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Email this8:49 pm
November 28, 2023
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I have a primary and a non primary home.
In terms of Taxes, what are the implications to sell my non primary property if I'm making 110K/year from my job?
10:58 pm
April 6, 2013
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CRA has some guidance at Tax effects of buying real estate to sell for a profit.
4:06 am
September 11, 2013
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Even if you acquired it without intention of selling for a profit, e.g. sale of a cottage you enjoyed for many years, capital gains tax will apply to a property not designated as your principal residence.
Your other income has no impact on this.
7:10 am
October 20, 2023
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It is taxed as income. Owning rentals is one of the worst ways to increase wealth as income is taxed at the highest amount among other reasons.
7:54 am
November 28, 2023
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Technical Analyst said
It is taxed as income. Owning rentals is one of the worst ways to increase wealth as income is taxed at the highest amount among other reasons.
what is the best way to increase wealth?
9:01 am
April 6, 2013
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The rent is taxed as income. The profit from selling the rental property later is taxed as capital gains if one was really investing in rental properties and not just flipping the properties.
Best way to increase wealth is to have a well-paying career or run a successful business.
9:51 am
October 20, 2023
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escaleraroy said
what is the best way to increase wealth?
Get targeted investment information from someone who knows your tax bracket, investment risk tolerance and you should understand, at least in general, what you are investing in. Remember,
Investing (stocks, MF, ETF's, HISA, etc..) is better than
Gambling (casino, scratch and win tickets, bingo, etc) is better than
Speculation (crypto, Dutch tulips, etc)
For return, a 50% capital gains tax return is x2 that of income. Dividends depend on tax bracket (in fact, you CAN have a negative tax on dividends!).
But in these economic times, income from TFSA/RRSP or HISA interest is most likely the best and safest product as it is liquid and allows opportunity and the ability to move funds.
...And Norman1 has some great advice: Best way to increase wealth is to have a well-paying career or run a successful business.
12:36 pm
September 11, 2013
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Agree with Norman1 on this one, I'd just add to put your head down and work hard at it for 30 years or so being relatively frugal along the way, probably be fine.
On the other hand inheritances are the most common way of getting wealth. And as Boomers check out their offspring are standing to inherit the largest wave of wealth in human history, anywhere, so I guess, again, being patient until time does its thing will help younger generations.
3:47 pm
March 16, 2018
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escaleraroy said
what is the best way to increase wealth?
What is the best way to increase health?
7:13 pm
November 28, 2023
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SaverJunior said
What is the best way to increase health?
i dunno, u should ask the health forum.
7:44 am
March 16, 2018
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Right, I hardly know this is a wealth forum either. 
There are many successful wealthy (billionaires) Canadians. Google them up for their stories for inspiration.
9:08 am
November 8, 2018
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escaleraroy said
what is the best way to increase wealth?
Spend less than you earn.
9:53 am
March 30, 2017
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Norman1 said
Best way to increase wealth is to have a well-paying career or run a successful business.
Our tax code is structured to "penalize" someone with a well-paying job, with highest marginal tax rate at 54% and not eligible for pretty much all types of hand out. I call it a "double slap" on the face. Being very successful also most likely means no OAS, no GIS down the road, after paying an obscene amount of tax during the working years.
Run a business is the way to go, with so many differ venues one for legal wealth planning and tax "avoidance".
11:40 am
September 11, 2013
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escaleraroy, check out folks who have money, ask them or do what they do, and also don't listen to advice for those who are aren't wealthy.
12:19 pm
November 8, 2018
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Bill said
escaleraroy, check out folks who have money, ask them or do what they do, and also don't listen to advice for those who are aren't wealthy.
Pablo Emilio Escobar Gaviria was a Colombian drug lord. Dubbed "the king of cocaine", Escobar was one of the wealthiest criminals in history, having amassed an estimated net worth of US$30 billion by the time of his death—equivalent to $70 billion as of 2022.
2:14 pm
April 15, 2023
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If you're selling a property that is not designated as your principal residence, you'll be taxed on 50% of the capital gain.
Pls note that the proposed capital gains tax changes in June will increase the tax on capital gains over $250,000 from 50% to 67%
https://www.cbc.ca/news/politics/capital-gains-tax-budget-1.7176370
Also pls also note that there may be some tax planning benefits to designate a 2nd property as your principal residence and thereby avoid some or all of the cap gain on its sale. But that means the period for which you can designate your 1st property as your principal residence will be shortened when you sell it/pass it on to beneficiaries at some point in the future and you/your estate may incur capital gains tax at that time.
Best to speak to an expert to see what makes the best sense for your situation.
https://www.cpacanada.ca/news/canada/2021-02-12-principal-residence-exemption
4:53 pm
September 11, 2013
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I agree, a secondary residence like a cottage can be designated as your principal residence for the years you own it so that if you sell it late in life you'll have no tax hit, keep all the money for yourself while you're alive.
Then when you later die your principal residence will be taxed on the gain for those years (if you still own it at time of death). Might result in more total taxes doing it this way but you'll be long gone, estate will pay, beneficiaries will take the hit, not you.
Not sure an expert is needed, I can pretty easily figure out what I prefer.
12:36 pm
April 15, 2023
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My experience is that while many people are aware of the principal residence exemption, most have a limited understanding of it. I just wanted to post some info on how people may use the exemption to their advantage that they could pursue further if they wished.
Property sale decisions encompass alot of considerations about the property itself, but also about other things, eg. expenses to maintain and use the property, travel expenses to use it, the time value of money (eg. sale proceeds received 10/20/30 yrs down the road do not have the same value as if received today, the same is true of capital gains taxes paid), tax laws, etc., not to mention how such decisions may impact financial planning and retirement planning, and roll into other major financial decisions, eg. estate planning.
On the off-chance that the OP's circumstances (and the circumstances of future interested readers) are not exactly the same as anyone else's here, hopefully people will gain an appreciation of when they may need some help (or not) to make an optimal decision re: their property.
9:11 am
January 10, 2017
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Bill said
escaleraroy, check out folks who have money, ask them or do what they do, and also don't listen to advice for those who are aren't wealthy.
hmm...your advice should have included whether You are Wealthy....
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