Bright Line Test
- going forward properties bought will be subject to tax on the gains, inline with income tax, if sold within a 10 year period
- New build investment properties will remain at 5 year rule
- Family home and inherited property is exempt
Interest Deductibility
- property investors will not be able to offset the interest expense against the rental income
- Phased in for existing property owners over 4 years
- Applies on property acquired after March 27th
- Some details to be worked through by government
- New built investment property likely to be exempt from this rule
