The PR

Time for another episode of First World Problems.

Bill and Monica own a condo in the city and a cottage a hundred klicks away on the lake. Both places are worth about $500,000 these days, and they both need to go. Bill landed a job in the UK and they’re off to a new adventure.

Now they’re worried about capital gains tax on the lake place, which they bought four years ago for three hundred grand. (The condo’s been owned for eight.) “Is there any way of taking some of the sting out of this?” he asks. And, yes, there is.

As everyone and their pooch knows, Canadians get a PR exemption. Profit made on the ownership of a principal residence won’t be subject to the nasty capital gains tax (which Chrystia wants to jack). But lots of people don’t know it’s possible to designate alternative properties as a PR in any one year (if you spend some time there), thereby reducing the tax hit in certain instances.

Most people with two houses (First-Worlders) also think they can live in one, sell it tax-free, move into the other and eventually do the same. But, nah, not happenin’. Every single year you own a property and it’s not designated a PR, the gain accumulated during that time is subject to tax. And each year only one can be designated. So choose carefully.

Here’s a formula to determine what a principal residence (PR) capital gains exemption is:

Capital gain X (# years designated + 1)
____________________________
# years owned

What does that mean?

Here’s an analysis and strategy my colleague and tax maven Debbie Wong put together. B&M could sell their condo and pay no tax on the proceeds by declaring it their PR for each year of ownership. Fine. But that leaves the cottage exposed. How much of the gain would be taxed? How much exempted? Use the formula:

$200,000 X (0 +1)
___________
4

The answer is $50,000, or 25%. So the reportable gain is $150,000. The taxable portion is half that, or $75,000 – added to annual income. Ouch.

So is there a better way of dealing with this? Of course, or this post would be more of a waste of time than usual. B&M could take three years of PR designation ‘room’ and apply them to the cottage. That would make the full $200,000 gain exempt from tax:

$200,000 x (3 + 1)
_____________
4

Yay! But what about the condo? Well, they’ve owned it for 8 years and just gave three of those to the cottage, which leaves five years of PR exemption room. And here’s the formula for determining the exemption that remains:

$200,000 X (5 + 1)
_____________
8

The answer: $150,000 of the gain is exempt, leaving $50,000 reportable. The taxable portion would be half, or $25,000. And thus our emigrants could chop their tax bill down by two-thirds, just by diddling with the application of their PR exemption.

So, you can see it would be useful to keep good records on any property you buy in order to ensure proper tax planning down the road. Save receipts for capital expenditures, because they’ll help to increase your ACB – adjusted cost base. The higher the ACB, the less tax you pay on a capital gain (real estate commission counts, too). Be aware if you leave Canada for a few years to work elsewhere the PR exemption is lost for the time on any property is owned here. And, good news, your Florida or Arizona getaway qualifies as a principal residence, as long as you actually live there for a spell.

Finally, parents should never, evah go on title with their adult kids on a property purchase because they’ll be wasting their PR exemption on the kid’s place for the years involved. Leave that for junior.

Oh yeah, and remember that buying a property, improving it and selling again – even if you live through the reno and for a while afterwards – is no guarantee you can claim a pass from capital gains. The CRA might well determine that was a business activity and any profit will be added to your annual taxable income. Plus, T2 is about to bring in an anti-flipping tax which will not only wipe away any PR claim on a place owned for less than a year, but suck off some or all of the gain (details to come).

Is that the thin edge of the wedge for the busting-up of Canada’s greatest tax dodge? Stay tuned.

About the picture: “Love the blog and – now read daily after my father-in-law recommended for over 2 years,” writes Dave. “I am a slow learner….and listener. Our family of six is now renting after 20 years in the market. My spidey senses tell me this madness is unsustainable. This is Hurley as we lost our Border Collie Marley day two of C19. He’s been an amazing family addition for all of us in these trying times. Fortunate to find him as FOMO apparently applies to canines as well!”

145 comments ↓

#1 Jane Zatylny on 10.01.21 at 12:14 pm

Re: Hard Lesson & Baylee the Husky, Sept, 23
Last week, unbeknownst to me, my dear friend and former sister-in-law Dianne Nahirny, posted a photo of my three-year-old Husky, Baylee, with the dreaded Cone of Shame. She told the story of Baylee’s severe hip dysplasia and our journey to get her two hip replacements in Ontario (we live in Victoria), as well as a link to my FernwoodFashionista Etsy shop. The response was overwhelming! Etsy’s algorithms didn’t know what he them! My daily views rose 3000% (!) and I had many sales and sweet notes from well wishers. THANK you, Dianne; THANK you everyone who read about us and visited my shop and purchased one of my vintage items to support her medical needs and our travel. And most of all, THANK you, Garth, for posting our story! Anyone who wishes to follow along with us can follow me @FernwoodFashionista on Facebook or Instagram. Best regards to all. Jane

#2 Woke up this morning... on 10.01.21 at 12:26 pm

First world problems…

Not enough ICU beds.

Human Rights?

Lip service to Natives’s who’s land was stolen.

Their masters on the money with which they try to make it better.

Just a regular normal day.

#3 Justin's Pilot on 10.01.21 at 12:26 pm

This is Justin’s pilot speaking.

I want to make clear that our dear leader (praise be)
Did actually fly to Tofino.

But, he flew on a #metoo powered jet, so absolutely no carbon emissions here.

Also, he DID do much thinking about dead indigenous children as he was aloft above his domain of Canadahistan. He was very concerned about children as he actually is training his boy to be the third generation Trudeau in power, all that whilst listening to the Rolling Stones, his mother’s favourite band.

He also said these wise and kind words for the plebs below.

“You get the leaders you deserve”

#4 SunShowers on 10.01.21 at 12:32 pm

Or, the CRA could apply even the slightest amount of brain power, and reasonably conclude that the odds of a cottage on a lake being a “principle residence” for taxation purposes are essentially nil, and require some kind of supporting evidence such as year-round utility bills for the cottage.

#5 Quintilian on 10.01.21 at 12:39 pm

Bill and Monica need an ethicist advice more than a financial /tax planner.

Firstly, they must realize that the gain is not really earned, it has come to them as an unfair wealth transfer from savers and tax payers engineered by unscrupulous central bankers, and politicians.

So don’t sweat it.
Give some of those gains back to society.
We need the revenue for schools, health care, and the aging.

And Garth:
To be an accessory to the moral depravity, tell them to do the right thing and just pay the tax

#6 Quintilian on 10.01.21 at 12:42 pm

*To be
Don’t be

#7 Dolce Vita on 10.01.21 at 12:53 pm

So is there a better way of dealing with this?
— Garth

Divorce.

Hubby gets Condo. Wifey gets Cottage.

Sell Condo. Sell Cottage.

Remarry in UK.

———

Kind of like:

See Dick* & Jane knit a plot. See CRA. See Dick & Jane stab CRA with knitting needles.

* Like Tom Daley
https://i.imgur.com/A9yDtxc.png

#8 Flop… on 10.01.21 at 12:54 pm

I didn’t see any footage of The Metrosexual Messiah surfing in Tofino, only of him walking along the beach.

Either way, to me, the guy is just an empty suit.

In this case, maybe he’s just an empty Wetsuit…

M47BC

#9 Bezengy on 10.01.21 at 1:02 pm

To designate a property as the principal residence, it does not have to be the place where the taxpayer lives all the time.

Personally I think this should be rewritten without the word “not”. I’m a capitalist kind of guy, but this idea of not claiming capital gains made on a second property is silly.

#10 Dolce Vita on 10.01.21 at 1:04 pm

RE: Prior Comment on Divorce.

Chinese Proverb:

“In China, Checklist for a Home Seller: First, Get a Divorce”

https://www.nytimes.com/2013/03/09/world/asia/some-chinese-seek-a-divorce-to-avoid-real-estate-tax.html

“By filing for divorce, many reasoned, a couple with two homes could then claim that each had only one home.”

…sly and crafty.

Love it.

#11 Penny Henny on 10.01.21 at 1:06 pm

The media is bought and paid for.
Re Trudeau’s vacay to Tofino on Orange shirt day.
The Toronto Star and the CBC have closed the comments on this story. Now why would they do that?
Not only has the CBC closed the comments they’ve already buried the story.

Good little media, cheque’s in the mail.

#12 BillyBob on 10.01.21 at 1:18 pm

Well well. This is more topical to yesterday’s blog about interest rates, but here we go. What were you saying Garth, about people who think “The Government” won’t allow rates to rise?

https://www.expats.cz/czech-news/article/czech-national-bank-shocks-economists-with-biggest-interest-rate-hike-since-1997

“The Czech National Bank, the nation’s central financial authority, is now taking steps to combat rising inflation by raising the base interest rate, a move which has attracted criticism from the government.

The ČNB took economists by surprise by raising the base rate by 0.75 percent, instead of the widely predicted 0.5 percent. This is the most significant rise in interest rates since 1997. The move was driven by rising inflation, which exceeded 4 percent in August and is significantly above the ČNB’s forecasts.”

Well golly gee, thank goodness the reported inflation rates are under control in Canada, right? lol Rates can never rise in Canuckistan, the gubmint “won’t allow it”.

Sure glad our place is mortgage-free. Leverage is fun when it’s working for you, not so much when the worm turns.

#13 A Borrower Bee on 10.01.21 at 1:25 pm

To all of those who do not think one should be able to designate a cottage as a principal residence – removing that ability could be unfair unless a loss on a “real” principal residence becomes deductible.

For years we lived in a condo in the city and had a small cabin outside the city. We sold both the condo and the cabin to buy a house this year.

We sold the cabin for $15,000 more than we paid five years ago, but we also sold the condo for $15,000 less than we paid 10 years ago. So we are really even-steven with zero actual gain. Needless so say, we will designate the cottage since the condo was sold as a loss. We are in Manitoba, but I imagine similar stories playing out in Alberta. Not every jurisdiction has had price increases, at least not on condos.

