Quote:
Originally Posted by Winsor_Pilates
It's 2024, you're talking about a change 24 years ago.
Most people with investment properties now, won't be aware of that or thinking of that. They're going to care that this change has impacted them directly.
You can nitpick at my using "decades" but lets say they bought in 2001 for the sake of eliminating semantics.
The couple with that gain IS the average person and they will care.
It may not seem like a big difference to you, but if it's your money it would.
The point is it's misleading to pretend this change only targeted the very wealthy.
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I would argue that the average person doesn't experience a taxable capital gain over $250K (or over $500K for a couple) in a single year. Based on CRA data, only about 40K of the 30 million tax filers have capital gains over that threshold each year, and about half of those are people who do it somewhat regularly (i.e. very wealthy people). And like I said, because the inclusion is done progressively, you have to have a gain well over $250K before the higher rate becomes a significant factor.
Data I've seen suggests that about 1 million filers would be expected to realize that kind of gain in their lifetimes, so that's about 3% of the tax filing population. And that's ignoring the fact that there are ways to avoid going over the threshold (particularly with liquid investments) which would lower that number further. So no, I don't think this is something that's going to really impact the average person.