So....election in 2024!? | Page 5 | GTAMotorcycle.com

So....election in 2024!?

nobbie48 said:
The 15% increase in CG above $250,000 may resonate with a lot of people that don't have any investments, people living day to day are more concerned with housing, grocery and fuel prices. They may see the change as sticking it to the man.

The people that are concerned will have secondary properties and or millions in investments.

One day the ones that didn't see the bus coming get the bad news that their mom or pop died and all the potential CG's, the cottage, RRSPs, RRIFs will get heavily taxed. Of course probate eats a chunk as well.

I was honoured that a friend wanted me to be executor for his estate, until I got the details. CG and probate needed a quarter million and the heavily taxed RRIF wasn't going to be enough. His offspring want to keep the cottage based on the collateral value of some ten year old cars and sub average incomes. Their situation just got worse.

If this affects the stock market will there be a shift from growth to income?
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Some of those will inherit two houses from their parents. The parent’s main residence and a cottage. That means some inheritors will have three properties to juggle. Now an even bigger first world problem. I’m having a job building any sympathy here. The ones with the debts will still have plenty left over from any sales after taxes to put a considerable sum against those debts.
 
GreyGhost said:
I have a relatively low percentage invested in Canadian markets. I can make a lot more invested elsewhere. With the high probability that our dollar takes a dump wrt usd, that decision is looking better every day.
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I’m almost all out of Canadian investments, except for real estate I’m all in US stuff now. All my loose cash is US too.

A few weeks ago I gave my guy the green light to go all cash if his firm recommends such. He said there was no panic, but things could get nutzo in Oct when profit taking season crashes into an uncertain US election.
 
nobbie48 said:
Basically a morality tax.

A friend's wife died and he met a compatible widow. They both kept their own homes and never married due to cap gain and pension rules. He ended up pretty much living at her place and his son lived free at his. Simple rules: Her kids get her stuff and his kid gets his.

Sonny met and married a gold digger. The marriage pretty much dissolved when she found out she had no claim to half. Sonny's net worth was $10K on a good day. I think the burn out marks are still on the street from when she left.

Dilution is the problem. In the USA they passed the Gallo Act because the winery would have to dissolve to pay the cap gains. The case does have some merit if it means avoiding the destruction of a company and associated job loses etc. Not so much when it comes to keeping the kids rich.

$1.5 Million house, one kid, no problem.

Two kids get 50% down payments on house similar to parents. Who wants to downsize?

Three kids $500 K down payment, Million mortgage. Ouch. Can it be converted to a triplex?
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Dumb gold digger. If mom left sonny alone in the house, he’s likely able to carve out a bigger share of the inheritance, perhaps 100% of the house with zero for his sibs.
 
One way to help offset the tax is to skip a generation with inheritance. When my parents and my wife's parents pass, everything is going to my kids. Why give me the money to pay tax on, and then I give it to my kids to pay tax again? Not to mention, it'll be more of a benefit to them at their stage of life than it will be to me. And if I don't manage to live forever, then everything of mine will go to my grandkids for the same reason. F Trudeau (both of them).
 
Mad Mike said:
Dumb gold digger. If mom left sonny alone in the house, he’s likely able to carve out a bigger share of the inheritance, perhaps 100% of the house with zero for his sibs.
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Worse still. Sonny boy loser moves back in with mommy and lives rent free for a decade before she passes away. He claims to be a dependent and that is a given under the family act changes. There is a reasonable split of assets with siblings BUT sonny gets to live in the house as long as he wants. Only then does the estate get settled. Siblings don't get their shares for decades. Sonny owes money everywhere and DOES NOT WANT to inherit because creditors can then go after him. The executor is on the hook for the rest of his life.
 
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Renboy said:
One way to help offset the tax is to skip a generation with inheritance. When my parents and my wife's parents pass, everything is going to my kids. Why give me the money to pay tax on, and then I give it to my kids to pay tax again? Not to mention, it'll be more of a benefit to them at their stage of life than it will be to me. And if I don't manage to live forever, then everything of mine will go to my grandkids for the same reason. F Trudeau (both of them).
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My wife was talking to a Chinese friend and the will subject came up. The Chinese friend said their wealth goes to the grandchildren. Think dynasy.
 
Renboy said:
One way to help offset the tax is to skip a generation with inheritance. When my parents and my wife's parents pass, everything is going to my kids. Why give me the money to pay tax on, and then I give it to my kids to pay tax again? Not to mention, it'll be more of a benefit to them at their stage of life than it will be to me. And if I don't manage to live forever, then everything of mine will go to my grandkids for the same reason. F Trudeau (both of them).
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How’s that work with capital gains? Can one transfer a property to their grandkids if they’re not of legal age?

