Canada’s Capital Gains Tax: The Silent Killer of Your Wealth?

Here's how the new capital gains tax works and how it changed (June 2024)
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The capital gains tax has certainly not made it easier to accumulated wealth. In this video we'll talk about how the tax works, what the main changes are, and how it directly and indirectly affects you.
#livingincanada #axethetax #personalfinance
**DISCLAIMER: I am not a financial advisor, consultant, or real estate agent. This video is for entertainment purposes only and should not be considered as financial advice**
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** DISCLAIMER **
I am not a lawyer, not an immigration agent, and not a financial advisor or tax consultant. I'm just sharing my experience and knowledge in the hopes it can be useful to you. Please always do your own due diligence and research before deciding to purchase or sign up for any financial product or service!

[@kuroexmachina]

i love paying insane amount of taxes and not have access to good public transportation or healthcare. truly the Canadian dream

[@LivinginCanada]

Haha, good one.

[@JayB-JayB]

😂👍

[@Steven-se5jd]

Everyone is a sucker here.

[@human1513]

The internet has all the answers and also with so many KZbin sites now from legit people. If you are paying too much tax which is all subjective then you likely have done next to nothing to learn what to do! Every speak to a lawyer, a real accountant or speak with or ask for guidance from someone who has lots of $$$ (like +$5 million)?

[@thebestoffools]

You can always move to Russia where their interest rate is at (minimum) 21%. I heard they welcome immigrants there right now as their population is rapidly decreasing...

[@Juanmanuely2022]

Higher taxes, higher rents, less government services, dangerous cities, low value of the Canadian dollar, no jobs, Paradise country!

[@Beau_Guerrier]

Yet ppl are still voting status quo 😮

[@chitosesenri7087]

You're welcome to move to Ukraine. Shoo.

[@BnMProductions11]

Continue to do the neoliberal conservative dance and it will never change. We have more than two parties but people seem incapable of electing an actual progressive candidate 😊

[@420Star69]

Good explanation. One thing you didn't mention is that raising any taxes also raises inflation. As businesses have to pay more taxes, they raise prices to compensate, and that's regardless if it's a plumber, carpenter or grocery store.

[@LivinginCanada]

Good point. Most extra costs businesses have to pay are rolled over to the end customer, the effect is just lagging.

[@KickaHippyPK]

That's not exactly true, although it can feel that way to the end consumer. Raising taxes does *not* raise inflation. Increasing the price of goods and services raises inflation. This is actually quite a big difference. However, because of the system that we live in, it might not feel any different to the average person. This is because businesses can just freely pass all their additional expenses, such as taxes, on to the consumer. This is why price ceilings, if coordinated properly with taxation (or a myriad of other mass wealth accumulation limiting policies), are not necessarily the boogeyman the political right make them out to be. They can actually be a way to raise taxes, which can be put back in to benefitting society in the form of transportation, healthcare, infrastructure, etc, while preventing corporations from using the guise of inflation to bump prices up a little extra and price gouge the consumer. There's a reason why our government and majority of people in western Capitalist Social Democracies are in debt and the 1% have gained more wealth than at any point in history.

[@Vedarta]

Well, most services costs here in Kelowna went through the roof! And I’m talking AC maintenance and stuff like that, nothing crazy.

[@jay-j6l]

This is going to affect me when my Crypto breaks out from ATH and if I cash out all at once. I'm also a incorporated software developer consultant, so I just see Canada as eating away at my wealth. It seems no matter what smart moves I make I am always behind the curve to afford anything in this Country. I am well compared to most people, but I honestly feel poor, I don't live flashy, I live below my means. I save and watch every penny!

[@markbernier8434]

Capital gains is a tax on inflation. It only started in 1972. If you bought an asset for $100 in 1972 and sold it for $700 today you would be assessed a capital gain of $600. Sounds good till you factor in inflation and find out that your gain in constant currency is exactly ZERO. You will be taxed on all of that supposed gain. Gain that is all due to the devaluation of the currency. A tax on inflation.

[@petermcateer1354]

Lol. That's so hilariously inaccurate.

[@Neil-q5t]

They should Drop the capital gains tax on all investments for people investing with after tax dollars! Canada just keeps taxing everything, over and over! This takes away incentive from most Canadians. Tax the Ultra rich , top 5% richest. Let’s see if Pierre will bring they’d capital gains taxes down! Trudeau is Destroying Canada! No wonder professionals are leaving!

[@BG-mw5pt]

tax is not the problem, the problem is they are just gobbling it up and we see nothing from that. our healthcare is in dire straits, education is worse and worse every year, our infrastructure is on hiatus, so where do all these taxes go?

[@Krueger444]

The capital gains tax change is literally what you're asking for with "Tax the Ultra rich , top 5% richest". Or are you under the impression that people making over 250k in capital gains/year represent the struggling? The "ultra rich" get there with their capital gains.

[@pokergeniusordonkey6517]

If someone is fortunate enough to collect a capital gain over $250,000 they should feel gratitude. Canadian Patriots will feel gratitude and would happily pay this tax.

[@jean-pierrefournier9416]

No way in hell PP will take that away my dude, he'll come up with some bs reasons but he won't say no to 5 Billions extra tax income.

