Archive for the ‘tax’ Category

To err is human…even for the CRA and IRS

Posted on: January 29th, 2014 by Real Estate Accountants No Comments

We all make mistakes, and this applies equally to the Canada Revenue Agency and the Internal Revenue Service for the United States. But often when taxpayers get a letter or call from the CRA or the IRS, they assume that “the government must be right”. This is definitely not the case. We have had to […]

US Tax Filing deadlines – a cheat sheet for Canadians

Posted on: January 8th, 2014 by Real Estate Accountants 3 Comments

We are often asked about filing deadlines for US taxes, especially as we work with a number of people who own property in the United States via personal, corporate, or limited liability partnership structures. As well, we often help US citizens catch up on tax filings given the harder stance the US government has taken […]

Using employment expenses to get a free raise

Posted on: December 6th, 2013 by Real Estate Accountants No Comments

How can your employer give you a raise, without spending any money? Ask your employer to fill out a T2200 form – Declarations of Conditions of Employment. With a T2200, you have the ability to deduct employment expenses such as vehicles, assistants, supplies, etc. This means paying less in personal taxes. You’ll need this before […]

Home office expenses: What can I deduct?

Posted on: October 10th, 2013 by Real Estate Accountants No Comments
Home office

“I have heard from my real estate investor friends that I can deduct part of my home as home office expenses. What’s the real story behind this?” This is a common question from our clients. Generally speaking home office expenses are deductible if you can demonstrate that they directly relate to the rental operation. The […]

JVs and Capital Gains: Getting down to the nitty gritty

Posted on: September 11th, 2013 by Real Estate Accountants 3 Comments

Question: I am currently working on my first JV partnership and have a question regarding Capital Gains. In this instance my JV partner is making the down payment and will solely be on the title and mortgage. In your experience, what is typically done regarding Capital Gains? In the event we sell, my JV partner would […]

2013 Federal Budget – A focus on tax changes

Posted on: March 26th, 2013 by Real Estate Accountants 4 Comments

We’ve now seen some of the provinces come through with their budgets and as a general rule there are certainly financial concerns, dealt with by tax increases (direct or indirect) and spending cuts. With the federal budget (on the first day of the real March Madness games) we are faced with much of the same […]

Q&A: How do I minimize taxes when I pull out RRSP money to purchase real estate?

Posted on: December 12th, 2012 by Real Estate Accountants No Comments

Do you guys have any suggestions on how to pull out some RRSP funds and minimize the tax impact?  Looking to pull out some funds to buy real estate in the US… Answer: On the question of RRSP withdrawals, it’s not so much that you’re going to reduce any taxes, but whether or not there […]

Why and how should I register for an ITIN with the IRS?

Posted on: November 19th, 2012 by Real Estate Accountants No Comments

You need an Individual tax identification number (ITIN) to file a US tax return. Why is this important if you have rentals in the US? If you don’t file a US tax return, they withhold 30% of your GROSS rent. Not net, GROSS (i.e. total rents received). To get an ITIN, you need to complete […]

What Non-Residents Should Know about Selling Canadian Real Estate: Part 2

Posted on: October 16th, 2012 by Real Estate Accountants 5 Comments

In Part 1 of this article, we discussed non-residents who own Canadian real estate. In Part 2, we’re going to focus on when non-residents sell Canadian real estate. What are the additional tax issues when the non-resident disposes of a Canadian real estate rental property? Non-residents must apply for a clearance certificate from the Canadian […]

What Non-Residents Should Know About Holding Canadian Real Estate: Part 1

Posted on: September 19th, 2012 by Real Estate Accountants 2 Comments

In the last few months, we have received calls and emails from Saudi Arabia, Kenya and Australia, to name a few, from investors who hold Canadian real estate, and need help ensuring they stay onside with Canada Revenue Agency. This article, part 1, covers what non-residents (NR) need to know about holding Canadian real estate. […]