Am I Liable for Canadian Taxes When Buying Property from a Non-Resident of Canada?
I’ve written before on the extremely dangerous issue of non-resident taxes on Canadian real estate. Real estate agents and real estate lawyers in Canada know about non-resident tax. To give buyers comfort that the seller is a legal resident, the classic way to get some protection is to get sellers to sign statutory declarations that say, “I am not a non-resident…” Buyers then rely on the statutory declarations to make a decision that they do not have to collect withholding tax and that there are no CRA non-resident tax issues. But what if that isn’t enough to protect yourself? Continue reading →
“Flipping / Assigning Properties? Don’t Go To Jail!”
Not too long ago, I wrote a blog post about the legalities of flipping properties using a Creative Investing Strategy called “assignment.” Now I’m making that topic available as a podcast because I want Canadian investors to have every opportunity to make money without getting on the wrong side of the law. In a hot real estate market, flipping properties by assigning your interest in the purchase can be lucrative. Just make sure to do it legally because the CRA is cracking down on so-called “shadow flipping” and undeclared income!
Download the audio file HERE.
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CRA Investigating Tax on Undeclared Earnings for Flipping Offers to Purchase Real Estate in Canada
We’ve all heard the stories. In red-hot real estate markets like Toronto and Vancouver, brand-new projects, especially condo projects sell out fast. When sales open, there are lineups around the block. Desperate purchasers clutch serious deposit money in their anxious hands, hoping against hope that by the time they get to the front of the line, there will be a unit left for them to buy. Often, when sales to the public start, a 100 unit project has only 40 units left, the others are already sold. Who got to buy those units and how does that work? Continue reading →
Here at RMLO Law LLP in Edmonton, Alberta, we are the corporate registered office for many corporations. We get lots of letters addressed to those corporations because that’s part of being registered office. Anyone who wants to send something official to a corporation can send it to the registered office. Those official notices are often notices of trouble…
A recent letter was no different. It was a scary letter!
Download the audio file HERE. Download the handout HERE. (control click or right click + save as)
Do you have to pay sales tax when buying a home or investment property in Canada? The short answer is yes, but it varies by province as to how much you’ll have to pay. In Alberta, you only have to worry about the federal Goods and Services Tax (GST) because there is no provincial sales tax. Did you know that you can sometimes get a rebate on the GST when you buy real estate? In this video, Barry talks about the rules for personal residences vs rental properties when it comes to paying sales tax on real estate purchases in Alberta. If you need a real estate lawyer in Alberta, contact Barry at RMLO Law LLP.
This is the next instalment of Focus on Real Estate with Barry C. McGuire, a series of videos that provides answers to frequently asked questions about real estate.
If you’re buying or selling real estate in Alberta, Barry can help. Contact him now using the form below.
A Sleeping Bear with a Big Bite.
As a real estate lawyer, I was happy to have one of my favourite realtors send me a new deal where I would be the seller’s lawyer. The first sign of trouble was a big add-on clause that confirmed the sellers were non-residents of Canada. “Uh-oh, could be trouble,” was my first reaction. Then I thought, “if the contract is making a special note that the sellers are non-residents, maybe they have the non-resident tax thing under control…?” When I chatted with the sellers and asked the question, no such luck. They knew nothing about any Canadian tax they might have to pay as non-residents and, in fact, had done nothing about tax of any kind in the 12 years they had owned the property. Now I’m really concerned and here’s why. Continue reading →
You CAN Have Your Cake & Eat It Too, Says The CRA.
Many clients want to use their own RRSPs to help them buy investment property. Previously, it hasn’t worked because you can’t do a ‘non-arm’s length mortgage’. In other words, you can’t lend to yourself. The exception was for a personal residence—but not allowed for an investment property.
is the title of a column by tax expert Jamie Golombek. Jamie’s column is yet another reminder to all of us that the Canada Revenue Agency (CRA) is death on questionable charitable tax shelters.
Essentially, if a tax shelter promoter says you will get a tax receipt for an amount that exceeds your donation, it is likely not a valid tax shelter. Some of these schemes promise deductions of four or five times your donation amount. Normally the CRA isn’t very forthcoming in giving their opinion on any particular tax issue. For tax shelters, however, they are crystal clear. They will audit and disallow not only those bloated deductions, but also your actual donation amount. Then they will pursue for penalties. Continue reading →