[@user-ky8je2qj3z]

​@@Krueger444it sounds like you skipped the video and also consider anyone who makes gains on investments over 250k as ultra rich.. wouldn't it make sense to then also have 75% over x amount 80% over y amount and 90% over z amount? Thus ensuring people try to evade taxes and make thir money illegally or outside of Canada instead..? Cause that is what would happen if targeting the ultra rich instead of just anyone who isn't struggling too hard to be able to invest... crab bucket mentality sounds like

[@BCSimonYT]

It is a lot of capital gains tax because -It doesn't count toward any CPP or benefits. -It doesn't account for lifetime or previous years losses (we aren't given a credit when losing money unless within 3 years) -It doesn't account for land taxes and renovation losses (10 year land tax could run you $120k itself) So realistically, you've been paying land tax, land transfer tax, renovation and previous losses costs without any tax credit but you're expected anytime you come out on top, to pay a capital gains tax on gains from an initial investment that was taxed already.

[@radioastronomy2001]

Great presentation. Canada is a great country to exploit, welfare, healthcare, social services. I would never start business in Canada again. If you are young just do whatever it takes to move to USA do not waste your time here. Also, keep in mind the exit tax...

[@MajorCanada]

Max your TFSA with Tesla and Canadian tech (15% crpto exposure) and energy stocks. Max your RSP with US Dollar Stocks. Pray income taxes decrease so when you withdraw from your RSP after retirement you aren't shafted. Profit.

[@monkidluffitv]

These taxes are not the issue. The issue is the level of corruption that makes improper use of this capital. If we start to see heavy investments in public transit, education, meals for kids in schools, more hospitals, more walkable city infrastructure, housing, etc then people will feel their material lives improve. Right now the issue is that if taxes increase but there's nothing to show for it on the other end, it causes people to be upset and unhappy with their lives continuously getting worse instead of better.

[@ropro9817]

The government should cut the waste before raising our taxes again. How do we get DOGE in Canada? 😒

[@LivinginCanada]

All for it! That would require a franchise, perhaps lol

[@slayerstyle888]

Start with electing Pierre next year lol. No he’s not perfect, but probably best choice given what we have to work with.

[@human1513]

DOGE, have you looked into BitBuy (under Coinbase) Canadian Crypto broker? Why would you ever want DOGE? It went through its manipulation stages a short couple of years ago. Not hard to find if the "Internet" is used and a search is entered. There are other CDN. crypto brokers who offer DOGE and many others. The U.S.A. is being restricted by the CDN. financial institutions and not allowing CDN.'s to have a U.S. based crypto brokerage unless they have a real office in Canada (liek stock market brokerages). The big CDN. banks are controlling their monopoly in Canada.

[@JesusLopez-ng7ho]

Under Trudeau: 300% increase in federal servants, 13% year over year increases in salary, and can't get fired. These are unelected members who do redundant work. Most don't add value to society. All while skilled labour in trades (ie. construction & plumbing) are in constant demand

[@jpl9148]

Thanks. How about a video of the tax impact of leaving the country?

[@LivinginCanada]

Interesting idea!

[@michaelmcwilliams5403]

@@LivinginCanada Do it!

[@toronto20]

@@LivinginCanada This would be a great topic. It would affect Canadian tax residency

[@CrisTooR]

I would love to see this.

[@norcofreerider604]

FWIW the house that was the primary residence of the deceased in an estate is not subject to capital gains if it is liquidated as part of the estate settlement, and the funds are then passed to the beneficiary tax free.

[@trevorlarock]

Yes good video but that's an important missed point. Otherwise all people old/near death in a primary home would make efforts to sell it and capture the tax free gains and establish a higher cost base by buying again or just renting.

[@zk4761]

It comes down to how the taxes are used. Of the 10 countries globally were citizens pay the highest tax rate you have 1. Ivory Coast (60%) 2. Finland 3. Japan 4. Denmark 5. Austria 6. Sweden (52%) 7. Aruba 8. Belgium (50%) 9. Israel 10. Slovenia. Canada is not even top 15. It comes down to how the government is using the taxes beyond the amount being taxed because the majority in the top 10 are great countries to live in.

[@carandkarts9558]

Nice video. In your NVDA example, it is not obvious that FX is included. If the gain is US$500k (at a high level), the tax is much higher than you illustrated. Also, have heard enough of "No sympathy for you if you are part of the 0.13%."... this country will never fulfill its potential.

[@JayB-JayB]

It's important to know how to survive and thrive regardless of who your politicians are, but honestly... I really can't wait for our current Federal Liberal/NDP government to be voted out😅 The Liberal/NDP coalition has decimated Canada in 8 short years. I think many others want them gone too😅

[@LivinginCanada]

😂 It's about time! I can't see why it won't happen with how things are going!

[@Neil-q5t]

Canada has become a joke! Can’t wait for Trudeau to be gone !!!

[@careshare-I-Love-God]

We love our condo but we will be leaving soon. Originally, we want to keep it and make it as our secondary home so that we can come back and forth half the year. Unfortunately, it will be categorized as a secondary home. If the secondary home will sit empty for awhile, we will have to pay for empty home tax of 2% of its assessment value each year. If we sell the condo as a secondary home without renting it out, the capital gains excemption of a primary home will be gone. So for the first 250k of the capital gains, 50% of it will be taxed then the 250k upwards after that will be taxed at 66.7%. All of that will be added to the personal tax. If all is beyond 250k$ then we will be paying 33% & 20% for federal & provincial taxes. The take home would be significantly smaller than just selling it all as a primary home without the capital gains issue... If we just rent out our property, it becomes a business property. We will be taxed monthly for the income. Then if we decide to sell it, we will be taxed 13% of the property value... This is our undersanding of the tax implications for each option we take for the future of our home...

