It would be great if this video was updated with any tax deduction / deferral benefit given the recent 66% tax inclusion rate for individuals and corporations. Are VTBs now more important for tax reduction and deferral for individuals? We know the 66% is generally bad for HoldCos since the tax is higher and cannot be deferred since the goal of Trudeau/Frieland is to make it less attractive to invest in Canada businesses and property.
First time viewer and subscribed! Can you please reply me if CRA will allow to sell the house to my son using this seller financing method? Or is it only for non related people?
Sometimes it can also be optimal for people who want a specific price but the valuation doesn't come through. Again, it's a negotiation tool that you can keep it in the back of your pocket.
I did owner financing, valued at 130k as a 3/2, but garage was converted to 2 conplete bedrooms and laundry room i signed at 150k 861 per month for 30yrs no early payoff penalties or baloon payments. And im on half an acre its like 6%interest im happy with my deal
Very good video. I’ve been curious about this topic lately. Probably not an accounting question but how could we protect ourselves legally if the buyer is either not give paying the yearly interest or reimbursing the amount at the end of the 5 years period? I understand that a bank would have their own contract and could repossess the property, but could we? The dollar amount would be bigger than what is allowed at Small Court.
Definitely a legal question but if principle repayment isn’t there you would have registered a lien at the beginning of the term.. so you can sue for sure and potentially foreclose the property
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When make a VTB with non-arm length(adult children), is there a mandatory interest rate CRA leveled to or requires?
Awesome explanation!
Thank you!
It would be great if this video was updated with any tax deduction / deferral benefit given the recent 66% tax inclusion rate for individuals and corporations. Are VTBs now more important for tax reduction and deferral for individuals? We know the 66% is generally bad for HoldCos since the tax is higher and cannot be deferred since the goal of Trudeau/Frieland is to make it less attractive to invest in Canada businesses and property.
First time viewer and subscribed! Can you please reply me if CRA will allow to sell the house to my son using this seller financing method? Or is it only for non related people?
It sounds like this type of sale would make more sense for the seller if they are mortgage free on the property.
Sometimes it can also be optimal for people who want a specific price but the valuation doesn't come through.
Again, it's a negotiation tool that you can keep it in the back of your pocket.
I did owner financing, valued at 130k as a 3/2, but garage was converted to 2 conplete bedrooms and laundry room i signed at 150k 861 per month for 30yrs no early payoff penalties or baloon payments. And im on half an acre its like 6%interest im happy with my deal
Very good video. I’ve been curious about this topic lately. Probably not an accounting question but how could we protect ourselves legally if the buyer is either not give paying the yearly interest or reimbursing the amount at the end of the 5 years period? I understand that a bank would have their own contract and could repossess the property, but could we? The dollar amount would be bigger than what is allowed at Small Court.
Definitely a legal question but if principle repayment isn’t there you would have registered a lien at the beginning of the term.. so you can sue for sure and potentially foreclose the property