And yes, in retrospect just buying a house 10 years ago would have been a lot smarter. So much for my theory of “baby boomers will have to downsize soon, so houses will become cheaper – better to buy a condo”. Ah well, win some, lose some…

#14 Russ on 10.01.21 at 1:32 pm

Dolce Vita on 10.01.21 at 1:04 pm

RE: Prior Comment on Divorce.
Chinese Proverb:

“In China, Checklist for a Home Seller: First, Get a Divorce”

“By filing for divorce, many reasoned, a couple with two homes could then claim that each had only one home.”

…sly and crafty.

——————————–

Very good. I suggested something similar for wife & I. She is a housewife and I have a higher than normal income.

She would not go for it so Canada Revenue Unservice taxes us as individuals and we get little government benefits as a family unit.

As Garth says, “Suck.Blow.”

Unfair taxation in Canada, avoid paying more wherever possible (legally if you still have morals) as it just gets wasted.

Cheers, R

#15 Sail Away on 10.01.21 at 1:33 pm

#2 Woke up this morning… on 10.01.21 at 12:26 pm

Lip service to Natives’s who’s land was stolen.

——–

Woke, you keep going on and on about this.

There is a better way, and you can be the leader:

Identify anything of your own that is in any way connected to this egregious theft, including but not limited to: home ownership, products delivered via illegal transportation networks, foods grown on seized lands, oil, lumber, etc., and donate it to the historical original owner of your choice.

Then I will applaud your conviction. Otherwise, quit bitching because it helps nothing.

#16 Dolce Vita on 10.01.21 at 1:39 pm

Last salvo Garth.

Garth,your advice to hold prefs in a balanced and diversified portfolio very good indeed (countercyclical).

Yesterday, while Mr. Market was bleeding red worldwide TPRF (96.2% Cdn prefs ETF by TD) merrily kept chugging along with a +0.81% gain (like it always does). YTD: 24.53% incl. a monthly 4.1% dividend.

“Neither snow nor rain nor heat nor gloom of night…”

Borrowed by the US Postal Service from:

— Book 8, Paragraph 98, of The Persian Wars by Herodotus.

————

Mille grazie Garth.

#17 Jane Duffy on 10.01.21 at 1:52 pm

Technically it is a hundred klicks away, not a hundred clicks though the latter would be interesting.

#18 Dolce Vita on 10.01.21 at 2:06 pm

#11 Penny Henny

True.

But cruxifiction on Twitter by others incl. Global an understatement:

Andrew Coyne
“National Truth and Beach Vacation Day” – with video.
https://twitter.com/acoyne/status/1443765290219802626

David Akin
“PMO web site says @JustinTrudeau is in Ottawa today for “private meetings”. But PMO spox just confirmed he and his family flew to Tofino, BC this morning for a few days off.” – incl. image of PM Itinerary.
https://twitter.com/davidakin/status/1443661136738541568

Bryan Passifiume
“UPDATE: CBC has deleted the tweet” & “Not only is this a masterclass of blatantly partisan journalism, it also isn’t true” – deleted CBC Tweet.
https://twitter.com/BryanPassifiume/status/1443716706438815746

Melissa Mbarki (my favorite FNMI Tweeter)
“You spent some time on the phone, before or after you went surfing?”
https://twitter.com/MelissaMbarki/status/1443767709225807880

And Justin stood up an invite from the Tk’emlúps te Secwe̓pemc, where 215 bodies were found in unmarked graves, had invited Trudeau to their event. PMO hasn’t explained why he didn’t go.
Marieke Walsh
https://twitter.com/MariekeWalsh/status/1443707730246651908

—————–

Didn’t take Justin long after the election to return to “Sunny ways”.

#19 Nonplused on 10.01.21 at 2:13 pm

So either way apply your PR exemption to the property that has appreciated the most in dollar terms? That’s what I get anyway.

————————————-

“Is that the thin edge of the wedge for the busting-up of Canada’s greatest tax dodge? Stay tuned.”

It’s not a tax dodge and primary residences are not capital items; they are a source of great expense. After all the mortgage interest, property taxes, maintenance, and inflation, nobody makes money owning a house to live in. YYZ and YVR have been exceptions but those are bubble markets being goaded on by irresponsible government and central bank policies.

————————————-

Here are some ideas:

https://www.investmentwatchblog.com/how-can-houses-be-unaffordable-and-booming/

#20 Ponzius Pilatus on 10.01.21 at 2:14 pm

#11 Penny Henny on 10.01.21 at 1:06 pm
The media is bought and paid for.
Re Trudeau’s vacay to Tofino on Orange shirt day.
The Toronto Star and the CBC have closed the comments on this story. Now why would they do that?
Not only has the CBC closed the comments they’ve already buried the story.
—————————-
I pay for the media I access.
Don’t you?
Or do you just go to the library and get it for free?

#21 Faron on 10.01.21 at 2:20 pm

#11 Penny Henny on 10.01.21 at 1:06 pm

Not only has the CBC closed the comments they’ve already buried the story.

That’s funny, I found the article instantly. While I think a trip to Kamloops would have been a far better choice, you and I have literally no idea what his actual agenda for the day yesterday was. Always jumping to conclusions when it suits you.

I also find it extremely rich that the right complained and whined about this day and now are complaining and whining when it wasn’t performed to their exact measure. A measure of something that you didn’t even want to exist. It’s even more rich that you are whining about it (as if you actually care about first nations Canadians) on a blog that gave ZERO mention to the day. None. Zip. Zilch.

As always, I do not like Justin Trudeau. But, at the very least, the right has to acknowledge that they are just as shrill about perceived imperfections as the left is. Snowflakes all.

Penny, what did you do yesterday?

#22 Shawn Allen on 10.01.21 at 2:26 pm

CBC comments closed about Trudeau?

Must be conspiracy and bought and paid for media!

#11 Penny Henny on 10.01.21 at 1:06 pm claimed:

The media is bought and paid for.
Re Trudeau’s vacay to Tofino on Orange shirt day.
The Toronto Star and the CBC have closed the comments on this story. Now why would they do that?
Not only has the CBC closed the comments they’ve already buried the story.

Good little media, cheque’s in the mail.

*******************************

Actually CBC closed comments on most or all of its stories a couple months ago because so many nice Canadians are actually terrible reprehensible people who can’t be trusted to be civil in their comments.

Try to keep up.

No bought and paid for.

#23 Dolce Vita on 10.01.21 at 2:29 pm

#11 Penny Henny

Forgot to mention, RE: “cheque’s in the mail”.

“Forward. For Everyone” Fiscal and Costing Plan, New Investments *:

Modernizing the CBC / Radio-Canada

2022-23 = $100 Million
2023-24 = $100 Million
2024-25 = $100 Million
2025-26 = $100 Million

Thanks to Canada Post it will take 2021-22 to get there.

—————-

* https://liberal.ca/wp-content/uploads/sites/292/2021/09/Forward-For-Everyone-Financial-and-Costing-Plan.pdf

…and

Donate Now (IT ONLY TAKES TWO MINUTES):

https://secure.liberal.ca/donate?utm_source=liberal.ca&utm_medium=header-bar

#24 Cottagers STAY THE HELL AWAY! on 10.01.21 at 2:37 pm

Just sell the cottage and stay in one mcmansion in Oakville, all you slimy little pathogens – save your tax money that way!

We don’t need inbred southern hillbillies up here!

Just.

Stay.

Home.

#25 Ed on 10.01.21 at 2:38 pm

I filled up my Jeep at a native fuel station…just my contribution to reconciliation…more than JT.

#26 Michael in-north-york on 10.01.21 at 2:38 pm

#4 SunShowers on 10.01.21 at 12:32 pm

Or, the CRA could apply even the slightest amount of brain power, and reasonably conclude that the odds of a cottage on a lake being a “principle residence” for taxation purposes are essentially nil, and require some kind of supporting evidence such as year-round utility bills for the cottage.
===

Fair, but probably not up to CRA. The legislators need to update the tax code before CRA can change its approach.

#27 Paul on 10.01.21 at 2:40 pm

And each only one can be designated. >
Maybe ‘And each year only one…’

time on any property is owned here. >
Maybe ‘any property that is owned here.’

#28 Michael in-north-york on 10.01.21 at 2:44 pm

#5 Quintilian on 10.01.21 at 12:39 pm

Bill and Monica need an ethicist advice more than a financial /tax planner.

Firstly, they must realize that the gain is not really earned, it has come to them as an unfair wealth transfer from savers and tax payers engineered by unscrupulous central bankers, and politicians.
===

The ethicist can print their advice on a sheet of paper, then roll that sheet into a thin pipe and stick it where sun never shines.

Take all available tax deductions, as long as they are legal. Do not cheat, but take all government money you can as long as your actions are not against the tax laws.

#29 S.Bby on 10.01.21 at 2:46 pm

We don’t own any land anyways, it’s all owned by the natives:

https://www.burnabynow.com/highlights/reconciliation-initiative-aims-to-make-up-for-rent-free-living-4475763

get ready to write a cheque…

You stray further from reality with each post. Maybe you should stop. – Garth

#30 The West on 10.01.21 at 2:51 pm

Mired in the emptiness of Ottawa (Canada’s Palace of Versailles) is an unsettling realization that we are absolutely rudderless as the world heads into a turbulent storm. The unfettered greed and severe mismanagement of the entire western world is going to go unanswered for.

By the way – does anyone have a picture of Justin Castro in an orange shirt yesterday….anyone…he must have worn an orange shirt….maybe while he was surfing, or…..there had to be have been orange shirt……

#31 XGRO and chill on 10.01.21 at 2:54 pm

People with million dollar homes and hundreds of thousands in capital appreciation on them get a huge tax break.

And the people who cannot afford homes, or otherwise choose to rent get diddly squat.

#32 Dolce Vita on 10.01.21 at 2:59 pm

#11 Penny Henny

Forgot to mention, RE: “cheque’s in the mail”.

