Homeownership in Canada—benefits and costs

In Research by Michael Rae

Middle-income households face a big decision—whether to rent or own a house. Governments also face a big decision—whether to favour homeownership, support rentals or stay neutral. Canadian governments, provincial and federal, have chosen to support homeownership by taxing investment in housing less than other investments.It’s well known that capital gains from a family’s principal residence escape taxes unlike gains from other real estate, stocks and personal property. Governments would gain $5 billion a year by taxing these gains the same ways as others.Less well-known is the tax break on the benefits from owning a house. Rather than money income, these

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