yawn.

Pathetic post.

MF

#90 Howard on 05.20.19 at 10:48 am

#84 Felix on 05.20.19 at 9:48 am

Once captured, take the four legged evolutionary dead end to a South Korean restaurant, where they will know exactly what to do with it.

———————————–

They eat cats over there too, you know.

#91 Flop... on 05.20.19 at 10:55 am

Student debt?

These guys in Atlanta just got lucky.

U.S billionaire agreed to cough up 40 million to wipe the slate clean.

https://www.nbcnews.com/news/us-news/philanthropist-robert-smith-pledges-40-million-clear-morehouse-grads-student-n1007506

Also Buttterfly, I didn’t get into the Twilight series but I remember seeing a trailer for the movie once and some of the characters turned into wolves or something, so your explanation makes since.

My wife was nice enough to buy a six-pack of the beer for me to try something different, so it wasn’t nothing I can take credit or blame for.

I also remember a bit of hoopla regarding where some of the filming was done when I visited Forks, Washington and surrounding areas a few years back on the Olympic Peninsula.

There are major differences obviously with one being an island and the other a peninsula, also flora and fauna, but in my travels The Olympic Peninsula is the closest thing I have ever witnessed that reminded me of the state in which I grew up in, that being Tasmania…

M44BC

#92 millmech on 05.20.19 at 11:00 am

In your response to #81 you said he can not claim expenses for the suite square footage capital gains, why?
If he has to pay capital gains he should be then allowed to claim heating, lighting taxes etc that you would normally deduct to maintain an asset.
Does this also now set the stage for being allowed to claim capital losses on a sale by using this legal precedent, this would seem to open a whole can of worms especially in a declining market. If one has huge capital gains you could now advertise 90% of your house for rent and if it has declined in value by a million, according to CRA ruling you would be able to have a capital loss of $900,000 to carry forward.
I guess you could over pay for a house just to get the write off now, or will CRA now start to dictate what they consider to be appropriate pricing for housing.
What next though, any unused rooms could possibly be rented out as storage lockers so you pay capital gains on it.

Operating expenses and capital gains tax liability are unrelated. – Garth

#93 Russ on 05.20.19 at 11:37 am

crowdedelevatorfartz on 05.19.19 at 6:09 pm

@#10 Flop
“On the one side you have what appears to be a dog on a leash, and on the other side its shadow a hyena on a chain?”

+++++

The shadow looks like a wolf to me…
Apparently the beer, like the CRA, turns normal people into beasts….

https://www.deschutesbrewery.com/beer/twilight/
===========================================

Good morning Flop & Crowdie,

How’s the hangover(s)?

The dog’s alter ego, for Twilight Ale, is a junkyard dog. Notice the leash is turned into a chain in the shadow.

In the past our village on Vancouver Island celebrated Empire Days on this weekend. The SJWs stole the legacy from us and now it’s this pale lame thing called Heritage Days.

Liberal types often have no respect for the past.

Cheers, R

#94 Lorne on 05.20.19 at 11:58 am

#84 dharma bum on 05.20.19 at 9:31

Tax. Is. Theft.
………
Do you drive on any paved roads? Wonder how those are paid for?

#95 Winterpeg on 05.20.19 at 11:59 am

Am curious if the capital gain on part of your property would also apply if you had used part of your house to run a business. eg using a room solely as an office.

#96 Ustabe on 05.20.19 at 12:01 pm

87 Howard on 05.20.19 at 9:52 am

#77 Ustabe on 05.20.19 at 4:33 am

A Red Tory is simply a leftist. I don’t know why you’re so annoyed that the only remotely centre-right party in Canada doesn’t bow to your definitively non-conservative values. You already have 3 leftist parties with seats in the House of Commons to choose from.

You illustrate my point beautifully. From what little you have gleaned about me you are certain I don’t pass some sort of purity test. The problem illuminated in a succinct few words. Leftist instead of left of center. Slip in the conservative values dog whistle. Then there is your other post where you talk about other cultures consuming cat flesh.

Time to look in the mirror. See if you can figure out the problem.

#97 Hookshot on 05.20.19 at 12:02 pm

#87 Howard on 05.20.19 at 9:52 am
#77 Ustabe on 05.20.19 at 4:33 am

A Red Tory is simply a leftist. I don’t know why you’re so annoyed that the only remotely centre-right party in Canada doesn’t bow to your definitively non-conservative values. You already have 3 leftist parties with seats in the House of Commons to choose from.
………
Actually, 2 too many leftist parties. The majority of the country is left-leaning. Too bad they cannot seem to find a way to ensure this majority is always served at least somewhat. No need for a right wing govt in Canada ever if they could cooperate even a little!