Besides the $400 Million in “New Investments” for CBC there is also the matter of these OTHER CHEQUES IN THE MAIL *:

“$600M in federal funding for media ‘a turning point in the plight of newspapers in Canada’”

https://nationalpost.com/news/politics/600m-in-federal-funding-for-media-a-turning-point-in-the-plight-of-newspapers-in-canada

…and of course “Other Journalists” question the $600 Million according to CBC which simply calls it a bail out:

“Journalists question Liberal government’s $600M media bailout plan”

https://www.cbc.ca/news/politics/journalists-question-media-bailout-1.5147761

—————

* Hopefully those cheques were delivered by Canada Post which oddly had no money in New Investments to modernize them.

#33 yvr_lurker on 10.01.21 at 2:59 pm

Really nice example showing one how to optimize the reduction in tax with the 5 and 3 shuffle. Super-easy to work out. However, it all begs one key question. Will the CRA seek proof that the PR was in one place for 5 years and another place for 3 years? Surely, the CRA could challenge this as they have their own little math minions who will understand clearly that the implications of this optimization of the formula. Wouldn’t they be questioning how one travelled to work in Toronto from the cottage for the 3 years PR is claimed there? Seems like a convenient loophole otherwise. Perhaps that fellow who narrowly won Vancouver Center (flipping 40 places in 15 years) knows the formula as well.

#34 Habitt on 10.01.21 at 3:00 pm

Another awesome post. Thanks Mr T

#35 crowdedelevatorfartz on 10.01.21 at 3:03 pm

Call me weird .
But does that dog have a pink Playboy logo on its nose?

Yes. You are weird. – Garth

#36 S.Bby on 10.01.21 at 3:07 pm

You stray further from reality with each post. Maybe you should stop. – Garth

I’m just posting what the news reports. But you don’t publish half of what I post anyways. Probably doesn’t fit your narrative.

My only narrative is to keep this blog from becoming another floatie in the social media sewer. – Garth

#37 SoggyShorts on 10.01.21 at 3:08 pm

#112 facts on 10.01.21 at 9:02 am
I have issues with the unvaccinated who don’t fall into the category of having a legitimate exemption from being vaccinated. Let’s keep a laser focus here on the current problem.

Let’s keep a laser focus on the current problem, how Canada – as many other countries – have introduced measures of profound dictatorship.

****************************
It’s come to a point where I don’t see this as a problem. Seriously, if people are such garbage that they need a strong hand to guide them, even to force them to behave properly in our society, then so be it.
“Muh Freedumbs” take a back seat when it comes to public safety.

#38 Woke up this morning... on 10.01.21 at 3:20 pm

#15 Sail Away on 10.01.21 at 1:33 pm
#2 Woke up this morning… on 10.01.21 at 12:26 pm

Lip service to Natives’s who’s land was stolen.

——–

Woke, you keep going on and on about this.

There is a better way, and you can be the leader:

Identify anything of your own that is in any way connected to this egregious theft, including but not limited to: home ownership, products delivered via illegal transportation networks, foods grown on seized lands, oil, lumber, etc., and donate it to the historical original owner of your choice.

Then I will applaud your conviction. Otherwise, quit bitching because it helps nothing.

——–

I can be a leader indeed, and I try to lead by example in my sphere of influence as much as possible.

First, I don’t “own” any of this land. I made that choice a while ago due to market perversion, but higher reasons now overtook that.

I live on it, and it is a land I came to by choice. A land into which those who stole it accepted me.

Land of beauty indeed. I am prepared to leave if asked by the Natives who own it even though those who stole it have long ago granted me citizenship under their laws. I am that serious on this issue.

I do my best to consume less.

To not judge by life by stuff, things, wealth.

I teach the youngins to not consume beyond their needs.
To give their wants serious thought. To make sure it is worth it.

I teach them not to waste. This really is beyond just this place.

And attention to this issue must be brought up. In the end, this whole thing is about control of an asset that was stolen from someone.

Let me ask you this simple question.

Say you own a house. Say I come in from Russia and apply some Russian law to seize your home from you and force you to sign an agreement of that seizure in Russian, not your native language let us assume.

You’re all good with this?

#39 Habitt on 10.01.21 at 3:21 pm

#4 sun showers Actually not nil . Wife and I sold our house in the city 8 years ago and our cottage is our primary residence and we still rent a place in the city for various reasons. 80% of our time is at the cabin.

#40 crowdedelevatorfartz on 10.01.21 at 3:21 pm

Gee,
I wonder when Trudeau and Freeland will turn the Canadain Dollar into the Bolivar.

“Monthly minimum wage $2.50 US……”

https://www.reuters.com/world/americas/venezuela-subtract-six-zeros-currency-second-overhaul-three-years-2021-10-01/

Long Live the Peoples Revolution!
Equality for everyone!
Some are more equal than others!

#41 FerrisWheel on 10.01.21 at 3:22 pm

What happened to rates going up? The US 10 year just took a dump today.

No way, they will let it rise.

FerrisWheel

#42 Wrk.dover on 10.01.21 at 3:24 pm

I have 40 year old itemized receipts hand written in cursive by various building supply clerks.

CRA have someone there that can read them?

How about the heat sensitive cash register slips that are now invisible?

Anyone?

#43 Joseph R. on 10.01.21 at 3:25 pm

#30 The West on 10.01.21 at 2:51 pm

By the way – does anyone have a picture of Justin Castro in an orange shirt yesterday….anyone…he must have worn an orange shirt….maybe while he was surfing, or…..there had to be have been orange shirt……

———————————————————————-

This isn’t your personal erotica site.

#44 Inequity on 10.01.21 at 3:25 pm

#2 Woke up this morning…

And yawned….

#45 crowdedelevatorfartz on 10.01.21 at 3:28 pm

@#35
“Yes. You are weird. – Garth”

++++
Praised or Punished.
Just being noticed by the blog Major Domo is good enough for me…….

#46 Adjusted Cost Base on 10.01.21 at 3:29 pm

The potential savings from keeping all receipts and invoices from work done on a cottage are important. Wife’s uncle and aunt bought a wreck of a cottage and spent a fortune to make it habitable, including a new well. After their deaths, when the taxes on the sale of the cottage were being totted up, all the records and the expenditures were included in the calculations as Garth described and thus taxes owed were reduced.

#47 Quintilian on 10.01.21 at 3:35 pm

#28 Michael in-north-york

“[but ]take all government money you can as long as your actions are not against the tax laws.”

An efficient way to resolve questions of ethics, if it’s not illegal it must be ok?

I think Taleeb Noormohamed, Liberal prolific property speculator/ flipper, just recently elected, and who states on his web site’ that he is committed to home affordability, will find your ethics conforming and comforting.

#48 SoggyShorts on 10.01.21 at 3:40 pm

#64 Woke up this morning… on 09.30.21 at 7:07 pm
#53 Sail Away on 09.30.21 at 5:32 pm
#24 Woke up this morning… on 09.30.21 at 3:41 pm
So do what was done to Natives of this land then claims statue of limitations has passed and forgiveness is the path forward? Won’t undo. Too bad. So sad.
Have you ever considered the Natives didn’t want to live this way? In a consumerism capitalist framework that claims to give them special treatment after taking all they had away?

************************
What are you recommending? That we all leave?
Seriously, what exactly should be done?

#49 Millennial 1%er on 10.01.21 at 3:51 pm

Oh man, this is so complicated. Thankfully, Chrystia & Trudeau will save us the headache of these calculations when they remove the cap gains exemption on houses.

#50 BillyBob on 10.01.21 at 3:55 pm

#42 Wrk.dover on 10.01.21 at 3:24 pm
I have 40 year old itemized receipts hand written in cursive by various building supply clerks.

CRA have someone there that can read them?

How about the heat sensitive cash register slips that are now invisible?

Anyone?

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

Any receipts I think I may need later that come on thermal paper (aka BPA cancer paper) I scan with an app on my phone. Searchable pdf’s also have the advantage of being far easier to organize and backup than a shoebox full of crap.

Of course, this is probably all gibberish to someone whose phone has a rotary dial on a party line in Ball’s Creek, but yes, technical solutions to these pressing problems have been around for some years now.

#51 Timmy on 10.01.21 at 3:57 pm

Trudeau was putzing around Tofino on Reconciliation day. Just when you think he can’t do something more stupid he does…Incredibly poor judgement.

#52 Ponnaps on 10.01.21 at 4:03 pm

Hi Garth

What are the repercussions for what’s happening with Evergrande in China.. seems serious but very little being spoken about in terms of global impacts..

Thanks

Nothingburger so far. – Garth

#53 Dolce Vita on 10.01.21 at 4:10 pm

Break even July GDP in essence:

https://www150.statcan.gc.ca/n1/daily-quotidien/211001/dq211001a-eng.htm?HPA=1

-0.1%

Even though Accommodation and food services was a big GDP contributor in July, it’s + performance not enough to offset losses in other sectors:

https://www150.statcan.gc.ca/n1/daily-quotidien/211001/cg-a004-eng.htm

—————-

Thought it would be worse. The Cdn economy resilient to me.

#54 Woke up this morning… on 10.01.21 at 4:12 pm

#44 Inequity

#2 Woke up this morning…

And yawned….

—–

Take out a bill from your wallet.

Bow down to it.

It is your master.

#55 Crossbordershopper on 10.01.21 at 4:15 pm

DELETED

#56 Linda on 10.01.21 at 4:16 pm

#13 ‘Bee’ – you are not alone in thinking that the Boomers would be downsizing soon. Except that this crazy RE market means those that sell often end up buying smaller spaces for as much as they sold for or more, depending on where they want to live. So suddenly selling doesn’t look like the smart move, especially since it comes with the issues of downsizing/moving along with the very real possibility of resuming mortgage payments (presuming the original place is actually fully paid for). Daunting to say the least.

Also, there is the issue of the Boomers being supplanted in sheer volume by the younger generation(s). The whole idea that Boomers selling up en masse would produce affordable homes for the younger cohort to purchase didn’t take into account that 1) the Boomers would still need somewhere to live & 2) the replacement generations numbered more bodies than the Boomer generation did. About a million more. Oops! So much for that oversupply theory.

