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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
The 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 recommends 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.
News Release: January 26, 2006 - REALTORS® Look to New Government
to Place High Priority on Housing Issues.
Update
During the March 2007 meeting with Hon. Gary Lunn in Ottawa, the
VREB representatives were urged to be patient while the minority
government continued to work on this issue.
Ratification
Position ratified by the VREB Directors, September 2007.
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