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@ZelenoJabko

Ай бұрын

Canadians really are Cool, United, Creative, Kind, Stable. Now read the first letters.

@ropro9817

Ай бұрын

In Canada, for how long do you have to live at a property for it to be considered your principal residence?

As a public CPA, our office was receiving calls all week long from clients asking about the new budget. This video was so well put together, we may start sharing it ourselves! Thanks for spreading hard info for a poorly-understood subject!

The fact that the inclusion rate wasn't explained in any main stream news source I read on this, i think might have added to the confusion. I'm grateful for a proper, sane explanation of this.

@mat3714

Ай бұрын

Channels and individuals not explaining correctly probably exploit specific angles for engagement purposes...or political goals.

@mercx007

Ай бұрын

I don't think they understood it themselves, I once saw NBC reporters fail to understand the tax bracket system. My main problem wasn't the tax code change, it was the budget that accompanied it. Incredibly high spending on an indebted country

@nlz1

Ай бұрын

i wonder why media properties owned by investors living off capital rather than holding a job want to paint capital gains taxes as bad for the average non-millionaire 🤔

@Dgnmuse

Ай бұрын

Cause they’re all owned by the right 😅

@uncomplicatedi

Ай бұрын

​@@nlz1I am also confused by this. Do you think they are only interested in their own selfish interests?

I’ll tell my parents that according to Loonie doctor’s calculator, We can save $8 on the cabin tax if they die before the end of the financial year

@subspace666

Ай бұрын

try not to tell them about m.a.i.d. :P

@foxxygearreviews7754

Ай бұрын

I think they only have until June 25

@Direblade11

Ай бұрын

Hilarious

Proof that most finance influencers are idiots. They don't even know the difference between a tax rate and an inclusion rate 😂

@MillennialMoron

Ай бұрын

Somehow I get the feeling that those influencers who don't know the difference might not be clearing 250k in taxable capital gains per year anyway 😉

@nathanlevesque7812

Ай бұрын

@@MillennialMoron safe bet

@jamesbaxter222

Ай бұрын

@@MillennialMoron Or they do know the difference, but they spread misinformation anyway in order to get outrage likes and follows.

@johanneskurz7122

Ай бұрын

Which leads me to the question: why do you even have inclusion rates? Wouldn't it be easier to simply have a different tax rate?

@MatthewSmith-wv5fi

Ай бұрын

That's utter nonsense. You didn't understand it.

Thank you for such a great explanation. I wish all medias and channels were as clear and detailed.

@JohnnyCoulthard

Ай бұрын

So disappointed every time I have to explain the basics of our taxes here to people. The light bulbs I see come on after explaining tax brackets alone is blinding!

@Fenriren

Ай бұрын

Unfortunately, clear and detailed news doesn't increase viewership. Sensationalism has killed journalism

@gc.96

Ай бұрын

Most mainstream media have no incentive to be clear given the fact that they are owned by billionaires who have their own political agenda.

@davianoinglesias5030

Ай бұрын

😅Being clear and detailed won't generate views, people want sensationalism and drama.

@maxweinbach3996

Ай бұрын

Which media outlet was not clear on this?

You truly are a breath of fresh air in the youtube landscape

An additional thing to realize is that a couple of decades ago, Ontario doctors were not allowed to incorporate. That ability to incorporate was then offered to doctors so that in return, they would accept lower payments from OHIP. So in essence, the government said ok we will pay doctors less but they get to incorporate and save some money that way, but now we are taking that away. Doctors have no pension, sick leave, paid vacation…etc. It feels like a betrayal.

@jiecut

Ай бұрын

The value of this tax deferral over 20 years is quite impressive. Doctors will continue saving in corporations after this change due to the power of tax deferral. Especially if they have a timeline over 8 years. Doctors can also lobby the Ontario government for more pay.

@Xi-op7gg

Ай бұрын

Yes, I agree the tax doesn’t completely negate the advantages of incorporating, and doctors can still save and get some benefit from tax deferral and compounding. However, it still feels like a betrayal of the good faith of the original deal, like a bait and switch. Back in the day, doctors could have said no to the offer of the ability to incorporate, and just asked for higher fees up front. Also, the increased rate affects any capital gains you want to realize in the future. If a doctor has been compounding for 10-15 years, then this isn’t just more tax going forward, you are being retroactively taxed for the last 10-15 years of financial planning.

@jiecut

Ай бұрын

@@Xi-op7gg They have a couple months to still take advantage of the old inclusion rate.

@Xi-op7gg

Ай бұрын

True. However, realizing a huge amount of capital gains all at once has other tax implications. For example, that eats into the small business deduction limit. The more capital gains you realize, the less of your corporate income is taxed at the more favourable rate, so you lose out either way.

@RuffinItAB

Ай бұрын

It's on capital gains over 250K a year... If you are cashing out over 250K a year just on capital gains I don't feel sorry for you having to pay an additional few thousand dollars in taxes.

This is just ridiculous. Now instead of paying the current 0% on my numerous capital losses, I'm going to have to pay double. Can't an honest small time investor catch a break?

