Tax breaks for landlords

The federal Liberals are promising to give millions to landlords to renovate existing housing stocks and promising tax breaks to developers who build new rental properties in Canada.

The Liberals want to eliminate the GST on all new rental builds in the country while giving up to $125 million a year to landlords renovating aging rental units in the country.

The party is also proposing allowing Canadians a second chance to dig into their retirement savings plans to pay for a home if they have to move for work or the death of a spouse, see their marriage breakdown or take in an elderly relative.

Current rules only allow Canadians to use their registered retirement savings plans to finance the purchase of their first home.

Liberal Leader Justin Trudeau unveiled the pledge at an event in Toronto alongside Spadina-Fort York candidate Adam Vaughan, who has pushed social housing issues while in a high-profile race against the NDP’s Olivia Chow.

Chow won the seat in the 2011 election before leaving to make a failed bid for the Toronto mayoralty.

The Grits are also promising to study the hot housing markets in cities like Toronto and Vancouver to see what is driving up the cost of homes and condos.

The Conservatives made a similar commitment in Vancouver last month, tapping into concerns that foreign buyers were snapping up properties and driving up prices while the units themselves remain empty.


The Canadian Press 2015
 

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COMMENTS

  • by Ann 2015-09-09 9:02:59 PM

    Great! Renovating my rental now so guess I'll miss the tax break. Usage of RRSPs isn't restricted to first time buyers. If you've used RRSPs, they must be repaid and you cannot have lived in a home you've owned for a period of at least 4 calendar years. If you used RRSPs, repaid the amount cashed in and moved out of the home a minimum of 4 calendar years before the date of the next use of the program (i.e. you could still own it & treat as a rental, the key is not actually living there), under the RRSP program, you're considered a first time buyer. It'd be nice if politicians actually understood the existing policies before developing new policies.

  • by Nate 2015-09-10 5:42:33 PM

    My understanding is that you or your spouse cannot have owned any home for a minimum of four years prior to becoming re-eligible under current rules

  • by Mamaelf 2015-09-27 3:33:35 PM

    I think this is another empty promise. Once elected most politicians find a way to back out of their promises. So I am not voting Liberal because I don't believe them and actions speak louder than words. So far, very little action except to take away what Canadians already have (like the new law this August that has $100 deductible for Seniors. This basically penalizes seniors who are healthy!!!) Spend millions of dollars on immigrants but not on healthcare or Education on the people who already live here!!!!

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