|  Where will home prices fall the most? As Canada’s hot pandemic housing market shows signs of cooling in recent months, prospective buyers and homeowners alike are waiting on the sidelines to see just how low prices can go. But how much values erode in the next 18 months depends a lot on where you live, according to Desjardins. A recent report shows that provinces in the Maritimes such as Nova Scotia, New Brunswick and Prince Edward Island could fall as much as 18 to 20 per cent by the end of next year. Ontario could see an 18 per cent drop as well, while the prairie provinces and Newfoundland and Labrador might prove a bit more insulated. Randall Bartlett, senior director of Canadian economics at Desjardins, says markets that saw the greatest price appreciation during the pandemic likely now have the furthest to fall. “Some markets are going to come down more quickly toward that balance than others are. And the corrections are going to be larger in some places," Bartlett says. Find out how low prices are expected to go across the country and what other factors could tip prices towards stability or collapse in this story by Global News reporter Craig Lord.  The changing cost to fill up Unless you're driving an electric car, you're paying more than you've ever had to before for gasoline in Canada. With gas prices at record highs, Global News took a look at how the cost to fill up the tank of five different cars has changed over the past two years. Take the popular 2022 Honda Civic LX sedan, for example. Comparing today’s fuel prices with those of June 2020, the cost to fill up a tank of equal size with regular gas more than doubled from $47.36 to $95.95. Ramping up to this year’s edition of the Ford F-150 XL pickup truck, the cost to fill up today comes in at $178 as compared with $87.87 two years ago. Check out the changing costs for vehicles of all sizes and get a sense of where gas prices are going next in this piece.  Money remains top stressor for Canadians A new survey has found that Canadians are feeling the stress from soaring inflation, especially when it comes to food. The FP Canada Financial Stress Index survey published Tuesday found money was the biggest source of stress for 38 per cent of respondents. That was nearly twice as much as personal health, work or relationships. More than two-thirds of Canadians say rising grocery prices are having a direct impact on their finance-related stress. Fifty-six per cent say the same about gas prices. Read more about the survey results here. ________________________ – THE QUESTION – “I bought a pre-construction home in 2019. COVID and all the supply issues have stalled construction and our critical dates have yet to be re-established. We have an assignment clause in our contract but there is a $5,000 penalty for enacting that. What are the tax implications for assigning the property versus closing it and selling it later?” — A Money123 reader “An assignment of a pre-construction home is considered a sale for income tax purposes. The ‘profit’ can be taxed as a capital gain or business income. The capital gain on the assignment is calculated as the proceeds received less the costs incurred in connection with the pre-construction home. The costs incurred would be the aggregate of the deposits plus the $5,000 penalty incurred. Once the capital gain is calculated, 50 per cent of the amount – the taxable capital gain – is to be included in your personal tax return. As you never lived in the home, the ‘principal residence exemption’ is not available to shelter the gain from income tax. Depending on past tax history, timing and intent when the pre-construction house was purchased, Canada Revenue Agency (CRA) could take the position that the gain was not a capital gain – of which only 50 per cent is taxable – but the gain was ‘business income,’ of which 100 per cent is taxable. If treated as business income, CRA would be taking the position that the intentions on purchase were ‘speculative’ (i.e., flipping) in nature rather than simply purchasing a home to live in. The 2022 federal budget included provisions that can deem a gain from a real estate transaction to be ‘business income’ when ownership is less than 12 months. The new tax provisions apply to sales after December 31, 2022. If you hold onto the home until it is completed and then sell, the income tax treatment is similar to the above in respect of the gain. Should you move into the residence the principal residence exemption may be available to you to shelter the capital gain from income tax. However, CRA can challenge the use of the principal residence exemption if the ‘move-in’ period is short. A principal residence exemption is not available should CRA take the position that the gain is business income.” -Brian Quinlan, partner, CA, CFP, TEP, Campbell Lawless LLP, Chartered Professional Accountants ___________________________ Want your money question answered by an expert? Get in touch! | 
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