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>>Canada taxes capital gains at 50% anyway so it’s probably not a great idea to value it as much there. Can you elaborate on this a bit more? I thought that Ca
by otoburb 6y ago
>>Canada taxes capital gains at 50% anyway so it’s probably not a great idea to value it as much there.
Can you elaborate on this a bit more? I thought that Canada only taxes half of the capital gains which is then added to your taxable income.[1] So the amount of tax paid on the capital gains might be 50% or more but only if your taxable income for that year places you in the highest tax bracket.
In the US, you're generally on the hook to pay tax on 100% of any capital gains, compared to Canada where you're only paying tax on half of any capital gains.
[1] https://turbotax.intuit.ca/tips/capital-gains-tax-in-ontario-11064 https://turbotax.intuit.ca/tips/capital-gains-tax-in-ontario...
- fossuser 6y agoAh interesting - I’m not Canadian so don’t know much about their tax law. You’re probably right and I had a confused misunderstanding. I only looked briefly to see what it’d be like if the election goes south and things get worse in the US. US long term capital gains is only 15% up to 400k and 20% after that which is really good. [Edit] Reading that turbo tax article it seems like only 50% of the gain is taxed at all and of that gain the maximum tax is under 15%? Is this just Ontario tax and there’s more federal or something else? That seems really good?
- fossuser 6y agoLooks like that's in addition to federal income tax: https://www.canada.ca/en/revenue-agency/services/tax/individuals/frequently-asked-questions-individuals/canadian-income-tax-rates-individuals-current-previous-years.html https://www.canada.ca/en/revenue-agency/services/tax/individ... So I think most of the time it's probably a lot worse than the long term gains tax in the US.