#57 Nerb Remlap on 10.01.21 at 4:21 pm

Good Post.
Some other ideas to reduce capital gains on a cottage sale. Many cottages are sold with the contents such as furniture, tools, boats, motors etc. These items are often included in the real estate transaction which should not happen. Taking the above example lets say you want to sell the cottage and all contents for 500K. You draft a deal which separates the contents from the real estate. So you accept 300K for the real estate and 200K for the contents. This would reduce the capital gains for the seller and the purchacer would pay less land transfer taxes as well. The only items in contents where you may have to pay HST tax is with any registered items such as a plated trailer or registered boat.

#58 facts on 10.01.21 at 4:23 pm

Saskatchewan government have granted themselves “emergency powers” that allow them to seize personal property at will, in the name of Covid.

Check out all the details of the shocking, Soviet-Chinese-style power grab from the original document:

https://sun-nurses.sk.ca/pub/docs/member-resources/COVID19/MO%20sept%2013.pdf

Drama queen. – Garth

#59 Dino on 10.01.21 at 4:38 pm

Garth, if there is a 5% selling tax on the $500,000 property isn’t that an extra $25,000 tax to be paid. I know they say it is if sold in the first 12 months but when it comes to taxes, Liberals always lie, mislead.

They can always change the tax policy later, Liberals do it all the time.

#60 The Homemoaner on 10.01.21 at 4:38 pm

Contemplating a move to the EU for a great job opportunity. What are the implications if I relocate before the sale of my house in Canada closes? Should I sell and close before I change residency to keep it simple and tax efficient?

#61 Ponzius Pilatus on 10.01.21 at 4:39 pm

Regarding “Tofino-Gate”.
Thank you, Mr. Prime Minister for putting this beautiful part of BC on the map.
They  need the advertising.
Seriously, now.
Regarding reconciliation, I think he’s done enough to raise awareness and funds to address the major issues. 
He took the horse to the water, so to speak.
My daughter’s hockey team had orange tape on their sticks and heldma minute of silence.
One poster, recently pointed out, that the religious right in the States are sending their kids to the best constitunional law schools, with the aim of stacking the courts in their favour.
And as the last appointment to the Supreme Court shows their strategy   
Is working.
This is a strategy, I think, that the Natives should be adopting.
State their case in the courts, instead of behind blockades.
There are quite a few bright, lawyers in their ranks.
The recently dismissed justice minister is one of them.
This could be her calling.

#62 The joy of Steerage on 10.01.21 at 4:41 pm

DELETED

#63 Nonplused on 10.01.21 at 4:41 pm

What happened to all the pinwheels?

https://www.zerohedge.com/markets/european-gas-hits-record-100-euros-russian-gas-flows-collapse-77

#64 Sail Away on 10.01.21 at 4:46 pm

#38 Woke up this morning… on 10.01.21 at 3:20 pm

…I don’t “own” any of this land. I made that choice a while ago due to market perversion, but higher reasons now overtook that.

I live on it, and it is a land I came to by choice. A land into which those who stole it accepted me.

Land of beauty indeed. I am prepared to leave if asked by the Natives who own it even though those who stole it have long ago granted me citizenship under their laws. I am that serious on this issue.

In the end, this whole thing is about control of an asset that was stolen from someone.

——–

Ah yes, the doctrine of original sin and collective guilt.

Why would anyone choose to bear such unending guilt when self-eviction is so easy? As the Good Shepherd counsels: ‘If thy right eye offends thee, pluck it out and cast it from thee’.

#65 Faron on 10.01.21 at 4:48 pm

#52 Ponnaps on 10.01.21 at 4:03 pm

Hi Garth

What are the repercussions for what’s happening with Evergrande in China.. seems serious but very little being spoken about in terms of global impacts..

Thanks

Nothingburger so far. – Garth

I just read that some buyers have stepped in to purchase EGs stressed bonds. A huge share buyer or buyers came in at the $2.50HKD level (down 93% from ATHs). Volume that day was about 7 x what it had been, so that was a high conviction trade(s). Seems that markets have priced this in fairly well by now.

Probably the more important issue related to that is the ongoing effects that the RE slowdown in China will have on their economy and commodities.

Recent equity weakness probably has more to do with strong USD, the rapid bond sell-off, leaping energy prices and some fear from the US debt ceiling issue. Equities can handle the dollar and rate levels, but the rate of change can cause problems in my understanding.

#66 Faron on 10.01.21 at 4:52 pm

#58 facts on 10.01.21 at 4:23 pm

Check out all the details of the shocking, Soviet-Chinese-style power grab from the original document:

Similar acts have been invoked throughout the pandemic and the majority of powers have not been exercised. A less fear-gripped person than yourself might see that as an encouraging sign from our democratic institutions. But, that’s not very fun and doesn’t let you play out your Q-Anon, WWIII freedom fighter fantasies. I get it.

#67 Paul on 10.01.21 at 4:57 pm

Cheap news.
#20 Ponzius Pilatus on 10.01.21 at 2:14 pm
#11 Penny Henny on 10.01.21 at 1:06 pm
The media is bought and paid for.
Re Trudeau’s vacay to Tofino on Orange shirt day.
The Toronto Star and the CBC have closed the comments on this story. Now why would they do that?
Not only has the CBC closed the comments they’ve already buried the story.
—————————-
I pay for the media I access.
Don’t you?
Or do you just go to the library and get it for free?

————————————————————————————————
https://www.youtube.com/watch?v=j4nRHHPpnVc

#68 Will on 10.01.21 at 5:03 pm

FerrisWheel, it is Friday, profit taking, the bond traders that is. The 10 year US bond will be 1.80% to 1.85% by December-31-2021. I would not be surprised by April-30-2022, the 10 year US bond will be 2.30% to 2.40%.

#69 Barb on 10.01.21 at 5:05 pm

“…condo? Well, they’ve owned it for 8 years and just gave three of those to the cottage…”

—————————-
But in “giving” three to the cottage, doesn’t the owner have to “lie” to say it was their PR for 3 years?

Not at all. But the PR exemption for those years is lost on the other property. – Garth

#70 facts on 10.01.21 at 5:06 pm

#58 facts on 10.01.21 at 4:23 pm
Saskatchewan government have granted themselves “emergency powers” that allow them to seize personal property at will, in the name of Covid.

Check out all the details of the shocking, Soviet-Chinese-style power grab from the original document:

https://sun-nurses.sk.ca/pub/docs/member-resources/COVID19/MO%20sept%2013.pdf

Drama queen. – Garth

That would make you the king of what?

#71 Habitt on 10.01.21 at 5:09 pm

Linda love you posts. Please provide examples of where people sell their primary residence and then downsize and pay more. Just wondering. I suppose if one wants to move from Nova Scotia to Toronto that would happen.

#72 Ponzius Pilatus on 10.01.21 at 5:09 pm

#10 Dolce Vita on 10.01.21 at 1:04 pm
RE: Prior Comment on Divorce.

Chinese Proverb:

“In China, Checklist for a Home Seller: First, Get a Divorce”

https://www.nytimes.com/2013/03/09/world/asia/some-chinese-seek-a-divorce-to-avoid-real-estate-tax.html

“By filing for divorce, many reasoned, a couple with two homes could then claim that each had only one home.”

…sly and crafty.

Love it.
——————
I knew the mail moves slowly in Italia.
But that slow!?
Check the date of your link.
Chinese rather divorcing than paying taxes, is an old hat.
Actually, they rather sell their kids than sell the house.
Apparently, as the rumor has it, the practise spred to the Lower Mainland 2 or 3 years ago.
Is it not funny, that instead of creating happy families, owning RE is actually breaking them apart.
Another plus for renting.
And Dolcius, is there a Mafia in China, and what is their name?
I know CCP comes to mind first, but I’m looking for people who outfit people with concrete boots.

#73 Flop… on 10.01.21 at 5:10 pm

#43 Joseph R. on 10.01.21 at 3:25 pm
#30 The West on 10.01.21 at 2:51 pm

By the way – does anyone have a picture of Justin Castro in an orange shirt yesterday….anyone…he must have worn an orange shirt….maybe while he was surfing, or…..there had to be have been orange shirt……

———————————————————————-

This isn’t your personal erotica site.

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

Really?

Lots of people have orgasms while on here…

M47BC

#74 Nonplused on 10.01.21 at 5:14 pm

While we are at it with the reconciliation thing maybe we should get Italy to pay reparations for the whole Roman Empire thing. The Mongols too for the Genghis Khan bit. And don’t forget the Germans for that nastiness in WWI and WWII. And the US should probably pay the Japanese for the nuclear bombs because that was over the top and certainly a war crime. And the Dutch. They had an empire too for a while so they probably owe somebody something. And the Dutch should definitely be stopped from their effort to take over the North Sea with their crafty use of dykes.

Or we could just try and move forward.

#75 Michael in-north-york on 10.01.21 at 5:22 pm

#47 Quintilian on 10.01.21 at 3:35 pm

#28 Michael in-north-york

“[but ]take all government money you can as long as your actions are not against the tax laws.”

An efficient way to resolve questions of ethics, if it’s not illegal it must be ok?
===

When dealing with the government, definitely OK. They won’t be nice to you if you hit a rough patch, so why should you be nice to them?

When dealing with your friends, obviously that would be a different story.

===
I think Taleeb Noormohamed, Liberal prolific property speculator/ flipper, just recently elected, and who states on his web site’ that he is committed to home affordability, will find your ethics conforming and comforting.
===

As an individual, he is entitled to his profits and his deductions, assuming all his actions are legal.

But if he seeks a public office and professes values that do not align with his actions – well, the voters should have taken a notice and booted him. However, if the voters still want him, so be it.

#76 Woke up this morning... on 10.01.21 at 5:23 pm

Nothingburger so far. – Garth

Nothingburger – often makes an appearance here lately. Even I used it once.

I’d like to say that in my view the best use of it was TurnerNation, because when I read it, it made me laugh so damn hard.

