The Tax Thread | Page 4 | GTAMotorcycle.com

The Tax Thread

Mad Mike said:
Let the benefactors pay the taxes - if someone in the fam was willing to give up a chunk of property for the cost of CG taxes, I'd be the first pig at the trough.
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100% agree...I just can't afford the 100-120k in additional mortgage that would cost me.

Once again, we have people that CAN and are able to pay, and those that would love to keep cottages / properties in the family, but don't have the means to do so.

'It's only money' -> things those with lots of money say.

Maybe I'm doing it wrong, because I had a cousin tell me 'how don't you have an extra 100k laying around to pay off? You're not poor'

It drives me nuts how people with access to easy / free money just are out of touch with reality.

Funnier still she's convinced the capital gains tax can be circumvented by simply willing the property to someone else...no tax if the current owners die! PROFIT!
 
mimico_polak said:
I wonder if the NDP will step up and shoot this down, or keep bending over and taking it up the *** from JT...

toronto.citynews.ca

Capital gains proposal to be presented to Parliament on Monday, Freeland says

Freeland announced the capital gains tax changes as part of her April budget but left the new inclusion rate out of the budget legislation.
toronto.citynews.ca toronto.citynews.ca
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I would be shocked if they did that.

Anybody know if the libs made this a poison pill where it cant be voted down without collapsing government? If so, zero percent chance of Singh giving up his tiny purse strings.
 
mimico_polak said:
100% agree...I just can't afford the 100-120k in additional mortgage that would cost me.

Once again, we have people that CAN and are able to pay, and those that would love to keep cottages / properties in the family, but don't have the means to do so.

'It's only money' -> things those with lots of money say.

Maybe I'm doing it wrong, because I had a cousin tell me 'how don't you have an extra 100k laying around to pay off? You're not poor'

It drives me nuts how people with access to easy / free money just are out of touch with reality.

Funnier still she's convinced the capital gains tax can be circumvented by simply willing the property to someone else...no tax if the current owners die! PROFIT!
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A 2nd property would trigger capital gains upon death (estate is on the hook). Primary residence would only trigger capital gains when/if those who inherited sell and they didn't live there.
 
Evoex said:
A 2nd property would trigger capital gains upon death (estate is on the hook). Primary residence would only trigger capital gains when/if those who inherited sell and they didn't live there.
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2nd property also triggers CG upon addition / change of title before death.

No way around it unless someone here knows, let me know.
 
mimico_polak said:
100% agree...I just can't afford the 100-120k in additional mortgage that would cost me.

Once again, we have people that CAN and are able to pay, and those that would love to keep cottages / properties in the family, but don't have the means to do so.

'It's only money' -> things those with lots of money say.

Maybe I'm doing it wrong, because I had a cousin tell me 'how don't you have an extra 100k laying around to pay off? You're not poor'

It drives me nuts how people with access to easy / free money just are out of touch with reality.

Funnier still she's convinced the capital gains tax can be circumvented by simply willing the property to someone else...no tax if the current owners die! PROFIT!
Click to expand...

"I don't understand it.. If people need more money.. why don't they just get more money"

That is an actual quote from someone I know.. during a conversation about inflation/interest rates, etc...
Wealthy parents.. no clue how the world works.
 
raginduck said:
"I don't understand it.. If people need more money.. why don't they just get more money"

That is an actual quote from someone I know.. during a conversation about inflation/interest rates, etc...
Wealthy parents.. no clue how the world works.
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These people that say this to me aren't wealthy...but since they bought up a bunch of properties and built up their net worth their attitude changed considerably.

I wish them all the best, but they're 1M in debt...and their renewals are coming up next week so it could be a different discussions.

Maybe they'll just be able to make more money or wish it out of their bums.
 
raginduck said:
"I don't understand it.. If people need more money.. why don't they just get more money"

That is an actual quote from someone I know.. during a conversation about inflation/interest rates, etc...
Wealthy parents.. no clue how the world works.
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I mean, if I'm in a position for financial difficulties, I just let go some of the house staff. Maybe fire a few of the butlers and maids.

Gosh, it's like you guys don't think.
 
So, turns out my dad never filed his 2015 return. Had to get that done and got slapped with a fat interest charge which comes out of his estate, zzzzzzzzzzzzzzzzz. Currently waiting for the final tax return assessment and letter of clearance so we can finally put this issue to bed. Talk about an annoying and time consuming ordeal.

Also got my personal tax return assessed, they decreased my capital loss from 300k down to 160k. But so far agree with the accountant on what i owe.
 
mimico_polak said:
Keep those taxes coming JT....just think up of more stupid ways to tax Canadians, and I'm sure your change of re-election will go up...

financialpost.com

Tax on home equity is latest proposal in Liberals' bogeyman approach to housing

Is a home equity tax a good idea? The short answer is no as Canadians already pay a long list of other taxes on their homes. Read more here.
financialpost.com financialpost.com
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Like someone getting fired at a workplace, once it becomes obvious that your time is up, the proper path is to walk them out so they don't pillage you. Anything they do between now and next fall won't even consider the impact on citizens it will all be to transfer money to their people.

EDIT:
I would hope after years of servicing them under the desk, Jagmeet would finally grow a pair a turf them but I have almost zero faith in that happening.
 
