Category: Real Estate Tax
Tax Rules for Airbnb & Short-Term Rentals in Canada
Short-term rentals through platforms like Airbnb, VRBO, and Booking.com have become a popular strategy for Canadians to generate additional income. However, these rental activities come with important income tax and GST/HST implications. As of January 1, 2024, new federal legislation has introduced even stricter rules, particularly regarding municipal compliance. This article outlines the key tax … Continue reading Tax Rules for Airbnb & Short-Term Rentals in Canada
Changing how you use property? Here’s how to save on taxes
When a Canadian taxpayer changes the use of a property from personal use (such as a principal residence) to income-producing use (such as a rental), or vice versa, the Income Tax Act may trigger a deemed disposition at the property’s fair market value.
How to Maximize Your Principal Residence Exemption
The principal residence exemption (PRE) is a great valuable tax benefit that’s available to homeowners in Canada. Since 2016, the CRA has required taxpayers to report the sale of a principal residence on their tax return. Failing to designate the property properly can result in a loss of the exemption and possible penalties.
Purchasing Foreign Real Estate and FAPI Taxes
The escalating housing market in Canada is compelling investors to explore real estate opportunities beyond their borders, such as in the US, Europe, and Asia. These investors often acquire foreign properties through intermediary entities known as foreign corporations. This preference stems from the liability protection and simplified compliance with local laws and regulations such corporations … Continue reading Purchasing Foreign Real Estate and FAPI Taxes
Navigating Tax Implications of Assignment Sales
Assignment sales have become a common way for individuals to make a profit on their real estate assets. However, these transactions come with tax implications that many people may not be aware of. In this blog, we’ll explore the tax implications of assignment sales in Canada through a practical example.
Tax implications for Canadians selling US property
As a Canadian, are you aware of the tax consequences of selling your US real estate properties? Most Canadian’s aren’t, even though they are buying US real estate more so than ever before. Read further to understand the tax implications of Canadians selling US properties. 15% Withholding tax As a Canadian or a non-resident of … Continue reading Tax implications for Canadians selling US property
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