He was writing about fear control methods and then said…”Remember Zika? What a nothingburger that turned out to be.”

Oh how I laughed at that word combination the first time around. And chuckled at it for a few days later too.

Not gonna lie to you, Canada going from 52,000 flu cases average to 69 for 2020-2021 flu season still has the puzzler puzzled.

DYK that the population of those 65+ years old went from 7.567% of total world population in 2010 (6.922B) to 9.318% in 2020 (7.795)

That is an increase of 202,550,360 people in the 65+ age bracket.

An increase nearly 40% from the 2010 number.

These are the most vulnerable to any illness really, and they increased by 202 MILLION in just a decade.

#77 yvr_lurker on 10.01.21 at 5:25 pm

I answered my own question after spending 5 minutes reading a RBC Wealth Manager site. The 5 + 3 shuffle that Garth suggests is simply tax avoidance and perfectly legal according to our tax code. PR status can be declared for any cottage even if you only live there 2 weeks a year (but don’t rent it out), and live somewhere else 50 weeks a year. The word “principal” residence has nothing whatsover to do with what a Joe Blow would have defined principal to be, i.e. like the place the mail comes to, where I sleep for greater than 183 days a year, etc. Nobody from the CRA will check whether the cottage is 800 miles from where you go to work each day.

Seems like a super-lucractive loophole for those who are wealthy enough to own two homes. This little 5 + 3 shuffle saved the couple 37.5K in taxes if they are in the 50% marginal category.

All the while, the CRA steps up its strict tax collection enforcement of those uber-high earners serving food in restaurants and not declaring all their tips.

https://www.huffpost.com/archive/ca/entry/cra-auditing-income-from-tips-canada-revenue-agency_a_23367772

Much easier to go after this lot, then simply redefining in the tax code the word “principal” to actually reflect the reality of where someone slept 183 days a year.

The 5+3 shuffle is clearly a GREAT benefit for a certain well-off segment of our society.

#78 crowdedelevatorfartz on 10.01.21 at 5:27 pm

@#50 Billy Bob
“Of course, this is probably all gibberish to someone whose phone has a rotary dial on a party line in Ball’s Creek, but yes, technical solutions to these pressing problems have been around for some years now.”

++++

I think Wrk.dvr is from Turtle Creek…… near Kejimkujick but far enough away from Eecum Seecum that he doesn’t have to worry about his lawn furniture.

#79 Ponzius Pilatus on 10.01.21 at 5:44 pm

#71 Flop… on 10.01.21 at 5:10 pm
#43 Joseph R. on 10.01.21 at 3:25 pm
#30 The West on 10.01.21 at 2:51 pm

By the way – does anyone have a picture of Justin Castro in an orange shirt yesterday….anyone…he must have worn an orange shirt….maybe while he was surfing, or…..there had to be have been orange shirt……

———————————————————————-

This isn’t your personal erotica site.

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

Really?

Lots of people have orgasms while on here…

M47BC
—————-
Talk for yourself and CEF.
Lol

#80 Ronaldo on 10.01.21 at 5:50 pm

Wow. This advice alone is worth thousands to anyone in this predicament. Where would you ever get that for free?

#81 Ponzius Pilatus on 10.01.21 at 5:55 pm

#60 The Homemoaner on 10.01.21 at 4:38 pm
Contemplating a move to the EU for a great job opportunity. What are the implications if I relocate before the sale of my house in Canada closes? Should I sell and close before I change residency to keep it simple and tax efficient?
————-
You should have thought of this before buying a house.
Another plus for renting.

#82 SoggyShorts on 10.01.21 at 5:59 pm

#38 Woke up this morning… on 10.01.21 at 3:20 pm
Land of beauty indeed. I am prepared to leave if asked by the Natives who own it even though those who stole it have long ago granted me citizenship under their laws. I am that serious on this issue.
***************
My wife is 1/8 native, she asked me to tell you to “Pack your bags”

#83 Bezengy on 10.01.21 at 6:01 pm

Is it legal?

Rode a Greyhound from Kamloops to Canmore back in 2012. Young kid from Quebec sitting next to me was heading east after picking cherries. Told me he had a plan to get a free education back home. His parents were rich enough to pay but he decided to fake a gay marriage with his bestie, and move out of his parents house. He could then claim to be low income and unemployed, and let the government pay the shot. People can be very creative when it comes to gaming the system.

#84 Albertaguy in AB on 10.01.21 at 6:10 pm

#58 “So you accept 300K for the real estate and 200K for the contents” good luck with that…your lucky to get 10 cents on the dollar for contents…so unless you actually paid 2M for contents…just sayin…

Ok here is one for the dogs in keeping with the theme…who can help check the math?

2012 Sold YYC SFH/PR
2012 Bought AZ SFH 125k CAD + 75k CAD improvement
2014 Bought 1/2 ownership YYC SFH 385k + 30k improve
2021 Sold AZ SFH 445k CAD – 30k REALTOR fees – 15k moving fees
2021 FMV YYC SFH 440k

AZ gain = 445-125-75-30-15=200k

If I sold my share of YYC SFH today my gain would be
(440-385-30-15MLS fee)/2 =10k

So according to Garth, I should claim all 9 years ownership of AZ property as PR and take the 200k CAD tax free. Tell me i have just won the lotto.

#85 Just a renter on 10.01.21 at 6:11 pm

Interesting post, but just wondering how arbitrary the PR declaration really is, given that CRA is asking people to provide detailed information on when they actually occupied their property. Documentary proof apparently includes: when you moved and for how long you lived in your home, including Canada Post change-of-address notice, utility bills, OHIP and driver’s licenses changed to your new address, and other supporting evidence.

Summarized here: https://sloangroup.ca/real-estate-dealings-get-real-with-the-cra/

CRA real estate questionnaire: https://tinyurl.com/2deabpms

That is not the case with an example such as I described. The CRA is out to whack short-term owners, flippers and reno people who claim the PR pass. – Garth

#86 Woke up this morning... on 10.01.21 at 6:12 pm

#74 Nonplused on 10.01.21 at 5:14 pm
While we are at it with the reconciliation thing maybe we should get Italy to pay reparations for the whole Roman Empire thing. The Mongols too for the Genghis Khan bit. And don’t forget the Germans for that nastiness in WWI and WWII. And the US should probably pay the Japanese for the nuclear bombs because that was over the top and certainly a war crime. And the Dutch. They had an empire too for a while so they probably owe somebody something. And the Dutch should definitely be stopped from their effort to take over the North Sea with their crafty use of dykes.

Or we could just try and move forward.

—-

Germany DID have to give back the conquered lands in WW2.

US did provide hundreds of millions a year in AID to Japan after the nuclear strikes. And let us remember, they did not take Japan’s land away, conquer it as their own.

I was fortunate enough few decades back to stay at a Ryokan with my window looking out directly at the Atomic Dome, a humbling experience and day of reflection, bell, museum, etc. Can you even grasp what took place there?

In a strange twist of wanting to see the SR-71 and Space Shuttle with the family a few years back I was at the National Air and Space museum in Virginia where upon noticing Enola Gay standing there in the isle, a WWII veteran came around nd told a story about how one of the pilots on that drop came back to visit his plane in his last years. I didn’t even know the plane was there.

Look, step 1 is to admit that this approach is indefensible. Oh sure, greed of humanity will defend it and argue it and justify it.

But take a moment, think about what is being argued, justified, defended.

#87 cuke and tomato picker on 10.01.21 at 6:28 pm

A person on twitter has just said that T.R. day is not a day for the P.M. to hog the limelight.

#88 Bezengy on 10.01.21 at 6:34 pm

Covid.

Kiddo is working the ICU putting air tubes down people’s throats as fast as possible this week. Crazy times. One thing noticed is the metamorphosis of the anti-vaxers from know it all jerks to absolute apologetic cry babies within a very short period. Just telling them they are not in control because they’re being sedated and have a 50% chance of dying causes them to totally lose it. Tears everywhere. Funny how that works eh?

#89 Chimingin on 10.01.21 at 6:37 pm

#73 – Flop, I think the word you are looking for is actually ‘aneurysms”. ;)

#90 Reality is stark on 10.01.21 at 6:41 pm

Just like clockwork comments today were spot on but for all the wrong reasons.
Divorce is up 30% during the pandemic initiated by the usual suspects.
One gets the house, one gets the cottage.
This pandemic thing has been no party despite any moderate gains from the housing market or stock market.

#91 under the radar on 10.01.21 at 6:50 pm

Sold my cottage in 2020 after 21 years of ownership. I designated it as my PR. 7 figures tax free.
Thanks Canada

#92 yvr_lurker on 10.01.21 at 6:51 pm

Jeff Rubin. A fellow who spells out clearly the demise of the middle class due to globalization. Must get his book.
Very much worth a listen to.

https://www.youtube.com/watch?v=PS8MVcqN2uM

#93 cuke and tomato picker on 10.01.21 at 7:00 pm

We had a place in Lake Chelan in Washington state sold it no capital gains tax.

#94 Woke up this morning... on 10.01.21 at 7:01 pm

#82 SoggyShorts on 10.01.21 at 5:59 pm
#38 Woke up this morning… on 10.01.21 at 3:20 pm
Land of beauty indeed. I am prepared to leave if asked by the Natives who own it even though those who stole it have long ago granted me citizenship under their laws. I am that serious on this issue.
***************
My wife is 1/8 native, she asked me to tell you to “Pack your bags”

——-

No problem.

Before I leave, just that matter of the land being returned to the Natives please.

#95 Ponzius Pilatus on 10.01.21 at 7:21 pm

GM says down car sales are down 30% due to chip shortages.
Here’s what I say:
Go Retro, built a car that’s strait out of the 60s.
No fancy stuff. With some modern upgrades.
Standard, manual windows, good Bose Radio and DiscPlayer.
No GPS crap. Learn to read a map again.
No “rain sensing” wind shield wipers (I can tell when it rains)
I think there would be a market for it.
I’d be in.
IHTCD9 how about you.
Maybe our in-house engineer Sailo can design one.

