Page 8 - Realty News & Views November digital

8 Realty News 778-868-7224 November

Flipping houses?

OLGA Expect to face
Grivtsova
Tax Specialist tax on 100% of
Accountant
your profits
olgagriva@shaw.ca

.....прибыль от пере- transactions should be treated ties is determined on the basis reselling them at a profit “at
продажи недвижимости as business income and thus of rents.” the earliest opportunity,” rather
(по принципу flipping) fully taxable. The average than holding them as long-term
может облагаться holding period of five of these While the Tax Act doesn’t list investments with the intention
налогом как прибыль от properties was nine months and the criteria to distinguish when “to build a diversified retire-
прироста капитала, (и the taxpayer financed her prop- profits are taxed as business ment portfolio,” and that the
в этом случае только 50 erties via a one-year mortgage. income rather than a capital taxpayer’s main intention was
процентов облагаются gain, the case law has devel- to make short-term investment
налогом), но эта же The taxpayer’s argument was oped a number of factors that returns.
TAXES
прибыль может облагаться that she wanted to keep the are generally taken into account As a result, the taxpayer had to
налогом как доход от real estate “in order to generate in making this determination. pay tax on the profits as busi-
предпринимательской rental income and extra income ness income, not as half-taxable
деятельности, в случае during retirement.” These factors include: the capital gains.
которого 100 процентов nature of the property sold, the olgagriva@shaw.ca
прибыли будут облагаться As it turned out, however, length of time you owned the
налогом. she reported significant rental property, the frequency and
losses in two of the tax years number of real estate transac-
The most recent published tax and she didn’t keep any of her tions you carry out, the im-
case on flipping real estate properties for the long term. provements you made to the
occurred just over a year ago The taxpayer explained that the property (if any), the circum-
when a taxpayer found herself reason she sold the real estate stances surrounding the even-
in Tax Court fighting CRA reas- within such a short time frame tual sale of the property as well
sessments for multiple years was that “rents were too low.” as your intention at the time
in which she disposed of six This argument wasn’t convinc- the property was acquired.
real estate properties and real- ing enough for the CRA, which
ized total profits of more than maintained that the taxpayer The judge, upon reviewing
$100,000. While she reported “has a lot of experience and these criteria, concluded that
them as 50 per cent taxable could not have been unaware the taxpayer acquired the
capital gains, the CRA said the that the price of income proper- properties for the purpose of

Olga Grivtsova ВНИМАНИЕ !! ЭТО НЕ НОВОГОДНЯЯ ШУТКА ...

CPA, DFA а скорее новогодний ПОДАРОК !!!

Tax Specialist & Accountant ...пока мы упорно ищем хотя

604-616-2472 бы studio до $350 000, в это же
самое время в Виннипеге можно
купить 3-х комнатную квартиру (2 level!)
olgagriva@shaw.ca за $ 210 000, при этом, если надо будет, вам
помогут сдать в рент .... и далее по вашему
Professional Tax Services плану . ...................... 13

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