@ThePlainBagel

Ай бұрын

Thoughts and prayers 🙏

@braintrust12

Ай бұрын

@@ThePlainBagel "thoughts and prayers." redditors: *absolutely devastated.*

@Danny-vd1nj

Ай бұрын

That's not how it works...

@Direblade11

Ай бұрын

​@@Danny-vd1njNo no no, he IS paying double!

@yuordreams

Ай бұрын

What's double zero? ​@@Danny-vd1nj

Please keep doing what you're doing, your channel has been of great value to me, being a young professional in Canada who doesn't work in the financial sector but still wants a sane explaination to have a passing understanding of how these changes impact me. Much respect, thank you. - PS The Peak is the Canadian equivalent of morning brew and have also found that valuable.

Thank you for offering a level-headed explanation of this! It's been all over the news but until this video I had no idea the actual situation.

Also worth considering: everyone knows this change is coming, so if you sell now to realize capital gains you'll be selling into a market that likely won't offer you the same price it would otherwise. Simple supply and demand.

@michelchamoun9967

Ай бұрын

That applies to canadian assets. But if you have international stocks, they wont be affected by the canadian tax changes

@NLuck-eh5cd

Ай бұрын

Somewhat cynically, I'm wondering if that was part of the plan of this tax change. If a bunch of investors decide to dump their stock of housing onto the market, that could push prices lower in the short term, just in time for the election. Still a good policy, and I don't think we should be giving capital gains a free pass, but the timing is a bit interesting.

@meneldal

Ай бұрын

@@NLuck-eh5cd Bursting the housing bubble is long overdue.

@Zraknul

25 күн бұрын

@@NLuck-eh5cd I'm confused by your suspicion of timing. The change is approximately 16 months before an election needs to be called by. June 2024 vs October 2025.

Where do our taxes go? How much of a benefit do Canadians get for having such high tax rates? The Canadian health and education system have major problems. The military is underfunded. Where and how are these taxes used? What’s the taxation to benefit ratio?

@dani2cute4u

16 күн бұрын

This tax system only encourages mediocrity.

Insert enraged political comment here!(I do not know what is going on I do not live in canada)

@monitoradiation

Ай бұрын

Thank you for even knowing that we exist

@zedev444

Ай бұрын

truly sad for canada and all my strawberry picking friends over there (not a joke)

@lilsabin

Ай бұрын

@@zedev444 How many Canadian earn (profit) $250,000 + per year ? looooooool

@deecee2174

Ай бұрын

LOUD NOISES!!! AHHHHHHHH!!!!!

@Gluteus.Maximus

Ай бұрын

RAWWWR TAX TAX TAX SOMETHING SOMETHING COMMUNISM RAWWR

This was a great video, as usual. I greatly appreciate you contextualizing the information (e.g. the productivity problem mentioned, graphs/tables of Canada's tax vs other countries) and giving a quick TLDR (seemingly quick enough for people already in the know to ignore and short enough to continue on with the topic you wanted to address) economic concepts like trusts. Thanks!

It seems the Canadian CGT framework is very similar to ours in Australia and there are economists here agitating to make a similar change to the discount level. I can see how a small reporting error or piece of misinformation could lead people to believe the tax rate is going up dramatically. These explainer videos are important for that reason alone.

Thank you TPB, great explanation on a complex issue...

@tbird81

Ай бұрын

Pirate bay?

@snipesxiii9188

Ай бұрын

@@tbird81 trailer park boys

Happy 6th Birthday to you sir and a happy Friday to your family. Thank you for keeping it real and breaking down the bull for us mortals !!

Staying invested vs divesting before June 25th also assumes govt doesn’t change the tax code again during that 10 years. Does anybody actually believe that?

Was hoping you would make a video on this. Thanks for the clear explanation.

14:30 that graph is super cool and concise. I appreciate that very clear explanation

Informative and useful. Thank you for providing valuable input.

Thank you A LOT for this video… no other place I saw this explanation and I did think it was 66% tax 🤦🏽‍♂️

Thanks for the clarification.

Thank you for unbiased and easy to understand explanation 👍🏻

Really great explanation. This is going to be linked a lot from Twitter ^^

Newly subbed and sharing. Thank you for being a voice of reason, saying things as they are and being apolitical--people lost their minds with this, the Libs communicated poorly, the media explained even less and certain opportunists had a field day.

Excellent as always

For every crave-out and loophole, there will be tax lawyers who help you to avoid the higher tax.

@geekinasuit8333

Ай бұрын

It's not that simple. There's only so much that can be done, and going down various loopholes is never cost free, often times it can be counter-productive and may have risks that can go the wrong way. In addition, the legal fees cost money, which means there's less take home to re-invest.

Imagine when you die, you pay tax. But if you leave any property behind for your family, you get taxed as well. Cant even escape tax in death.