#96 Linda on 10.01.21 at 7:26 pm

#71 ‘Habitt’ – since you mention Nova Scotia, a couple minutes on the MLS system brought up two properties for my example. Property #1: 2 Laurie Drive, Lower Sackville, 3 bed/2 bath, 2096 sq ft listed for $329,900. MLS#202124797. So let that be the seller looking to downsize, moving to Halifax. Property #2: 3784 Memorial Drive, Halifax, 3 bed/2bath, 1932 sq ft so smaller than #1 but has an asking price of $430,000. MLS#202124990.

#97 VladTor on 10.01.21 at 7:27 pm

Garth,

Thank you very much for RE brainwashing and very useful lesson today. I like when yours posts include detailed explanations with numbers.

This is one of the best yours “pandemic” post since march 2020

#98 Shawn Allen on 10.01.21 at 7:31 pm

Jeff rubin?

#92 yvr_lurker on 10.01.21 at 6:51 pm
Jeff Rubin. A fellow who spells out clearly the demise of the middle class due to globalization. Must get his book.
Very much worth a listen to.

https://www.youtube.com/watch?v=PS8MVcqN2uM

**************************************
My recollection of Jeff is he had great hair and was Chief Investment Officer at CIBC and very frequent guest on BNN.

Around 2008? he became convinced oil was going absolutely to the moon. Global trade would die due to shipping costs. He wrote a book. “Your world is about to get a whole lot smaller he said”

As near as I could figure it (this was my guess at the time) CIBC thought he was off the deep end and said don’t publish the book. But the book was his baby so he quite the big job at CIBC.

I don’t think I will be buying any of his books.

His predictions soon turned out to be completely wrong. I think he later predicted oil would fall and wrote a book with that prediction instead.

Yeah, no.

#99 Blackface Surferboy on 10.01.21 at 7:33 pm

What a disgrace… who elected this clown…

#100 Linda on 10.01.21 at 7:36 pm

‘Habitt’ – forgot to mention that the distance between Lower Sackville & Halifax is under 20 km as per Google. So we are not talking the other end of the province here. Yet that under 20 km distance adds $100,000 to the asking price for the smaller property…..

#101 Philco on 10.01.21 at 7:36 pm

Bummer just heading to Long Beach with the RV.
Missed T2…I would have loved to have a talk…a loud one.

#82 SoggyShorts on 10.01.21 at 5:59 pm
#38 Woke up this morning… on 10.01.21 at 3:20 pm
Land of beauty indeed. I am prepared to leave if asked by the Natives who own it even though those who stole it have long ago granted me citizenship under their laws. I am that serious on this issue.
***************
My wife is 1/8 native, she asked me to tell you to “Pack your bags”
——————————–
I always heard from the natives “nobody owns the land, we are just custodians”
Well I pay a shit load of land tax they pay zip. My bill is $50,000.00 annually and going up FAST.
Who would pay for all the infrastructure and upkeep without suckers like me?

#102 Michael in-north-york on 10.01.21 at 7:37 pm

#38 Woke up this morning… on 10.01.21 at 3:20 pm

Land of beauty indeed. I am prepared to leave if asked by the Natives who own it even though those who stole it have long ago granted me citizenship under their laws. I am that serious on this issue.
===

But do not forget that over the course of history, many tribes moved into a new area from their previous location. In many cases, they displaced or assimilated the people who lived there before the move.

Giving a logical extension to your line of reasoning, you might not be “native” even in the country where you were born. And then you literally have no place to go. Unless you join an outer space colonization mission.

#103 Woke up this morning... on 10.01.21 at 7:40 pm

#64 Sail Away on 10.01.21 at 4:46 pm
#38 Woke up this morning… on 10.01.21 at 3:20 pm

…I don’t “own” any of this land. I made that choice a while ago due to market perversion, but higher reasons now overtook that.

I live on it, and it is a land I came to by choice. A land into which those who stole it accepted me.

Land of beauty indeed. I am prepared to leave if asked by the Natives who own it even though those who stole it have long ago granted me citizenship under their laws. I am that serious on this issue.

In the end, this whole thing is about control of an asset that was stolen from someone.

——–

Ah yes, the doctrine of original sin and collective guilt.

Why would anyone choose to bear such unending guilt when self-eviction is so easy? As the Good Shepherd counsels: ‘If thy right eye offends thee, pluck it out and cast it from thee’.

——–

I hear you. The solution is for me to sail away so that Canada can continue living this illusion on stolen land that doesn’t even belong to Canada or Canadians.

Yeah yeah yeah…truth something something …con silly. Blame the regional managers. PM goes to Tofino to take the first T&R day off – it stands for Trudeau & Relaxing.
I’m on vacation on your stolen land you fools, yeay! Hold up…I have to get back to my PM character…watch this…the magic word today is “children” I’m going to shoehorn it in 10 times in this media scrum…ok, and…action!

#104 Woke up this morning... on 10.01.21 at 7:42 pm

#92 yvr_lurker

Jeff Rubin. A fellow who spells out clearly the demise of the middle class due to globalization. Must get his book.
Very much worth a listen to.

https://www.youtube.com/watch?v=PS8MVcqN2uM

————–

You surprised?

How many people said that would happen?

What were we told by our trustworthy leaders out there looking for us as they were selling us out?

Same as it ever was. Same as it ever was.

#105 Dogman01 on 10.01.21 at 7:46 pm

#92 yvr_lurker on 10.01.21 at 6:51 pm
Jeff Rubin. A fellow who spells out clearly the demise of the middle class due to globalization. Must get his book.

Very much worth a listen to.
https://www.youtube.com/watch?v=PS8MVcqN2uM

——————————————-

They knew they were jettisoning the Middle class; great 10 min from 1994

A prophetic interview with Sir James Goldsmith http://www.youtube.com/watch?v=4PQrz8F0dBI

#106 Did He Say That on 10.01.21 at 7:48 pm

Yvr_lurker, could you tell me if Jeff Rubin points out the biggest reason why the middle class is ruined since the 1990’s is because Canada used to be a nation of savers with savings rates as high as 19% at one point.

Since the central banks and bankers wanted cheap, low interest money for consumers, mostly middle class to go deep into debt and not fight for higher wages, benefits, job security and now we have a big debt mess, real estate mess, low real adjusted after inflation wages and less full time secure jobs for the private sector.

The whole crowding out impact of high government debts, deficits and government sector growing and growing too big pushing out private sector small and medium size businesses is where we are today. This is way before the pandemic. I remember Jeff Rubin I could be wrong but he predicted that we could see $200 oil prices when they reached $147 back in 2007 and high oil prices were the big threat to world economies like US, Europe.

However, high oil prices would be a good thing for local production, manufacturing, jobs because it meant it was too expense to ship goods, products from China, Asia other farther away countries and put globalization in a real bind compared to more local, regional trading instead of cheap labour overseas.

#107 Philco on 10.01.21 at 7:52 pm

#48 SoggyShorts on 10.01.21 at 3:40 pm
#64 Woke up this morning… on 09.30.21 at 7:07 pm
#53 Sail Away on 09.30.21 at 5:32 pm
#24 Woke up this morning… on 09.30.21 at 3:41 pm
So do what was done to Natives of this land then claims statue of limitations has passed and forgiveness is the path forward? Won’t undo. Too bad. So sad.
Have you ever considered the Natives didn’t want to live this way? In a consumerism capitalist framework that claims to give them special treatment after taking all they had away?
************************
What are you recommending? That we all leave?
Seriously, what exactly should be done?
——————————————–
Nobody wins don’t waist your time.
Do you know what happened to the Auzi Aborigine’s?
Where my wife is from the Spaniards moved in took over and abused the hell out of her ancestors for a 100 years.
BOO HOO

#108 Maybe if you see it.... on 10.01.21 at 7:55 pm

https://www.660citynews.com/2021/10/01/whats-it-really-like-to-die-from-covid-an-icu-doctors-harrowing-step-by-step-account/

#109 Yukon Elvis on 10.01.21 at 8:14 pm

School was back in session last month, which might explain why Central Okanagan rental prices in September reached heights never seen before.
According to the rental statistics from Castanet’s classifieds section, the average price of a one-bedroom home rented for a whopping $1,556 in September, which was up nearly $20 from August and was more than any other month since the numbers started being tracked. That figure was based on 70 listings.
It was the same story for two-bedroom homes in the Central Okanagan, which went for an average rental price of $2,205 in September. That was up more than $50 from August and, just like the one-bedroom price, higher than any previous month. The average price was based on 100 listings.
Last September, the average rental price of a two-bedroom home in the Okanagan was $1,940. A one-bedroom unit was going for an average of $1,268.

https://www.castanet.net/news/Kelowna/347390/Central-Okanagan-rent-prices-hit-highest-marks-ever-in-September#347390

#110 mike from mtl on 10.01.21 at 8:24 pm

#56 Linda on 10.01.21 at 4:16 pm

Also, there is the issue of the Boomers being supplanted in sheer volume by the younger generation(s). The whole idea that Boomers selling up en masse would produce affordable homes for the younger cohort to purchase didn’t take into account that 1) the Boomers would still need somewhere to live..//////////////////////////////////////////////////////////

Exactly, this theory that somehow the boomers would start selling en masse around the 2010s proved to be a nothingburger.

Despite being well in their 60-70s are still going strong and will only sell if taken out by wheelchair or lying feet first – exactly as their parents.

#111 Flop… on 10.01.21 at 8:25 pm

Apparently Australia’s total housing stock could be valued at 10 Trillion dollars later this year.

Housing?

It’s the economy, stupid.

A dingo stole my economy…

M47BC

https://www.youtube.com/watch?v=dPHMOezxP4E

#112 VladTor on 10.01.21 at 8:39 pm

Garth….Save receipts for capital expenditures…

*************
Revenue agency required to keep tax report for last 6 years. So, I would say “Save receipts for capital expenditures for last 6 years”.

They may ask you to prove expenses after years after tax report was done. It is happened with me. After 3 years they sent message to my accountant and ask to prove some suspicious expenses by they opinion. I sent them new report with more details and attached my recites and invoices. After all I slept well!