My parents have 5 grandchildren so if that’s an option we’re all ears.
 
mimico_polak said:
How’s that work with capital gains? Can one transfer a property to their grandkids if they’re not of legal age?

My parents have 5 grandchildren so if that’s an option we’re all ears.
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Transfer of a property now will trigger CG on your parents behalf. If they (kids) were beneficiaries the CG would trigger when the last grand parent passed.

Not sure what the legalities are of adding underage grandkids to a property title, probably not allowed.
 
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Evoex said:
Transfer of a property now will trigger CG on your parents behalf. If they (kids) were beneficiaries the CG would trigger when the last grand parent passed.

Not sure what the legalities are of adding underage grandkids to a property title, probably not allowed.
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One way or the other JT gotta get paid.

As I said we will be trying to rent it out through family and friends only.

We’ll see how it goes.
 
This discussion came up last night with friends . Mother and father in law don’t like or trust Son in law . He currently owns 5 houses , 2 cottages and a condo. FIL/MIL want to leave thier collingwood chalet / Toronto and Florida condo to the two grandkids . Grandkids are late 20s . The could not cover the tax obligations without selling a portion. Unless SIL they don’t like pony’s up.
Sometimes grandmas gift isn’t all that handy .
SIL is a chartered accountant that specializes in tax accounting, so it’s not like he doesn’t know .


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Renboy said:
One way to help offset the tax is to skip a generation with inheritance. When my parents and my wife's parents pass, everything is going to my kids. Why give me the money to pay tax on, and then I give it to my kids to pay tax again? Not to mention, it'll be more of a benefit to them at their stage of life than it will be to me. And if I don't manage to live forever, then everything of mine will go to my grandkids for the same reason. F Trudeau (both of them).
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Anothe is to distribute wealth to your kids early.

Many do that already by housing, educating and feeding their adult children and holding on to vacation properties for the benefit of their kids. Another way to do things is gift them their inheritance while they are living.

I’ve met a lot of older people that sacrifice living so they can leave their kids something. Rather than giving them $1m when they are 65, give them $100k when they are 40., and 500k when you die. You’ll both enjoy that more.

I want to enjoy my kids enjoying what we have as a family. They will do the same with their kids.
 
crankcall said:
This discussion came up last night with friends . Mother and father in law don’t like or trust Son in law . He currently owns 5 houses , 2 cottages and a condo. FIL/MIL want to leave thier collingwood chalet / Toronto and Florida condo to the two grandkids . Grandkids are late 20s . The could not cover the tax obligations without selling a portion. Unless SIL they don’t like pony’s up.
Sometimes grandmas gift isn’t all that handy .
SIL is a chartered accountant that specializes in tax accounting, so it’s not like he doesn’t know .


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Florida is easy. Your friends can convert their ownership to a Ladybird deed. This allows them to add successors to the deed, they inherit the property through survivorship without major tax implications.

They do inherit the US CG liability which in the FL may be zero unless mom and dad are very wealthy.
 
raginduck said:
You have to be 18 to own property in Canada.
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There is no legal age for owning property in Canada. Minors occasionally inherit property when stripes or other conditions are in a will.

The twist is that minors cannot enter into a contract to purchase property, which is a small obstacle solved by using a trust or guardian to execute a purchase agreement.
 
crankcall said:
This discussion came up last night with friends . Mother and father in law don’t like or trust Son in law . He currently owns 5 houses , 2 cottages and a condo. FIL/MIL want to leave thier collingwood chalet / Toronto and Florida condo to the two grandkids . Grandkids are late 20s . The could not cover the tax obligations without selling a portion. Unless SIL they don’t like pony’s up.
Sometimes grandmas gift isn’t all that handy .
SIL is a chartered accountant that specializes in tax accounting, so it’s not like he doesn’t know .


Sent from my iPhone using GTAMotorcycle.com
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If there is mistrust do not think normally. Think like the most evil person you can imagine. Then double it. If your opponent has legal connections double it again.
 
Mad Mike said:
There is no legal age for owning property in Canada. Minors occasionally inherit property when stripes or other conditions are in a will.

The twist is that minors cannot enter into a contract to purchase property, which is a small obstacle solved by using a trust or guardian to execute a purchase agreement.
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would the inherited property not be held in trust or guardianship until the minor is 18?
 
raginduck said:
would the inherited property not be held in trust or guardianship until the minor is 18?
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Yes, guardian or trust for real property and securities.

Property in cash, business shares, yachts, cars, bikes etc… not automatically.
 
Evoex said:
not quite. new budget legislation aside, it should be 50% of the gain is taxable and that amount is then added to your income bracket

are they transferring ownership?

also i was under the impression the estate ate the gains of 2nd properties and you were on the hook for the balance? I'm going through this myself this tax season so i'll circle back to you.
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FYI @mimico_polak , his estate will pay the capital gains portion of the cottage.
 
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