@chillinchum

Ай бұрын

Are you just learning this now?! That's something that really irks me about folms complaining online sometimes, they are complaining about something they learned for the first time that's been around for decades, or in some cases centuries, but treating it as though it's a new thing. I despise the concept of generational wealth, so I have little sympathy about estate tax. However, if it so bugs you, remember to go do something political about it. ...or do as a lot of other folks might say, leave. I can think of a few reasons why myself. But taxes aren't necessarily one of them. That said all the reasons I can come up with for leaving were all problems we've been dealing with for over 20 years. Recently heard someone say you can track the problems all the way back to Pierre Trudeau...and I'm going to guess it can be taken further.

@cabbagedestroyer1693

Ай бұрын

@@chillinchum Centuries? Do you know how the tax system has changed over the past 50 years? It's a simple question. What percentage of the population had to pay death tax in the 1980s?

@anthonybousquet3590

Ай бұрын

@@cabbagedestroyer1693 Yes, centuries. France has had inheritance taxes since the French Revolution and Britain since the middle of the 19th century. The concept of taxing inheritances isn’t exactly recent.

@cabbagedestroyer1693

Ай бұрын

@anthonybousquet3590 That is extremely misleading. Yes there was a concept that only applied to 0.1% of the population. Inheritance tax in Europe applied to massive estate owners, and did not apply to the common people. Inheritance tax in the US didn't even exist until 1980s, in which only about 1% of the population was affected. In the British Empire, the succession duty act, again, only affected a small proportion of people and only taxed people between 1 to 10% as opposed to 30 to 50% that we have today. In another word, unless you don't think there's a difference between 1% of the population being taxed at a maximum 10% on Inheritance vs. 100% of the population being taxed at a minimum 30%, then I don't know what to tell you.

@joeisawesome540

Ай бұрын

@@cabbagedestroyer1693 because back then you dirty peasents wouldn't have anything to pass it on... just like most people in Canada.. you don't have that much to pass on..

Thanks so much for explaining this.

Thanks for the information

Man's spitting facts. Thank you for such a a concise explanation, that's very helpful. Although I have a lot of issues with my country, I can't say this is a big one for me. We have bigger fish to fry imo

@curtis1397

Ай бұрын

Your gonna have a different opinion when all the wealth flees the country and you cant find work.

@freedomlife3623

Ай бұрын

@@curtis1397didn’t see that happen between 50’s -70’s when the inclusion rate is even higher. Stop being so dramatic.

@curtis1397

Ай бұрын

@@freedomlife3623 You mean when you could save for a down payment in 1 year and pay off a house in 10? Now it takes 10 years to save for a down payment and over 30 to pay it off. Your also talking about a pre-globalized economy, competition is now global. Businesses aren't just competing against joe blow down the street (who also had to pay that inclusion rate). They are competing against every single business in the world that is even remotely similar, many of which are in countries that are much cheaper to operate in. Use some critical thinking and stop eating the spoon fed lies by politicians. When someone challenges your ideas, ask why instead of slinging mud and calling people dramatic. You might learn something.

@hhiippiittyy

Ай бұрын

@@freedomlife3623 Even if it does happen, the correlation could be insignificant. So many factors at play.

@nicholasdaily2589

Ай бұрын

@@curtis1397you’re a small business owner that will barely be affected by this unless you make anywhere in the neibourbood of the numbers presented. It’s crazy to me how many wealthy or would be wealthy people are flowing into videos like this to dissuade people from accepting this change. This change is good, it was good when it was higher and is still good now. The rich have harvested the Canadian economic landscape for far, far too long.

How are capital gains by companies treated in the US? Aren't they taxed at 100% of their value(instead of 2/3 now in Canada)?

@stevenglowacki8576

Ай бұрын

There is no capital gains preferential rate for C-corporations in the US. The only "good" thing about capital gains for C-corporations is that they can offset capital losses, which are otherwise not deductible, unlike with individuals which are allowed $3,000 in capital losses per year with indefinite carryover, while C-corporations have only a 3 year carryback and 5 year carryforward available. There are vastly fewer directly taxed corporations per capita in the US than Canada though, as pass-through entities (some of which may be S-corporations which are technically corporations but aren't taxed directly like C-Corporations) are far more popular. It would be insanity in the US to suggest that a doctor run their business as a C-Corporation and accumulate money in the business in the way that is discussed here. Instead they will have an S-Corporation (or maybe a partnership) and the business's profit will flow through to their personal return, and they can freely add and remove capital from the business without tax consequence. Please also note there is a large difference between a "company" and a "corporation" when it comes to tax law. A "company" is a generic term that US tax law never uses, while "corporation" is a specific term that is used.

@RogerAckroid

Ай бұрын

@@stevenglowacki8576 thank you. It was really instructive

Just completed my tax course for my undergrad and love how you covered all the different tax impacts! Amazing content as always Mr. Richard

Bro thanks for the info

Self-employed guy here: There's a host of reasons to incorporate even if it's a sole proprietorship. My reason my employer forces us all to make companies so he can deny that we are employees, but the non-compete agreements we signed are completely unenforceable.

@corail53

Ай бұрын

Sounds like the entertainment industry...

@user-oj7uc8tw9r

Ай бұрын

Not uncommon for some businesses to do this, some even only employ workers outside the country so they can cut down on paperwork and taxes. It's a shady as hell practice.

