Archive for the ‘tax’ Category

Beware late filing penalties with the IRS

Posted on: February 26th, 2014 by Real Estate Accountants No Comments

In the past year, we have seen a significant increase in late filing penalties being assessed by the IRS. Both the number and size of the penalties are of concern. In fact, these late filing penalties are now being assessed even for failure to file information forms on a timely basis. In other words, no […]

Federal Budget 2014 – What it means for you

Posted on: February 13th, 2014 by Real Estate Accountants No Comments

As the federal government has been indicating for some time, the 2014 federal budget was relatively boring as budgets go. Really, it was meant to show the economic management prowess the government possesses. But, next year’s election year budget will be the one to really watch. Balanced budgets…and debt reduction? While quite happy to see […]

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 […]