[@LivinginCanada]

Thanks for sharing your personal experience. This is a concrete example of how the new changes would affect real lives!

[@King_of_Sofa]

So you're telling me the money I made from my construction job was taxed once already, then I go to make gains in the crypto market with what little money I had left over gets taxed again. All the while I still live with my parents and I'm trying to find a way to buy my own place but the government is screwing me over with their excessive taxation???

[@OttawaRealEstateAgent]

Good video explanation about capital tax. One more thing is that if you are buying a property as investment (flipping, improving) if you sell this home less than 365 days occupancy this doesn't trigger capital tax, it becomes a business income which is taxed at 100% inclusion rate. Additionally, in ottawa, we now have VUT vacan unit tax, so if your property is vacant for more than 152 days (i believe) additional 1% property tax is applied to your property.

[@LivinginCanada]

Thanks for adding that! It's really important to be aware to not be surprised by an even higher tax bill!

[@bestel321]

This perspective feels a bit tone-deaf given that these policies are designed to discourage house flipping, not promote it. Not all regulations should prioritize maximizing individual profits, especially when it comes to essential assets like housing. When discussing necessities such as food, shelter, and water, it’s crucial to address not only the economic viewpoint but also the social impact. If maximizing profit is the only goal, then perhaps real estate isn’t the ideal investment. It’s particularly surprising that, even amid a housing crisis, profitability and indiscriminate construction often overshadow considerations like the type and affordability of housing being developed.

[@beautanner8409]

I think that the tax should be much higher - for wealthy elites who are moving their money over here and using our communities as a safety deposit box.

[@hollybarton1992]

lol canadians really like to fantasize. have you travelled to the balkans or eastern europe lately? i bet you can't afford

[@semsemeini7905]

In Switzerland you pay 0. In some US States you pay 20% Federal, 10% State and 5% City; 35%. So you are fortunate.

[@dennislam3111]

Thunderbay house would have been deemed disposed at fmv upon death, the son will be deemed to aqcuire the house at 400k so it he sells it at 415k, there is 15k taxable gain assuming not primary resident. That said, you can also delcare primary residence but not live there for up to 4 years so even if you rent it out and then sell the gains are still not taxable.

[@jacobcoghill1288]

tfsas do not save you from capital gains tax, the government at any point can decide that your investment in a tfsa made too much money and they now need to retroactively add it to your taxes for that fiscal year

[@kevinmac6508]

Also with inflation that 250k will affect more and more people over time. So it encourages the government to create more inflation so that they can tax you more.

[@Hyperpandas]

You figure the government chose to create the recent boutique of inflation, do you? That inflation was the goal?

[@kevinmac6508]

@Hyperpandas Government will always have an inflationary policies because the they have huge debts and a spending problem. They are more terrified of deflation then inflation.

[@Oh_Sully]

​@@kevinmac6508 You should be a politician. You're great at not really answering the question 😂

[@kevinmac6508]

@@Oh_Sully It would take me to long to answer it completely. Basically economic stimulus is a fancy word for inflationary policy. The government wants enough inflation to erode their debts and spending but not so much to pass off voters. Was it intentional? Well they intentionally spent 600 billion dollars, then printed 40% of the money supply. You can say they didn't intend for inflation to increase as much, where they are upsetting the voter base. But there are articles that say the inflation was okay since the past decade has been low on inflation prior to the giant increase. Even talks about going forward of a 3.5 percent target instead a 2 percent target. However, if they did that before returning to a 2 percent target it would look bad, do they try to roll it back as low as they can without going negative. It's a very long topic

[@Hyperpandas]

@@kevinmac6508 My question was in response to your claim that the 250k threshold on a higher capital gains inclusion rate encourages governments to "create more inflation so they can tax [us] more", and I added the recent bout of high inflation. The correct answer is, "no, that's ridiculous". High inflation generally leads to governments not getting reelected, even though governments dont have that much control over it. As to your later comments, you're conflating fiscal policies (taxing and spending) with monetary policy (what you're calling "money printing", but there's more to it). The former is controlled by governments, the latter by central banks. The two aren't coordinated and often work at cross purposes. Finally, everyone with any sense wants to avoid deflation because it's an economy killer. That's why central banks (not governments) generally try to keep inflation around 2%... not because they want inflation (indeed, keeping it low is one of the primary purposes of monetary policy) but because they need a little bit of cushion to avoid deflation (there's a lag between interventions and indicators).

[@ryanj.3102]

I love Canada but if offered a better paying job and less taxes in the US, I would certainly go. Because of irresponsible fiscal policies, the federal government doesn't have enough money and they now have to make up that difference through taxation..like was the 250$ cheque really necessary? Canada should take a page from Ireland and lower taxes to incentivize companies to establish here and increase productivity.

[@Martmi29]

My understanding is that the capital gains tax hike is still not in effect. It was in the budget, but got taken out of the budget and made its own bill because Trudeau kept trying to draw Poilievre into talking about the capital gains tax in the house of commons but Poilievre kept on ignoring talking about until after it became its own bill, and a vote taken on it. Then when the STDC scandal broke out, the conservatives tried to get the government to release these documents to the RCMP, I'm not exactly sure on the exact process in Parliament, but the Speaker of the house was forced to stop all government business until they release the documents unredacted to the RCMP and the capital gains tax hike bill was still in the senate when it got stuck there since all government bills get paused until the documents get released, so the tax hike is still not in effect, and if we get an election before it gets passed, there is no tax hike.

