COVID and the housing market

One owner had planned on renting out his basement to help cover mortgage cost. Now he doesn't know how long he'll be able to pay his mortgage. :LOL: Wonder how he got approved for it. No safety margin in the rigorous approval/vetting process? Hmm.
Might have been smarter to look for a 850k home instead of a 1.7mil one.

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Mikedezo44 said:
One owner had planned on renting out his basement to help cover mortgage cost. Now he doesn't know how long he'll be able to pay his mortgage. :LOL: Wonder how he got approved for it. No safety margin in the rigorous approval/vetting process? Hmm.
Might have been smarter to look for a 850k home instead of a 1.7mil one.

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Did they not realize homes are built (including theirs) with heavy machinery and excessive noise and dust everywhere?
 
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Mikedezo44 said:
One owner had planned on renting out his basement to help cover mortgage cost. Now he doesn't know how long he'll be able to pay his mortgage. :LOL: Wonder how he got approved for it. No safety margin in the rigorous approval/vetting process? Hmm.
Might have been smarter to look for a 850k home instead of a 1.7mil one.

www.cp24.com

Toronto, Canada and Global Breaking News – CP24

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www.cp24.com www.cp24.com
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If there is a vacant lot near you, assume it's going to be a hirise and feel lucky if it's not. Do not listen to the sales people. They are allowed to outright lie with no consequences by saying plans weren't finalized.
 
Mikedezo44 said:
One owner had planned on renting out his basement to help cover mortgage cost. Now he doesn't know how long he'll be able to pay his mortgage. :LOL: Wonder how he got approved for it. No safety margin in the rigorous approval/vetting process? Hmm.
Might have been smarter to look for a 850k home instead of a 1.7mil one.

www.cp24.com

Toronto, Canada and Global Breaking News – CP24

Most recent News News business news stories and video from CP24
www.cp24.com www.cp24.com
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Whiners.

If you buy a new build in a developing neighbourhood, expect dust and dirt for a few years.
 
raginduck said:
... If they were still a tenant of that landlord when the judgment came.
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That’s true, hopefully he knows to stay long enough to pay off his tax debt.
 
Speaking of taxes, I’ve heard CRA is getting back on track with their pre pandemic real estate audits.

Targets include: small builders/renovators claiming principal residence exemptions, and those profiting from pre sales and assignment sales.

Assessing profit on quick flips as 100 % income, not capital gains. Same with assignment sales that were determined to be bought and sold in short timeframes. All houses and assignment sales re listed before taking title, any non principal residence re sold within 18 mos of possession.

Treating increases value of a pre build from offer to close as taxable capital gains if you own another primary residence.

Clawing back the new housing rebate on GST if the buyer sells the home without occupancy. That averages $24k.

Also assessing 50% penalty on the reassessment if the home is sold without proper tax reporting. Ouch.
 
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Mad Mike said:
Speaking of taxes, I’ve heard CRA is getting back on track with their pre pandemic real estate audits.

Targets include: small builders/renovators claiming principal residence exemptions, and those profiting from pre sales and assignment sales.

Assessing profit on quick flips as 100 % income, not capital gains. Same with assignment sales that were determined to be bought and sold in short timeframes. All houses and assignment sales re listed before taking title, any non principal residence re sold within 18 mos of possession.

Treating increases value of a pre build from offer to close as taxable capital gains if you own another primary residence.

Clawing back the new housing rebate on GST if the buyer sells the home without occupancy. That averages $24k.

Also assessing 50% penalty on the reassessment if the home is sold without proper tax reporting. Ouch.
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Good. Lots of people using loopholes to make hundreds of thousands in capital free gains.

Meanwhile my parents are trying to figure out how to pass the cottage as no one has 100k laying around to pay capital gains.
 
Mad Mike said:
Speaking of taxes, I’ve heard CRA is getting back on track with their pre pandemic real estate audits.

Targets include: small builders/renovators claiming principal residence exemptions, and those profiting from pre sales and assignment sales.