#113 yvr_lurker on 10.01.21 at 8:45 pm

#106 Indeed he was wrong on predicting oil going through the roof around 2010. Did the opposite. Just like others have been dead since around that time predicting that real estate was going to level off and that there was no sense for people to stretch themselves to buy around 2010. Wrong again (however, I must admit that I think one is foolish now to buy in with epic risk).

Did you watch the 28 minutes, or was your view of him well-formed before he uttered one word? His view in the last 5 minutes on explaining the downside of expanding immigration to uber-high levels is how I see it. Perhaps Jacinda in NZ actually got through the 28 minutes of it…

#114 Wrk.dover on 10.01.21 at 8:47 pm

#78 crowdedelevatorfartz on 10.01.21 at 5:27 pm

I think Wrk.dvr is from Turtle Creek…… near Kejimkujick but far enough away from Eecum Seecum that he doesn’t have to worry about his lawn furniture.
_________________________

Hint: I live across the street from someone from Ontario, and next to someone else from Ontario, plus down the road from more ‘someones’ from Ontario in both directions. Bonus hint, I lived there once too!

Not much of a hint in NS these days though.
___________________

#96 Linda on 10.01.21 at 7:26 pm

Lower Sackville is a downgrade, not a downsize.

#115 ImGonnaBeSick on 10.01.21 at 8:49 pm

Woke.. When Canada was first “discovered” they estimate that there were 125,000 indigenous peoples here. Canada is 2.5B acres… That’s 20,000 acres per person…. Completely unmanageable by an individual…

Sorry, but there was plenty of land available for all the settlers.

And Foron, the reason why Trudeau renting an $18m lodge, and going to the beach yesterday is a big deal, is because he created Truth and Reconciliation Day, it was the very first one, it’s supposed to be akin to Remembrance Day, and his itinerary said he was in private meetings in Ottawa, you nitwit.

#116 crowdedelevatorfartz on 10.01.21 at 8:49 pm

@#79 Ponzies, pseudo porn paradigm
“Lots of people have orgasms while on here…

M47BC
—————-
Talk for yourself and CEF.
Lol”

++++

About 20 some odd years ago I listened to a debate on tv about the advent of the internet.
Back and forth, back and forth the plusses and minuses of the new internet raged…..they argued about the “information highway” or the “easy accessibility of porn”.

At the end of the debate they were all asked to make a final comment of their prediction of the future between the info highway and the free porn.

One media person said, ” Well,…. either we will have generations of very smart, informed people or we will have a generation of really stupid….. one handed typists….”

#117 Rural Rick on 10.01.21 at 9:01 pm

Wow read the comments tonight. Probably need therapy now.

#118 crowdedelevatorfartz on 10.01.21 at 9:22 pm

@#117 Rural Rick
“Wow read the comments tonight. Probably need therapy now.”

++++

I find that if you live near the stench of a successful pig farm…… therapy may be required.

#119 Woke up this morning... on 10.01.21 at 9:24 pm

#107 Philco

#53 Sail Away on 09.30.21 at 5:32 pm
#24 Woke up this morning… on 09.30.21 at 3:41 pm
So do what was done to Natives of this land then claims statue of limitations has passed and forgiveness is the path forward? Won’t undo. Too bad. So sad.
Have you ever considered the Natives didn’t want to live this way? In a consumerism capitalist framework that claims to give them special treatment after taking all they had away?
************************
What are you recommending? That we all leave?
Seriously, what exactly should be done?
——————————————–
Nobody wins don’t waist your time.
Do you know what happened to the Auzi Aborigine’s?
Where my wife is from the Spaniards moved in took over and abused the hell out of her ancestors for a 100 years.
BOO HOO
——————————————–
Philco, I hear you. Humans are terrible, and showcase their terrible past behaviour as excuse why it should continue and be accepted. Why those other wrongs you list should not be evaluated and undone.

The logic is flawless!

Aussies? Don’t the Natives have 40% of the land in Australia a their own? Isn’t Australian Natives population 1/2 of that of Canada?

2/3 of the population of Canada
1/2 the Native population of Canada
40% of the land – Native

3% of Aussie Natives have 40% of land.
4.4% of Canadian Natives should then own just shy of 60% of the land.

All it will take of The Queen to give back what she gained illegitimately.

#120 Woke up this morning... on 10.01.21 at 9:31 pm

#115 ImGonnaBeSick on 10.01.21 at 8:49 pm

Woke.. When Canada was first “discovered” they estimate that there were 125,000 indigenous peoples here. Canada is 2.5B acres… That’s 20,000 acres per person…. Completely unmanageable by an individual…

Sorry, but there was plenty of land available for all the settlers.

And Foron, the reason why Trudeau renting an $18m lodge, and going to the beach yesterday is a big deal, is because he created Truth and Reconciliation Day, it was the very first one, it’s supposed to be akin to Remembrance Day, and his itinerary said he was in private meetings in Ottawa, you nitwit.

—–

First, why the name calling? You already lost.

Second, 125,000 when Canada was discovered? 1500 original or 1700 pre-settler? In 1500 that was a THIRD of the world’s population. 1700 it was a QUARTER! Yeah, they had no rights to grow THEIR Nation!

Funny how the Settlers tried to wipe out the liability and put in the history book that Canada starts at THIS date.

What are you even arguing for? I terms of right, your argument simply is not on the side of right. Or ethical.

It is on the side of me, me, me. My this and my that – when none of it is. Do you even understand that no one owns the land on which their house stands in this country already?

#121 Ponzius Pilatus on 10.01.21 at 10:13 pm

#116 crowdedelevatorfartz on 10.01.21 at 8:49 pm
@#79 Ponzies, pseudo porn paradigm
“Lots of people have orgasms while on here…

M47BC
—————-
Talk for yourself and CEF.
Lol”

++++

About 20 some odd years ago I listened to a debate on tv about the advent of the internet.
Back and forth, back and forth the plusses and minuses of the new internet raged…..they argued about the “information highway” or the “easy accessibility of porn”.

At the end of the debate they were all asked to make a final comment of their prediction of the future between the info highway and the free porn.
One media person said, ” Well,…. either we will have generations of very smart, informed people or we will have a generation of really stupid….. one handed typists….”
————
You’re right.
The porn industry often decides which technology wins out.
Case on point:
Beta was the better technology, but the porn industry backed VHS.

#122 cuke and tomato picker on 10.01.21 at 11:01 pm

Number 99 who votes for Justin Trudeau people who want Canada to become the JUST SOCIETY.

#123 Nonplused on 10.01.21 at 11:41 pm

#120 Woke up this morning… on 10.01.21 at 9:31 pm

Chill dude, if many of the commenters in this comments section get their way we’ll have an inheritance tax lickity-split. So we can give the indigenous all the land and the government will have most of it back again within 2 generations.

This is, of course, assuming we can figure out which indigenous people to give the land to in the first place. Even they don’t agree who should get what and the claims overlap. Normally they settled it with war, which isn’t much different than how the British settled it. Just different weapons.

Anyway, in British law land ownership is associated with improvement and cultivation, and also paying taxes.

#124 fishman on 10.02.21 at 12:19 am

Way to go lil potato. Your actions were so demeaning. I’ve worked with & around Indians all my west coast fishing & logging life. Their big boys. They can handle it. Just that you gave them another excuse to come at you with that bad four letter word. No, not that one. This one M O R E.

#125 Nerb Remlap on 10.02.21 at 12:27 am

#84
You missed the point. Someone is willing to buy your cottage for 500K contents or not, you simply structure the deal so you pay less capital gains and land transfer taxes. Also less real estate commission. In addition here in Ontario property taxes are reflective of actually sold prices so selling cottages that include contents actually works to increase property taxes which is an on going cost.

#126 Luddite on 10.02.21 at 1:38 am

My only narrative is to keep this blog from becoming another floatie in the social media sewer. – Garth

Amen Garth, ain’t that the truth! I’m a luddite; no social media here.

#127 Faron on 10.02.21 at 2:17 am

#120 Woke up this morning… on 10.01.21 at 9:31 pm
#115 ImGonnaBeSick on 10.01.21 at 8:49 pm

…That’s 20,000 acres per person…

Gosh, I wonder why there weren’t more?

As for Trudeau, as I said, don’t like the guy and it was a poor choice. But, you have zero clue how he actually spent the day other than time on a flight and a walk on a beach. And it’s utterly laughable that you suddenly care so much about Truth and Reconciliation. It would be interesting to dig into the archives to see you whining about rail blockades or saying dumb crap about residential schools etc. You are a hypocrite on par with Trudeau is my guess.

#128 Harold Balder on 10.02.21 at 3:15 am

https://www.vice.com/en/article/7kvgxe/were-going-to-make-the-rich-pay-joe-manchin-tells-protesters-from-his-yacht

Seriously? A blowhard Democrat Trump Hater joins AOC in the hilarious hypocrite camp. Her, a free dress saying “Eat the Rich” at a super exclusive event for the rich at $30, 000 a seat. Him, bloviating socialism from the rear deck of his super yacht . Do these so called socialists have a clue how ridiculous they look. Trudeau once again shows his fists in for everyday Canadians by preferring to slop down booze from the deck of a $10,000,000 “Summer home” in a west coast luxury resort town Tofino on T&R Day.

Australia has rightly pulled the pin on a corrupt Premier, but on charges that a Canadian minister would laugh at. Time to catch up Canada.

#129 Squire on 10.02.21 at 7:33 am

#31 XGRO and chill on 10.01.21 at 2:54 pm
People with million dollar homes and hundreds of thousands in capital appreciation on them get a huge tax break.

And the people who cannot afford homes, or otherwise choose to rent get diddly squat.
————————————-

As Garth stated many times, life is about choices. Someone chose to work hard and buy a house. You or I do not have the right to take someone’s money. Does anyone know anything about history? Has communism or socialism ever been successful? Sheesh

#130 ImGonnaBeSick on 10.02.21 at 8:18 am

#120 Woke up this morning… on 10.01.21 at 9:31 pm

First, why the name calling? You already lost.

