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House Hansard - 334

44th Parl. 1st Sess.
June 18, 2024 10:00AM
Context: House Hansard - 334 - Jun/18/24
Mr. Don Davies
  • Jun/18/24 6:28:29 p.m.
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Madam Speaker, I think it is important for us to remember some basic facts. The first is that the capital gains exemption for principal residences is maintained in the budget, so Canadians can purchase their own principal residence and sell it tax-free. That remains. I know that people are worried about how the change might affect gains on the sale of a property such as a rental property or a second home. I think something that is very important to remember is that the $250,000 inclusion rate, which stays the same as it always was, at 50%, can be stacked. That means that if two people, a couple, own a second home or a vacation property and sell it, they can add their $250,000 capital gains inclusion rates together to make it half a million dollars. I will also take a moment to talk quickly about family farms. They benefit from a lifetime capital gains exemption that is going to be raised in the budget from $1 million to $1.25 million, plus family farms also benefit from the principal residence deduction, which is the value of their house, and 1.24 acres is also totally exempt from capital gains. There are provisions in the budget that protect family farms, cottages and second residences; therefore I think the people my hon. colleague is concerned about will be well taken care of with the budget.
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