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GreyGhost said:
Like someone getting fired at a workplace, once it becomes obvious that your time is up, the proper path is to walk them out so they don't pillage you. Anything they do between now and next fall won't even consider the impact on citizens it will all be to transfer money to their people.

EDIT:
I would hope after years of servicing them under the desk, Jagmeet would finally grow a pair a turf them but I have almost zero faith in that happening.
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The numbers say NDP will be an after thought if the election were held today. He's gonna ride out the seats they do hold while pushing the Liberals to make concessions. Then he can bang the election drum "see what I did for you?"
 
Evoex said:
The numbers say NDP will be an after thought if the election were held today. He's gonna ride out the seats they do hold while pushing the Liberals to make concessions. Then he can bang the election drum "see what I did for you?"
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Oh I know. The whole batch of them shpuld be banned from ever having a job funded by public money again. They clearly have their personal interests well in front of citizens. I don't expect perfection but I'd settle for citizens sometimes being first.
 
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GreyGhost said:
I would be shocked if they did that.

Anybody know if the libs made this a poison pill where it cant be voted down without collapsing government? If so, zero percent chance of Singh giving up his tiny purse strings.
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"However, Liberals have defended the effective tax increase on capital gains, arguing that Canada needs to raise more revenue to pay for things like housing and health care.". Plus rewarding friends, families, corporate donors, consultants, civil servants, PM vacations

Singh would make it sound like a good deal if he borrowed your car, put 500,000 km on it then returned it with new tires. See you got new tires. How much does the dental plan cost if you add to it the squandering Singh allowed by not giving the Liberals the boot?
 
GreyGhost said:
For various reasons, I just pay mileage at CRA max rate. Simplifies documentation. I do it clean but there are ways to juice the program to increase money transferred to you tax-free from a business. For instance with a multi-vehicle household, one of the vehicles may be used only for work purposes and therefore all mileage would be reimbursed.

If you are a contractor or don't have control of the business reimbursing, that strategy may not work for you. At a past employer, my wife was required to use her vehicle to go to different client sites daily. Work reimbursed mileage (crap rate) and most of her co-workers also wrote off fuel/maintenance/insurance/etc. Yikes. If CRA caught onto one employee, they would burn them all down and it wouldn't be pretty. I kept my wifes filings clean as I don't want to fight CRA.

A former employer chose to provide themselves a monthly car allowance as opposed to paying out specific expenses. That was on the advice of their accountant.

If you are claiming the expenses on your personal income tax, the employer should give you a completed T2200 to legitimize the deduction. T777 is the form you fill out to calculate the deduction.

Employment Expenses 2023 - Canada.ca

Use this guide if you are an employee and your employer requires you to pay expenses to earn your employment income.
www.canada.ca www.canada.ca
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I know a guy that forgot to tell CRA about his company van which would have hit him with a hefty taxable standby charge even though the van was so tool laden it was useless for personal needs.

He eventually bought a van and the company paid him per km. He should have logged the work Kms but instead only claimed 90% business use. He never had a problem but there are weasels in the CRA that like pulling wings of flies. They may be on a bonus system.
 
In a chat with my investment guru she noted that dividends get taxed at 25% while CG's are 50 to 65%

How does that affect a new company needing start up financing?
 
nobbie48 said:
In a chat with my investment guru she noted that dividends get taxed at 25% while CG's are 50 to 65%

How does that affect a new company needing start up financing?
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So many concepts in one tiny post.

Dividend taxation depends on how big the company is providing dividends, is the company in canada, is the investment held in a registered account, etc.

Most CG's don't get taxed at 50-65%. 50-65% is the taxable amount and then that gets counted as income and you pay the applicable tax rate. So CG's get taxed at up to about 35%.

I don't know much about startup financing for new companies. I assume there would be flow-through tax credits so it would depend on structure of company providing the money (assuming they bought equity, a loan is simpler).

I do know of some people that had holding companies that liquidated the assets prior to the change to avoid some tax.
 
Was speaking with a retail store owner last week. He was boasting how he has pretty much no intention to ever pay taxes again. Once he found out there is nothing the government can legally do to go into your bank accounts and take money out for money owed. (Don't quote me on this) but his understanding was that they cannot. He is free to travel in and out of Canada without fear of jail time, no court can go after him to get his money, he essentially plans to let his tax bill add up forever.

He did really well during Covid and probably brought in a couple hundred grand in sales. Paid off some debts and himself after getting his business started a few years prior and not taking much of a salary. Then there was no money left to pay the government their share. Has let it build up for the last couple years as well.
I asked what about your HST remittance every quarter or bi yearly? Nope doesn't do that either. He sells big ticket items (8-15k) charging tax on them obviously. Couldn't believe it.
His partner worked some retail jobs as well, owed the government from her income, and he said "I told her to just add it to the tally"

Doesn't own a home, and doesn't plan to work for someone else ever again that his wages could be garnished...no child support in question now either as still with his partner. He has some pretty expensive vehicles (presumably on some sort of finance agreement) I guess as long as you can show the lender proof of funds and money in the account every month he should be ok.

I guess legally the only thing the government could take would be capital gains from a sale of a house if he ever left one to his kids but I don't think that'll happen either.
 
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