[@Fjrpo]

That's true. Anybody has any reference to when that got approved separately? officially it sounds like its in effect. But @Martmi29 has a great point. I also remember it was taken out in the budget.

[@amitabhagupta9440]

Thank you for this video. Please do a video or a series of video from tax perspective for ordinary people if they opt for non-residency like non-resident Canadian? and following up which countries are better to take residency and countries that have tax treaty with Canada?

[@Germaninvestor1]

Don’t cry people, in Germany we straight up pay 25% no matter what, on the 1st $ of profit. It’s insanely idiotic of the government.

[@strigiformsW]

I don't understand blanket changes like this. If anything the capital gains tax should only effect the real estate market and money raised should go directly into R&D spending to get us back on our feet. How are we supposed to develop our economy in these conditions? Just another reason my partner and I are trying to take our graduate degrees elsewhere.

[@toronto20]

Great video! Maybe you could look into Canadian tax residency as one of your future video topics, as many people are trying to give it up

[@LivinginCanada]

Thank you! If I ever get to that point myself, I'll cover it!

[@Seaward1224]

It’s criminal to change the capital gains tax on people’s investments made decades ago. If they need to change taxes it should be on investments made forward not retroactive. How can an investor assess the risk vs reward if their government can just change the reward when ever they choose? This is truly criminal.

[@PWCDN]

they shouldn't period. Punishing people on capital gains is pro-poverty. The liberal government are too dumb to understand how things work, they're busy trying to generate funds for their uncontrolled spending. They spend so much money and the quality in this country has declined, it makes zero sense.

[@amineaiffa]

What's truly disgusting is that once they do it a single time, it increases over time. By the time they are ready to retire the country can be so bankrupt that the capital gains tax could be 75% even below 250k. Recall the income tax in the US used to be only for high income earners to get through the Great Depression. Now everyone, even broke teenagers pay income taxes.

[@danhule]

no its not, its criminal charging taxes on 100 percent of income tax and allowing the wealthy with their investments to pay less.

[@FarBeyondDriven2]

Use tax free account, best way around this!

[@jonathansmith3031]

​@@FarBeyondDriven2How are you supposed to put land or income property in a TSFA?

[@minthos4045]

you can designate your higher capital gain value property as principal residence and you don't need to live there for whole year.

[@Heliosvector]

long story short, doesnt affect nearly everyone unless your stocks and home values are going up more than 250k per year.

[@mtrest4]

Doesn't affect nearly everyone NOW. Watch how inflation pushes more and more people into that bracket while the bracket itself is lowered. How many times will they pull this trick on you before you clue in.

[@whitenoisejosh-sleepfocusc2917]

I bought crypto with my house money. Now it’s well over $250k. I put everything on the line to get ahead and now I am being punished for the risk I took.

[@LaMach420]

"Doesnt effect me so it doesnt matter" 🤡

[@brucedavenport]

Yeah, taking a cut of the profits with no downside, no investment. That’s called a shakedown by criminals.

[@EccentricRogue]

These capital gains taxes do not include inflation.

[@JayB-JayB]

THANK YOU for speaking about this!😊 Sadly, Canada's recent capital gains tax increases have caused a significant loss of highly skilled workers (surgeons, doctors, dentists, etc) to leave Canada for USA Mexico Thailand, etc.

[@LivinginCanada]

Yeah, it's mind blowing how the government doesn't realize what the macro, long-term impacts are. In the short term, more dollars in, in the long-term-???😂

[@Neil-q5t]

Yeah and more are leaving, We have a Great Communist Government! Let’s get rid of our Clown Trudeau and Freeland

[@pokergeniusordonkey6517]

Who told you that? Who invented that fake statistic?

[@zk4761]

I know a few doctors in Canada and they hate being taxed. Most doctors prefer the US, the main issue is that US are more 'racist' than Canada. Actually the brain drain is primarily to the US, Canadian doctors are not rushing to India or Belgium or England.

[@cybtb]

We've never paid more taxes, and yet what we get is diminishing. Investing is the best way for the middle class to become self sufficient and afford retirement. Now, guess the idea is we will have to be more dependent on the government instead, which is exactly the way the government seems to likes it.

[@Queenb2001]

The greatest con that people do to the working class is dangle the low statically possibly of their "imaged future wealth" to get the working class/middle class to rage against policies that would actually cause those with the greatest amount of means RIGHT NOW to pay their fair share. If you are in the minority that will bank over $250,000 in capital gains, you can AFFORD a good tax account to offset your taxes.

[@Norquay.Mikado]

There should not be any tax on capital gains.

[@nickstark8479]

So, try to never sell more than 250K worth of assets in a given calendar year. Got it!

[@LivinginCanada]

Great point! Not quite there yet, but may happen some day!

[@ILoveTinfoilHats]

Kinda hard when it's property. Can't sell half a house.

[@voo5000]

Its 16% more on the profit portion above 250k

[@88mschmalz]

@@ILoveTinfoilHatsa quarter of a house these days

[@ILoveTinfoilHats]

@@voo5000 16% more of the total is taxed. 33.3% more of what it is currently. But all of that is in the highest tax bracket, so it's actually about 50% more taxes paid. ie. 40k tax bill is now 60k tax bill.

