Great video, very informative! Can I set up a corporation and flip properties with the corporation? do the same tax laws that apply to individuals apply to corporations? Thanks!
Hi there, Thanks for reaching out! Although I'd love to advise, unfortunately I won't be able to do so before knowing more about your personalized situation and all the factors. For any questions or consultation, please contact our office at 416-548-4228 or email us at admin@cccpa.ca.
Hi Cherry can you refinance your primary residence and include outstanding mortgane for your rental property in the refinancing amount of your primary residence? My main question is can you still prorate the interest portion of the rental property and claim as tax deductible? Or do you absolutely need a separate mortgage for rental property?
Ideally you want a separate mortgage but sometimes that is not feasible, in your instance yes the portion of the mortgage that is attributable to the rental property can be claimed as a deduction against the rental income.
You might be considered a builder if you are doing a lot of work. The definition really goes back to how much work you are doing.... people often refer to flipping with different meaning as well, some people literally flip without doing any work to it, some people on the other hand add an addition and gut the entire house to stud. Really goes back to how much work you do.
If I incorporate a hold co and buy property (1 to start with) to flip, will the hold co be considered to be generating investment income or active business income?
similar, but you also have exposure to HST on assignment fees, which is calculated differently from the HST on sale of a new residential rental property
Great video, I bought a condo, renovated, rented for a year and then sold it in 2021. I bought it with less than 20% down payment so I paid premium mortgage insurance (CMHC). Can I claim the premium like the other costs (eg mortgage interest, property tax, etc.) and not include it in the capital gain calculation?
Hmm... so flipping isn't that profitable if you consider all the expenses and taxes you have to be paid... Unless of course your profit margin is huge or your renovation costs are fairly low.
Of course, like every single business, you have to be careful with what you do and understand the tax cost of it before making a decision. You can always incorporate and run your flipping business in the corporation.
@@RealEstateTaxTips I know you made a video about incorporate. Would you be able to give more details on maybe using it for short term rental business like airbnb as well?
For sure. but proper planning must be done to avoid attribution rule. Make sure you speak to a qualified accountant before putting your wife's name on title.
@@michaelmorris2623 spouses. CRA will also do this with any money you give your spouse or children. It gets attributed back to donor and they also add penalties. Broad rules covering this if it gets flagged. You can't win.
Great video. Thanks
Perfect timing for this video!
Glad it is useful!
Great video, very informative! Can I set up a corporation and flip properties with the corporation? do the same tax laws that apply to individuals apply to corporations? Thanks!
Hi there, Thanks for reaching out! Although I'd love to advise, unfortunately I won't be able to do so before knowing more about your personalized situation and all the factors. For any questions or consultation, please contact our office at 416-548-4228 or email us at admin@cccpa.ca.
I've been enjoying your content- thank you. Does your tip about expenses included under "carrying cost" apply in B.C.?
Yes it does!
great presentation as always!
Glad it is useful
Hi Cherry can you refinance your primary residence and include outstanding mortgane for your rental property in the refinancing amount of your primary residence? My main question is can you still prorate the interest portion of the rental property and claim as tax deductible? Or do you absolutely need a separate mortgage for rental property?
Ideally you want a separate mortgage but sometimes that is not feasible, in your instance yes the portion of the mortgage that is attributable to the rental property can be claimed as a deduction against the rental income.
Hi , I wonder if you are available for a consultation or if you are accepting any new clients?
Hi Anwar, Please reach out to our office at admin@cccpa.ca and my team can walk you through the next steps. Thanks
If you are flipping within a corporation, do you have to pay HST on the sale? And do you pay on the profit or the sale price? Thank you.
You might be considered a builder if you are doing a lot of work. The definition really goes back to how much work you are doing.... people often refer to flipping with different meaning as well, some people literally flip without doing any work to it, some people on the other hand add an addition and gut the entire house to stud. Really goes back to how much work you do.
If I incorporate a hold co and buy property (1 to start with) to flip, will the hold co be considered to be generating investment income or active business income?
Flip is business income active - rental income is specified investment business income, passive income
Are we able to claim back HST paid on renovations when the repair is not substantial?
Unfortunately the answer is no.
Are these the same tips for if you buy a new or preconstruction condo and then sell at occupancy?
similar, but you also have exposure to HST on assignment fees, which is calculated differently from the HST on sale of a new residential rental property
Hi..I bought and sell a condo in 2021. I wanted to know if I want to pay the text the flowing year. Is it possible?
If you buy and sell a condo in 2021, tax filing deadline is April 30, 2022. Tax is due April 30, 2022
@@RealEstateTaxTips ..so if I want to pay the tax 2023..I can’t??
@@taniaakter2697 if the deal was closed in 2021, you're out of luck. You can however negotiate with CRA to arrange a payment plan.
@@RealEstateTaxTips …ok..thank you
Great video, I bought a condo, renovated, rented for a year and then sold it in 2021. I bought it with less than 20% down payment so I paid premium mortgage insurance (CMHC). Can I claim the premium like the other costs (eg mortgage interest, property tax, etc.) and not include it in the capital gain calculation?
Hi, Thanks for reaching out!
For any questions or consultation, please contact our office at 416-548-4228 or email us at admin@cccpa.ca
Hmm... so flipping isn't that profitable if you consider all the expenses and taxes you have to be paid...
Unless of course your profit margin is huge or your renovation costs are fairly low.
Of course, like every single business, you have to be careful with what you do and understand the tax cost of it before making a decision. You can always incorporate and run your flipping business in the corporation.
@@RealEstateTaxTips I know you made a video about incorporate. Would you be able to give more details on maybe using it for short term rental business like airbnb as well?
Will I save on taxes if I put the house in my wife's name because she doesn't make any income???
For sure. but proper planning must be done to avoid attribution rule. Make sure you speak to a qualified accountant before putting your wife's name on title.
@@RealEstateTaxTips thanks
@@michaelmorris2623 Beware. I got hit with attribution rules doing this. CRA will get you anyway they can! How sad!
@@sdandrea5245 was the house in your name or your spouse?
@@michaelmorris2623 spouses. CRA will also do this with any money you give your spouse or children. It gets attributed back to donor and they also add penalties. Broad rules covering this if it gets flagged. You can't win.