REALTORS® welcome federal tax proposals

The Canadian Real Estate Association (CREA) and its more than 88,000 REALTOR® members across Canada welcomed the federal government’s identification of tax, fiscal, and infrastructure issues as key elements to improve the quality of life for all Canadians. The three were among the five Canadian Advantages outlined in the Fall Economic Statement delivered by Finance Minister Jim Flaherty today.

One of the proposals outlined by Minister Flaherty in the Advantage Canada document was the reduction of taxes on savings, including capital gains, to make Canada’s tax system more competitive. REALTORS® have been calling on the federal government to implement a capital gains rollover provision for small investors when the proceeds of the sale of real property are reinvested in another real property investment within a set timeframe.

Currently, Canadians who have financial assets or property other than a principal residence must pay tax on the capital gains resulting from the sale of a financial asset or property.

“Small investors are not selling their real property investments because of the capital gains tax consequences, and this is unduly influencing typical market activity,” said Pierre Beauchamp, Chief Executive Officer of The Canadian Real Estate Association.

“CREA believes that a capital gains tax deferral for small investors would encourage more Canadians to look at real estate investment opportunities,” added Beauchamp. “The Association has conducted a great deal of research in this area, and looks forward to working with the government as it further develops this policy.”