[@JohnDoe-gg6kc]

I dont belive this chage has actually been approved as it hasnt been tabled yet

[@LivinginCanada]

www.canada.ca/en/department-finance/news/2024/06/fair-and-predictable-capital-gains-taxation.html

[@ccnmedia3605]

Did you say these tax rules kicked-in in June? It is my understanding that this is still held up in the House of commons….

[@LivinginCanada]

Starting June 25, 2024, you can read more here: www.canada.ca/en/department-finance/news/2024/06/fair-and-predictable-capital-gains-taxation.html

[@funchannel387]

I don't quite get calculation 😢 Eventually how much percentage have to pay for tax both below and above $250000? Is it 50% 66%? 22%? I don't quite get TFSA too😅how much can put TFSA account without tax? Canada system is too complicated😂

[@MJ98.]

So, basically, if I made $ 40,000 cap gains, it would taxed on $ 26,640 and the rest non taxed? Considering TFSA limit is $40,000?

[@Krueger444]

Gains made in your TFSA are always untaxed. Outside of the TFSA, this change would not impact your 40k of capital gains - you'd be taxed on 20k. What this change does is for someone making, say, 300k in capital gains. Previously, you'd pay tax on 150k of that, but under the new changes, you'd be paying on 125 (50% of 250) + 33.5 (67% of 300-250) = 158.5k. Assuming a roughly 50% tax bracket at that income level, you're looking at a roughly $4k increase in your tax bill (again, on a 300k capital gain).

[@DavidDubord]

40k cap gain would be around 8k with a 40% marginal rate. TFSA limit is about 93k if you're maxed out. Also making 40k of capital gain means you made 10% off a 400 000k investment in a non-registered account.

[@MJ98.]

@Krueger444 that's bullshit from the government. Thank you for the comment.

[@MJ98.]

@@DavidDubord ok makes sense.

[@yuli2042]

Let me summarize who this will affect: 1. You own 2 houses and planning to sell one. 2. You have more than 250k annual investment capital gain (say 10% return then you need $2.5 million invested). Does this affect you?

[@RouRoro]

Talk about your perspective about Bitcoin please

[@LivinginCanada]

The video on bitcoin is coming up pretty soon, in the next 1-2 weeks, stay tuned!

[@andrewbarnett536]

firstly more tax is never better, we are already super heavily taxed on everything we do. as for all the sky is falling rhetoric going on between your tfsa and rrsp its not really that impactful for your average person. in retirement (when you are likely selling your investments) you will probably not be affected by this at all. as for inheritance, succession planning is very important and in your final years you should be moving ownership to who is going to get your stuff that way you skip probate and make your passing much easier on your family. getting an estate planning professional is important if you have a large transfer of wealth between generation to make it as tax efficient as possible.

[@Peglegkickboxer]

Americans are running from California screaming high taxes because they have a 15% income tax. Meanwhile, in Canada, we start at 35%. Before people strawman with "free healthcare" If you're in the middle class the you're better off in the US paying way less taxes and buying insurance for the better and faster service.

[@baba7415963]

after hearing your thoughts, i guess it's too high. what is the government's reason for raising this tax anyway?

[@Peglegkickboxer]

They are broke because they have been spending and pocketing too much, so they want to take more from you.

[@HeritageStacking]

So you don't sell the house instead you make a small bachelor in it and say that's your residence and you commute to TO and rent out the rest. Honestly think think think.

[@RegulusVi]

As Canadian investor, it is better to move to Alberta, as they don't have provincial taxes.

[@cheeseUout]

Since i am sick and tired of all the us vs them rivalry of arguments where we simply yell at each other, im gonna only wonder WHY this raise in taxes are in place and if this really decreases the incentive to attract talent, then what other areas is the money going to? And is that other area with it?

[@BnMProductions11]

God forbid your investments get taxed when you cash them out. What ab absurd concept. The silent wealth killer

[@drew45289]

screw that im moving to TN, TX, or FL where the gov doesn't rob you

[@rb239rtr]

The Capital gains inclusion tax has been all over the place, from 50% in the 1980s to 66% then 75% under Mulroney, then back to 50% under Chretien. This particular change is a bit more nuanced. Regarding Thunder Bay, it does not deserve being slagged. In the 1990s, when living in Toronto was too expensive, a dentist friend and his wife moved to Thunder Bay. They sold their T.O. house, bought a nicer one in Thunder Bay, bought a sailboat. THey were both only 15 minutes to work, or to the marina, or to the ski hill or to the schools. What they realized was they spent the majority of their time working, driving to and from work, being at home, and being stuck in the miserable 1990s traffic. Nothing much changed in their lives with this move, except having more leisure time. And when they wanted to go to the theater, they would just book flights and hotels in Toronto from time to time.

[@nickstark8479]

Could see this helping with the housing shortage crisis at least, as it deincentivizes long-term holding of secondary/investment properties, meaning more inventory for people trying to get into the market.

[@LivinginCanada]

Yup, for some people it can definitely work! Yeah, the capital gains tax has changed a lot, but I haven't seen it going down yet!

[@jonathankr]

Imagine if there was remote work and commute was 0 min.

