Finally we have a video and voice of reason about this capital gains change. I’ve seen way too much BS and misinformation about this… just to stir up panic and drama for views🤦‍♀️ thanks Adrian 🎉

@CanadianTShirt

Ай бұрын

Thank you Shay! I know exactly what you mean! My social media has been BOMBARDED with rage-baiting posts crying about "67% taxes in Canada..." 😱

@CanadianTShirt

Ай бұрын

You know better than most that in our world, fake outrage gets attention... we gotta do what we can to fight back and stick to the facts! 🙌

@good12471

22 күн бұрын

Hey @CanadianTShirt I am new to your channel this year and learned a lot! I appreciate your videos; they greatly help me grow into adulthood! Unfortunately, this is a difficult time for everyone, and people get angry thanks to misinformation, lack of knowledge, and so much spilling out on your channel. I want you to know that your videos are great, and they improve me as a person financially each day! Ignore all the heat and keep on doing what you are doing! 😊👍 I am only wondering how you can keep more of your money as a high-income earner. The high-income earners' tax bracket seems high, so what are your tips? As I grow older and try to be successful, I need to be mindful of my money. Please let me know. I'd love to chat with you. Have a great day, Adrian! ✌️😎👍

It’s not a big deal in your example of making 300k profit on a cottage (only 50k over the exemption) but if you make 1.25 million you pay tax on 67% of a million I’m hearing stories about doctors that are very upset who invested in a cottage many years ago which is worth a lot more now and were going to sell it for retirement Some speculate that more doctors will leave Canada and cause even more of a doctor shortage

@CanadianTShirt

Ай бұрын

That's true! But again, if your investment grew to a million dollar in profits.... ya you gotta pay taxes on that. That's just the way it works

@CanadianTShirt

Ай бұрын

No one enjoys paying capital gains tax but remember it is still by far, the most tax favourable form of income!

@alejmc

29 күн бұрын

Maybe it shouldn’t have been retroactive and just for new properties and/or buy/sell dated transactions? Because in that case, said doctors should sell asap and move that money away from the country or similar.

@CanadianTShirt

25 күн бұрын

I hear what you're saying but that would be extremely unfair and most of the population would be rightfully pissed. Basically all the younger people who don't already have accumulated large assets would pay the higher price but the older generations who have already built up, would get a tax break... I doubt that would pass

@kevinmaclellan2722

25 күн бұрын

​@@CanadianTShirt Favourable for whom? All money directed to personal use; wages, bonuses, and profit incentives are taxed by our government. The capital "gains tax" is not really a gain but becomes a ball and chain for a business that wants to re-invest profits to grow the company. Of course, that action makes the company worth more...another gain. I am a former business owner, retired, and I hated this tax. It is really a double taxation. Those private property investments are only worth more because their owners invested back into the property. Now they face a huge tax bill because they thought that was investing in the future. What the hell, is favourable about blind-siding these investors. Our governments are playing loose with money invested into retirement. It will soon devolve into taxing the assumed value "gained" on an investment. This will be our private homes soon today. Make the right stand and rid ourselves of this unfair double taxation.

Hey, I really appreciate this clear rundown.

@CanadianTShirt

Ай бұрын

Thank you! I am glad that you found it helpful! =)

@CanadianTShirt

Ай бұрын

And I can see that you've been a subscriber for over 4 years! That is honestly INCREDIBLE! Thank you so much for sticking with me for all this time! 🙏

Thank you, Looking forward for the corporation video

@CanadianTShirt

Ай бұрын

Honestly at this point, I don't really feel the desire to make another video on this topic.... I usually LOVE answering questions and engaging with everyone in the comments. But this time, a good chunk of the comments are just awful and discouraging. It really sucks but oh well, welcome to 2024 I guess 🤷‍♂️

@sarahoharas

26 күн бұрын

@@CanadianTShirt please don't stop making videos! You're always a balanced and trustworthy source of information, and I deeply appreciate the work and education you provide! I'm personally interested in how it will affect doctors who are professionally incorporated like myself. I can't believe that people are being so hateful online... please don't let it affect you, it's a small but loud minority.

@CanadianTShirt

25 күн бұрын

Thank you I appreciate those kind words! And don't worry, I absolutely WILL continue to make tax videos! I just miss the days when I would present numbers and people would learn and listen. Now it seems like 20% of people get personally offended and lash out when I say "this is the tax rate at this tax bracket..." 🤷‍♂️

Thank you for a very clear explanation!

@CanadianTShirt

28 күн бұрын

You're welcome! I'm happy to help! =)

I'm sorry you're receiving some hate for this video. I've learned quite a bit from them. Keep creating!

@CanadianTShirt

Ай бұрын

Thanks man, I appreciate it. Honestly it's a minority but they are such a loud and vicious minority, it's sucking the joy out of this job and engaging with my community

@CanadianTShirt

Ай бұрын

But I guess that's 2024 for you.... years ago I would make a video saying "these are the tax brackets" and no problem. Now when I give people numbers, they get their feelings hurt and lash out 🤷‍♂️

@Dee-JayW

25 күн бұрын

@@CanadianTShirtyou explained it very well and logically. This will affect a small minority of rich Canadians. They should 😭 harder 😂😂😂😂 and why do most Canadians think Capital Gains Tax was just invented? The cognitive dissonance is shocking 😮

@freedomliberty83

5 күн бұрын

@CanadianTShirt Perhaps its because this Country has gone to shit because of voters like you. Or maybe you think 2 million Canadians going to food banks is a good idea. After all, socialists support bread lines. You love taxes so much you'll probably jump for joy when Trudeau and Jagmeet start taxing our Principal Residence

Thanks for the clarification!

@CanadianTShirt

Ай бұрын

You're welcome! I'm glad I was able to help! =)

@johnwicks4936

Ай бұрын

It’s not a clarification, it’s gaslighting. Don’t get conned.

@CanadianTShirt

Ай бұрын

@@johnwicks4936 numbers are numbers. Whether you like it or not. These changes WILL happen 🤷‍♂️

@johnwicks4936

Ай бұрын

@@CanadianTShirt That’s why the Liberals will get sent back to unofficial party status. Enjoy!

@CanadianTShirt

Ай бұрын

Fair enough! And when the conservatives get into power, I will make the EXACT same videos. Just telling you guys the numbers (I hope you won't call it gaslighting then as well) 😅

Umm... but how do you expect to have a successful KZread channel with a rational voice and no fear mongering in this day and age?

@CanadianTShirt

Ай бұрын

I wish you told me this sooner! 😂 I would have changed the thumbnail to a 😱 face and lots of fire in the background 🔥

One of the things that is not taken into account with capital gains is that in most cases it’s not all profit. Inflation is baked into the “profit” portion, and that is why the 50% inclusion rate becomes more palatable. If you own a secondary residence like a cottage for 40 years, sure there is a different in purchase and sales value, but how much of that is inflation, how much tax should be pain on the lost value of the dollar?

@jakeh2049

Ай бұрын

Exactly

@DrMarkyMark

Ай бұрын

💯 agree. This is especially worrying in an inflationary environment as we have seen in the last few years. Example a 3% inflation rate over 30 years equals 140% gain! That is extremely punitive to consider this a value appreciation.

@CanadianTShirt

Ай бұрын

Sure you ALWAYS have to keep inflation in mind when it comes with any investment or money decision, especially over years. But there's nothing special about capital gains in this regard. Inflation affects ALL forms of income equally

@CanadianTShirt

Ай бұрын

Whether you receive $10K in dividends or salary of capital gains, if inflation is at 3%, then that money has lost 3% of it's purchasing power over that year. Inflation isn't the reason why they're taxed differently

@derrickcatterall1466

Ай бұрын

I don’t necessarily think capital gains is income in this regard though. If I buy something for 100k and 10 years later sell it for 150k. If inflation was 3.5% ish for those 10 years, the value of that asset in purchasing power hadn’t changed. The money out would buy the same amount of widgets that it would have 10 years prior, not real gain has happened. But now you have to pay capital gains tax on that differential value. That’s why I was always “okay with” the 50% inclusion rate as it was in my mind an acknowledgement of that fact without over complicating what the taxes should be. My thoughts anyway.

Thank you very informative video

@CanadianTShirt

Ай бұрын

I'm glad to hear you found it useful! =)

Thank You for sharing your knowledge!!

@CanadianTShirt

18 күн бұрын

You're welcome! I'm glad you found it helpful! =)

thank you great info. What about a small farmer who wants to sell his land not incorporated. capital gains would be over 400k same rules apply ?

