12 Tax Rules and Real Estate Gain from sale of principal residence not taxable. Loss from sale of your principal residence not tax deductible. Sale of principal residence must be reported on the personal tax return. If a taxpayer owns more than one home for personal use and/or investment purpose, professional advisor should be consulted for optimal principal residence planning. The rules are complicated. Loss from sale of your real estate investment is considered a capital loss ... Read More
Non-Canadian residents who own Canadian real estate and collecting rental income have two ways to deal with the Canadian tax liability.The first method is remit to the CRA, 25% tax on the gross rent collected. This 25% is due to the CRA on the 15th of the following month the rental income was credited to the non-Canadian resident. This tax is considered the final tax liability on the rental income and the non-Canadian resident has no further obligation. However, the non-resident ... Read More
While at dinner recently, a friend of mine, Carla, informed me that she sold her rental property and was curious about the amount of tax that she would owe on the gain. Upon further questioning, I uncovered that, in the past, my friend had lived in this rental property (a condo) for many years. She purchased a second condo a few years back and moved into it. She had then rented out the first condo—the one she just sold. From her line of questioning, I realized that, other than the tax ... Read More
Should rental properties be held personally or in a corporation?With the real estate in such high demand in Vancouver, Canada, many Vancouverites are buying investment properties either to generate rental income and/or participate in capital appreciation. The dilemma commonly faced is whether or not the rental unit(s) should be held personally or in a corporation?
Personal ownership makes more senseAlthough there are many pros, cons and legal considerations that come with ... Read More
Many Canadians live abroad but own rental properties in major Canadian cities like Vancouver – mostly because Canadian real estate has become a choice asset to own. The same principles apply to many non-Canadians who are also invested in rental properties here in Canada. Both classes of taxpayers are considered non-residents for Canadian taxation purposes and both are required to report any rental income earned in Canada. Non-residents with rental income earned in Canada have tax obligations. ... Read More