Taxes on Flipping Canadian Real Estate – Capital Gains vs. Business Income

These days, it seems as though buying a property and then reselling it at a higher price is all the rage. On the surface, it seems like a terrific idea – buy a property, perhaps spend a little time and money fixing it up, and then sell it for a tidy profit. In today’s still-fragile … Continue reading Taxes on Flipping Canadian Real Estate – Capital Gains vs. Business Income

I rent out a residential property. What are some tax implications, with regards to sales tax?

Rental income is a GST/HST exempt supply. This means that you cannot charge GST/HST on rent. Furthermore, you may incur expenses in the course of renting out your property on which you may have paid GST/HST, such as management fee, supplies, etc. Normally, you can claim this GST/HST paid on expenses as Input Tax Credits … Continue reading I rent out a residential property. What are some tax implications, with regards to sales tax?

Taxes On Your House

You don’t pay taxes on your house when you sell it, unless you do certain things to it like rent it out, or if you own multiple homes. This article will describe the rules around the taxes on your house, and the key definitions and criteria. It will also describe how taxes may arise, in … Continue reading Taxes On Your House

Real Estate Trends to Rule 2014

Millennials are not driving the market as much as homeowners Although the Millennial generation has formed a hot topic in the media, the movers and shakers of real estate are keen to find out where the generation is heading to. The generation has indulged in various economic activities, in the real estate market, in certain … Continue reading Real Estate Trends to Rule 2014

I just bought a new house with the closing today, but my current house will be sold soon. How can I maximize deductions?

The CRA provides taxpayers with tax relief in this situation by way of the principal residence exemption. When you own two homes in a year the year or subsequent year, you can elect to have both of those homes treated as your principal residence in those years. This is because the principal residence contains ” … Continue reading I just bought a new house with the closing today, but my current house will be sold soon. How can I maximize deductions?

US Taxes Payable by Canadians on US Real Estate Sales

Following the crash of the real estate market in 2008, US real estate has been an attractive investment opportunity for investors from all over the world, including Canadians. Although the old adage of “real estate prices always go up” has been proven wrong, one of the major benefits of owning real property is still the … Continue reading US Taxes Payable by Canadians on US Real Estate Sales

The Best Property Managers Are Accomplished Jugglers

Even though real estate investing is not the “cash cow” that some promoters would have you believe it is, rental properties can provide a careful investor with a very nice income stream and a solid real estate portfolio. Real Estate Investing for Dummies has a “Cheat Sheet” that provides some proven tips for success. Becoming … Continue reading The Best Property Managers Are Accomplished Jugglers

New Year Prediction for Property Sale in Canada

The Prairie sales forecast is also on the rise. Alberta and British Columbia are the provinces according to CREA, where its annual sales will supposedly rise as compared to the previous year. Prediction for National Activity: Next year, 2014, will witness national activity reach 465,600 units with a 3.5% rebound while keeping within its average … Continue reading New Year Prediction for Property Sale in Canada

Non-Residents Earning Rental Income from Real Estate in Canada

Non Residents of Canada earning rental income from Canadian real estate have Canadian tax obligations. This article identifies the different forms and returns that can be or are mandatory to be filed with the CRA regarding the rental income earned. Background When non-residents receive rental income from real property in Canada, taxes on the income … Continue reading Non-Residents Earning Rental Income from Real Estate in Canada

Real Estate Sales & Taxation

If you own a rental property or a real estate investment in Canada, and have sold or are thinking of selling, then it is very important that you read this article because it provides helpful tax tips that can save you $$$ thousands.

As a non-resident with rental property in Canada, am I required to remit 25% to the CRA?

I am a non-resident of Canada and I have a rental property in Canada. I have recently found out that I am required to remit 25% of the gross rent to the CRA as a withholding tax on a monthly basis. Can I make this payment myself? As per the CRA ruling, an individual who … Continue reading As a non-resident with rental property in Canada, am I required to remit 25% to the CRA?

Property Management Tips for Real Estate Investors

My name is Allan Madan, your trusted accountant.  I am also a real estate investor in the United States, Canada, and India, and I would like to share my experiences on the best practices for property management tips with you. This article is called ‘Property Management Tips for Real Estate Investors’.

When a rental property is converted into a principal residence, are there any tax implications?

When there is change in use of real estate (ex. from income-producing to personal-use), a deemed disposition occurs at fair market value (FMV). This can result in a capital gain (i.e. FMV less Adjusted Cost Base). However, in certain situations, an election under subsection 45(3) can be made to defer the capital gain by reporting … Continue reading When a rental property is converted into a principal residence, are there any tax implications?

I’m a non-resident owning rental property in Canada. I’m confused between the NR4 slip, and NR6 form.

By filling form NR6 with the CRA, your agent/tenant will only withhold 25% of the net amount of your monthly rent, versus 25% of the gross amount of your monthly rent. The NR6 form should be filed at the end of the year for the following year. For example, if your tenant pays you $3,000 … Continue reading I’m a non-resident owning rental property in Canada. I’m confused between the NR4 slip, and NR6 form.

What are my tax obligations if I am a non-resident holding rental property?

If you earn rental income from Canadian real property, you must file a Section 216 return. As a non-resident, a representative in Canada (i.e.: your tenant or property manager) will have to withhold 25% of the gross rental income paid to you and remit this amount to the CRA. The CRA will subsequently issue an … Continue reading What are my tax obligations if I am a non-resident holding rental property?
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