@samsonsoturian6013

Ай бұрын

@user-oj7uc8tw9r Not always. When outsourcing stuff online you're competing against people in third world countries with internet so often the best bang for the buck is someone who speaks English as a second language.

@user-oj7uc8tw9r

Ай бұрын

@@samsonsoturian6013 Nearly all foreign countries have people who are trained to speak English as a second language and rather well in technical professions. It is not as competitive an edge as you think. The US is way behind in this regard.

@bf19881988

Ай бұрын

I dont believe a sole prop is the same as incorporating

Awesome explanation 🙌💪

Richard, You're the best! Always enjoy your videos and learning soo much domestically as well as internationally on the many subjects you cover. Keep up the good work--love it! -Ervin

American here... while our system is different, it has similarities. What is the same is the complete lack of understanding for most people plus the media always reporting on it wrong. People freak out about capital gains taxes and last year my total gains taxes were about $250.

Great explanation. I already knew some of youtube videos made a big out of it were pushing out misinformation. I wish people would list the sources directly in their videos but a lot of them just bring up a draw pad and add theoretical numbers...

This was informative. Thank you.

Another point to make here is that if a corporation earns more than $50k in dividend income, they lose their small business rate at $5 per $1 over 50k - meaning if a doctor has $1M in shares of a company with a 5% yield, they then lose their small business rate and pay the same corporate rate as Royal Bank. So this is a pretty big deal in terms of what it means for small businesses. Especially where they do not get the $250k carve out at the old rate on gains.

Good idea honestly but without exception, for example, for clinic owners i fear this will hurt doctors who have incorporated to fix income from owned clinics and Canada isn’t in a place where the medical system can take any hits. With that said however, it’s at least a semi positive step in a decent direction.

@epictetus3406

Ай бұрын

Step in the right direction? Making it less favorable to set up a business in canada while giving more money to the state to waste is a step in the right direction? When did so many people become communists? Is it the younger generations?

@ultimetacooler

Ай бұрын

@@epictetus3406a lot of people on the internet never leave their house so they don’t understand how the world works

Hi dumb question - What's the point of having an inclusion rate? Why cant you tax 10% of 100% of gains versus 20% of 50% gains?

@ThePlainBagel

Ай бұрын

The inclusion rate allows capital gains to be taxed more favourably than regular income without creating a separate set of tax rates. The government still wants to incentivize capital gains income since it promotes investing.

@ReiniBlue

Ай бұрын

​@@ThePlainBagelahhhhh that makes sense thanks a lot

@craiganderson5556

Ай бұрын

It's good for poor people with a huge portfolio. Maybe also retirees.

Very good explanation. Thanks a lot

Thank you for making this video. This is the most rational breakdown I've seen of the capital gains tax change and it's potential impact. 🚀

10:20 Surely it's not that expensive to do this in Canada. A similar situation here in Sweden cost me an equivalent of 2700USD.

@barettmac

Ай бұрын

We know how expensive it is, the Government of Canada is estimating that increasing the capital gains inclusion rate will bring in about 4 billion per year in new revenue, that's 4 billion per year not going back to shareholders of these corporations.

@freedomlife3623

Ай бұрын

@@barettmacwell, someone have to pay for all those programs, why should capital gain being taxed much lower than regular income? We have a corporation, will be happy to contribute a bit more to build a better community.

@AntonPNym

Ай бұрын

@@barettmac That said, after a good 30 years of near poverty I landed into some investment money (the old fashioned way, I inherited it) five years ago and was shocked to discover how easy it was to build capital one you had some to invest. It's been awfully close to a free ride for me, and I'm as sceptical of free rides as Adam Smith was; so I welcome the increase in inclusion rate if it's going towards fixing the market failure we're seeing in housing.

From the political perspective, the important takeaway is that only the wealthiest people are likely to be directly effected. This isn't a tax on middle income earners because they limited capital gains and access to tax sheltered investments like principal residences, TFSAs, RRSPs, etc. Yes, as with all progressive taxes, there are some concerns about discouraging productivity or investment in high income earners, but that really becomes a matter of cost benefit analysis based on where revenues are being spent.

@BorealMushroomms

Ай бұрын

Most doctors and dentists will be effected.

@bogeybichon7000

Ай бұрын

ANYONE with a cottage, investment property, self-employed person with a holding company (NOT just doctors, dentists etc but also blue collar professions such as plumber, electricians etc), anyone who has an ownership interest in a Canadian controlled small business that is not publicly traded. It has been estimated that it could directly effect 20% of Canadians at some point in their life.

@BigRedNutcase911

Ай бұрын

@@bogeybichon7000 What capital gains are those small businesses even earning though? As TPB mentioned, they already get tax benefits for selling the business so it's moot there. Plumbers, electricians, etc aren't exactly day trading with their business revenues, so what small businesses are affected?

@samsonsoturian6013

Ай бұрын

From a macroeconomic perspective it doesn't matter where you siphon off money from the economy all that matters is how much you siphon. And it does get really technical as there's no one tax that truly "targets the rich" due to technicalities.

