Defer Capital Gains Tax Capital Cost Allowance

WHEREAS investors are discouraged from trading their real property investments because of the tax consequences associated with selling and reinvesting, thereby reducing investment in rental housing and urban regeneration; AND WHEREAS the United States, the United Kingdom and Germany have recognized the lock-in consequence created by this tax policy and have taken steps to remedy it: THEREFORE BE IT RESOLVED that the Union of BC Municipalities call on the federal government to defer both the capital gains tax and the recaptured capital cost allowance when an investment property is sold and the proceeds of the sale are invested in another investment within one year.