As a growing number of Canadians head to the big box stores to shop for their next big purchase, there’s one item they should keep in mind: the tax they’ll have to pay on the sale.
“We’re going to have to make a decision at some point about what kind of tax to put on a purchase like this,” said Peter Diefenbaker, head of international tax at the Canadian Taxpayers Federation.
“I would expect that to be a big factor in the final decision.”
Diefengber said the average Canadian household pays about $100 a year in income tax on a $500,000 purchase.
“It’s a lot of money to pay,” he said.
“And that’s just not something you can really do without some kind of significant loss in the value of the property.”
A tax break for first-time homebuyers and new Canadians Diefenberg says he has no doubt the new tax rules will result in a big jump in sales for Canada’s most expensive real estate in recent memory.
“The tax rules have not changed,” he told CBC News.
“There’s a $10,000 tax on new Canadians buying a $2.5 million home.
That’s going to be the same as a $5,000 on first-timers.”
With files from CTV Atlantic’s Dan Vasek and the Canadian Press