So....election in 2024!? | GTAMotorcycle.com

So....election in 2024!?

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mimico_polak

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New budget came out yesterday, and as always there are some winners and some losers. Thankfully they didn't raise any major taxes on the general population, but one that affects me personally is the new 66% capital gain tax versus the current 50% tax. I've mentioned before about potential of taking over the family cottage...that now will cost me much more as of June 24.

So is Singh gonna call an election and break off from JT...or is he going to growl and complain while doing absolutely nothing.

My understanding is the other parties are going to reject (or whatever term) the budget, and it'll come down to the spineless NDP.
 
mimico_polak said:
New budget came out yesterday, and as always there are some winners and some losers. Thankfully they didn't raise any major taxes on the general population, but one that affects me personally is the new 66% capital gain tax versus the current 50% tax. I've mentioned before about potential of taking over the family cottage...that now will cost me much more as of June 24.

So is Singh gonna call an election and break off from JT...or is he going to growl and complain while doing absolutely nothing.

My understanding is the other parties are going to reject (or whatever term) the budget, and it'll come down to the spineless NDP.
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NDP has to support this budget they really don't have any choice call on election and become completely irrelevant or don't call an election and have a little bit of say.

Sent from the future
 
Scuba Steve said:
NDP has to support this budget they really don't have any choice call on election and become completely irrelevant or don't call an election and have a little bit of say.

Sent from the future
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Is it bad that I hate our electoral process and govt systems the older I get. Seems it gets worse and worse and instead of actually doing what's the 'right' or proper thing for the population, it's little men holding on to whatever power they can for as long as they can.
 
mimico_polak said:
Is it bad that I hate our electoral process and govt systems the older I get. Seems it gets worse and worse and instead of actually doing what's the 'right' or proper thing for the population, it's little men holding on to whatever power they can for as long as they can.
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Nope I agree with you 100%, the more I know about it, makes me angry, and wish I knew less. And the more I wish I could work under the table.
 
mimico_polak said:
Is it bad that I hate our electoral process and govt systems the older I get. Seems it gets worse and worse and instead of actually doing what's the 'right' or proper thing for the population, it's little men holding on to whatever power they can for as long as they can.
Click to expand...
The great news is the new guys won't be any better and will find different ways to screw us.

Sent from the future
 
Until last week, I thought our election was THIS November, not next. I got mixed up with the US election.

I'd love the opportunity to bounce the Liberals ASAP but I suspect it's just posturing by Singh to get what he wants and we'll be going to the polls as originally planned in 2025.
 
mimico_polak said:
Is it bad that I hate our electoral process and govt systems the older I get. Seems it gets worse and worse and instead of actually doing what's the 'right' or proper thing for the population, it's little men holding on to whatever power they can for as long as they can.
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Electoral reform was one of jt's first promises to be broken.
Sucks about Cap gains tax, I'll be on the hook when we sell the condo.

For all his spouting off I'm pretty much ready to bet the farm that PP doesn't claw this back when he gets in.
 
Is this move to make the real estate market tighter? People with multiple houses such as Justin, will be less likely to sell if they can afford not to. People who are just getting by now, and will have to sell in the future will get screwed big time. They're the wanna be rich, not the rich.
 
timtune said:
For all his spouting off I'm pretty much ready to bet the farm that PP doesn't claw this back when he gets in.
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Agreed, doubtful we'll see any change(s)
 
timtune said:
Electoral reform was one of jt's first promises to be broken.
Sucks about Cap gains tax, I'll be on the hook when we sell the condo.

For all his spouting off I'm pretty much ready to bet the farm that PP doesn't claw this back when he gets in.
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I thought I heard that the cap gains change was only for the top 1 or 2% (very rich)??
 
LBV said:
I thought I heard that the cap gains change was only for the top 1 or 2% (very rich)??
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Cap gains are not just for the rich. It applies to a second property along with other stuff (investment??)
 
Baggsy said:
Is this move to make the real estate market tighter? People with multiple houses such as Justin, will be less likely to sell if they can afford not to. People who are just getting by now, and will have to sell in the future will get screwed big time. They're the wanna be rich, not the rich.
Click to expand...
It may actually increase the amount of housing in the supply system.

For instance, my situation:
- parents bought cottage in the mid 90s for 70k
- current cottage is approximately valued at 500k (let's say for ease of numbers)

So my capital gain is 430k.

That means (to me - not a numbers guy totally) 250k of the gain is taxed at 50%, and the remaining 180k is taxed at 66%.