@schoeyy5468

Ай бұрын

​@@bogeybichon7000oh no, those people with investment properties that increased in value by 250k or more are going to be taxed a bit more!! How will they cope

This is staggering that there's so much confusion and misunderstanding about such a simple concept/change.

Great explanation! I've been seeing so much FUD on this lately and I'll be posting this video in response now. The change isn't nothing but it also is only a small impact on a small number of mostly wealthy people.

My instant thought was that it'll disincentivise people from selling assets (most likely property), not increasing supply in the long term, and therefore driving up prices. People will just use assets as collateral for loans and they'll never be sold, whilst increasing in value.

@ziglaus

Ай бұрын

Time to tax unrealised gains as well

@jimjam6598

Ай бұрын

​@@ziglausya then the market crashes

@tarfeef101

Ай бұрын

​@@jimjam6598it needs to, good (I say this as someone who will lose if that happens)

@grimaffiliations3671

Ай бұрын

you address supply by building more

@meltedsnowman9637

Ай бұрын

@@ziglaus Well that’s just a catastrophically bad idea. Much worse and much more damaging idea than these current tax changes.

7:00.... MOST PEOPLE DON'T OWN A COTTAGE OR A CABIN! I know some non-rich people will have one, but it is just funny to hear someone talk about every day people with a cottage.

Sounds good to me. Thanks for the great explanation!

This!!! This is what I've been saying since they released the budget. You are obviously way more eloquent in your explanation than I ever could be. So thank you for laying this down so plainly (lol). Too many click bait headlines about how everyone is rushing to sell off their assets, when we actually need more content like this.

Great way to disincentivize 250K capital gain.

I am still too poor to be taxed at that rate.

@extremepsyche3135

Ай бұрын

Tax for thee - not for me

@everydayfun9531

22 күн бұрын

Bruh I'm unemployed and broke.

Thanks for giving a clear and balanced explanation of the changes :)

Thank you for the explanation. I'm fairly novice but I feel like you got me to understand the situation.

I guess I'll hold on to my bagel butts NFTs for awhile longer.

Oh no !! X is mad about it, I'm sure it's all valid, balanced and not at all filled with conspiracy theories.

@7PropagandaPanda7

Ай бұрын

you can just tell us directly you are poor

@mat3714

Ай бұрын

@@7PropagandaPanda7 pretty sure that rich people don't make stupid reply like this

@user-ox3ov2qt5o

Ай бұрын

You can directly tell us you're a conservative ​@@7PropagandaPanda7

@erikzarts

Ай бұрын

@@7PropagandaPanda7 Bot names aren't getting too creative these days.

@nicholasdaily2589

Ай бұрын

It’s because wealthy people have done a very good job of trying to steer people to lean right, which hardcore favours the rich and corporate business. Elon himself probably absolutely hates this idea because it just means he pays more in taxes, which he should. (Not him specifically but people like him)

Great video!

Great video

I feel like not enough attention is being paid to the fact that this is a backdoor inheritance tax. With the exception of investment properties very few people have capital gains greater than $250,000 with the exception of at the time of death where all your assets will have been deemed to have been sold. This is not just for the wealthy as most Boomers including blue collar Boomers will end up triggering this extra tax. I suspect a large portion of the people paying this tax will be estates as any living person can just tax plan around it.

@cmdrfunk

Ай бұрын

Essentially boomers get to have one nonstop party all the way to death and then when the newer generations finally get a break by inheriting what their boomer parents leave behind, the government just steals it instead.

@chrisarnold5561

Ай бұрын

I'm also concerned about this, you are correct that it does not take much to earn $250k+ in capital gains upon death and I would like to see someone give their thoughts on how that will (or will not if I am missing something) affect the estate of the average Canadian

@AgaresOaks

Ай бұрын

110% this. My parents are by no means rich but I had to double check the approximate value of their assets vs their market price. They're under, but by an amount that suggests we know a good number of people that probably are not.

@geekinasuit8333

Ай бұрын

The inheritance tax is only one item to consider, there's also the little mentioned "alternative minimum tax" (AMT) that came into effect this year, it will negatively affect some retirees, and is a double taxation bite at the same time. The government is intentionally lying to Canadians when it says the cap gains tax increase targets only "wealthy people" - WTF is "wealthy" these days? $250K is not a lot of money any longer, neither is $1M when housing can easily exceed $1M in most cities across Canada. There are 3 forms of wealth to consider, one is your net worth, another is your recurring level of income, and the 3rd is the combination of your NW and level of income, ideally both are high, but many have only one or the other, not both. A doctor may have a high recurring income, but relative small NW, while a homeowner who bought a home in the 1990's may now have high NW locked into the home, but has a relative low recurring level of income. Both example are not really "wealthy", they are regular folks trying to get by in life, just like everyone else is. Most high NW individuals in Canada have most of their NW locked into a home, with relative low recurring income, none of them will feel as if they are wealthy. If your NW is locked in a home, then selling it will be required to re-invest into recurring sources of income for retirement (for example, to purchase stock that pays a dividend), the cap gains tax will take a bite out of the re-investment and will lower the recurring income over the rest of your life - and that hurts much more than the government is claiming. The $1M lifetime exemption increase comes with caveats, and the puny increase is a joke, $1M is not high enough any longer.

