Canada’s 2022 federal budget has introduced some interesting ideas for separating and divorcing couples. Specifically, the budget introduced a new tax rule to prevent profits from flipping residential real estate owned for less than 12 months….HOWEVER, the new rule does NOT apply if the sale of property is due to a “breakdown of a marriage or common-law partnership, where the taxpayer has been living separate and apart from their spouse or common-law partner because of a breakdown in the relationship for a period of at least 90 days.
“Budget 2022 proposes to introduce new rules to ensure profits from flipping properties are taxed fully and fairly. Specifically, any person who sells a property they have held for less than 12 months would be considered to be flipping properties and would be subject to full taxation on their profits as business income. Exemptions would apply for Canadians who sell their home due to certain life circumstances, such as a death, disability, the birth of a child, a new job, or a divorce. Exemptions will be set in forthcoming rules and Canadians will be consulted on the draft legislative proposals.”
The new tax would apply to residential properties sold on or after January 1, 2023.
So married spouses will pay tax on flipping real estate but divorcing couples will not. Interesting!
Book a Consult
At Benmor Family Law Group, our multi-disciplinary team of divorce experts fully understands the emotional and financial impact of divorce divorcing couples. That’s why we treat our clients the way we would want to be treated. Whether we help you through separation, divorce, mediation, divorce coaching, or parenting coordination, our full-service family law firm expertly supports you, guides you, and represents you – throughout your case.
Book a Consult today to see what your legal options are or call us if you have any questions at 416-489-8890.
To book your Divorce Strategy Session. In your 30 minute Divorce Strategy Session, I’ll address your key concerns and guide your through the next steps of your divorce. One question at a time.
Share this article on: