New Laws passed in 2023 will CHANGE EVERYTHING for Ontarians…
Real estate investing is a popular way to generate passive income. That’s why it’s so important for real estate investors to understand what new laws and regulations may be coming into effect in the near future — especially if those laws could have an impact on their investments. One such law that high-income individuals should be aware of is the Anti-Flipping Tax, which will come into effect in 2023. Let’s take a look at how this new regulation could affect real estate investors.
What is the Anti-Flipping Tax?
The Anti-Flipping Tax was first introduced as part of President Joe Biden’s tax plan. The rule states that any profits made from flipping homes within three years of purchase are subject to an additional 3% tax on top of regular capital gains taxes. The goal of this rule is to discourage people from “flipping” homes — or buying a house with the intention of quickly reselling it for a higher price — which can drive up home prices and make it harder for average families to buy a house.
How Will This Affect Real Estate Investors?
The Anti-Flipping Tax could have an especially big impact on high-income individuals who are looking to invest in real estate as a source of passive income. This is because high earners oftentimes have more money available for investment, which can lead them…