#98 Briana on 05.20.19 at 12:07 pm

The world is becoming too populated for people to own property in countries they do not even live or work or pay taxes. This needs to stop immediately, how many homes do people really need? If those foreigners visit a country let them stay in a hotel or long term rental! If they own property in foreign country they should be paying big bucks in taxes to that country to do so … much more than the people that work in that country. They should be paying comparable income tax/real estate tax as high as the working class to buy that as per the cost of that property and similarly paying extra taxes on property taxes!!! They need to contribute to that economy monetarily and economically aside from just being able to own property there.

Why? – Garth

#99 akashic record on 05.20.19 at 12:12 pm

Victoria would not be amused.

Especially if foreign ownership treatment were to be extended to Vicoria’s land.

#100 crowdedelevatorfartz on 05.20.19 at 12:28 pm

@#71 Pilates Pilot
“Feel sorry for the guy who has a 5 year lease on an F-150.”

*****

Was that sarcasm?
Not to worry amigo.
My F-350, crew cab, long box, 4WD, diesel belching, world destroyer is paid for….and the fuel prices?
Pfft.
Cost of doing business.
We pass it on to the customer.
And they pay it.

#101 Robert Ash on 05.20.19 at 12:34 pm

I remember a period of time, when I thought the Government was trying to help it’s citizens. There was a Balance between, Revenues, and Important and necessary jobs.. When a country with the Potential and Raw open spaces and resources like Canada, has to focus on Home Owners, trying to make ends, meet, and also stir a negative pot for Student Renters, or Young New Hires… we have started to point the Guns, inward… sad, that I think Hawk at # 61 has it correctly. That trend is a real admission of weakness, and failure and surrender… beggar your Neighbor… Trudeau, and Morneau, the Irony being, their Trusts are protected.

#102 Lost...but not leased on 05.20.19 at 12:36 pm

#77 Howard on 05.20.19 at 3:14 am

You seem to be saying that we should exempt a particular class of people from tax evasion penalties just…because?

===================

Uh..no.

Its simply tax grab in overdrive.

Many Local Gov’ts allow suites or consider them legal if they don’t have a plug for a stove(aka use microwave),or other factors such as no exterior doors to suite or no interior doors to lock them out from rest of home.

In our town….you can rent out rooms in your home.

Where was CRA during the housing boom and all the flipping going on?….that would have stopped a lot of problems we are paying for now.

CRA “suite” definition could easily extrapolate to say a family of 4 that has 6 bedroom home and will be taxed on extra bedrooms because of the “potential”.

You know the “bust” is occurring if CRA is engaged in such nickel and dime recovery.

#103 crowdedelevatorfartz on 05.20.19 at 12:41 pm

And just when you thought things in Jolly old Blighty couldnt get more interesting for pro Brexit politicians….

https://www.reuters.com/article/us-eu-election-britain-farage/all-shook-up-brexit-partys-nigel-farage-doused-with-milkshake-on-campaign-idUSKCN1SQ1FT

#104 crowdedelevatorfartz on 05.20.19 at 12:44 pm

Poor Putin.

Who will publish his propaganda when all the News reporters have quit in disgust?

https://www.reuters.com/article/us-russia-politics-kommersant/russian-reporters-resign-en-masse-in-row-over-putin-ally-report-idUSKCN1SQ1JV

Would the last independent reporter left in Russia….please turn out the lights.

#105 Feebird on 05.20.19 at 12:44 pm

@#61 Hawk on 05.19.19 at 10:03 pm
It’s sad what Canada is becoming, a country of bitter hateful, envious, parasites constantly hoping that the government will squeeze ever more money from their fellow citizens.

It’s increasingly obvious that all that fake pretence of being against “rich foreigners” in favour of poor locals has all but evaporated and now the communist class like vampires seeks to turn on their own neighbors.

I will pray for the opposite, I will pray to God that everyone who wants to inflict misfortune —–(be it government taxation and oppression or any other kind)—— on another, out of envy, will themselves be afflicted instead (as severe punishment for violating the tenth commandment).
_________________________________

something, something about turning the other cheap.
you’re making baby jesus cry.

#106 NoName on 05.20.19 at 12:46 pm

@ Ponzy Praseodymium

Its now or never, “rear earths” are about to become more rearer. Its just unfortunate that electric car is full of those. You’ll be driving f150 than you think.

https://bloom.bg/2Em0CLp

https://en.wikipedia.org/wiki/Rare-earth_element#/media/File:Rareearth_production.svg

#107 Vampire Studies (doctoral thesis) on 05.20.19 at 12:52 pm

78 Ustabe = Voting green is currently not a viable
solution to anything. While they preach a new vision, their followers treat development and the economy like drugs and just say “NO”. It caters to nimbys and the “faux green” who are basically just hypocrits.

