Question 1

I am adding a family member's name to my property's title.  Are there tax consequences?

Accepted Answer

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.

Question 2

I am converting the use of my property from residential to rental purpose.  Are there any tax consequences?

Accepted Answer

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.

Question 3

I just found out that I did not not report my real estate tax properly.  What should I do?

Accepted Answer

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.

Question 4

Is assignment sale of pre-construction unit subject to tax?

Accepted Answer

Assignment sale is subject to tax.  Under certain situations, it is also subject to HST.

Question 5

How do I finance my business?

Accepted Answer

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.

Question 6

What is Tax-Free First Home Savings Account (“FHSA”)

Accepted Answer

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.

Question 7

What is Home Buyer's Amount (HBA) ?

Accepted Answer

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.

Question 8

What is Toronto's Vacant Home Tax ?

Accepted Answer

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).

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