Quote:
Originally Posted by Carl Johnson
If I buy a stock and make a profit I have to pay tax on 50% of my gain (excluding RRSP TFSA here). If I work a regular job I have to pay taxes according to my marginal tax rate not to mention all other other deductions like CPP and EI government takes. So why is it this guy who have lived at this residence for less than 5 years can potentially net over $1,000,000+ not have pay a dime on this profit? The current system of principal residence exemption needs to be abolished once for all. This should guy be paying taxes on at least half of his capital gain just like if I a buy a stock since he never had the intention of living their permanently.
And to the guy that mentioned Apple computer. Your average citizen don't need a Mac to survive (although some apple addicts might) but most don't. A house is one of most basic need to set up a family and enjoy life. It is the cornerstone of a stable society and when you got guys flipping trying to make a quick buck, this builder making home less affordable to everyone else.
This does ultimately comes down the question of fairness. And do you answer your question Hondacracer? I do believe there is something fundamentally wrong with it when people are exploiting the system and not paying their fair share.
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although I agree with you regarding the tax issue, he took and good gamble and won. you and I both could of did the same thing and would be laughing about it now, but we didn't. that's why people don't like the "system".
in the end, if you were in his shoes, you'd be a happy man not having to pay the tax