I am working on 2 flip homes in canada, and I will have to hold on to them for a year to avoid paying capital gains, is there any ways I can get around this if I want to get rid of them sooner.
2007-01-24 17:33:51 · 6 answers · asked by Anonymous in Business & Finance ➔ Taxes ➔ Canada
Is your capital gain really that big? 1/2 on your profit, right? So if your profit minus the taxes is negative, what are you doing?
Check out www.taxtips.ca and try to study up, so you can make a sound decision.
Hope this helps.
2007-01-26 11:35:28 · answer #1 · answered by Mick 3 · 0⤊ 0⤋
I'm feeling nasty. Although this practice is technically not illegal, it's argued by many people that flipping is unethical, and should not be permitted. Flipping usually involves several parties who are compromising the ethics of their industry by providing false property value information to buyers and homeowners.
To state it more clearly, consider this: You purchase a run-down house that has been foreclosed in a nice neighborhood for a very low price. You then very quickly rehabilitate the house and place it back on the market at a much higher price than you paid for it. You have flipped this piece of property, and made a large profit off of it. You might be asking what is unethical about doing this, but this second example will clarify it more: You go to a Realtor to sell your house, and he sells it to another party at a certain price saying he got you the best deal possible. You then find out later that within a matter of days, your old house was resold at nearly double what you received for it. It turns out the first person who bought the house from the realtor was working with the realtor to get the higher profit. In cases like these, the realtor will often tell the first seller that there are many reasons that the house can't be sold above a certain rate, while knowing all along what the real value of the property is. When the first person buys the house, they make some very quick, simple improvements, and put the house back on the market as soon as possible. It may seem like a quick way to make some cash, but it leaves the original homeowner feeling robbed.
Humorously enough, Revenue actually saw this one coming and made rules to prevent real estate speculation as much as possible. The only way that might be useful is IF one of those is deemed your principle residence. Then again, you would have to pay personal income taxes as a Canadian resident (darn).
You might want to consult with a charted accountant that specializes in property taxes to minimize the taxes to be paid (the fees) but off hand, the answer to your question is no.
2007-01-25 23:53:10 · answer #2 · answered by Carl 3 · 1⤊ 0⤋
no, you cannot flip homes if you have not lived there for more than 2years
The goverment meant well, they do not want people to become rich by speculating on houses, making house price too expensive for normal people
Since you are certainly so well off that you can buy and sell houses for profit, it is only fair that you pay your share to the govrenment
2007-01-25 01:42:59 · answer #3 · answered by sm bn 6 · 0⤊ 1⤋
No Way! They closed that loophole up long ago!!!!
You have to declare one as your principal residence (if you have two), then declare the other as your primary residence and hold on to that one. There's a form to fill out.
2007-01-26 19:22:21 · answer #4 · answered by buster 2 · 0⤊ 0⤋
Gotta love that nationalized health care....
2007-01-25 01:38:07 · answer #5 · answered by Anonymous · 0⤊ 0⤋
wow...
from all of your whinning ,I thought you were at the mercy of a live in boyfriend...
if you were so experienced, you should have all the answers, eh..?
2007-01-25 01:38:18 · answer #6 · answered by Anonymous · 1⤊ 0⤋