@Harby000

Ай бұрын

There's still the primary residence exemption, so I can't think of a huge number of people that will have more than a $250k gain outside of that that aren't dealing with rental properties that remain unsold. Those rental properties if held as a business though would fall under the life time exclusions as well would they not? Anyway, I think the feds 0.13% is misleading, I think the "everyone is doomed" is way over the top.

so what you're saying is, capital still gets taxed 33% lower than labor? ....yeah corporations are still given a better hand than the average worker here

@uberboiz

Ай бұрын

way to miss a point....

@High1QWealth

Ай бұрын

Should be like that! You take no risk as a worker without equity!

Tax conversations are 🔥

Hey, appreciate the angle taken and delivery method going over canuck topic. Hard for me to take in any data content about canada, I get too upset / am unstable so, it's hard to see the problems here, live through em and stay above water (crushing life responsibilities but they're mine to bear, it's ok heh). But it's good to keep some pulse on my home, this was a really painless video for me in that sense. Again, thanks for the vid, my dude ~a random canadian subscriber dude

ceneda is a stailed fade

As an American I find it funny seeing Canadians say they are going to leave after this change and I'm here like, where are you gonna go, the US? Here you get high taxes in mayor states, high real estate market, low paying jobs (for the most part) and no free health care.

@NeostormXLMAX

Ай бұрын

Perhaps to singapore or malaysia just like nomad capitalist

@elnericoo

Ай бұрын

I mean Texas doesn’t look too bad 🤔

@JollyOldCanuck

Ай бұрын

@@elnericoo Texas and Florida have sky high property taxes in every city and county that's worth living in, it's how they make up for the lack of a state level income tax. Nevada is the only state that doesn't have a state level income tax and low property taxes thanks to gambling revenues from Vegas, but Nevada's a desert and Vegas is a dump outside the strip.

@Caffeinegoesinface

Ай бұрын

Yup was thinking the same thing. Except the housing market point, have you seen the costs of housing in Canada? Look at Toronto and Vancouver.

@epictetus3406

Ай бұрын

They don't go to California or the New York friend. And healthcare in canada is not free. There is a huge cost and massive administrative waste.

What wasn't said here, is that most of these people who would have to pay these taxes are already talking to tax experts, and accountants. If you think you're going to have more of a tax liability, absolutely talk to a professional to see how or if it will affect you at all. Chances are, You're fine but, always have a professional, verify your fears or lack thereof.

I am pleased to see that the Conservatives are opposed to the increase in the capital gains tax. People in Canada are fed up with the federal government's habit of increasing taxes and wasting money.

The netherlands is proposing to tax unrealized capital gains. Its nuts.

@Dunklekarte

Ай бұрын

They already do it in Germany. Unfortunately.

@kalibbailey6219

Ай бұрын

I mean a tax on unrealized capital gains makes sense over a certain period of time. If you are up 100,000%+ as a VC investor that money stays untaxed even if it gives dividends. So if you put a million in apple the day the first Iphone dropped you have a billion dollars in untaxed gains indefinitely. The only taxes youd pay is on the 5.6 million you get annually in dividends.

@tommyle3243

Ай бұрын

@@kalibbailey6219no it wouldn’t make sense because say you never sell. Essentially what you did was buy a business that payed you the dividend you deserve. It’s not different than paying for a brick house and its value goes up. That’s why there’s a distinction between realize and unrealized gains

@failedfishermanBC

Ай бұрын

​@@kalibbailey6219 So you only pay taxes on the money you receive. Makes sense to me. Taxing unrealized gains is insanity. The government doesn't need more of our money.

@tarfeef101

Ай бұрын

It does make some sense. A popular way the wealthy avoid taxes is borrowing against assets with unrealized gains, allowing them to spend without having income

Thank you Mr Bagel but I haven't paid taxes since 2008. I learned that if I report my income as $0, the government pays me instead.

I would like to hear about capital loss and how to use them Thanks for the capital gains tax talk.

Thank you so much for these videos bro. We really need your dry Canadian wit to cut through all the rhetoric, God bless.

Richard bringing sanity yet again to online rage.

Basically if you see any outrage online, it’s probably misplaced and misinformed and you should ignore it.

@samsonsoturian6013

Ай бұрын

If there's a meme about it, it's usually bullshit

This is the first video on this issue that breaks it down in a clear and concise way

Very informative. Thanks for trying to remain objective! Still feels primarily a tax on the rich, but I didn’t expect all the nuance.

Sometimes… it is better to LEAVE Canada once one gets the passport to avoid high living costs and crappy services (healthcare among others) and high taxes. It is sometimes a good idea to use the passport and experiences (make sure it is not from those survival jobs they lure to many immigrants) and use that elsewhere… to me, 3 years after uniting here, I knew I wouldn’t retire here nor buy a house here (not worth it)!!!

@danwelterweight4137

Ай бұрын

That is exactly what I am doing this summer.

