Joel DyckReal Broker SK Ltd.
Saskatoon · From the topic map

Who would benefit from raising the home-sale capital gains exclusion?

That question assumes a capped exclusion Canada does not actually have. The Canada Revenue Agency's principal residence exemption already shelters the full profit on the home you live in, with no dollar ceiling to raise, so the group who would benefit from a higher cap here is nobody, because nobody is hitting a cap in the first place.

What could change the picture for a Saskatoon owner is a different federal proposal, a higher inclusion rate on the taxable share of a capital gain, and that applies to secondary properties, rentals and investment real estate, not to the exemption on your own home, since that kind of gain is already taxed on only 50 percent of the profit before any exemption applies.

If that inclusion-rate change goes through, the owners it affects are people selling a second property, a cottage, or a home they did not designate as their principal residence, since the taxable portion of that gain would grow. An owner selling the house they actually live in sees no change either way.

If you own more than one property and want to know how a rate change would actually land on your specific situation, that is a conversation for an accountant before you list. Get your hand-reviewed valuation from Joel Dyck.

Get your hand-reviewed valuation from Joel Dyck.

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