Access to property: Quebec harmonizes its tax incentives with those of Ottawa

Access to property: Quebec harmonizes its tax incentives with those of Ottawa

At a time when the real estate market is in turmoil across the country, discouraging those who would like to become owners, the Legault government will modify its regulations so as to harmonize its programs with those put in place by the federal government and intended for buyers of the first property in its latest budget, presented last April.

The preferred tool will be the tax-free savings account (TFSA).

Ottawa has created a tax-free savings account for the purchase of a first property (TFSA), whose contributions will be deductible. Income accumulated in this account will not be subject to tax and withdrawals made for the purpose of acquiring the first residence will not be taxable. This measure will come into force in 2023.

L’harmonization of Quebec with this federal tax measure will cost it approximately $75 million per year, in 2026-2027 dollars according to Minister Girard’s estimates.

Quebec is also improving the tax credit provided for buying a first home, which will increase from $750 to an amount of up to $1,500. Approximately 70,000 first-time home buyers could benefit from it each year.

Inflation forecast revised upwards

The announced changes are recorded in the information bulletin published Thursday by the Ministry of Finance. Minister Eric Girard had invited the press for the occasion.

However, he was surprised by the many questions concerning a possible new check for $500 that the government could give to counter the effects of inflation. A possibility that Prime Minister François Legault raised on May 31, telling the opposition parties that he was trying to buy the next election.

I am announcing a tax bulletin that will be published today, and, you would like me to give you the government’s electoral platform, which I will not do today said Minister Girard, is somewhat amused by the situation.

However, he admitted that he was going to have to revise upwards the forecast made in the last budget concerning inflation. We planned 4%, it’s too low, I can tell you today, it’s going to be more than that he dropped. It looks like inflation will be closer to 6%.

Our intentions will be clarified during the election campaign, and fiscal actions then require a budget statement. said the minister.

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