Taxation and the middle class

[danbrotherston]

I suspect the current spike in listings is a result of the proposed capital gains inclusion rate increase. Anyone who sells within the next two months will likely save tens of thousands of dollars in taxes if they've held since 2019 or earlier.

The new higher capital gains rate only kicks in after $250K in gains (and appreciation of primary residences is not taxed, of course) so a $10K savings would require the unit to have appreciated by something like $370K; that amount would result in $20K additional taxable income and something like $10K in taxes. I don't think there are many investment condos that have appreciated that much. Maybe duplex/triplex houses, but I don't think it would significantly impact the number of listings at the moment.

Are you sure? We bought our condo in 2018 and sold it in 2022 and our condo went up >200k in value, and ours was extremely cheap at the time, the same percentage increase for a more expensive unit would easily hit 370k, and I think property has still been going up since.