How it works: Capital gains tax on the sale of a property + MORE May 3rd

Michael McCullough is a financial writer and editor in Duncan, B.C.

Oil sands producers await TMX price bump

Diluted bitumen started flowing through the expanded Trans Mountain Pipeline on Wednesday (even at a brisk walking pace, it’ll take weeks to reach its destination). This is raising hopes that at last Canada’s oil sands producers will be able to narrow the discount paid by a now-larger cohort of refiners for their product. Meanwhile, two of the largest shippers on the pipeline reported first-quarter earnings sans that hoped-for revenue bump.

Oilsands earnings highlights
Two producers released their financials this week.

Cenovus Energy (CVE/TSX): Earnings per share rose to $0.62 (versus $0.54 predicted) on revenues of $13.4 billion.

Canadian Natural Resources (CNQ/TSX): Earnings per share of $1.37 (versus $1.48 predicted) on revenues of $8.244 billion.

Cenovus output and profits both surprised on the upside, and the company further sweetened the pot by hiking its base dividend by 29% and announcing a variable dividend of 13…

Capital gains. Even the mention of these two words together can immediately conjure myths about owing the government 50% of the money earned from selling a home. But, like most rumours, it’s only half true—for now. You may have also heard that Budget 2024, the Canadian federal government introduced an increase on certain capital gains. That’s 100% true.

For individuals with a capital gain of more than $250,000, they will be taxed on 66.67% of the gain as income—up from the current 50% rate, according to Budget 2024. This inclusion rate change comes into effect on June 25, 2024. Every week, our inbox is full of letters from readers asking how to avoid the capital gains tax. They want to know how to work the system and keep more money in their pockets. Listen, it’s valid to want to hold on to the money earned off of the sale of a secondary residence (cottage, second home) and an investment property (rental or commercial property).

According to RE/MAX Canada’s Cottage Trends in Canada in 2024 report, the average price of a cottage in Canada is expected to rise this year by 6…

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