@CanadianTShirt

Ай бұрын

It gets much trickier with farm properties, especially if you lived on it as well! Since it's your residence plus your business. I'm not an expert in this regard but there are several exemptions when it comes to farmland. I would suggest talking to an accountant who specializes in farm land. Good luck! =)

Perfect! Thank you for break this down. Great delivery on explaining it also! Cheers!

@CanadianTShirt

Ай бұрын

That's what I try to do! Thank you for those kind words! 🙏

Thank you for your fantastic explanation. Was confused about $250,000

@CanadianTShirt

29 күн бұрын

You're not alone! A ton of people are confused by this new change and frankly, the government has done an awful job of spelling it out. That's what I try to do! =)

@Dee-JayW

25 күн бұрын

@@CanadianTShirt I wish, as a former Canadian and US tax accountant, it is appalling the very large amount of Canadians who have no idea about their income, investments, etc. or who think Capital Gains tax is new! Or that most Canadians will never have this apply to them! 😮 I really believe that people need to take personal responsibility to learn and understand the minimum amount about western economies and how capitalism works/economics/taxation. 😊 cheers!

@CanadianTShirt

25 күн бұрын

It is very frustrating and I wish the government did a better job of spelling this out, instead misinformation and rage-baiting has taken over the public narrative. But thank you for being so engaged and leaving so many comments! And keeping it respectful! 🙏

Great video

@CanadianTShirt

10 күн бұрын

Thank you so much! I appreciate that! 🙏

@humbledtraderofficial Thanks for your video as usual. I have a question If i have stocks in rrsp at institution A and want to transfer these stock to fhsa in another institution B. Can I do that? If yes. How they evaluate the stock value? The average cost price, or the current market price at the time of transfer.??

@CanadianTShirt

Ай бұрын

I have a WHOLE video tutorial showing you step by step how it's done! =) kzread.info/dash/bejne/dJpl3Neffs-3g84.html

@CanadianTShirt

Ай бұрын

If you are transferring from RRSP at institution A to an RRSP at institution B, there's no tax involved since it's remaining inside an RRSP. And you can do an in-kind transfer, meaning you don't have to sell the assets! I go over all this in the video =)

@khaledfkry5541

Ай бұрын

@@CanadianTShirt I am going to watch the video. My question when transferring we should respect the room of 8000 contribution for tfsa. If we have to respect the room. At what price they evaluate the stock at the price I purchased or at the current price of the stock

@CanadianTShirt

Ай бұрын

Oh I WISH it was the price you purchased! No it is the current market value of the stock during the transfer. Basically it's treated the same way as if you sold the stock and transferred cash

so the taxable gain is added to the marginal tax rate bracket plus whatever is there remaining from the income in that bracket and then taxed?

@Dee-JayW

25 күн бұрын

No.

@CanadianTShirt

25 күн бұрын

Watch my example where I break down how much of the capital gain is taxable. If you sell a second house and make a profit of $300K, first you take $250K and half of that is taxable ($125K) then your remaining $50K, 2/3 of that is taxable so $33K. So in total, your taxable income on that sale will be $158K

@CanadianTShirt

25 күн бұрын

So that $158K plus your salary and any other income will fill up the tax brackets (each bracket will be taxed at that given rate) In my example, I made the math simpler by assuming you were already at the highest tax bracket. I hope that helps!

THE GUY WITH $250k income is already paying double the income tax, 53.53% vs a guy with $40k income paying 24%.

@CanadianTShirt

Ай бұрын

I agree! As I've said in dozens of my previous tax videos, employment income is FULLY taxed at your highest marginal tax rate. That's why it's so important to not rely entirely on your salary. You need to start earning some investment and business income as well to get ahead =)

@rosskennedy1960

25 күн бұрын

So, you are basically saying "invest more money in something to grow your money", then sit back and watch the gov't take even more of your money (67%) then they currently do from your employment income. Sounds like strange advise to me. I would advise putting your money into investments through a living trust fund. Look into this as the tax implications are great. Ask yourself why JT has a trust fund and you will understand.

@CanadianTShirt

25 күн бұрын

@@rosskennedy1960 so you obviously didn't make it past 30 seconds into the video... if you did, you would learn that you are NOT taxed at 67% that is just the inclusion rate... and only above $250K in capital gains in a year. Please watch the video before you leave a comment, I thought that should go without saying 😂

@rosskennedy1960

25 күн бұрын

Maybe you should do proper research before posting videos with ambiguous information. This should go without saying. Just because you buy into the "misinformation" does not mean that the people who actually do their research believe your spiel. You appear to simply be a liberal puppet.

Looking good without the glasses man :)

@CanadianTShirt

Ай бұрын

Aww thanks buddy! It's been LIFE CHANGING!!! 🙏

@CanadianTShirt

Ай бұрын

If you're curious to hear about my journey with laser eye surgery and expenses vs investing in yourself, check out this video here =) kzread.info/dash/bejne/omxmtMmuj7POXco.html

@pingon55555

Ай бұрын

@@CanadianTShirt yes unfortunately I only qualify for PRK, and not LASIK. Got the opinion from a few experts and they all agreed.

How does it affect inheritance?

@CanadianTShirt

Ай бұрын

Inheritance can get tricky since it depends on many many things. But essentially, everything that you receive will be tax-free on your end. But most of the assets of the deceased will trigger a deemed disposition, meaning they will be taxed as if they sold the assets right at their death. This tax is paid by the estate and you receive what is left. Again the amount you receive is tax free, it doesn't count as income for you

@CanadianTShirt

Ай бұрын

Most of the regular exemptions also apply for the estate. The big one being the principal residence. That is tax free but if they had a second property (cottage or rental property) that would be taxed as if they sold it. I hope that helps! =)

It seems to me that it would be more fair to allow you amortize the gain by the number of years you opened the asset? That way, a family that has owned property for many years could more easily transfer it to their children without having to come up with some way to pay the tax all in one year while still curbing speculation.

@CanadianTShirt

Ай бұрын

That is an interesting idea but I don't see that ever happening, realistically...

What about the ones who inherit a home through an inheritance...many cases more then one person.. and want to sell? Cant find anyone mentioning this.

@Reza19691348

Ай бұрын

Wouldn't matter how you got it , it is under your name

@sunflowerist

Ай бұрын

@@Reza19691348 not sure about that one because in many cases there is more then one inheriting a property they want to sell. And one of them may not own any property but selling it. Many scenarios.

@sunflowerist

Ай бұрын

@@Reza19691348 not sure about that one..more then one person can inherit property they want to sell and many cases one of them never owned any property but wanting to sell..many scenarios and not that straight forward I'm assuming.

@CanadianTShirt

Ай бұрын

Inheritance can get tricky since it depends on many many things. But essentially, everything that you receive will be tax-free on your end. But most of the assets of the deceased will trigger a deemed disposition, meaning they will be taxed as if they sold the assets right at their death. This tax is paid by the estate and you receive what is left. Again the amount you receive is tax free, it doesn't count as income for you

@CanadianTShirt

Ай бұрын

Most of the regular exemptions also apply for the estate. The big one being the principal residence. That is tax free but if they had a second property (cottage or rental property) that would be taxed as if they sold it. I hope that helps! =)

easy to call it a "Wealth tax" . Its the redefinition of what "Wealth" is now that's the Obiwan 'hand waive' in our face. Boomers had a 1,000,000 capital gains tax credit. Then I think Joe Carter dropped that to 500,000 in the late 80's or 90's. Boomers capital gains credit was an amount roughly 4x the value of their homes on average. Now, millennial home value is 4x the value of that tax credit. Complete reversal. Context !!

@CanadianTShirt

Ай бұрын

Well we still have over a $1 million capital gains tax exemption for business owners who open corporations. But it wouldn't make sense to give regular people giant capital gains exemptions on top of the hundreds of thousands of dollars of tax sheltered room available in their TFSA, RRSP, RESP etc

@CanadianTShirt

Ай бұрын

But you are right that it's important to look at the historical context of these changes! Especially over the decades! I only came to Canada in the 90s and back then, the capital gains inclusion rate was even higher than now at 75% so things certainly change over time!

Our government seems to give little incentive to make large amounts of money. Great video as always. Thanks.

@CanadianTShirt

28 күн бұрын

I'm glad you found it helpful! And remember, capital gains is still, by far the most favourable form of income. Especially at the highest tax brackets so the incentive to earn a profit is still there

@Dee-JayW

25 күн бұрын

You know this only applies to Capital Gains. Not income, right? And there is an exemption? If you are past all of that, you are in the 1%. Celebrate! 🎉

@CanadianTShirt

25 күн бұрын

That's true, like I said, if this capital gains tax increase applies to you, that's a good problem to have. And even so, it is still, by far the best form of income =)

Too much inflation and high is killing me

@CanadianTShirt

Ай бұрын

This isn't really relevant to inflation. Inflation affects ALL forms of income equally. Whether you have a salary or investment income

One sec, if you had a cottage for 5 years and sold it for 300k more, then isnt that 60k per year? Its not like all the value came in that last year, shouldn't the gain of 60k be declared each year? Also what happens if you loose 100k on an asset, can that be used to offset the 300k?