@dmitripogosian5084

26 күн бұрын

So where do you suggest to go for an excellent health care ?

Capital flows to where it’s treated best. Curious to see the fall out

I think this sounds like a great idea tbh.

Interesting - here in Australia, corporates are entitled to no CGT discounting.

Any business person who thinks they can just move to another country and start a business there as easily as doing so in the country they are familiar with are dreaming. Different countries have so many differences that emigrants are unaware of and/or don’t fully understand you are increasing your real risks that can easily outweigh any imagined benefits of this one thing.

@sor3999

Ай бұрын

The rich have an attitude of not giving an inch with regards to tax rates, so whether it's 0.0001% increase or 15%, they will cry the sky is falling, make threats and run hit pieces and propaganda so you might as well go for the hail Mary. If they wanted to set up business in another country they would've done it already if the market is lucrative. California minimum wage is like $18-$20, corporations love whining about minimum wage increases, and they still set up shop here anyway because it's too big a market to ignore.

Thanks for the clear analysis, and explaining the ACTUAL pros and cons. As usual, it seems the people out there whinging the hardest about this don't seem to understand how it actually works. Either that or they're intentionally distorting it to push an agenda.

@chihuadog

Ай бұрын

You don’t know what you’re talking about. This is essentially a 33% increase in tax(67% inclusion divided by 50% inclusion). For a small business to realize 100k of gains they now have to pay an extra 10k in taxes. That’s huge.

@Oblech1

Ай бұрын

@@chihuadogPlease learn mathematics

An average family can’t even buy a detached home anymore, yet the rich who have more than one home, or a huge investment account are outraged at this tax? @ThePlainBagel, can you comment on this psychology. I have saved up over 100k before age 30 and i have to live in appartments my whole life, and the wealthy with cottages are complaining?

@flakgun153

Ай бұрын

My life sucks so people who have it better than me should also have their lives suck? This isn't going to make anything cheaper for you at all. Just going to make you feel better by sticking it to people you are jealous of

@MasterMind468

Ай бұрын

@@flakgun153 nope, you just need to pay your fair share. Nice try

@flakgun153

Ай бұрын

@MasterMind468 I'm not even Canadian. All I did was explain *your psycology*. And the idea of a fair share of people income to take away from them by force is complete bullshit anyway. Taxes should not be higher than 20% for *anyone* for any reason. That's an opinion. Just like any opinion on what a fair rate is.

@MasterMind468

Ай бұрын

@@flakgun153 in canada, there is a housing crisis. The government needs revenue. Wages are low and the richest canadians are making large capital gains, and pay less tax on that than say, a nurse saving lives earning a salary. Nobody needs to generate infinite free money

@flakgun153

Ай бұрын

@MasterMind468 Yes and do you think taxes magically make houses cheaper. If anything this makes it harder for the people who put down money to actually build new construction to justify doing do. And it's not about how much money people NEED. If you want a society that looks like that then go to North Korea. Our society works off of what people want and incentives to do. And the Canadian government would need far more money than it actually could ever get off of taxes to build significant amount of housing itself. And again. Am I wrong in the way I described your psycology? If you actually cared about resolving the housing crisis you would be focused on making it easier to build by any means necessary. Instead you're focused on punishing people who have more than you for the crime of having what you want. Realistically Even if Canada mobilized every single property developer and construction worker it would take decades to resolve. And that's absolutely not going to happen if you make the people who actually know how to navigate the insane amount of beaucracy it takes to build anything and encourage them to build in foreign countries instead.

Finance education is so important

That's weird. For inheritance In the US there is a step up in basis. So when you get an rental property purchased at $100,000 and the FMV at date of death is $200,000, you now have $200,000 of basis to help reduce any future gains going forward. Pretty nice deal.

It's crazy we pay taxes on this in the first place. Money already taxed when it was earned and then the government wants a share of our investment also?

@axelnils

Ай бұрын

What do you mean when it was earned? You are only paying taxes on gains, ie new profits.

@courier3567

Ай бұрын

@@axelnils income tax

@arkaleon1551

Ай бұрын

Don't say shit like that some people love being taxed 😅

@dmitripogosian5084

26 күн бұрын

​@@courier3567only the principal have been taxed as income, here they tax additional money you gained from investment, not the original principal

I feel really bad for all the people paying higher taxes on their vacation homes. I hope they have enough money left over to dry their tears.

@Bob_Lob_Law

Ай бұрын

Or when you sell your buisness/startup, that you built from the ground up.

This prime minister is lazy and spineless. Collecting taxes in theory would be find if citizens got quality services in return. Instead, this wasteful prime minister has done nothing but incur fumble after fumble and make the lives of Canadians worse off. I'd also like to mention that I'm so tired of the lack of creativity of this government. All they know to do is: a) introduce taxes or b) introduce tax free schemes or bank account. So unimaginative and useless. We are at a point where people would much rather buy single family homes than invest into a business in this country, and the smooth brained government has done nothing to inspire meaningful change. Utterly useless and absolutely hopeless. What a waste of the past 9 years. ggs to the middle class in Canada.

Nice job on an objective explanation of the budget policy.

