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Tax Law

LIBERAL TAX ON REITS WOULD BE A MISTAKE

Posted in Affordable Housing, Industry Trends, Newsworthy, Tax Law

LIBERAL TAX ON REITS WOULD BE A MISTAKE

A recent announcement from the Liberal Party to review tax-advantaged REITs is drawing concerns that changes could curtail investment – and worsen supply issues are the core of housing affordability. “We will undertake a review of the tax treatment of large corporate owners of residential properties such as Real Estate Investment Trusts (REITs) who are increasingly trying to amass large portfolios of Canadian rental housing, putting upward pressure on rents,” the announcement states, “We will...

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DREAM’S CEO SAYS TRUDEAU THREAT AGAINST REITS IS A ‘SIDESHOW’

Posted in Industry Trends, Newsworthy, Tax Law

DREAM’S CEO SAYS TRUDEAU THREAT AGAINST REITS IS A ‘SIDESHOW’

Prime Minister Justin Trudeau’s threat to change tax rules for real estate investment trusts is a “sideshow” that will do nothing to affect home prices in Canada, according to one of the country’s largest publicly-traded real estate developers. The prime minister has promised to tackle the “financialization of the housing market” by the end of 2023, building on an election pledge last year to review the tax treatment of large corporate owners of residential properties such as REITs. As in the...

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THE LIBERALS PLAN TO REVIEW TAX TREATMENT OF REITS. WILL THIS HELP RENTERS?

Posted in Industry Trends, Newsworthy, Tax Law

THE LIBERALS PLAN TO REVIEW TAX TREATMENT OF REITS. WILL THIS HELP RENTERS?

Tax experts say they’re unsure how Ottawa might target real estate investment trusts (REITs) that invest in rental residential housing, or indeed how a change to their tax treatment would help alleviate the issue of housing affordability in Canada. The federal Liberals promised to review, and possibly reform, the tax treatment of REITs as part of a broader strategy to make housing more affordable for ordinary Canadians and bring “fairness” to the housing market. “Large corporate owners of...

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2022 FEDERAL BUDGET TO FOCUS ON HOUSING, TAX FAIRNESS: EXPERTS

Posted in Housing, Industry Trends, Legislation, Newsworthy, Tax Law

2022 FEDERAL BUDGET TO FOCUS ON HOUSING, TAX FAIRNESS: EXPERTS

The 2022 federal budget will probably include initiatives to curb speculation in real estate, boost productivity through targeted tax incentives and promote overall tax fairness, tax policy experts suggest. But the Liberal government is unlikely to introduce significant broad-based tax increases. “I sense a reluctance to raise the top rates further, because capital is mobile — it leaves the country,” said Carol Sadler, founder and tax leader with Achen Henderson LLP in Calgary, adding that she...

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MORE HOUSING TAXES WON’T HELP ANYONE, SAYS EBY

Posted in Housing, Industry Trends, Newsworthy, Tax Law

MORE HOUSING TAXES WON’T HELP ANYONE, SAYS EBY

Housing Minister David Eby is rejecting calls for more housing taxes, saying a “massive” increase in the housing supply is his preferred route to improve housing affordability in B.C. “No tax policy is going to put a roof over someone’s head,” Eby declared this week in fending off calls for the New Democrats to bring in new taxes and thereby discourage demand. The proposal from UBC-based Generation Squeeze for a surtax on homes valued at more than $1 million? “I don’t agree,” Eby told Stephen...

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PROPOSED SURTAX ON HOMES WORTH MORE THAN $1M RIDICULOUS

Posted in Affordable Housing, Housing, Industry Trends, Newsworthy, Tax Law

PROPOSED SURTAX ON HOMES WORTH MORE THAN $1M RIDICULOUS

It took less than one week into 2022 for me to find that I needed to dig deep and fight the involuntary urge to slam my head into my keyboard upon reading of the latest proposal to cure our Canadian housing affordability crisis. Perhaps you missed it, lost in the deluge of media coverage of the absolute barn-burner that was the 2021 Canadian real estate market is a new report coming out of B.C. proposing a surtax on homes over $1 million. Published by Vancouver-based non-profit Generation...

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SPECULATION TAX WON’T REIN IN TORONTO’S HOUSING MARKET

Posted in Housing, Industry Trends, Newsworthy, Tax Law

SPECULATION TAX WON’T REIN IN TORONTO’S HOUSING MARKET

Councillor Mike Colle proposed a new speculation tax at Toronto City Council on Dec. 15. With the goal of making housing in Toronto more affordable, the thinking appears to be that a new levy (in addition to the already existing capital gains tax) to the sale of homes that are not principal residences would deter speculation and eliminate “home flippers” from the tightest, most competitive housing market on record. According to Colle, “These people are just essentially blowing up the market in...

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THE CANADIAN GOVERNMENT JUST PUT REAL ESTATE INVESTORS IN ITS CROSSHAIRS

Posted in Finance, Industry Trends, Newsworthy, Tax Law

THE CANADIAN GOVERNMENT JUST PUT REAL ESTATE INVESTORS IN ITS CROSSHAIRS

Canada quietly put real estate investors on notice, right before the holidays — probably hoping it slips under the radar. A newly re-elected Liberal Party of Canada (LPC) distributed mandate letters. These letters contain orders for the Minister to execute and are usually pretty dry. A big exception is the Minister of Housing’s mandate letter, which puts real estate investors in its crosshairs. The Minister has been ordered to cut profits, deter speculation, and limit leverage. Here are the...

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GOVERNMENT ANNOUNCES PROPERTY “RE-ASSESSMENT” FREEZE

Posted in Industry Trends, Newsworthy, Rent Control, Tax Law

GOVERNMENT ANNOUNCES PROPERTY “RE-ASSESSMENT” FREEZE

On November 4th, as part of the Ontario Economic Outlook and Fiscal Review, the government announced it was postponing property assessment updates for the 2022 and 2023 taxation years. Property assessments will remain the same as they were for the 2021 tax year, unless there have been changes to the property. This move by the province is expected to stabilize property taxes through the COVID recovery period. We do note that many municipalities across Ontario continue to move forward with...

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THREE YEARS IN, HAS B.C.’S SPECULATION AND VACANCY TAX MADE A DIFFERENCE?

Posted in Industry Trends, Newsworthy, Rental Rates, Tax Law, Vacancy Rates

THREE YEARS IN, HAS B.C.’S SPECULATION AND VACANCY TAX MADE A DIFFERENCE?

On the third anniversary of B.C.’s adoption of a vacant home and speculation tax, the province says the tax has turned empty units into homes. But experts remain divided on its benefits and note it’s hard to isolate the tax’s exact effect on the supply and market of housing and rental stock. The B.C. Ministry of Finance, in a 22-page technical briefing to mayors made public Wednesday, points to Canada Mortgage Housing Corp. figures that it says shows the tax “helped” add 18,000 units to the...

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