Some in cottage country have been singing the blues since Ottawa proposed changes to capital gains taxation as part of the recent federal budget. Their tears reveal they don’t yet recognize how class dynamics have changed as a result of the damage done to our housing system.in a country where rent and home ownership are so much more expensive for younger residents today than when baby boomers were young.
Paying taxes on a half-million-dollar capital gain from a cottage or an investment property is a good problem to have. I could line up millions of younger Canadians who would jump at the opportunity to trade their housing woes for that privilege. To advance this goal, they recommend “taxing capital gains on investment property at the same rate as income.” In other words, they propose 100 per cent of capital gains earned from properties other than principal residences should be subject to income taxation – not just the 50 to 66 per cent required by the 2024 budget.in the housing market. Whereas young folks only bring their earnings to bid on a home, investors can also tap into profits they’ve gained from their housing assets.