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selling non primary residence - tax question
March 4, 2024
8:49 pm
escaleraroy
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I have a primary and a non primary home.
In terms of Taxes, what are the implications to sell my non primary property if I'm making 110K/year from my job?

March 4, 2024
10:58 pm
Norman1
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March 5, 2024
4:06 am
Bill
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Even if you acquired it without intention of selling for a profit, e.g. sale of a cottage you enjoyed for many years, capital gains tax will apply to a property not designated as your principal residence.

Your other income has no impact on this.

March 5, 2024
7:10 am
Technical Analyst
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It is taxed as income. Owning rentals is one of the worst ways to increase wealth as income is taxed at the highest amount among other reasons.

March 5, 2024
7:54 am
escaleraroy
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Technical Analyst said
It is taxed as income. Owning rentals is one of the worst ways to increase wealth as income is taxed at the highest amount among other reasons.  

what is the best way to increase wealth?

March 5, 2024
9:01 am
Norman1
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The rent is taxed as income. The profit from selling the rental property later is taxed as capital gains if one was really investing in rental properties and not just flipping the properties.

Best way to increase wealth is to have a well-paying career or run a successful business.

March 5, 2024
9:51 am
Technical Analyst
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escaleraroy said

what is the best way to increase wealth?  

Get targeted investment information from someone who knows your tax bracket, investment risk tolerance and you should understand, at least in general, what you are investing in. Remember,

Investing (stocks, MF, ETF's, HISA, etc..) is better than
Gambling (casino, scratch and win tickets, bingo, etc) is better than
Speculation (crypto, Dutch tulips, etc)

For return, a 50% capital gains tax return is x2 that of income. Dividends depend on tax bracket (in fact, you CAN have a negative tax on dividends!).

But in these economic times, income from TFSA/RRSP or HISA interest is most likely the best and safest product as it is liquid and allows opportunity and the ability to move funds.

...And Norman1 has some great advice: Best way to increase wealth is to have a well-paying career or run a successful business.

March 5, 2024
12:36 pm
Bill
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Agree with Norman1 on this one, I'd just add to put your head down and work hard at it for 30 years or so being relatively frugal along the way, probably be fine.

On the other hand inheritances are the most common way of getting wealth. And as Boomers check out their offspring are standing to inherit the largest wave of wealth in human history, anywhere, so I guess, again, being patient until time does its thing will help younger generations.

March 5, 2024
3:47 pm
SaverJunior
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escaleraroy said

what is the best way to increase wealth?  

What is the best way to increase health?

March 5, 2024
7:13 pm
escaleraroy
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SaverJunior said

What is the best way to increase health?  

i dunno, u should ask the health forum.

March 6, 2024
7:44 am
SaverJunior
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Right, I hardly know this is a wealth forum either. sf-smile

There are many successful wealthy (billionaires) Canadians. Google them up for their stories for inspiration.

March 6, 2024
9:08 am
Alexandre
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escaleraroy said

what is the best way to increase wealth?  

Spend less than you earn.

March 6, 2024
9:53 am
savemoresaveoften
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Norman1 said
Best way to increase wealth is to have a well-paying career or run a successful business.  

Our tax code is structured to "penalize" someone with a well-paying job, with highest marginal tax rate at 54% and not eligible for pretty much all types of hand out. I call it a "double slap" on the face. Being very successful also most likely means no OAS, no GIS down the road, after paying an obscene amount of tax during the working years.

Run a business is the way to go, with so many differ venues one for legal wealth planning and tax "avoidance".

March 6, 2024
11:40 am
Bill
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escaleraroy, check out folks who have money, ask them or do what they do, and also don't listen to advice for those who are aren't wealthy.

March 6, 2024
12:19 pm
Alexandre
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Bill said
escaleraroy, check out folks who have money, ask them or do what they do, and also don't listen to advice for those who are aren't wealthy.  

Pablo Emilio Escobar Gaviria was a Colombian drug lord. Dubbed "the king of cocaine", Escobar was one of the wealthiest criminals in history, having amassed an estimated net worth of US$30 billion by the time of his death—equivalent to $70 billion as of 2022.

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