Principal residence tax free - Fed liberals after this weekend- Hold my beer

@CanadianTShirt

6 күн бұрын

Please leave the politics out of it. Arguing on politics online is a huge waste of time and I don't want to see it here on my channel

@CanadianTShirt

6 күн бұрын

And no, no one is removing the principal residence exemption. That would be political suicide. Not to mention, people would NEVER sell their houses ever again so no one, left or right would ever propose this. Please stick to REAL issues, not made-up fantasies

@freedomliberty83

5 күн бұрын

​​You're making videos on taxes buddy, thats already political. Especially when you're defending said tax. And you want people not to discuss it in an open forum. You know who likes censorship? Socialists/communists like censorship.

@SeanTheNoob

5 күн бұрын

@@CanadianTShirt was just a dig at the shitty Canadian situation .

I think the problem people have is the fact our government is mismanaging tax funds. There seems to be no accountability, restraint or even review of how funds are allocated. You don’t give booze to an alcoholic. You offer to those that drink responsibly.

@Dee-JayW

25 күн бұрын

People have always complained about how the govt spends money. Usually when they spend money on things you are against!

@CanadianTShirt

25 күн бұрын

That is true and we should demand more accountability across all levels of government, federal, provincial and municipal. But that doesn't mean that we just sit on our hands and do nothing. The government should continue to propose new legislation (like this) AND work on more transparency and accountability. Unfortunately, I don't see much progress on that front, from any political party

Hey, Can you recommend financial advisor for us ordinary low income people so be we can be financially smart. Thank you so much

Hi. If you sell a home for more than 500,000 would this affect your marginal rate? I am a low income earner -40,000 and trying to understand what the marginal rate would be for BC if I sold a rental property. Thanks.

@SharpLife4

Ай бұрын

I think it affects your low income status for that year which can affect your meds and such

@CanadianTShirt

Ай бұрын

Yes, look at my example and the TAXABLE INCOME portion of that profit would be added to your salary and other forms of taxable income. That WILL put you in a higher tax bracket, likely the top tax bracket even with a low income (just for the one year)

@CanadianTShirt

Ай бұрын

So you have a salary of $40K and you sold a house with a profit of $500K. Your first $250K of profit, only half is taxed as income. So that's $125K of taxable income. The remaining $250K will be 2/3 taxable so $167. So in total, your taxable income for the year would be very large: $40K + $125K + $167K = $332K That puts you in the top tax bracket in every province

@CanadianTShirt

Ай бұрын

But again this is only for that one year when you sold the property. Next year, you would return to the lower tax bracket of $40K or whatever your income is at that point. I hope that helps! =)

@ethanknox8

Ай бұрын

@@CanadianTShirt yes but for example. My meds cost over 10k a year. My province out of pocket maximum is 10k. So I would loose 10k automatically plus 20k in child subsidies

What about capital $ improvements made to a property if I’ve invested 100k to the property (new addition) doesn’t that come off the taxable gain?

@CanadianTShirt

Ай бұрын

When you eventually sell yes. If you improve the house, that's forced appreciation so you are raising the value. You can make some money off this equity in two ways

@CanadianTShirt

Ай бұрын

First, you can sell the house but that will come with capital gains tax. And if you are flipping, meaning you sell the house before 12 months, that will be taxed as business income instead

@CanadianTShirt

Ай бұрын

Second, you can refinance the property with a HELOC or second mortgage to access the new equity in the house. This isn't for everyone but it can be a powerful tool if you use it right, since the interest income can be tax deductible =)

Although the technical facts show that generally speaking it isn't a huge increase. If businesses are affected, especially larger ones is that not incentive for them to leave? We should all be aware that they know how to minimize taxes with all the other loopholes and the tax increase may be irrelevant to the very wealthy. This seems to affect some middle and upper income earners more than the people they claim to be going after.

@CanadianTShirt

Ай бұрын

Corporations are only affected if they have investments and realized capital gains inside of them. This isn't super common since investment income is taxed very heavily in corporations and too much investments will actually HURT the corporation (force them to pay a higher tax rate on their income which is what the real benefit is) Only 12% of corporations have capital gains within them

@CanadianTShirt

Ай бұрын

As an example I have two corporations and only one of them has any investments (and thus capital gains) inside of it. But yes, everything in the economy is connected. That's why it's a balancing act

What if I Sell stocks one Million and Make half a Million profit and spend all the money to buy another stock. Do I still have to pay capital gains on that half a million?

@CanadianTShirt

25 күн бұрын

Yes you would, if you sell those stocks in a non-registered (taxable) account. If you sold a $1 Million in a tax sheltered account like a TFSA or RRSP, then no tax on that profit

@CanadianTShirt

25 күн бұрын

But in a non-registered account once you sell a stock for a profit, you have triggered that taxable event for the year. It doesn't matter what you do with that money, whether you spend it, save it or reinvest it, you will have to pay taxes on that profit you realized

I'm now renting but bought a condo under construction two years ago and now appreciated. Will it be considered my primary residence if I sell it right after possession and be tax exempted?

@CanadianTShirt

29 күн бұрын

Unfortunately no due to the recent anti-flipping rules from 2 years ago. Now you need to live in the house for at least 1 year to claim the primary residence exemption

@CanadianTShirt

29 күн бұрын

And for it to qualify as capital gains (much lower tax rate) If you sell in less than a year, it will be taxed as business income (full taxed minus expenses)

@Dee-JayW

25 күн бұрын

The govt had to regulate flipping houses. So you have one home you own, it IS your primary residence. But now you must live in it for a year before you sell. A very wise move.

@CanadianTShirt

25 күн бұрын

You are correct

👍

@CanadianTShirt

Ай бұрын

Thank you so much! =)

Just so you know, medical doctors asked for a pension from the government. In lieu of a pension, the government of Canada let them incorporate. Thus, they are a corporation and are not eligible for the $250,000 threshold.

@CanadianTShirt

25 күн бұрын

That's the price you pay when you choose to incorporate... you get HUGE tax savings on your income tax (we're talking 50% dropped down to 12% depending on your province at those high incomes) but the downside is you are no longer an employee. As a corporation, your investments and taxed higher and you don't get a pension. I am in the exact same situation since I run two corporations

@CanadianTShirt

25 күн бұрын

Most high income employees do NOT get the choice to incorporate. There are HUGE benefits to incorporating but also some downsides, you can't have it both ways. And this is nothing new, investment income has always been taxed heavier at the corporate side

@citizensclimateinternation2560

25 күн бұрын

@@CanadianTShirt I am not a doctor. My partner is. Again in lieu of a government pension, doctors were given this option. I would have prefered a pension because this is the second time the "pension plans" medical doctors negotiated with the government of Canada have been taken away. My grandmother lived to be 107, her sister 103 and my father's side has centurians too. So saving for 50+ more years just got a lot more complicated. Who will be able to go to school for 14 years to become a doctor and go way more in debt than we did, not save any money until your mid-30's and then work long enough to pay off debts and save in lieu of a pension? From what I have been told, the costs to doctor are actually more than what you are presenting according to information we have been given. Do I care? Nope. I don't need much money. I live a low carbon lifestyle (small house, low-carbon vacations, vegan, buy second hand clothes ... ergo low cost lifestyle). But, I do worry about those who will be irked by this, what they will do and what this means for tax reform in Canada.

The problem is our government does not use the tax payers money effectively though. Our health case system is atrocious and we just sent $5b to Ukraine

@CanadianTShirt

Ай бұрын

You got that right, we NEED more accountability on government spending through all levels of government: federal, provincial and municipal. It's rare to see any progress there though

@Dee-JayW

25 күн бұрын

Well, people keep electing Provincial governments for some time (who decide where and how to allocate tax money within healthcare) that have made deep cuts to health spending and poor planning. That is what austerity is. 🤷‍♀️

What if you live on a farm or acerage, aren't you taxed capital gains on land over a couple acres?

@HomesteadChris

Ай бұрын

Yep. And farmers are not wealthy people, they just hold land. This is how the land grab works. UNDRIP.

