Changes to the Capital Gains Tax – 2016

With a view to cooling down the housing market in Toronto and Vancouver (predominantly), the federal government passed new rules that make it more difficult for many first time purchasers to acquire a new home.  The changes now impose a more stringent stress test on mortgages that require CMHC insurance.

In the same announcement, the federal government also passed new laws that are changes to the capital gains tax on the sale of a used residential home.  These new rules now require that non-resident purchasers of a home actually occupy the home in the year they are claiming a principal residence exemption otherwise that year is taxable.

Such changes to the capital gains tax are intended to tax non-residents who are speculating on Canadian real estate without actual occupancy.

Contact your HSTRebate Advisor to learn more.