[@kyle21milmax19]

Always stack stay humble never sell😂

[@normp2463]

Some good information in your video. But you should stop referring to a capital gains tax. There is no such thing in Canada. Your video is about the capital gains inclusion rate.

[@felixchu7656]

There should be no capital gains tax. Honestly, there should only be 1 type of tax, either sales or income. Instead we have a massive amount of taxes that feed of each other and drains us. We get taxed on our income. Then we get taxed when we spend it. We get taxed when we invest it. We get taxed when we sit on it (in terms of saving interest and property tax). And at the end we get taxed when we die (ie your explanation with selling your parents property) This doesnt include the recurvise tax like the carbon tax that is applied at every level of the supply chain.

[@Canadian_Eh_I]

You are right. We are actually treated like chattel that the government feeds off of for their sustenance. But hey, we get roads right?

[@Krueger444]

Sales tax disproportionately impacts the poor. Income tax gets complicated, but a pure income tax based revenue system would disproportionately impact high earners (unless we move to a flat tax system where we'd be back to targeting the poor again). You want taxation basically wherever money changes hands, and you want to disproportionately target luxurious/discretionary spending and higher incomes rather than essentials and lower incomes. And the absolute worst idea - "No capital gains" tax means that working people should be taxed on their blood and sweat while purely passive incomes are tax free. Capital gains are already significantly tax advantaged - Even with this change.

[@WealthyChronicle]

So, basically, the rich get richer while the rest of us pay more in taxes? Is this just a small step toward more financial inequality in Canada? 🤔

[@dengdengEjoa]

you better beat the market with that tax rate lol

[@LaMach420]

I love working half the year for free so the government can line their pockets and generously give Indians $82,000, free housing and education while we have to live with room mates and our vets get treated like scum. Life couldnt be better!!

[@ngocPham-sh5pi]

I’m stressing out

[@danhule]

you wont be paying this unless you make more than 200k in capital gains not income.

[@mtrest4]

Capital out of a printing press 💵

[@symz4665]

When I first heard about this I couldn't believe it. Where is that extra money gonna go, directly in the pockets of corrupted politiciens and taxes breaks of companies.

[@SirDangalot]

I don't care what the CRS asks for, or what they think they're going to get, because I give them what I think they deserve every year, and it ain't that much. But that's what they get. I take big personal deductions for all the immigrants Canada "legally" brings into the country every year, because those people are the ones competing for housing and jobs and everything else in this country, which is why it is not affordable. I put quotation remarks around "legally", because the only reason it's legal is because Justin wants more tax revenue... I earn a lot of my money in the United States every year, because I lived there for 30 years. This is how I escape the ridiculous Canadian tax requirements in Canada. Probably not legal, but let them come and f****** find me. I'm moving down to Florida in the next 2 or 3 months and I doubt I will ever come back to this once great s***hole, that I call home...

[@JamesThomas-e2y]

Thanks for the forecast! Could you help me with something unrelated: I have a SafePal wallet with USDT, and I have the seed phrase. (alarm fetch churn bridge exercise tape speak race clerk couch crater letter). What's the best way to send them to Binance?

[@LivinginCanada]

Thanks! Sorry, but I don't know!

[@ILoveTinfoilHats]

​@@LivinginCanada it's a scam bot. Report and delete.

[@petermcateer1354]

Half of capital gains under 250K taxed as income, as are 2/3 of the portion over 250K. Brings capital gains taxation in line with other sources of income. Some day I hope to be wealthy enough to be affected by it.

[@ZZ_Szabo]

I was waiting to hear you mebtion your capital gains reserve which lets you structure realised gains over five years if you are smart about it. Therefore there's a strong case to be made yhat so long as you arebt selling a property for a 1 million dollar profit more ofyen than once every 5 years, a decent finance advisor will maoe it see you never see the bew inclusion rate. Re the doctors. Keep in mind the corporate doctor strcuture was introduced as a methodbwhere the province can reduce the wages of doctors. Maybe the answer to a better situation with doctors and healthcare is to pay them the wages that were earmarked for them.

[@VintageGarden-e9d]

Sounds like having an annual divorce with your love one before even getting a marriage

[@rios8413]

You take all the risk and they take 66 percent of the profit. Mass exodus coming keep all your Indians I'm out

[@GuillaumeRouleau]

Raised to 666 number of the beast... Random number?

[@clee666]

In my opinion 100% capital gain should be taxable. Shouldn't be different than any other type of income.

[@Krueger444]

I've floated around on this and I think I've landed about where we are (maybe doing a flat 66% without the initial 250k at 50%. Maybe 50% was fine). The tax incentive on capital gains encourages people to start businesses, which is ultimately what your want. Purely focused on taxes - if my tax implication on a given income is the same whether that comes from a stable salary or from a risky investment in my business, the incentive is to play it comparatively safe, and more small businesses is better for the economy than fewer large buisnesses. On the other hand, I wonder how people would feel if we were framing this as "reducing the labour tax inclusion rate from 200% to 150%"

[@mrmister1501]

Trudeau needs to go and this legislation needs to be reversed by a conservative government. Foreign investment is being stifled because of this tax law and other government over reach such as the underused housing tax. In what country, except a communist country, does the government tell its citizens how they must use their own properties. If I want to leave my property vacant I should be able to do so without government intervention and penalties. Other examples of recent government over reach by Trudeau is the luxury tax as well as having to file tax returns for bare trusts. All of this legislation implemented by Trudeau is more akin to a socialist country than a capitalist country. Trudeau is making the wealthy pay for his mistakes such as his immigration policies. I've lived in this country all of my life and since Trudeau has been in power it has turned more socialist than capitalist and almost bordering on communist. As far as income taxes are concerned, the wealthy already pay their fair share through marginal tax rates, because that's what marginal tax rates are designed to do. But that is still not enough for Trudeau. Add in the luxury tax, increased capital gains tax, unused housing tax. It will never end.