@CanadianTShirt

Ай бұрын

I don't have any personal experience with farm land so I only want to give advice on things I have expertise in. But there are many exemptions when it comes to farmland, especially if you lived on it as well as worked on it. So generally speaking, it will be taxed much less than other assets. Talk to an accountant who specializes on farm land. Good luck! =)

Why does this not sound like a positive impact?

@CanadianTShirt

Ай бұрын

I wouldn't say it's a positive impact but it is an impact! Higher taxes on large capital gains (over $250K) and for corporations will cost those people more money. That's the truth

@CanadianTShirt

Ай бұрын

The only positive part of this change is on the corporate side, with the increase in the capital gains exemptions. As I said at the end of the video, people selling their business for under $2.25 Million will see significant tax savings with this change

Thanks for giving the FACTS on this debacle our government has created. I really don’t get all the commenters who are lashing out at you for stating how this new tax works. Some people are just angry and don’t have the emotional capacity to deal with changes that are out of their control. What are you gonna do…? 🤷🏽‍♀️

@CanadianTShirt

Ай бұрын

Thank you for those kind words... it's enormously frustrating but welcome to 2024 I guess.... 🤷‍♂️

@CanadianTShirt

Ай бұрын

I've been making tax videos for 5 years on KZread. Back in 2019, people would almost universally say "thank you for teaching me how tax brackets work" Now.... like 20% of people lash out as if I insulted their child 😔

@Dee-JayW

25 күн бұрын

I agree, but Capital Gains tax has been around since the 70’s. He is explaining an increase, which I personally agree needs to be done. Cheers!

Watch this Playlist for the MUST KNOW Changes and Info for 2024 🇨🇦 kzread.info/head/PLj8bU3AuW2qGLtqby707ARiDdyNZA7lTA

@CanadianTShirt

Ай бұрын

Important Changes to Tax Brackets, CPP, Carbon Tax, Tax Deductions and more!

That sounds fair indeed. Now the only thing left is to make everything adjusted for inflation… If I have a $200K home today and I sell it in 20 years for $400K but the aggregate inflation over those years was 100%, then effectively I have gained nothing purchase-wise and just protected myself from inflation, I cannot buy a $200K more valuable home, I can just buy an exactly equivalent one today as the one I had bought 20 years ago.

@CanadianTShirt

25 күн бұрын

Okay but your example is insanely unrealistic.... real estate value grows MUCH FASTER than overall inflation. That's the whole point of investing in real estate!

@CanadianTShirt

25 күн бұрын

If you put $200K into a savings account, yes it will barely keep up with inflation. But $200K in any quality investment (stocks, ETFs and real estate) will grow exponentially faster than inflation. In your example, no one would ever take on the risk of investing

@alejmc

25 күн бұрын

Fair points indeed, especially regarding the savings account. But the example could still stand if viewed locally? If the home goes from $200K to $800K (which is also kinda a negative itself), then I can’t really buy 4 $200K houses, all the homes in the vicinity have likely increased proportionally… my “home purchasing power” didn’t really increase, except if I move cities. Yet I’ll be taxed on those winnings. Also, I still think that with yearly property taxes, (at 1% we pay the a quarter of a home again every 25 years), upkeep and fixes and surprises, etc… I think it really only makes sense when having homes for business purposes, renting cash flow, etc. One extra thing that comes to mind, as per the rule of 72, every 10 years the purchasing power of money halves if the inflation rate is around 7.2% on average. That said, thanks for the extra thoughts and point of view, definitely not black and white. Makes me think further and would have to sit and do the numbers but the lazy in me tells me that it’s probably not worth the hassle and go the ETFs you mention and/or REITs (that I have seen you tackle nicely before).

One fact is still missing. The reason a property has increased in value is that someone maintained that property to prevent deterioration. And two, when a property owner invests in property with cash to add value, that cash was invested at money that was spent before anyone thought to add inflation. So the expense to make that $400k property worth $700k today should recognize the money the property owner had to invest to make that property worth more. The $300k earned represents the total cost spent in past money with added inflation. Yet the government does not recognize such an investment in that cottage property. It just wants its tax on the $300k the property sells for. Allow the owner to discount that inflation price by inflating his actual investment.

@CanadianTShirt

25 күн бұрын

Well it depends on how you are operating it. If you are doing house flipping (especially for short terms) then you are operating a business so you will be able to deduct business expenses meaning you will only be taxed on the profit after all the costs of renovating etc

@CanadianTShirt

25 күн бұрын

But if you are holding the property for more than a year or renting it out, then you qualify for even BETTER tax rates with capital gains tax. And yes you absolutely benefit from the forced appreciation (the work you put into it to raise the value of the house) Of course inflation ALWAYS takes away from the spending power of your money, whether it's capital gains or dividends or income but that's the power of real estate. You can invest in a property and FAR EXCEED the rate of inflation

I'm not okay paying even more taxes on the money that I worked my ass off to pay for, on an already heavily taxed income. Not to mention with every single purchase made that us also subject to GST and PST depending on what province you live in. It's absolute bull.

@CanadianTShirt

Ай бұрын

I hear you but you're acting like capital gains tax was just invented.... it's been around since 1972 in Canada... and it was MUCH higher in the 90s as well

@CanadianTShirt

Ай бұрын

If you are selling a second home, I get it, you're frustrated to pay extra tax on that sale (assuming a profit above $250K) but these are the rules. We have to deal with it

So anyone who has an property inheritance is getting screwed

Thank you, Adrian, for another amazing video. Please keep up the fantastic work! I have a few questions and would greatly appreciate your help: 1-I have two children, and I would like to start investing some money for their future studies. However, there's always the uncertainty of whether they will decide to pursue higher education. In that case, assuming they choose not to study in 20 years, what would be the best account to start investing in their future right now? 2-Upon reaching the retirement age of 65, can I withdraw all my money at once? 3-How long do I need to stay in Canada to ensure I don't lose my pension benefits? 4-Can I invest in U.S. stocks and ETFs without penalties through my FHSA, or is there a 15% penalty? 5-Where can I buy cryptocurrency? Thanks in advance. Warm regards,

What happened with the new rules for the period of time that you owe an asset at an inclusion rate of 50%?

@CanadianTShirt

Ай бұрын

Canada doesn't have a minimum holding period, you're thinking of the United States

@CanadianTShirt

Ай бұрын

The only "holding period rule" that Canada has is the anti-flipping rule. Meaning if you buy a home and sell it within a year, it's not capital gains, it's business income (taxed heavier)

@CanadianTShirt

Ай бұрын

There's also the superficial loss rule, where you try to cheat the system by selling a stock at a loss, to claim that tax credit and then buying it back. This won't work unless you wait 30 days, I talk about it in this video YEAR END TAX TIPS =) kzread.info/dash/bejne/qoCM19JufJC5YrQ.html

If taxation of 100% of your income is slavery, at what percentage is it not?

@CanadianTShirt

Ай бұрын

I don't think you understand what slavery means...

@drseanpatrick696

Ай бұрын

@@CanadianTShirt I don’t think you understand that you live on a slave tax farm. Slavery was never abolished, it was only extended to include all the colors. WHEN THE ENTIRETY OF YOUR EARNINGS ARE EXHAUSTED ON FOOD AND SHELTER, YOUR LABORS ARE NO LONGER VIEWED AS AN OPPORTUNITY FOR ECONOMIC ADYANCEMENT, BUT RATHER AS AN ACT OF SELF-PRESERVATION. IN THE REAL WORLD, THAT'S CALLED SLAVERY.

@Dee-JayW

25 күн бұрын

@@drseanpatrick696he is right, you have no concept of the word slavery.

This change will impact the Dividends corporations pay out.

@CanadianTShirt

Ай бұрын

Nope it doesn't. This increased inclusion rate only affects the capital gains within a corporation

@CanadianTShirt

Ай бұрын

If you are talking about the Capital Dividend Account within a corporation, that's a different story and that tax-free dividend is still available

@CanadianTShirt

Ай бұрын

But if you are talking about receiving dividends as an individual (say from TD or Enbridge) nope this change does not affect that at all

Right in time for 65 percent of Canadian mortgage holders to renew their mortgages and realize they have to sell! Not even a subtle F U from the Canadian government.

@CanadianTShirt

Ай бұрын

I certainly hope that Canadians struggling with a mortgage are NOT jumping to the "sell the property" option. That would be incredibly short sighted, unless of course it's a last resort

@CanadianTShirt

Ай бұрын

But again, remember this does not affect your primary residence. Only if you own a SECOND house

@Aaron-fb1pq

Ай бұрын

@@CanadianTShirt Okay, what's your point?

