How about allowing Canadians to write off their mortgage interest? Tax deductable. That would help with home affordability. What do you think? #cdnpoli #peipoli
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Home owners are then indirectly subsidized by renters (non-home owners). It would likely drive up house prices which in turn would offset any benefit to new buyers.
They do it in the US but they also have to pay capital gains tax when they sell their principal residence-we don’t have to. Would we be okay with that flip side of the coin?
Hmm. I'm wondering if a special lower interest rate for cmhc insured mortgages might be better than complicated tax stuff - and make it include current mortgages for non-investment principal residences. The lenders would hate it but oh well 😊
I could see it with some limits so investors can't take advantage - would need a way to increase taxes somewhere else to make up for the loss of income. All of which would make it unpopular with mouthy rich people but I guess the hope would be middle income home owners would drown them out
I don't disagree with you, but how do we define "middle income"? A family of four netting $90K a year is not the same as a single earning same amount. 90K in Toronto is definitely not the same as 90K in the Maritimes (in some areas).
Like the spirit of it. We need more creativity though. Mortgage interest deduction is regressive, disproportionately benefiting those with fat mortgages and large tax liabilities. Higher minimum income tax threshold is one possibly better alternative.
On the down side in the US, they pay capital gains tax on the sale of their primary residence. We don’t. For most Canadians, their home is their retirement nest egg. Also how do we make up that tax revenue shortfall? What about renters? Tax systems should strive for fairness. #cdnpoli
Yes, for your principal residence. For a second residence, eg cottage, you should be allowed to capitalize the interest so that your ACB increases. Just sayin’.
Sometimes it is a 'be careful what you ask for' issue.
When you file taxes you already need to report home sales $, yes principal res is not taxed currently.
The indicators are moving to a capital gains tax on homes, or a death tax. Add interest relief, and both of those could be in play.
I think if applied to those up to a certain tax bracket, and possibly only on their primary residence, so that lower and middle class get the help. The rich already have enough loopholes.
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All home owners? And all the interest? I need more ☕?
When you file taxes you already need to report home sales $, yes principal res is not taxed currently.
The indicators are moving to a capital gains tax on homes, or a death tax. Add interest relief, and both of those could be in play.