250k (50%) = 125k
180k (66%) = 118k

Are the additions to be paid now. Final number includes the salary in the year of sale.

I personally can't afford that, so now would have to sell the property which means that there's another property for sale in Wasaga.

Someone help out with the math because I'm getting confused.
 
LBV said:
I thought I heard that the cap gains change was only for the top 1 or 2% (very rich)??
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It does...if they have an annual capital gain of over 250k...but normal working class families get effed because they literally may not be able to keep the family properties in the family.

So it hurts EVERYONE with a property purchased decades ago that may want to transfer those properties to their children.
 
mimico_polak said:
It may actually increase the amount of housing in the supply system.

For instance, my situation:
- parents bought cottage in the mid 90s for 70k
- current cottage is approximately valued at 500k (let's say for ease of numbers)

So my capital gain is 430k.

That means (to me - not a numbers guy totally) 250k of the gain is taxed at 50%, and the remaining 180k is taxed at 66%.

250k (50%) = 125k
180k (66%) = 118k

Are the additions to be paid now. Final number includes the salary in the year of sale.

I personally can't afford that, so now would have to sell the property which means that there's another property for sale in Wasaga.

Someone help out with the math because I'm getting confused.
Click to expand...
Whoa!! You sure about that?
Before the %50 was the amount "tax free" with your nominal tax rate applied to the rest. I assumed ( but don't know) that now %66 was able to be taxed.
 
mimico_polak said:
It may actually increase the amount of housing in the supply system.

For instance, my situation:
- parents bought cottage in the mid 90s for 70k
- current cottage is approximately valued at 500k (let's say for ease of numbers)

So my capital gain is 430k.

That means (to me - not a numbers guy totally) 250k of the gain is taxed at 50%, and the remaining 180k is taxed at 66%.

250k (50%) = 125k
180k (66%) = 118k

Are the additions to be paid now. Final number includes the salary in the year of sale.

I personally can't afford that, so now would have to sell the property which means that there's another property for sale in Wasaga.

Someone help out with the math because I'm getting confused.
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You'd add 125+118-costs to sell to your dads income to calculate tax owing. Probably end up at 46% so just under 100k owing for JT to burn.

EDIT:
Who actually owns the cottage? Both? One or the other? I'm not sure what the rules are for splitting the CG between your parents if they both own it.
 
timtune said:
Whoa!! You sure about that?
Before the %50 was the amount "tax free" with your nominal tax rate applied to the rest. I assumed ( but don't know) that now %66 was able to be taxed.
Click to expand...
Here's the official wording released so far.

"Budget 2024 proposes to increase the capital gains inclusion rate from one half to two thirds for corporations and trusts, and from one half to two thirds on the portion of capital gains realized in the year that exceed $250,000 for individuals, for capital gains realized on or after June 25, 2024."

Based on that, I think MP has the math correct but wording is awkward. Those numbers are the capital gains subject to tax. They are not the bill required to be paid.
 
mimico_polak said:
It may actually increase the amount of housing in the supply system.

For instance, my situation:
- parents bought cottage in the mid 90s for 70k
- current cottage is approximately valued at 500k (let's say for ease of numbers)

So my capital gain is 430k.

That means (to me - not a numbers guy totally) 250k of the gain is taxed at 50%, and the remaining 180k is taxed at 66%.

250k (50%) = 125k
180k (66%) = 118k

Are the additions to be paid now. Final number includes the salary in the year of sale.

I personally can't afford that, so now would have to sell the property which means that there's another property for sale in Wasaga.

Someone help out with the math because I'm getting confused.
Click to expand...
not quite. new budget legislation aside, it should be 50% of the gain is taxable and that amount is then added to your income bracket

are they transferring ownership?

also i was under the impression the estate ate the gains of 2nd properties and you were on the hook for the balance? I'm going through this myself this tax season so i'll circle back to you.
 
Evoex said:
not quite. new budget legislation aside, it should be 50% of the gain is taxable and that amount is then added to your income bracket

are they transferring ownership?

also i was under the impression the estate ate the gains of 2nd properties and you were on the hook for the balance? I'm going through this myself this tax season so i'll circle back to you.
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His parents are alive, there is no estate. If they transfer cottage to him, that triggers CG assessment at fair market value. They don't want to give him a cottage and pay the 100k bill (understandable).

Ideally, you do what you can to lower the current fair market value to punt tax burden to the future. Legally I mean. Like getting an appraisal that takes into account the rusticness of the property in a town where people are expecting modern mansions.
 
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