@Aaron-fb1pq

Ай бұрын

@@CanadianTShirt Some people have no choice but to jump and sell the property. When their mortgage goes up to $8,000 a month they won't be able to make the payments? Use some rationale.

@CanadianTShirt

Ай бұрын

Again if it's a second property, then it was either bought as a luxury or as an investment. Either case, there was ALWAYS a risk. Profit was never guaranteed. That's the name of the game. And if there is a profit, ya you gotta pay tax. Again, on your second home

What about active traders in markets. This kills them

@CanadianTShirt

6 күн бұрын

This does not affect them at all

@CanadianTShirt

6 күн бұрын

Active traders (if they earn a profit) are taxed as business income. This has nothing to do with capital gains tax

@SeanTheNoob

6 күн бұрын

@@CanadianTShirt active traders (day trading) isn’t seen as capital gains inside a business?

@CanadianTShirt

6 күн бұрын

@@SeanTheNoob nope if you are day trading, that is considered business income. Which is why it's not allowed in a TFSA

@CanadianTShirt

6 күн бұрын

@@SeanTheNoob capital gains is only for long term investing not short term. Even house flipping doesn't qualify anymore (you have to live in the house for at least a year)

How does capital gains work if you sell your parents home after they pass away

@Dee-JayW

25 күн бұрын

You file their taxes the year they die and the year after they die. Was this their principle residence or a second home or cottage? Was it left to you in their will?

@CanadianTShirt

25 күн бұрын

Inheritance can get tricky since it depends on many many things. But essentially, everything that you receive will be tax-free on your end. But most of the assets of the deceased will trigger a deemed disposition, meaning they will be taxed as if they sold the assets right at their death. This tax is paid by the estate and you receive what is left. Again the amount you receive is tax free, it doesn't count as income for you

@CanadianTShirt

25 күн бұрын

Most of the regular exemptions also apply for the estate. The big one being the principal residence. That is tax free but if they had a second property (cottage or rental property) that would be taxed as if they sold it. I hope that helps! =)

@CanadianTShirt

25 күн бұрын

So on your end, after the estate taxes (if applicable) are done, you receive the house and remaining assets tax free. Now if you sell it, yes you will pay taxes on the profit but it would be a small amount since you "bought" it at current market rate when you inherited it. So it's unlikely that the house grew in value in such a short time

Did you know capital gains was illegal for most of history? How did we get here😢

@CanadianTShirt

5 күн бұрын

Well we've had Capital Gains tax in Canada since 1972 so... it's nothing new

@freedomliberty83

5 күн бұрын

How else are we going to pay for dental care for everyone. And imagine they lowered taxes to help us out, how would we send money to Ukraine. Imagine 2 million Canadians at food banks and we send billions to Ukraine. Yes, lets tax the greedy landlord more, thats how we'll get more tax revenue

Bottom line... too many taxes!

@CanadianTShirt

21 күн бұрын

I hear you but remember these taxes aren't new. Capital Gains tax has been around since 1972 and we've seen it much higher in the past, it had an inclusion rate of 75% throughout the 90s!

@CanadianTShirt

21 күн бұрын

But yes I hear you, it is definitely frustrating if you are now forced to pay this higher tax unexpectedly. That's why it's SO important to keep informed and come up with a plan to minimize your tax bill and make the most of your money!

@nicolasgilbert8850

21 күн бұрын

@@CanadianTShirt oh wow I actually did not know capital gains was higher in the past. Thank you for the insight. Like and subscribe!

@CanadianTShirt

21 күн бұрын

Ya it's been a rollercoaster when you look through the history. Basically every decade or so, they do a massive shift in capital gains. For us, we've had no changes for the past 24 years until now

@CanadianTShirt

21 күн бұрын

And at least, they are "softening" the blow by only changing above the $250K threshold. In previous decades, they didn't have that and it was a massive and sudden change

So we have a family camp that has been passed down in my family for generations but has never been the current owners principal residence. What happens when my dad passes this down to me? I can guarantee that the property has increase more that $250,000 since all these rich people built huge full season homes near us. We don't even have a house on it, it's just a shack and couple trailers.

@prao4603

Ай бұрын

U get f**ked more than before thx to the liberals cap gains tax.

@CanadianTShirt

Ай бұрын

So if your dad lived in it as his principal residence, you would simply inherit it, tax free. But since it was his second property, it would be a deemed disposition. Meaning the estate would tax it as if your dad sold it just before his death. So the estate would pay all that tax and after all that, then you would receive the property and all the remaining assets tax free

@CanadianTShirt

Ай бұрын

At that point, it's your choice what to do with it. You can keep it for yourself or you could sell it on your own. Of course selling it would once again trigger another capital gains tax, but it would likely be tiny since you already inherited it ("bought it") at the current market price. I hope that helps! Inheritance rules can get very tricky!

@Vexxev

Ай бұрын

@@CanadianTShirt thank you for all this information it is appreciated.

@CanadianTShirt

Ай бұрын

My pleasure! Best of luck! =)

$400,000 sounds like so much money , but by the time you get older and need the money it can be reduced to just $40,000 thru government managed inflation . So in 20 years it will affect most poor people in poverty canada . Consider a tax on your potential future .

@CanadianTShirt

Ай бұрын

Inflation is a REAL concern that you always have to consider when it comes to money but let's stay in the realm of reality. Inflation is generally between 2-3% per year, you're not going to lose 90% of your money in 20 years

@lassepeterson2740

Ай бұрын

@@CanadianTShirt No it might well be 12 % or more . The government will decide about inflation or war or both . Be prepared . History repeats .

@CanadianTShirt

29 күн бұрын

Even at the highest point in inflation, we did not see 12% inflation. The highest CPI report I ever saw was 6.9% And of course that was rough but thankfully it was short term and we are back in the manageable range of 2-3%

Getting taxed 53.53% is madness!!!

@CanadianTShirt

17 күн бұрын

Yes that's the highest marginal tax rate in Ontario. That's why it's so important to earn other sources of income besides your job!

Please ask ALL chambers of commerce, boards of trades, professional associations and small business councils in Canada to host summits and must invite Trudeau's team of Liberals and Poilievre's team of Conservatives to be their key speakers on Capital Gain Tax increases. It's fair to hear the questions and answers from the people directly impacted by the Capital Gain Tax increases.

@CanadianTShirt

21 күн бұрын

Feel free to reach out to your government representatives. That is totally within your right and it's their job to hear you out

They tax us through inflation which you did not even mention in your calculations plus the increase to capital gains. So after you included our purchasing power how much gains are left to pocket?

@CanadianTShirt

Ай бұрын

Inflation affects EVERY form of income exactly the same. There's nothing special about capital gains...

@CanadianTShirt

Ай бұрын

Whether you earn $10K in capital gains or salary or dividends, inflation eats away at that purchasing power the same way

@CanadianTShirt

Ай бұрын

And no inflation is not a tax.... a tax is revenue that goes to the government. Inflation generally goes to corporations, when you buy goods and services

@queenbigb

Ай бұрын

@@CanadianTShirt “inflation is taxation without representation” Milton Friedman once said. When the government first buys goods and services with newly issued dollars, prices for those goods and services rise with the surge in demand. The businesses that sell them respond to the increased prices by expanding their operations, increasing the demand for labor and thus driving up wages in that particular line of business. Their employees eventually spend their increased incomes on other goods and services, increasing demand for most consumer goods and causing prices to rise. Increased prices again cause other suppliers to expand their operations, thereby raising wages. Prices of goods and services go up government gets more taxes. Wages goes up government gets more tax revenue. Inflation is a tax because governments create inflation by devaluing our dollars when they print money and with government bonds.

There are no capital gains taxes in the Bitcoin monetary system-just pure growth in purchasing power.

@CanadianTShirt

Ай бұрын

That's just not true. Selling bitcoin for a profit is a capital gain and is taxed the exact same as selling any asset

Great video, too bad more Canadians can’t subscribe and get better informed.

@CanadianTShirt

Ай бұрын

Thank you for those kind words! I really do appreciate it! Scrolling through some of the more unpleasant comments on here, I really wish they were a little more informed 🤷‍♂️

@CanadianTShirt

Ай бұрын

And thank you so much Michele for supporting my channel with your membership! I'm loving that badge next to your name 😎

So true, there's so much misinformation and mostly politically motivated propoganda about this. People who really deals in that kind of money wouldn't care paying a little extra in taxes.