Second, 125,000 when Canada was discovered? 1500 original or 1700 pre-settler? In 1500 that was a THIRD of the world’s population. 1700 it was a QUARTER! Yeah, they had no rights to grow THEIR Nation!

Funny how the Settlers tried to wipe out the liability and put in the history book that Canada starts at THIS date.

What are you even arguing for? I terms of right, your argument simply is not on the side of right. Or ethical.

It is on the side of me, me, me. My this and my that – when none of it is. Do you even understand that no one owns the land on which their house stands in this country already?

Uhh, didn’t call you a name, and that wouldn’t cause an immediate loss of a discussion… I don’t know who told you this, but they were incredibly wrong. You’re arguing via emotion, and that’s how you lose an argument (or start a cult)…

125,000 was 0.03% of the population in 1500 not 1/3.. 461m was the world population at this time math wiz…

The indigenous peoples had 14,000 years to grow their nation prior to European settlers, and in terms of technology, had not progressed past nomadic, hunter/gatherer.

20,000 acres is 80 km2… That would have been the amount you are allotting to each indigenous person prior to European settlers. That is entirely unmanageable to a people that had not even discovered the wheel yet.

You are also subscribing to the noble savage (not my word, literally a literary term) myth, where in reality, the indigenous peoples of Canada were warring nations, took slaves, and did every other atrocity that comes along with war… So not much different to the settlers…

Canada brings in roughly 50,000-100,000 refugees each year since 1960, also including almost 2m Irish in the 1800s. Do they not deserve a place to live? What about first generation Canadians? They have no hand in the original settlement, should they give their land back? Or is it sins of the father only applies to people of European descent? One of the popular lies in today’s world is that, “the victorious write the history books”. Which allows people to paint Europeans as evil liars based on the assumption that they were the conquerors, and therefore anything that paints them in a good light must be a lie… This is utter BS…

The whole land thing is ridiculous and the arguments are ridiculous. There will never come a day when someone (who is not an insane person) in Toronto gives up their house. Oz is 40% desert, guess which part the indigenous peoples were “given”? No sane person is giving up their house to a current gen native, unless they buy it from them…

#131 ImGonnaBeSick on 10.02.21 at 8:20 am

#127 Faron on 10.02.21 at 2:17 am
#120 Woke up this morning… on 10.01.21 at 9:31 pm
#115 ImGonnaBeSick on 10.01.21 at 8:49 pm

…That’s 20,000 acres per person…

Gosh, I wonder why there weren’t more?

As for Trudeau, as I said, don’t like the guy and it was a poor choice. But, you have zero clue how he actually spent the day other than time on a flight and a walk on a beach. And it’s utterly laughable that you suddenly care so much about Truth and Reconciliation. It would be interesting to dig into the archives to see you whining about rail blockades or saying dumb crap about residential schools etc. You are a hypocrite on par with Trudeau is my guess.

Please do.. you seem to have the free time.

#132 John Manafield on 10.02.21 at 8:25 am

Who voted for this guy? Obviously it was special interest groups don’t give a *uck about Truth……and Reconciliation.

https://twitter.com/CharlieAngusNDP/status/1443732738926915590?ref_src=twsrc%5Etfw%7Ctwcamp%5Etweetembed%7Ctwterm%5E1443732738926915590%7Ctwgr%5E%7Ctwcon%5Es1_c10&ref_url=https%3A%2F%2Fthepostmillennial.com%2Fbusted-journalist-catches-justin-trudeau-tofino

#133 crowdedelevatorfartz on 10.02.21 at 9:05 am

@#119 Woke up 400 years ago
“4.4% of Canadian Natives should then own just shy of 60% of the land.

All it will take of The Queen to give back what she gained illegitimatel”

+++

Why stop there?
“The Queen” will also stop financial compensation, monthly payments, any and all infrastructure improvements, policing, healthcare, etc etc etc.

You’re on your own and there will be no more money.
Yep.
Thats a great idea.

#134 Jen on 10.02.21 at 9:27 am

Once again the mainstream media trying to look useful for consumers, working lower income Canadians which it is not really. Myself and my husband both work minimum wage jobs earning $14.25 an hour in Ontario. The minimum wage was $14 a year ago and now with the 10 cents increase, it will be $14.35 an hour. The 10 cents an hour increase will mean an extra $600 a year for us gross before taxes.

We work combined 105 hours a week. We are both 32 years old now and get 2 weeks off a year split during each month which is our vacation pay. Our two new paychecks are $660 and $700 a week each. I talk to alot of my friends and family that make at least 35% to 45% higher wages than us. They rent like us, don’t own a home, condo any real estate. Some save max out as much as possible their RRSP, TFSA each year but lees than us and others are also have alot of consumer debt and are not that smart, wise with their money not because they are not able but they chose not be adults and have not grown up yet. Many Canadians looks like these days have lost their way and expect too much from government, entitlement mentality is getting out of control.

The last 10 years we have been married and 1 child now 7 years old, we have been very wise savers and try to put as much as we can in our RRSP, TFSA each year to keep taxes lower to boost our finances. We have in 2021 remaining $25,000 a year or $480 a week after all pay all our rent, food, childcare, car expenses, gas, clothing, medical, insurance, our pass time, hobby, fun account and many other living expenses etc.

We have managed to put $143,000, $155,000 in RRSP, TFSA which is ours not individually and $20,000 in our joint savings account over the last 10 years. We don’t know much about investing but rollover our GIC at best rates where we can find them and put our maximum RRSP tax savings into our TFSA and other GIC.

The real problem is not that minimum wage goes up 10 cents or 25 cents or even 50 cents an hour but the economic policies of the Liberals, NDP and other left leaning parties in Canada that increase taxes, inflation from energy, gas prices to food prices, rent etc. and make life way more expensive in which they want to say they are helping lower income, middle class Canadians with more social programs but they are the a big part of the higher cost, higher tax, higher debt of Canadians.

People don’t understand and don’t want to understand that everything that gets taxed, inflation goes up, money getting printed left and right like it is water from businesses to governments is all passed on to us all, the consumer, worker, investor, individual. There is no free lunch, we all pay for it eventually sooner or later Canadians, wake up.

#135 Jen on 10.02.21 at 9:53 am

So much in my post but I forgot to say is if they did not keep interest rates so low and keep pumping up the real estate mania and debt craze of Canadians and big corporations, many savers like us would be in a much better position.

A just 1% point increase in our RRSP, TFSA, GIC would mean today $3,180 a year more yearly interest. This is equivalent to a 53 cents an hour to our hourly wages. If we were at normal GIC rates, 4.5% to 5%, this would mean an equivalent to $1.60 an hour wage increase for us or $9,400 a year more interest income every year. As our savings keep growing with compound interest and we save more each year, this could easily mean an equivalent to one of our yearly gross incomes of $40,000 in 15, 20 years. Larger minimum wage increases look like it helps you but they do really little help for you if you are not responsible with your finances and the government, Bank of Canada devalues your money, taxes you higher and inflation eats up your wages every year.

#136 you can count on it on 10.02.21 at 10:01 am

We are going to see $200 oil prices by 2025, this will happen and we will see $3 an liter gas by then maybe $3.30 a liter at it’s peak. We will also see 6% 30 year US mortgage rates by 2025 for sure as well.

#137 Matt on 10.02.21 at 10:24 am

Yes Jen, this is what scares the hell out of liberals, NDP, socialists etc. that people are better off financially with assets other than a house, condo, property.

Imagine currently that 70% of Canadians did not own real estate with epic debt like today but owned each $500,000 in individual, non-registered investments, stocks, bonds, REIT’s, ETF’s, mutual funds, term deposits, credit union shares, commodities, GIC’s, RRSP’s, TFSA’s, RESP’s, RDSP’s, LIRA’s DPSP’s and on and on. When taxes went up, Canadians would be getting pissed.

#138 Dharma Bum on 10.02.21 at 10:36 am

I love the Monty Pythonesque front page photo of Trudeau in the Toronto Sun.

What a maroon!

https://www.youtube.com/watch?v=_NYFq7ZJg4c

#139 Lisa on 10.02.21 at 10:44 am

I know Jen, I know what you mean. I miss the Ontario Savings Bonds step up 2000 year series. It paid 5.75% the first year and 8% the final year with an average 6.45% simple interest per year but compounded effective rate 7.337% per year. No wonder real estate is getting out of hand with 1.6% to 2.0% 5 year mortgage rates.

#140 Ben on 10.02.21 at 1:24 pm

Lisa, I am only 22 and never knew interest rates were that high back in 2000. I got a 2.4% 10 year EQ Bank RRSP, TFSA and thought that was a great rate.

#141 Mina on 10.02.21 at 1:28 pm

This must be your first GIC, Lisa. I got a 3.60% 5 year TFSA with Oaken Financial back in 2019. The highest GIC rate my mother got was with National Bank back in 1995 which was a 9.375% 5 year GIC.

#142 Mina on 10.02.21 at 1:30 pm

I meant Ben, it must be your first RRSP, TFSA with a GIC.

#143 Ken Lee on 10.02.21 at 2:02 pm

Hi Garth,

Great topic, and appreciate the calculation formula for the principal residence capital gains exemption.

Is the property transfer tax included in the ACB?

#144 Linda on 10.02.21 at 2:33 pm

#110 ‘Mike’ – thing is, age 60 or 70 isn’t really ‘old’ the way it used to be. Think about how folks are being urged to defer taking their CPP to age 70 as the expectation is they will live longer – age 90 or even 95. While not everyone will have a healthy, active older age a lot of folks are enjoying just that & are quite possibly never going to need a nursing home – they’ll just age in place.

#145 Martin on 10.03.21 at 8:36 am

If they both on the property do they get to designate who the capital gains are attributed to on their taxes? Is it 50/50 split? Assuming they have RRSP room, could they not simply put the gains in their RRSP’s, and defer that tax into the future?