Archive for the ‘tax’ Category
Agreements-for-sale and rent-to-owns: Navigating the quagmire of tax implications
We see a growing number of investors who are acquiring real estate beyond the traditional “buy-and-hold” strategy or, even more popular, using a mix of techniques. Two examples of such techniques include using “agreements for sale” (AFS) and “rent-to-own” (RTO) agreements. But, one critical note for these strategies is that the tax implications associated with […]
Joint ventures: 5 tips for real estate investors to stay onside with the tax man
When dealing with joint ventures, as a real estate investor you understand that talking about what really matters, and then having a clear written record, is a key part of the process. Your real estate accountant will also tell you that the words you use to describe your joint venture, and the joint venture agreements […]
10 key lessons for real estate investors on capital vs income when arguing with the CRA: From intention to integrity
Selling a property is an opportunity for you as a real estate investor, but can also be an opportunity for the Canada Revenue Agency (CRA). A recent court case revolving around capital vs. income provides an interesting case study for real estate investors with 10 key lessons, including those on intention, integrity, and reliable records […]
6 tips for real estate investors to make tax season pain-free
As a real estate investor, the time has come to cast your thoughts back to the past year, and work with your real estate accountant to get your personal taxes completed on time. But, are you sure that you are getting all possible deductions that are reasonable? Do you understand the implications for capital cost allowance […]
4 tips to reduce taxes and stress for the New Year
Now that 2016 is off to a great start, the time is perfect to take a few moments and review some of the basics of your foundation as a real estate investor and business owner. Getting back to basics can save you time, money, taxes, and stress, and a good real estate accountant can help. Here are […]
Paying cash – Underground economy crackdown
Cash payments “under the table”? Requests from tenants or tradespeople to accept cash while running your real estate investing business? The underground economy is thriving in Canada, and the Canada Revenue Agency is focusing on what Statistics Canada estimates is 1.3% of Canadian GDP. And, who do you think that they are targeting? Likely industries, […]
CCA – Creating a loss on a rental property? Not so fast
To claim capital cost allowance (CCA) or not claim to CCA is one of the perennial questions we receive as real estate accountants. Aside from the debate about whether or not to claim CCA, some specific rules exist about when you can and can’t claim it. (For details on CCA itself, see Claiming capital cost allowance […]
Accounting for buy-and-hold real estate investments
Buy-and-hold real estate investing has its own unique set of tax and accounting rules. As discussed in articles on flipping properties, and rent-to-owns, using the proper structure is critical. Think of this as a short primer on those rules, and how they may affect your taxes as you plan your real estate investment business with […]
Accounting when flipping real estate investments
The tax rules surrounding flipping properties, unlike rent-to-owns, as described in a previous article, are slightly more straightforward. But, using the proper structure is still critical. Think of this as a short primer on those rules, and how they may affect your taxes as you plan your real estate investment business with your real estate accountant and […]
Accounting for rent-to-own real estate investments
The tax rules surrounding rent-to-own (RTO) real estate investments provide an insight into the complexity of the Canadian Income Tax Act and illustrate why having the right advice, and using the proper structure, is critical. Think of this as a primer on those rules, and how they may affect your taxes as you plan your […]