@CanadianTShirt

Ай бұрын

I get that if you were about to sell a cottage, you're not happy about paying extra taxes on it now but some self-awareness is important. This is a GOOD problem to have and a fortunate position to be in

@CanadianTShirt

Ай бұрын

But the amount of articles and videos I've seen with blatant misinformation and rage-baiting about a 67% tax is honestly surprising... and a bunch of these posts don't even come from Canada 😅

Can I make a rental a business to get the capital gain exemption

@CanadianTShirt

Ай бұрын

It's a more complicated situation and if you are doing a long term rental, probably not worth it since rental income is taxed MUCH worse in a corporation vs personal. The corporate strategy is usually better for flips instead

@CanadianTShirt

Ай бұрын

You should talk to an accountant who specializes in holding corporations. It certainly can work in certain situations but not every time. The details matter =)

@CanadianTShirt

Ай бұрын

But the short version is, instead of you selling the house and paying personal capital gains taxes. Your holding company would own the house and then you sell the company. That way you can claim the tax exemption. There's more to it than that but that's the strategy

Are you aware of the leaving tax? if you own a property outside of Canada and you no longer are a resident of Canada, you get taxed on the capital gains of your property in another country as if you had sold it, which sucks because the capital gains on your property is only on paper as you haven't actually sold it.

@CanadianTShirt

Ай бұрын

Yes it gets very tricky when it comes to foreign assets and properties. Both when you live in Canada and when you leave, it's very confusing so please get advice from an accountant who specializes in this field! =)

Excellent level-headed summary, Adrian. Instead of being sucked into rage-bait, people need to realize that the tax burden has increasingly been pushed onto the shoulders of the middle class over the last 40+ years. This tax change is a pretty mediocre attempt at reversing that trend. This won't affect the vast majority of people who are acting so outraged.

@CanadianTShirt

Ай бұрын

I appreciate those kind words, it has been very frustrating seeing so much insincere, fake outrage over this... and sadly so many people fall for it... You should NEVER blindly believe anything you see online (including my videos!) You should always double check these numbers for yourself

why do you say it's a down market now? housing market is still very hot now and the price is still very high. with interest rate going down, it's just gonna go up more

@CanadianTShirt

Ай бұрын

Oh it definitely depends on the region! Some markets are always hot, others are rather cool, even with the recent rate cut. My point was that you never want to be FORCED or pressured to sell when you're not ready!

@CanadianTShirt

Ай бұрын

Selling an investment property is a HUGE decision! Make sure you do it on YOUR terms. Not because of outside pressure =)

What about the Drs? 😅

@JC-tb1qx

Ай бұрын

You can’t trust all that is said on any videos unless you go through it yourself in near future. There is always more to it which only accountants will tell you when time comes. Everything has more factors than when explained in simpler terms.

@CanadianTShirt

Ай бұрын

Well doctors have benefited for years from incorporating their business (which most other high income jobs cannot do) So they've been taxed literally 4x less on their incomes all this time. However, investments inside a corporation has ALWAYS been taxed heavier. That's nothing new

@CanadianTShirt

Ай бұрын

If you incorporate, you get massive benefits on your income tax but you also have downsides on your investment income. They can't have it both ways... Again they still have enormous flexibility since they can choose how much of a salary / dividend to pay themselves to lower their overall tax bill (which is what I do with my corporation)

Is a market crash / recession coming to Canada?

@CanadianTShirt

29 күн бұрын

There will ALWAYS be another crash and recession. That's part of the game, historically it occurs every decade or so. It's a question of when not if

@CanadianTShirt

29 күн бұрын

But I don't expect any big drop anytime soon, I think we already experienced the market downturn since 2022 and we've been steady / slowly recovering since then

@RS-dc7wy

29 күн бұрын

Thank you for the reply Sir, much appreciated. 👍

@CanadianTShirt

29 күн бұрын

Happy to help! =)

I wish you were the leader of Bank of Canada or the Canadian economy,., seriously.!!

@CanadianTShirt

Ай бұрын

hahaha I'm not brave enough to get into the world of politics! But if the government wants to pay me to explain these things to the people, I'm game!

Capital gain is going to scare investors away, specially when we have a low capital gain tax heaven is just south of our border

@CanadianTShirt

Ай бұрын

Capital gains are still by far, the most favourable form of income in Canada. I am certainly continuing to invest in Canada and build my wealth here

@Dee-JayW

25 күн бұрын

You seem to not be aware that Capital Gains Tax has been around since the 70’s? That It is not new at all? Why come to watch this video, only to complain about something that has zero reality, and not watch the video to learn? How can you possibly compare how the US taxes capital gains versus how Canada does? I think you need to understand what income is versus capital gains. That is the difference in how the gains are taxed between the 2 countries! And adding gains onto your income is much more expensive to YOU than a capital gains tax. 🎉🎉

Reply to Canadian in a tee-shirt. I never said to million per year in capital gains , i said 2 million after a ( life time of work ) , farmers, small business ect, ( that when they sell or pass on their property to their children should be exempt from Capital Gains ; moreover at least 2 million for a one time exemption, on property , investments, ect.,, then 5o percent capital gains added to your income which sets your tax income for the year. The middle -class are not making 2 million per year, the wealthiest are making fatr more Respectfully i don’t understand your math, my friend. Free-land said she was going hit the wealthy, for a little more. A little more can be a life time of work for the middle-class. A farming family for example, who feed the population, and pass on the farm to their children or the liquidated assets from the farm sale.This should be exempt from capital gains up to at least 2 million after a lifetime and generations of hard work 24/7 in many cases.

Purchase price of a home,,,and 30 years of repairs is not even close dude,,not to mention inflation. Stop leaving out half the variable.

@CanadianTShirt

Ай бұрын

Well again it depends on your purpose! If you bought a second house for recreational use, like a cottage, it was NEVER designed to be profitable. And if you got lucky enough to see it grow over the years (after factoring in all expenses) then congrats!

@CanadianTShirt

Ай бұрын

If it's an investment property, then if you planned it right you should have run the numbers and ensured that your rent would cover all of the expenses. That's part of the job and that's the risk you take on as an investor. You are never "guaranteed' a profit

@northymcnorthy5407

10 күн бұрын

@@CanadianTShirt Finally, someone who knows what a cottage is intended to be!

what about crypto gains? there is an expectation that by the end of 2025 crypto some crypto investors will have 250 + profit after the bull run

@solidsnake2030

Ай бұрын

Word of advice.. keep your crypto outside of Canada. This government is full of crooks and would do everything to make you pay

@CanadianTShirt

Ай бұрын

If you are mining crypto, that will be taxed as business income. But if you are buying crypto and selling it for a profit, that's the exact same as stocks so it will be taxed as capital gains

@CanadianTShirt

Ай бұрын

So yes if you were lucky enough to make a profit of $250K then just be strategic and spread it out! Don't sell it all in one year!

The idea that this higher tax is for ‘fairness’ is BS.

@CanadianTShirt

Ай бұрын

I get that if you're selling a cottage or rental property, this extra tax is frustrating, again on amounts above $250K

@CanadianTShirt

Ай бұрын

"Fairness" is a tricky thing to adjudicate when it comes to taxes but as far as tax increases go, this one is pretty clear on who it affects and who it doesn't

@Dee-JayW

25 күн бұрын

It is extremely fair! And will affect a very small amount of people per capita.

@birderjohn3396

25 күн бұрын

@@Dee-JayW The small amount doesn’t constitute fairness, in itself.

I have some concerns about the increase taxes. The corporations will need to recoup their losses and the price of that is reflected in goods. That and the fact liberals have a big spending problem is worrisome. I fail to see how adding additional taxes in the current economy helps Canadians in the long run.

@CanadianTShirt

Ай бұрын

Oh you're not increasing the tax rate on corporate income! Corporate income is still taxed SUPER low in Canada (among the lowest in the world) This change only affects capital gains so investments in a corporation. And most corporations do NOT invest, literally only 12% of corporations have capital gains

@CanadianTShirt

Ай бұрын

For me, my concerns mainly stem with the disruption of tax integration for corporations. That's something that will need to get addressed

@Polar_soul

Ай бұрын

@@CanadianTShirt will that cause share prices to drop then?

@CanadianTShirt

Ай бұрын

It really shouldn't because the vast majority of a corporation's income does NOT come from capital gains. It comes from business income (actually selling a product or service) And that is not affected at all

@Polar_soul

Ай бұрын

@@CanadianTShirt thanks for the info. It would be nice though if the cost of goods went back to normal

if the tax targets small population of people, does not mean it's okay!! it's crap and evil how more taxes are being asked

@CanadianTShirt

Ай бұрын

I don't think "evil" is the right word but if you're affected by it, I get that you're not happy

@CanadianTShirt

Ай бұрын

I don't work in the government and I don't write the laws, I'm just passing the information along. These changes WILL happen, whether we like it or not so we gotta prepare and get informed!

