8 elm toronto.More than 1 million of homes in Canada will be taxed? As part of the plan to address housing inequality, an annual deferred surtax can be levied on houses worth more than C $1 million.Please Visit: 8 elm toronto to Get Your VVIP Registration Today!
According to the Financial Times on January 6, the suggestion was made by Generation Squeeze, a think-tank funded in part by the Canadian Mortgage Housing Corporation (CMHC) and the National Housing Strategy. Because of the special status of the think tank, this proposal is likely to become a written law in the future.
The proposed surtax rates range from 0.2 per cent on houses worth between 1 million and 1.5 million yuan and up to 1 per cent on houses worth more than 2 million yuan. The tax only applies to values that exceed the 1 million yuan threshold, but once it is enacted as planned, homeowners will have to pay the tax every year.
But according to the report, most Canadians do not have to pay any fees-“the tax applies only to 9% of families living in Canada’s most valuable major homes-including 13% of Ontario households and 21% of British Columbia households.”
In this case, an extension means that no tax is paid before the house is sold or inherited. The report added that the design details would be flexible to avoid risks to those with limited income or wealth. For individuals with limited income, such as the elderly, the surtax can be deferred until the house is sold or inherited.
The proposal is part of a package of measures, including policies to increase affordable dedicated supply and keep rental units affordable, while low interest rates and strong demand for single-family homes in the suburbs have helped push up average house prices. in Canada, it hit an all-time high of 720850 yuan in November. Housing affordability in Canada is at its worst in 31 years, according to a report by the Royal Bank of Canada last month.
According to the current tax policy, as long as it is the main home of the seller, house sales are exempt from capital gains tax. The report points out that these policies have basically turned real estate into a huge tax haven.
Generation Squeeze believes the surtax will reduce the incentive of the rich to use expensive homes as tax havens and cool rising house prices. About 13% of Ontario homes and 21% of BC homes are worth more than $1 million. About 9% of the houses in the country are worth more than 1 million yuan.
Thomas Davidoff, an associate professor of housing and real estate at UBC, told the Financial Post that apart from political factors, the surtax will eventually ease the inequality between homeowners and renters.
“this is a very obvious solution: if you think there is housing inequality, then giving money to renters from homeowners and voters is a very simple way to solve the problem.”
Davidoff added that a comprehensive solution is needed to address Canada’s high house prices, but tax policy is the first step.
How expensive a house can be called a luxury house? In the West side of Vancouver, where house prices are the most expensive in Canada, the average price of detached houses is more than 3 million, and those with more than 8 million are generally called luxury homes. In fact, in the whole of Canada, the average price of independent houses is only about one million, more than 3 million can be called luxury homes.
