Recent changes in the capital gains tax rate have caused significant confusion, particularly among property owners. Homeowners with secondary properties were the first to express concerns, but many others have since realized that these tax changes may affect them as well. The capital gains tax applies to anyone looking to sell a second home or apartment. This includes transferring ownership of a qualifying property or investment, whether it’s a gift or inheritance to children, grandchildren, or others. It also applies to selling items like cemetery plots, hunting camps, collections of rare baseball cards, or works of art.
Primary residences are exempt from capital gains tax, but secondary homes and investment properties, such as cottages, hunting camps, and vacant land, are not.

n an interview with CTV News, Pinewood Lodge rental manager Fincham stated, “I’m getting more calls about large acreages or hunt camps or cabins way back in the bush. I think there’s a lot of confusion because they don’t know how much it’s going to affect them.” He added that the tax applies to the increase in property value when such properties are gifted or bequeathed, even if no money changes hands

This means that either the person gifting the property or the recipient needs to set aside funds to pay the tax at the time of transfer. For properties that have appreciated by more than $250,000, the amount required to pay the tax if the property is gifted or bequeathed, rather than sold, has increased since June 25. Capital gains tax is applicable to most properties and investments known to appreciate over time, sold for profit. It does not apply to primary residences or essential goods bought and sold for personal use. When selling an item subject to this tax, 50% of the profit, if it exceeds $1,000, is taxable. This 50% is the inclusion rate from which the tax is derived. For net profits exceeding $250,000 in one year, the inclusion rate rises to 67%, effective from July 25, 2024.