Another brutal tax

@CanadianTShirt

Ай бұрын

I didn't write it, I'm just giving you guys the numbers

@CanadianTShirt

Ай бұрын

But I am curious, are you actually going to be affected by this?

@johnwicks4936

Ай бұрын

Why should we pay capital gains at all? How did we get conned into this at all never mind this ridiculous rate? They tax my income. That should be all they tax, not taxing my smart decisions or taxing me on everything I do after taxing my income. Pick one!

@CanadianTShirt

Ай бұрын

Well we've been getting "conned" since 1972 so.... 🤷‍♂️

The capital gains is pure inflation bro. Learn simple math.

@CanadianTShirt

Ай бұрын

Inflation is nothing special when it comes to capital gains. Inflation is the rising cost of living which affects EVERY form of income

@CanadianTShirt

Ай бұрын

Inflation affects employment income, dividends and capital gains equally. And thanks for the advice bro. I literally have a math degree 🤷‍♂️

@HomesteadChris

Ай бұрын

@@CanadianTShirt inflation is caused by printing money. Literally the inflation of the money supply. They print the money, devaluing the currency, then tax the inflation. It's theft from all angles.

Meanwhile in Dubai, 0% taxes.

@CanadianTShirt

Ай бұрын

Sure but Dubai has a whole host of other problems.... I choose Canada every time

@SuperGirl-tf2wn

Ай бұрын

Florida has no income tax. Oregon has no sales tax. It's incredible how this country is absolutely taxed out the ass and there's no distinguishable benefit of living here over those two places; in fact it's arguably worse.

@CanadianTShirt

Ай бұрын

If you get bit by an alligator in Florida, I hope you have health insurance... But hey, I believe in freedom, if you want to live there and pay less taxes but have everything privatized, go for it!

Usually find your videos informative, but this one is actually misleading. This is a death of thousand cuts. Just taking cottages, with the inflation this is equivalent of $100k threshold in 2010. Then you have all small/individual businesses such as doctors, plumbers, contractor, etc., who save for retirement in small companies as they have no other pension. Result of it will be that even more of them will move abroad, and those who stay will charge more for their services creating even more inflation. Looking at surface level and saying that this will affect only a tiny minority of just the rich is irresponsible and very misleading!

@CanadianTShirt

Ай бұрын

Please watch the entire video first... I address most of those points...

@CanadianTShirt

Ай бұрын

And this is just basic math. I'm sorry if you find numbers misleading... Capital gains are STILL by far the most tax efficient form of income. And remember we have had much HIGHER capital gains rates in the past. For the entire 90s, we had an inclusion rate of 75%.... way higher than today and all these businesses did NOT leave Canada then. They won't now, they're just complaining

@CanadianTShirt

Ай бұрын

And I'm in the exact same boat. I am self employed. I run two corporations. I don't have a pension but I understand how the tax system works. I know that investments inside a corporation have ALWAYS been taxed heavier than an individual. That's why you should NOT keep all your money in the corporation (just to try to skirt taxes) A smart plan would involve paying yourself some money to invest in your personal accounts, including the TFSA and RRSP

@PStar42

Ай бұрын

@@CanadianTShirt Again what you present is just surface level. Intriguing that you can do in depth analysis of 20 credit cards and keep track of which one to use for specific situations yet you don't understand and minimize the in depth répercussions and long term effects of taxes such as this.

@infamousnicone

16 күн бұрын

Hes a liberal

Why instead of having a good default rate, Canada has tax shelters of primary residence, rrsp/tfsa, capital gains inclusion rate? In my opinion there shouldn’t be any tax shelters and the base tax rate should be reduced by at least 50%. Rates have increased, period. I don’t buy those “incentives” or tax reliefs.

@CanadianTShirt

Ай бұрын

The problem with taxes is you can either be "fair" and flexible or you can be simple. You can't have it both. If you want simple, and everyone pays the same base rate then the poorest among us will be hit hardest! Taxing a billionaire 20% won't hurt him but taxing someone in poverty 20% is devastating

@CanadianTShirt

Ай бұрын

That's why we have a progressive tax system, with tax brackets, credits, deductions etc. Yes it's more complicated but it ensures that those with lower means won't be taxed as heavily as those that are much wealthier. It's not perfect, not even close but it's what we have to work with

Why? Why ? Why would we pay $80k to the government??? We would have been maintaining and improving the house for years building equity into it. Why would we have to pay them anything??? It’s ridiculous. What happens if we die and give our children our rental house??? Why do they have to pay???

@CanadianTShirt

Ай бұрын

I get the frustration but by that logic, no investment income should be taxed then? Why should you pay taxes on dividends? Why should you pay taxes on interest?

@CanadianTShirt

Ай бұрын

Remember capital gains are by far the most favourable form of income! And you are only taxed on the PROFIT and only a portion of the profits! Versus a salary where you are taxed 100% on it

@brendafandangle

Ай бұрын

@@CanadianTShirt do I pay property tax and land transfer tax on dividends???

@brendafandangle

Ай бұрын

@@CanadianTShirt yes, but shopping at goodwill and never talking a vaca to buy the rental to give your children a future shouldn’t have to suffer for my sacrifice. Yes , they should look at it on a case to case basis , it’s not fair. My house will be worth more when I die and my kids get it because I held on to it and paid taxes and maintenance etc… why don’t small landlords get a tax break for creating housing????

@brendafandangle

Ай бұрын

@@CanadianTShirt I’m taxed every year on my rental, heavily because it increases my annual income ( I don’t see that money, it pays the mortgage, property tax , hydro) and then the govt is going to capital gains tax it again??? Absolutely RIDICULOUS.

June 25th... is it? the law has yet to be updated... so maybe not. If you believe it is going up, I disagree that you should hold out for long term... look at your short term needs, or if you are retired and have good estate, you may want to look at paying the gains tax now at the lower rate, rather than your estate paying the higher rate in the future.

@CanadianTShirt

Ай бұрын

It's officially passed, it's happening. Obviously you have to do a deep dive into your personal situation, financial goals, time horizons all that stuff. But generally speaking, if you weren't planning on selling any time soon, I would not advice you to panic and rush and sell in a hurry to beat the deadline. Selling is a big deal, do it on your terms =)

So I take the risk of a large mortgage, risk bad tenents, risk high interest rates, cover costs that rent does not, and save what little I have to bring down the principal with a yearly payment, all with money that has already been taxed. Then, after taking all the risk and financial hardship, the gov't comes in to take a cut of the profit. Make it make sense.

@CanadianTShirt

Ай бұрын

I am a landlord and yes, that's part of the job. It comes with risks and expenses. And yes you are STILL well rewarded for that risk with very tax-favourable rates

@CanadianTShirt

Ай бұрын

And remember, you do NOT have to sell, no one is making you! These capital gains ONLY apply if you sell for a profit. If what you're describing is true and your rental income is less than your expenses then you are operating at a loss so you are NOT paying any taxes!

@CanadianTShirt

Ай бұрын

In fact, you are likely REDUCING your taxes from your regular job so I'm not sure what you're complaining about... you're literally getting free money from the government 🤷‍♂️

@johnwicks4936

Ай бұрын

Why is the government entitled to more of my gain then me? Are you insane? Do you have a degree in propaganda?

@CanadianTShirt

Ай бұрын

I have a mathematical physics degree... but I guess numbers count as propaganda in 2024.... 🤷‍♂️

This is step one. If the current administration is re-elected they will push for 100% as this is what they were speaking of doing during the pandemic.

@CanadianTShirt

Ай бұрын

No one serious is talking about 100% inclusion rate, that would be political suicide. Let's stick to facts and reality and leave politics aside please

@CanadianTShirt

Ай бұрын

The highest it's ever been was 75% inclusion rate throughout the 90s

The frogs won't mind it!😂 And when it gets to 100% they are not going to be alive!

@CanadianTShirt

Ай бұрын

I'm not sure I want to know what you mean by frogs.... lol

@CanadianTShirt

Ай бұрын

But no, the inclusion rate is not going to 100%, that would be political suicide. The highest we've ever had it was 75% throughout the 90s

Anyone that already pays taxes on everything and is happy about this is the most f'ed person ever...

