Canadian Taxpayers Federation (CTF) is pressing all federal party leaders to take a clear stance against a home equity tax by pledging to eliminate a Canada Revenue Agency reporting requirement on the sale of primary residences.
The CTF says removing the requirement would signal that leaders have no intention of taxing home equity in the future.
“Canadians rely on the sale of their homes to pay for their golden years,” said Carson Binda, British Columbia Director of CTF.
“After the government spent hundreds of thousands of dollars flirting with home taxes, taxpayers need party leaders to prove they won’t tax our homes by removing the CRA reporting requirement.”
Currently, Canadians must report the sale of their primary residence to the CRA, even though the profits from the sale are exempt from capital gains tax.
The federal government brought in the reporting rule in 2016, claiming it was meant to curb tax avoidance. However, the CTF sees it as a potential first step toward future taxation of home equity.
Concerns were further raised when it was revealed that the Canada Mortgage and Housing Corporation spent at least $450,000 studying public support for a home equity tax. The research suggested targeting what it called “housing wealth windfalls gained by many homeowners while they sleep and watch TV.”
Binda warned that such a tax would impact both seniors and young Canadians.
“A home equity tax would hurt seniors saving for their golden years and make homes more expensive for younger generations,” said Binda. “If the federal government isn’t planning on imposing a home equity tax, then Canadians shouldn’t be forced to report the sale of their home to the CRA.”
With a federal election looming, the CTF is calling on all major parties to make their positions on the issue crystal clear.