Quote:
Originally Posted by TimSJ
As CP is all 1%ers if you are looking to finish off a deal on a new car over $100k the new luxury tax comes into effect Jan 1. Get it done now if you can.
20% on every dollar over $100k or 10% of total price.
I just finished off a deal on a Bentayga V8 S for a client of mine today and if it was Jan 1 there would be an additional $35k in tax.
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Congrats on the sale (did you use the new tax to push it through?
), but the luxury tax has been officially delayed:
"Luxury Tax - Budget 2021 proposed to introduce a tax on the sales, for personal use, of luxury cars and personal aircraft with a retail sales price over $100,000, and boats, for personal use, over $250,000. The tax would be calculated at the lesser of 20 per cent of the value above the threshold ($100,000 for cars and personal aircraft, $250,000 for boats) or 10 per cent of the full value of the luxury car, boat, or personal aircraft. The Department of Finance has undertaken consultations with respect to the design of this
measure and is working to incorporate the results of this consultation into the proposed tax framework.
Draft legislation, including details on coming-into-force, will be released in early 2022."
Full update here:
https://www.budget.gc.ca/efu-meb/202...ccueil-en.html PDF:
https://www.budget.gc.ca/efu-meb/202...EB-2021-EN.pdf
CPers rejoyce!