Assessing profit on quick flips as 100 % income, not capital gains. Same with assignment sales that were determined to be bought and sold in short timeframes. All houses and assignment sales re listed before taking title, any non principal residence re sold within 18 mos of possession.

Treating increases value of a pre build from offer to close as taxable capital gains if you own another primary residence.

Clawing back the new housing rebate on GST if the buyer sells the home without occupancy. That averages $24k.

Also assessing 50% penalty on the reassessment if the home is sold without proper tax reporting. Ouch.
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All this, but how many offices in Brampton with "accountants" that claim they can get around all of these legalities for you to make tax free profit. Surely they can spin up some paperwork for you to hide the money trail. Maybe they can put the house in their 90 year old moms name who's never been to Canada before. Wouldn't surprise me.
 
mimico_polak said:
Good. Lots of people using loopholes to make hundreds of thousands in capital free gains.

Meanwhile my parents are trying to figure out how to pass the cottage as no one has 100k laying around to pay capital gains.
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doesn't the capital gains just come off the purchase price (along with real estate fees et al)?
 
ifiddles said:
doesn't the capital gains just come off the purchase price (along with real estate fees et al)?
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No. It gets taxed the year after as part of your income.

We are trying to transfer the cottage to me, and need to figure out how to defer or pay the capital gains.

I need about 100k.

Anyone up for an MP GOFUNDME page? Some ballers can pass on a bike each and we’ll reach that goal in a month.
 
mimico_polak said:
No. It gets taxed the year after as part of your income.

We are trying to transfer the cottage to me, and need to figure out how to defer or pay the capital gains.

I need about 100k.

Anyone up for an MP GOFUNDME page? Some ballers can pass on a bike each and we’ll reach that goal in a month.
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I didn't know that...so why not just put that money aside from the sale, invest it for a year and then you have it available...

Good to know information as we'll probably have to deal with capital gains in the next couple of years when hubby sells the place he has jointly with his mom...
 
ifiddles said:
I didn't know that...so why not just put that money aside from the sale, invest it for a year and then you have it available...

Good to know information as we'll probably have to deal with capital gains in the next couple of years when hubby sells the place he has jointly with his mom...
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Well we don’t want to sell. We want to transfer it to me. That triggers the capital gains, so I need to pay the 100k as it wouldn’t be fair for parents to give me a cottage AND pay the capital gains.

If no sale, no cash for capital gains. Trying to figure out best way forward.
 
mimico_polak said:
Well we don’t want to sell. We want to transfer it to me. That triggers the capital gains, so I need to pay the 100k as it wouldn’t be fair for parents to give me a cottage AND pay the capital gains.

If no sale, no cash for capital gains. Trying to figure out best way forward.
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Mortgage the amount? Or loc on the cottage pay it off with air bnb

Sent from the future
 
Mikedezo44 said:
All this, but how many offices in Brampton with "accountants" that claim they can get around all of these legalities for you to make tax free profit. Surely they can spin up some paperwork for you to hide the money trail. Maybe they can put the house in their 90 year old moms name who's never been to Canada before. Wouldn't surprise me.
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That's OK until CRA flags you for an audit.

They don't mess around - if they think you are cheating or evading they might give you a small window to pay up without penalties.

Don't agree? You get the full force of their rectoscope doing a deep dive + monstrous penalties and interest. Most of those clever accountants will recommend their clients pay the tax reassessment rather than taking on the not taking on the fight and penalty risks.

I only wish CRA was tougher on cheaters. I'd love to see a citizen bounty on tax evaders.
 
The CRA are pretty ruthless with low hanging fruit , and the auditors are inherently lazy as any of us . Have tax lawyers on hand and they quiet down , but Joe average often can’t afford to mount a defence .


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crankcall said:
The CRA are pretty ruthless with low hanging fruit , and the auditors are inherently lazy as any of us . Have tax lawyers on hand and they quiet down , but Joe average often can’t afford to mount a defence .


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If you steal (or are "tax efficient") enough, you can afford to pay to keep the cra at bay. They like relatively easy wins. Easier to get 20k from me and 99 others like me than it is to get 2M (or 20M or 200M) from galen.
 
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