@CanadianTShirt

Ай бұрын

No one is "happy about it" I'm just telling you the rules. These changes WILL happen in 2 weeks, so prepare for it

Capital gains are not always better than dividends provided by Canadian corporations. It all depends on your annual income. Question: - Would it be possible to make a video explaining how ETF dividend covered calls are tax efficient? Thanks

@CanadianTShirt

Ай бұрын

Eligible dividends can face negative taxation (and thus are better than capital gains) but only in the lowest tax bracket. This is very rare. For every other tax bracket, capital gains are taxed more favourably than dividends. But they are both great! =)

You better do some more math on this. Your way off in understanding whats going on here. This will kill life-long Farming, small business who have created a nest egg for retirement over years and years. The Government officials make 250,000 n up( in one year), plus perks; and moreover a raise recently ; as well as having lucrative pensions in i believe 6 years of so called service. There should be no capital gains at all up to 2 million , as an example. You go after the people making 10’s and 100’s of millions per year, if Free-land , Singh and the rest are serious about taxing the. ( .013 percent at the top.) but you can bet the wealthiest will have built in loop-holes Hagd.✌️

@CanadianTShirt

Ай бұрын

I'm sorry but what? You want people to make $2 million a year in capital gains before they pay a dollar in taxes?....

@CanadianTShirt

Ай бұрын

That literally only benefits the very richest people in the country.... I don't think that's going to be popular with the Canadian people

@CanadianTShirt

Ай бұрын

As I said many times, even with this increase (above $250K) capital gains is still, by far, the MOST favourable type of income. So everyone including myself and including the wealthiest people in Canada will continue to invest and earn income this way

Thanks Adrian, this was very informative. I am curious if you have a video explaining how taxes work for profit made in high interest savings accounts?

@CanadianTShirt

Ай бұрын

I'm glad you found it helpful! Unfortunately interest income from a savings account is FULLY taxable! It's taxed at your marginal tax rate, just like your salary

@CanadianTShirt

Ай бұрын

So unlike capital gains which has a 50% (and now 67% inclusion rate above $250K) your interest income has a 100% inclusion rate. So it's taxed very unfavorably. One of the reasons why it's better to focus on dividends and capital gains instead!

@CanadianTShirt

Ай бұрын

Although of course you NEED to have some savings in reserve as an emergency fund. But anything more than that is wasted potential =)

@dor1994

Ай бұрын

@@CanadianTShirt ahh darn that's too bad! It definitely makes me not want to chase the promotional interest rates in HISA's anymore. Thanks for the reply. I suppose focusing instead on investing in ETf's using a TFSA is the way to go!

@CanadianTShirt

Ай бұрын

Don't get me wrong, take advantage of the promotional rates but they will NOT make you wealthy. Only investing will get you there. Savings is just a protection, to keep you steady. Watch my 4 Steps to Wealth video for a full breakdown of this principal =) kzread.info/dash/bejne/fmVk2ciSnJbFgdY.html

Insider trading just got more expensive.

@CanadianTShirt

Ай бұрын

hahaha as if they ever get caught 😉

Nope. You messed up taxes on salary. It is only marginal at 53.53 rate on the portion that hits or exceeds the top tax bracket not the entire salary. Potion of lower income at lower tax bracket still is taxed at those lower marginal rates. The capital gains explanation is good though.

@CanadianTShirt

Ай бұрын

Oh if the entire income was $300K you would be right! You would start filling up each tax bracket from the bottom until $300K but in this example, to make the math easier, I said we start at the top tax bracket already with a salary of $250K

@CanadianTShirt

Ай бұрын

And then going through the math to see what would happen if you had an ADDITIONAL $300K of Salary (so $550K total). The point was the illustrate the difference between an extra $300K salary vs $300K capital gain. I hope that clears it up =)

Would 300k in income not from capital gains result in 160k in taxes? Wouldn’t it be less than that because not every dollar is taxed at the marginal rate? Love your videos btw

@CanadianTShirt

Ай бұрын

If your TOTAL income was $300K yes you are right. Each tax bracket would fill starting from the bottom until you reach $300K

@CanadianTShirt

Ай бұрын

But in this example, to make the math easier, I assumed that we are already starting at the top tax bracket with a salary of $250K

@CanadianTShirt

Ай бұрын

And comparing what would happen if you earned an EXTRA $300K of salary (so $550K total) vs an extra $300K from capital gains. Sorry if that wasn't clear! =)

@photoMorg

Ай бұрын

Hi I’m an average guy just retired and I was planning on selling 3 small rental apartments to fund my retirement and now I get hit with this increase in CG not happy at all. My question is to get my marginal tax rate you use ordinary income which is work or pension money, RRSP income if collecting and interest income then your combined Federal and Provincial rate is used to determine the % used to figure out how much tax paid for dividends and capital gains is that correct. Thanks

@CanadianTShirt

25 күн бұрын

@@photoMorg Yes so like in my example, you have to calculate the taxable portion of the capital gain ($125K on the first $250K + 2/3 of the remaining amount) That gets added to your taxable income (salary, pension, RRSP withdrawals etc) So you should NOT sell them all in the same year! That will put you in the highest tax bracket!

If you actually support this government, its fiscal record, and upping of taxes instead of responsible, controlled spending, then I have zero to learn from your channel. Unsubbed.

@CanadianTShirt

Ай бұрын

Buddy... literally the first 30 seconds what did I say? "we're going to stick to facts and numbers, leave the politics out of it"

@CanadianTShirt

Ай бұрын

I am JUST telling you the numbers. If the conservatives win the next election, I will do the EXACT SAME thing. Please be an adult and don't get offended by numbers and facts. These changes WILL happen, so get informed and prepare for it

I would love to see a video about inheritance property or cash. How it get taxed, does it get taxed etc.

@CanadianTShirt

Ай бұрын

That is a HUGE topic to cover, I can certainly make a video if you're interested! I don't have any personal experience with inheritance and I'm certainly not an expert on the topic but I can cover the basics =)

@tk7809

Ай бұрын

@@CanadianTShirt yes please, also cover capital gains on inherited property

@CanadianTShirt

Ай бұрын

@@tk7809 Inheritance can get tricky since it depends on many many things. But essentially, everything that you receive will be tax-free on your end. But most of the assets of the deceased will trigger a deemed disposition, meaning they will be taxed as if they sold the assets right at their death. This tax is paid by the estate and you receive what is left. Again the amount you receive is tax free, it doesn't count as income for you

@CanadianTShirt

Ай бұрын

@@tk7809 Most of the regular exemptions also apply for the estate. The big one being the principal residence. That is tax free but if they had a second property (cottage or rental property) that would be taxed as if they sold it. I hope that helps! =)

@tk7809

Ай бұрын

@@CanadianTShirt so that means a principal residence would not be taxed by the estate? So it’s passed down at full value and if you decide to sell you pay capital gains on the increased value since the inheritance?

You lost me when you said "I'm okay with paying more in taxes"...

@CanadianTShirt

Ай бұрын

When I sell a rental property and earn a profit above $250,000.... not a bad problem to have 😉

@freedomliberty83

5 күн бұрын

Of course he wants to pay more taxes. Socialists love to redistribute wealth, except what they don't realize is eventually you always run out of other peoples money. This guy is gonna jump for joy when Jagmeet announces he will tax our principal residence. I say Jagmeet because we all know Jagmeet runs the show now.

Another great video! I really wish I went through all your videos when I found this channel last year. I been converting CAD TO USD through my bank like a goof 🤦‍♂️ Then I ran into your Norberts Gambit video and it changed everything. Keep up the great content 🙏

@CanadianTShirt

Ай бұрын

Ouch.... I don't even want to ask how much money you've wasted in conversion fees....

@CanadianTShirt

Ай бұрын

I WISH more people knew about Norbert's Gambit! It has literally saved me THOUSANDS over the years, probably over $10K at this point!

@CanadianTShirt

Ай бұрын

Still better late than never and I'm glad you found me! Never stop learning bud! 😁

@justsomeidiotonyoutube7532

Ай бұрын

@CanadianTShirt I probably paid an extra 3k in fees over the last 3 years 🫣

@justsomeidiotonyoutube7532

Ай бұрын

@@CanadianTShirt Ya I been telling everyone about it! Maybe do a refresher video on it 🤷‍♂️

Just did a blossom post about a work through of a capital gains situation on liquidating a rental property.

@CanadianTShirt

Ай бұрын

I'll check it out! Sounds like a great post! =)

@CanadianTShirt

Ай бұрын

Do me a favour and tag me in the comments?

@Kgcottawa

Ай бұрын

Done

Great job explaining something than the people who created it.

@CanadianTShirt

Ай бұрын

That's what I try to do! It's been so frustrating seeing all the misinformation the past few weeks but the government is equally responsible... They are so bad at explaining these things to everyday people...

Capital gain tax is less than income tax because you take the risk of having capital loss.

@CanadianTShirt

Ай бұрын

That's true! And capital loss is a double-edged sword. If you take on a loss, you can use it to reduce your tax bill =)