#108 Paul on 05.20.19 at 1:15 pm

#26 Long Branch Apprentice on 05.19.19 at 5:44 pm
The easiest way to win the Federal election in the fall is to promise a cancelling of all, or part of student for Gen. X’ers and Millennials.

Would be a very good boost to the economy too.

No party will even discuss it, in my opinion. If they do, many ears will listen.

Even you’ll have to agree, James
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Yes,plus pay off these crushing mortgages to level the field,.

#109 MR on 05.20.19 at 1:26 pm

Expecting soon see a tax on breathing!

Those who breathe more, pay more

Those who breathe less, i.e. almost dead, pay less

Dogs are exempt; they can pant as much as they want!

#110 DMER on 05.20.19 at 1:49 pm

Simply cross reference addresses on tax returns to expose possible tax cheats.

#111 Paul on 05.20.19 at 1:57 pm

#98 Briana on 05.20.19 at 12:07 pm
The world is becoming too populated for people to own property in countries they do not even live or work or pay taxes. This needs to stop immediately, how many homes do people really need? If those foreigners visit a country let them stay in a hotel or long term rental! If they own property in foreign country they should be paying big bucks in taxes to that country to do so … much more than the people that work in that country. They should be paying comparable income tax/real estate tax as high as the working class to buy that as per the cost of that property and similarly paying extra taxes on property taxes!!! They need to contribute to that economy monetarily and economically aside from just being able to own property there.

Why? – Garth
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Sounds like Briana, does not own anything and never will?

#112 Paul on 05.20.19 at 2:48 pm

#110 DMER on 05.20.19 at 1:49 pm
Simply cross reference addresses on tax returns to expose possible tax cheats.
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If people only knew the number of housing units provided to the renters of the G.T.A. Most as Garth says are being subsidized by the owners. Units that the government can not produce at the rents charged sometimes the powers that be feel its better to let sleeping dogs lay. Just make all secondary units illegal you will have 10s of thousands of struggling people in the street.Tax all the units the RENT goes up or the units sit empty.

#113 Lost...but not leased on 05.20.19 at 3:13 pm

ALSO:

In BC….many of the McMansions built for the Chinese market have (2) kitchens….the “show” kitchen which is rarely used..and the “WOK” kitchen located in back whereby the cooking styles tend to be more messy.

So..how will CRA judge that???…ie regardless of use..(2) kitchens = suite definition = tax hit ???

#114 Entrepreneur on 05.20.19 at 3:44 pm

I think #98 Briana is on the right track, and should be debated for what is good for the middle class in our own taxpaying system. We are nations with borders with a reason.

Keep your post coming, VREU. They are the level-headed reasoning that needs to be heard.

#115 jess on 05.21.19 at 7:23 am

https://www.cnn.com/2019/05/20/europe/austria-far-right-resignations-intl/index.html

Austrian Vice-Chancellor Quits After Corruption Video Surfaces

Print article
Published: Monday, 20 May 2019 16:34
Written by Ivana Saric

A secretly-filmed video showing Austria’s Vice Chancellor, Heinz-Christian Strache, discussing corrupt deals has thrown the government into turmoil and forced the far-right politician to resign on Saturday.

“…..The crux of the meeting revolved around a plan proposed by the Russian woman, introduced as Alyona Makarova, in which she would buy a 50 percent stake in Austria’s largest newspaper, Kronen Zeitung, and ensure it supported Strache’s Freedom Party of Austria (FPÖ) in the upcoming elections.

In exchange the woman and her companion demanded financial favors, and some of the possibilities discussed including awarding her with inflated government contracts.
Strache can be seen in the video instructing the Russian woman to send contributions to his party undetected, which violates Austria’s campaign financing laws.
When Gudenus explained that the purchase of Kronen Zeitung could be completed weeks before the election, Strache was enthused about the ratings boost the FPÖ would receive.“Then we won’t get 27, we will get 34 percent!” he exclaims in the video.The meeting also saw Strache express support for the idea of transforming Austria’s media landscape into one similar to Hungary’s, where Viktor Orban has severely curtailed freedom of press.

( blamed his behavior on alcohol, according to the Washington Post. )

#116 X on 05.21.19 at 1:45 pm

I assume anyone who claims a home office or storage space in their garage for their business is going to get dinged on this. Any official ruling on that counting agianst the principle residence rule?

#117 Grantmi on 05.21.19 at 3:23 pm

$90 billion in lost home value in Metro Vancouver over the past year: report

https://dailyhive.com/vancouver/metro-vancouver-home-equity-losses-may-2019