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Originally Posted by theman23
You don't know what you're talking about. You've already been corrected on this multiple times. Do you even read what people post in response to your —?
Day traders pay personal tax rates, and their profits don't get treated as capital gains. No different than the professional landlord.
For the average joe holding his money in the stock market, again there is no distinction between holding real estate and holding investments in the market. You get taxed the capital gains rate when you flip either. You are exempt from capital gains taxes if it is your primary residence. The corollary would be a TFSA, but of course most people have far more value in their homes than in their TFSA. Clear tax advantage to the property owner.
If you're naive, you might argue that dividends are some sort of corollary to rental income as they have a (sometimes) somewhat favourable tax But this ignores that the money earned through dividends has already had income tax paid on it, and the "favourable" tax rate reflects that.
Finally, not declaring income earned is illegal and is not a tax avoidance strategy for the majority of Canadians. This can also be accomplished with real estate.
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Unless it’s owned through an offshore company and yes it’s not a tax avoidance strategy for a majority of Canadians. Just a few of them.
And most stock owners are not day traders.
RE investment pays huge taxes. From capital gains on sold property to property transfer taxes to sales taxes on new property. It also results in rental units that are desperately needed.
In comparison stock investment is mostly in American companies.
We should encourage more RE investment over stock investment by changing our taxation to favor it.
That being said I don’t want household debts to rise.