Canadian here and our new budget gets most of it’s new money from a new capital gains tax. Can you explain what they are, and surrounding context? Thanks!
In: Economics
In terms of stocks: you buy a stock for $100, a few months later you sell for $110. You made $10! Congrats! Well the government would like some of that profit.
Can work similarly with houses: you buy a house for $200k (assuming all cash), 10 years later you sell it for $300k. Great made a $100k profit, the gov. Wants their %.
This is a very simple explanation and it is a lot more nuanced and I’m not sure exactly what the new Canadian rules are. But this is my explanation from someone in the US.
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