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Capital Gains Rollover Provision in Income Tax Act
The Issue
During the 2006 federal election, the Conservative Party of Canada promised to introduce a “Capital Gains Rollover” provision within the Income Tax Act. The promise has not yet been kept by the minority government.
VREB Position
2007 VREB President, Bev McIvor, wrote local MP, Hon. Gary Lunn on January 12, 2007 to remind him of the campaign promise and notify him of the Board’s strong support for introduction of the deferral opportunity for small investors. The letter also made reference to the position taken by the Canadian Real Estate Association as part of their ‘Pre-Budget Submission 2007’. It recommended deferral of both the capital gains tax and the capital cost recovery of all real property investments when an investment property is sold and the proceeds are reinvested in another real property within a specified time period.
The position was reiterated in face-to-face meetings with all three local MPs when VREB representatives traveled to Ottawa in March, 2007 and again in their 2008, 2009 and 2010 visits.
News Release: January 26, 2006 - REALTORS® Look to New Government to Place High Priority on Housing Issues.
Update
In 2007 and 2009 VREB won national awards from the Canadian Real Estate Association (CREA) for work on this issue that resulted in the introduction of a Private Member’s Bill by the New Democrat Party championed by local Member of Parliament, Denise Savoie. While CREA continues to advocate for this particular change in the Income Tax Act, it appears that the minority Conservative Government is unable to persuade the Ministry of Finance to take action at this time.
Ratification
Position ratified by the VREB Directors, January 2011.
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