[@kenlangille9050]

I am not rich ,i use to be middle class , now I feel poor , Yes this capital gains tax effects me !

[@everydayfun9531]

Pfft id rather open a US account at that point 😂

[@plalonde2]

I don't understand why passive income should be taxed at a lower rate than the sweat-of-your-brow income. I can understand giving a tax break for investments we want to incentivize - some amount for your retirement, some business investment that benefits businesses directly. The first case you manage with the inclusion rate, up to some nominal quality-of-life-in-retirement level (like the 250k at 50% inclusion). The second case you deal with by allowing a lower inclusion rate for pre-IPO canadian companies. Post-IPO none of the money in play goes to the companies in question so you can't say it helps business. So yes, tax my stock market gains like regular income once I pass $250k gain.

[@klnrklnr4433]

oh boohoo. so you have to pay marginally more on profit over 250k

[@TeaBurn]

The next election cannot come soon enough...💸

[@Wardabusiness101]

Hi, we own an online store that sells print on demand clothing, and we want you to be our affiliate marketer for each sale, and we will give gifts to your audience for every follower who buys.

[@zignimus5334]

heres what you do, get rich in crypto, withdraw your bitcoin and leave canada, youre welcome

[@beca8898]

Any smart Canadian has left Canada long time ago.

[@FutureFreeman]

Crooks

[@Conundrum191]

Unless I have it wrong, you only get taxed on the gains of investment income....so if you made $100,00 in your job/life (and were taxed on it accordingly as normal income), invest it, and it became $150,000, then if you sold it is just the $50,000 profit that gets counted as capital gains. So under the old model that $50,000 gain would be cut in half ($25,000) and then added to your income and taxed accordingly. If over you made a total over $250,000 that year, then that $50,000 would be cut to $33,335, added to that year's income and taxed accordingly.

[@LivinginCanada]

Right, only the realized capital gains are taxed, and as you described, the difference is that previously 50% of capital gains were taxed, whereas now 50% is taxed up to $250,000 gains, and 66.67% for anything above that.

[@Verticaltechwizard]

So inflation and the correction that follows is going to be a win for the government.

[@jsedge2473]

My exact thoughts. They’re trying to cut this tree before it grows. Instead of there being some degree of wealth re distribution from their inflationary policies and how they inevitably end they intend on just robbing everyone.

[@Steven-nz3rv]

Record taxes. 300% increase in federal servants. We need DOGE in Canada. Taxes should go into health care, education, security, retirement, etc. Not waste.

[@PWCDN]

When government jobs are the only good jobs, we'll become Greece soon enough.

[@Oh_Sully]

Since when, 1950? It has increased 40% since 2014/5

[@abaldwin6059]

This is robbery.

[@armourofgod6310]

There is a reason they chose 66.6

[@Oh_Sully]

Because 2/3 is a numerically nice increase from 1/2 and they assumed that the ~paranoid schizophrenics who think having 666 shown as a secret "we are evil" message to everyone~ are a super small percentage of the population. But here you are 😂

[@patrickhui8360]

We need DOGE n a new government. We need to improve productivity n innovation. This government discourages both, just WOKE.

[@Oh_Sully]

I've worked in industry and the government. From my personal experience, the government was wayyyy better in terms of getting stuff done.

[@thetruedemocraticnorth]

the capital gains tax should be at 75% like in the 1990s

[@earthexplorer579]

of your a millionaire just get out of cananda

[@gravityfallscanada]

* if But yes I fully agree!

[@charlybessette9818]

Gotta love the liberals

[@Oh_Sully]

Definitely better than a party whose leader refuses to deal with foreign interference in their own party. Imagine voting for a party who has some members working for foreign adversaries.

[@paper_gem]

Trudeau sucks!

[@aselvais]

Another great video with a balanced point of view :) Whatever the point of view, a tax higher than 50% is just nonsense! So it means you work more for the government than for yourself... and what do you get in return in Canada? This governement is so useless and paracidic it is appalling... Like their temporary tax exemption and $250 cheque to Canadians... this is so bad! They are trying to buy our votes ... and it is great to give money when it is not yours (yup it is ours... :) ). You are right, all this will just lower the quality of life for everyone; especially with the US going into protectionism; why would anyone try to make money in Canada?

[@LivinginCanada]

Thanks! Yeaaah, it is way too high. Was considering making a video about the $250 but it might be a waste of time😂, it's just a desperate last-minute move, and you're right, it's our money to begin with!

[@monkeysnark7043]

Decline of the Roman Empire, if you wish to see the future, look at the past. Just like this 250, the RE brought in more “ games” to appease its citizens. Emperor Trudeau is pathetically doing the same to stay in power. Instead of doing something profound to bring quality of life to Canada, he is throwing band aides against his bleeding party. We need to bring in a 2 term only for leadership, same as the south. This will stop the bleeding and dictatorship Canadians face with the current government protocols. All this is one large shame, in the world’s settings, and shows desperation to the rest of the world. Does Emperor Trudeau really think Canadians are this stupid? I can say so much more, just is, he is not worth my time.