These tax schemes rarely affect anyone who ever comments on them. to be the sort of person withdrawing $250,000 in capital gains you would have to be like one of Canada’s 0.1% wealthiest. The change in taxes would be something like $20,000 on an annual income over $500,000 (with your personal income being $250,000 or more, and your capital gains being $250,000 or more). That would be about 4.5% of your income. And that’s assuming the tax applies to that $250,000, and not the amount after (I’m not clear what the case is.) At an average return of about 10%, you would need to be holding $2,500,000 or more in investments to see capital gains reach that level. This is such a negligible amount for people that wealthy, and all of you here are not that wealthy. Some of you may make several hundred thousand per year, and even you will not see any of this effect.

@questioner1596

Ай бұрын

I think the biggest segment of "normal" people affected would be retirees selling their house or cottage when downsizing (assuming it's not the "principal"). Many $250,000 houses 15 years ago are now worth $1,000,000+.

@jimlamb7642

Ай бұрын

Because governments never expand the pool of who it effects after they get a new tax law passed.

@curtis1397

Ай бұрын

Bad take, im a middle class independent business owner and it affects me. I am no where near even the top 1% and will likely have atleast 250K gains next year. Either your under 30 or work at mcdonalds.

@SniperReady

Ай бұрын

@@questioner1596 If they have over $250,000 in equity on a non-principal property, are we worried about how that extra 8% at most in taxes is going to affect them? This is the whole point. People who have incredible wealth can afford the extra tax. Did I complain about paying $60,000 in taxes after years of never making more than $25,000, because my income went drastically up? No, grow a pair and contribute to your community.

@SniperReady

Ай бұрын

@@jimlamb7642 because wealthy people cannot possibly afford a small percentage extra in taxes.

Canada is becoming a poor country.

@samsonsoturian6013

Ай бұрын

Hardeehar

Expect to see wash sales whereby a owner of an appreciated asset sells and buys it the same day triggering a capital gain taxed under the old rate and a new higher cost base for gains accrued in the new rate.

Another reasons Capital gains is a lower rate is due to inflation the real profit in capital gains is less than the nominal amount that is taxed. I believe in Australia they used to tax only the capital gains minus the inflation over the period of ownership. But this was simplified to a 50% discount, as in Canada, to be simpler. Australian Labor lost the 2019 election with part of their platform to decrease the discount to 1/3rd as Canada is introducing. I can see this change being fair when you have low inflation as we had from 1990 to 2020, but with the much higher inflation rate recently the 50% rate of discount is probably fairer.

So basically its mostly a nothing burger but the fear that governments could start taxing people with money is the bigger issue.

@AA-il9pc

Ай бұрын

“People with money”. You mean people with a below average retirement? Children inheriting a family home that has potentially been in the family for generations?

@geekinasuit8333

Ай бұрын

Who has a home worth less than $250K? How many Canadian's, who earn an average wage, also now have a home that's become worth well over $1M? The governments' perception of "wealthy" is incredibly warped.

@jiecut

Ай бұрын

@@AA-il9pc This has no impact on principal residences.

@AA-il9pc

Ай бұрын

@@jiecut Not every family home is a principal residence

@dmitripogosian5084

26 күн бұрын

​@@AA-il9pcthen it is not a "family home"

Taxation like this is why people set up Holdings in tax havens. Sounds like tax the rich, in effect its more like tax the self employed and small business owners. It may sound like someone who is a millionaire is wealthy, but if thats a paid off house and investment account, then thats their pension. On a million earning 5% you only get 50,000 a year before taxes. Thats not "taxing the rich". And furthermore, these taxes which raise dividend tax and so on, also affect salaried workers in that their pension funds also have to pay more taxes now. Meanwhile the actual rich who have in the hundreds of millions, they set up legal constructs avoiding any tax at all. And increasingly, as a small business owner, I feel like we are idiots for not doing the same.

@amando96

Ай бұрын

No point in not doing it. These people hate you.

@ziglaus

Ай бұрын

​@@amando96the rich, you mean?

@ziglaus

Ай бұрын

This is exactly the tool to close those loopholes though. We should support any law that makes tax evasion more difficult, as anyone who isn't paying their taxes is effectively stealing from you

@Hyperpandas

Ай бұрын

Not sure I follow your argument here. If a small business owner has invested a million dollars and realizes a capital gain of 5% each year, then 1/3 of that gain is still tax free and the other 2/3 is subject to your normal corporate tax. The only change is to the inclusion rate, which was 1/2. Not sure that most small businesses even have capital gains unless or until they are sold or have to dispose of some property. In the case of the former, they still get preferential treatment than any salaried worker receives by accumulating wealth through their labor. Finally, I don't believe dividend rates are affected by this at all. So small business owners can still pay themselves a small salary and dividends each year, once again resulting in lower taxes than salaried workers with equivalent gross incomes.

@FaustsKanaal

Ай бұрын

@@ziglaus None of this makes evasion more difficult. It just taxes the people who cant evade more.

Ah, my favourite KZreadr!

Thank you for the information. I thought they were raising taxes on home sellers at a time when interest rates are high.