Quote:
Originally Posted by rofina
I understand what the CRA is doing, but that's a preposterous rule.
Buyer on the hook for the capital gains of a house he had literally 0% ownership of previously? I mean that's about the most absurd thing I have heard lately.
Its forcing these litigation's and offloading the burden onto Canadian citizens.
Absurd.
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It puts the duty of making sure the sale is on the up and up on the buyer. There are pros and cons to it. I hate our capital gains system in general as it taxes the inflationary increase in pricing so your losing money even if the price only keeps up with inflation. A transfer tax is much more reasonable as then you make your cut off each transfer and as transfers increase you also boost economic activity. The American system where you can sell and then buy an equivalent asset and not pay capital gains is also reasonable as your just selling a property worth xxx and using that cash to buy another worth xxx. I don't like taxes that reduce economic activity and push people to hold onto things as that just hinders the economy. The governments cut of anything should always be low so that people are encouraged to do it.
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