Ontario urging Ottawa to change tax rules in bid to curb real estate speculation
TORONTO — Ontario Finance Minister Charles Sousa is urging Ottawa to address speculative investing in the country’s housing markets by changing how such profits are taxed.
Currently, a capital gains tax is charged on 50 per cent of the profits on the sale of a home unless the property qualifies for a principal residence exemption.
In a letter to federal Finance Minister Bill Morneau dated Friday, Sousa says that boosting the taxable amount above 50 per cent could reduce the incentive for people to purchase homes on speculation.
Morneau is set to release his latest budget on Wednesday amid speculation that the Liberals may increase the capital gains tax.