[@geoken2]

I’m glad the person who thinks the government is ‘paracidic’ is also the person who just watched a video specifically explaining how the inclusion rate and capital gains are two completely different things, yet wasn’t able to grasp that concept at all. This is literally an EILI5 video, and you still couldn’t understand it.

[@PWCDN]

Typical stupid Trudeau government move. These moves work in poor countries to buy the poor's vote. It's a slap in the face because that's what our country thinks of us, dumb and poor. The difference is, in those poor countries, $250 goes a long way. In Canada its meaningless. But how can you expect a Liberal government to understand money and value.

[@aselvais]

@@geoken2 thanks for your constructive comment, :D how is unrealized capital gain relevant here? Maybe you are for taxing this too? money we did not even make yet :) ... I guess you won't be impacted at all though ... not sure trolling on youtube and watching for typos make much money these days ... so it makes sense waiting for magical free money from the gov in your case ;)

[@pokergeniusordonkey6517]

Patriots pay their taxes. Why should investment income be taxed differently than working income? Is work less valuable than trading? Canada needs workers. Why should renters pay built-in capital gains taxes in their rent, while primary home owners get a tax break? Is that fair? Canada needs to overhaul the tax system and get rid of all this unfair inclusion rate non-sense. Investment income should be taxed the same as working income, with a 100% inclusion rate just like working income. We have high taxes in Canada because of all these special interest tax deductions that only people with money can use. Get rid of almost all the tax deductions. Get rid of the deduction for contributions to political parties. Get rid of the $10,000 clergy housing tax deduction. Get rid of deductions for charitable donations. The list goes on and on and on. Inclusion rates are tax breaks only for people with money, for their non-working income. If you have any capital gains you should feel gratitude to live in the greatest country in the world and you should be proud to pay your taxes. Patriots pay their taxes.

[@PWCDN]

greatest country in the world? Time to get out of the basement and maybe see what the rest of the world is doing. You kill capital in a capitalistic economy, you're killing the lifeblood. Take your communist ideals and gtfo comrade.

[@LivinginCanada]

Because most money invested had at some point already been taxed as income. If someone saved up $10,000 to invest, in most cases he/she earned it and already paid income taxes on it.

[@Oh_Sully]

​@@LivinginCanadaYou want to make the lives of average Canadians worse and increase the wealth gap. We get it. Just say it. We can all see how shitty of a human you are. You'd rather see the world burn than have money you got based on other people's work be taxed and used for social programs. That's why you didn't really address most of their points, but embraced the energy of a 5 year old boy who says "mine" to everything around him that his parents bought.

[@D4rkBl4de]

So... if I inherit my parents' house, I would be slapped with a giant bill from this 66% tax? that's nuts. I wouldn't have the money on hand to pay that! I got a 1.25% raise since 2019... lol

[@LivinginCanada]

If it was their secondary residence, yes! And when you sell that secondary residence and have a capital gain of > $250,000, then the 66.67% inclusion rate would apply. If it was their principal residence, and you live in it, then the principal residence exemption may apply, as long as you keep it your principal residence.

[@Langhorstiness]

The rate of the tax change does not result in a tax higher than 50%. The rule change is specifically about capital gains inclusion percentage amounts, not the actual rate at which they are taxed. The rate at which you get taxed depends on which income bracket you get taxed at in your home province. Rewatch the video, Google it, talk to an accountant. Also find out about the Lifetime Capital Gains Exemption amount and how that works. Whatever you need to do to understand it but I think you have gotten confused and missed the point.

[@Oh_Sully]

Even if you were getting a 66% tax on selling the property, which you are not, how would you not have the money to pay it? Are you unaware that 66% < 100%? 100% being the amount you got from selling the house?

[@goldentiger1841]

This is pathetic !

[@danh3259]

This is fucked.

[@AlphaOmega254]

The question is now, Is Canada as it stands, worth the cost ?? Even though I'm poor and not in that league, my gut tells me NO !! So, if you can afford to, it's time to get the hell out of Canada before our governments, as the lazy FCUKing politicians and bureaucrats, most who've never truly worked a day in their worthless lives are now making it impossible for who've worked ALL their lives to survive. No !! I'm not against paying tax, however, if the taxes actually went to something worthwhile instead of the B. S. our governments do with our money, most of us wouldn't be so angry. But they don't. So, it's time to stop hoping, praying and waiting for the Godot and it's time to leave Canada and ALL it's inherent B. S. behind. Honestly, if I could afford to go I would, just watching the mess their making sickens me to no extreme. The End. Good-Luck and Good-Bye. Amen. Shalom. AD. The Teacher.

[@the_curmudgeon1975-bp4hc]

babe, this capital gains thing was not voted yet by the senate. It is will take a while to bring it to fruition, it ever (because new elections will happen first). So until actually is happening, RELAX!

[@zenon3021]

It started June 25, 2024 (google "when does canada's new capital gains tax start")

[@the_curmudgeon1975-bp4hc]

@@zenon3021 want a bet?

[@zenon3021]

@@the_curmudgeon1975-bp4hc sure! "New tax changes for capital gains are now in effect. The proportion of capital gains that are taxable increases from one-half to two-thirds, starting June 25, 2024" - CPA Canada I win!

[@ybc8495]

paid advertise of wealthsimple