real estate tax
Do you own real estate properties and is worried about not reporting your tax correctly? Are you concerned you are missing out on tax opportunities? Our professionals can help.
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Tax incentives
Tax incentives offered by government includes HST rebates, principal residence exemptions, Home buyer's credit, Home buyer withdrawal plan. There is no reason why you should miss any of these just because you are not well advised.
Capital gain tax
Capital gain tax can sometimes be triggered without the actual sale of the property. This includes transferring real estate title to family members, leaving Canada, renting out a property, at death, Will drafting and estate planning. Careful planning should be done when stepping into any of these situations to avoid triggering additional tax.
Overseas property
In general, Canadian tax residents are required to report their oversea properties to tax authority. Failing such can result in heavy penalty. It can become more complicated when your Canadian residency status is not clear.
Forming a corporation
Is forming a corporation to hold real estate properties always a good strategy? Like many other things in our lives, it depends. Often real estate investors consults us on such approach, and only to find out there are many factors that needs to be considered.
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FAQ
When an additional family member is added to the family home's title, it will immediately trigger accrued capital gain tax, and is subject to the principal residence exemption, if available.
A change in use has taken place when you convert your property from residential to rental purpose or from rental to residential purpose. In general, It will immediately trigger accrued capital gain tax.
The sooner you rectify the situation, the lesser the tax consequence. In all events, an experienced accountant should be able to recommend to you the various options available.
Assignment sale is subject to tax. Under certain situations, it is also subject to HST.
Many franchisors are willing to provide you with a start-up loan, otherwise you will have to borrow through other channels including the bank. The bank typically asks for some financial information about the business before they approve the loan. Don't worry, we are here to help.
Budget 2022 introduced the Tax-Free First Home Savings Account (“FHSA”), a new registered account to help individuals save for their first home. Effective for 2023, individuals will be allowed to contribute a maximum of $8,000 per year and $40,000 during their lifetime to the FHSA.
First-time homebuyers buying a qualifying home can claim a federal non-refundable first-time homebuyers’ tax credit equal to 15% of up to $5,000 in the year of purchase. This can result in a tax savings of up to $750. To qualify as a first-time homebuyer, you and your spouse or common-law partner must not have owned or lived in another home owned by either of you in the current or four preceding calendar years and must occupy the home as a principal residence within one year of the purchase date.
It is an annual tax will be levied on vacant Toronto residences, payable beginning in 2023. In general, A property is considered vacant if it has been unoccupied for a total of six months during the previous calendar year or is otherwise deemed to be vacant under the bylaw. The tax is equal to 1% of the Current Value Assessment (CVA).