Increase to capital gains tax will cause a flood in the cottage market: Muskoka Realtor
BNN Bloomberg
Changes to the capital gains inclusion rate announced in the federal budget last week could be a catalyst for a correction in the cottages and recreational property market as owners weigh their options, Muskoka-based realtor John Fincham says.
The new tax rates, set to be in force as of June 25, will increase the inclusion rate on capital gains from any sale from 50 per cent above the first $250,000, to 66 per cent after.
That change will have significant implications for cottage owners, many of whom have seen the value of their properties skyrocket in recent years, which is likely to cause many of them to kick the tires and sell before the higher tax rules kick in.
“People are trying to beat that timeline, we have seen a lot of new listings since the announcement, with more and more coming online everyday,” says Fincham, a broker with Re/Max Parry Sound Muskoka Realty, in an interview with BNN Bloomberg.
