3 GST/HST areas to navigate when constructing multi-unit residential buildings
GST/HST issues surrounding building multi-unit residential complexes are questions that have a large impact on cash flow and costs. Savvy real estate investors and builders coordinate the intricacies of GST/HST issues with their real estate accountants as a matter of course to avoid surprises. Builders and investors must consider at least three GST/HST areas when constructing a residential […]
Secondary suite income: Principal residence exemption and CMHC rules one year later
Now that about a year has passed with CMHC allowing income from secondary suites to be counted for mortgage qualification purposes, as real estate accountants we’re still covering questions regarding this. The most common ones being: Does having a portion of your home rented through a secondary suite void the use of the principal residence […]
Moving real estate to corporate ownership: 7 tips you need to know
The number one question for real estate accountants after “should I incorporate” is “can I move my properties to my company from my personal name?” Moving your personally owned rentals is not a “moving job” that should be undertaken without a great deal of thinking ahead and planning. You must ensure your real estate accountant, lawyer, and […]
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 […]
Canadian real estate market: 4 trends affecting the landscape
Talking about the “Canadian Market” is difficult in a country with so many varied and specific sub-markets. What is happening in Vancouver and Toronto vs. Calgary and Windsor or Halifax? These are all very different conversations. But some overall economic drivers affect each of these markets in different and interesting ways. BDO Canada’s Real Estate […]
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 […]
Q&A: Is HST applicable on a rental property if commercially zoned but all units are residential rentals?
Question: We are investigating the purchase of a rental property in an Ontario town, and have a quick question about the HST. The property is presently set up as four residential rental units, but it is zoned commercial. From conversations with the city, apparently the property is to include three residential and one commercial unit. If […]
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 […]
