Messages

1

Introduce Yourself / Re: new to real estate

« on: February 27, 2011, 06:59:00 PM »

DF1:

The renting of a basement or any part of your house does not affect your principle residence deduction provided that you do not deduct depreciation (CCA for tax purposes) as part of the rental expenses and you still live in the house on a normal basis.

2

Questions and Answers / Re: A different type of tax sale purchase - Need some help

« on: February 02, 2011, 03:38:13 PM »

Dave2, a couple of things to clear up first, in your initial post you mention partnership not corporation.  All of the advice you have received here has been for a corporation, not a partnership.  Partnerships are not considered separate entities for tax purposes, all of the income/losses flows directly to the partners in the year it is incurred.  A corporation on the other hand can hold undistributed income for a long period of time making corporations very tax efficient in comparison to partnerships.

Before you pursue this further, determine if they are selling you the partnership interests or a corporations shares as the planning for the two are very different.  Once you have determined this, contact a good accountant who has dealt with this in the past.

3

Questions and Answers / Re: HST

« on: September 16, 2010, 06:25:26 PM »

Frank is right.  Strictly speaking from a CRA point of view, even one sale provided that you originally bought the property for the purposes of selling it is considered business income and no longer falls under the capital gains rule.  For the guy who was building and selling one per year, he should have hired an accountant or a better accountant as you "must" live in the house for it to be considered a principle residence.  There are plenty of other guys out there who build a house every couple of years but live in one while they build the other.  This allows them to utilize the principle residence deduction.

4

Questions and Answers / Re: Buy Properties in other province

« on: July 22, 2009, 12:55:13 AM »

PFM1101 is right. there are no regulations against owning multiple properties in multiple jurisdictions.  He is also correct about the capital gains tax that you will have to pay, the good thing about capital gains is that they are taxed at a lower rate than other incomes, approximately 25% if you are in the top tax bracket.

5

Questions and Answers / Bid attendance

« on: March 31, 2009, 12:12:04 PM »

This seems like a relatively dumb question but I have not been able to find the answer on any prior posts.  I am looking at one of the properties but I know I will not be able to attend the reading of the bids.  Do I need to be in attendance?

If not how will they notify me?

TIA

6

Questions and Answers / Re: Quebec ...Do they do tax sales???

« on: July 09, 2008, 12:20:16 AM »

Does anyone know of where information regarding the Quebec tax sales can be found?