Accounting/Investing Strategies When Selling

[RE123RE]

Hi,
We are not selling much but a friend who also invests. and owns much. has asked me the following question:
What are some legit accounting/investing strategies to not pay tax when selling?
Please distinguish between properties under a corporation and not.
Thanks

 

[Thomas Beyer]

A few options:

1. Sell with no gain
2. Or cheat
3. Or buy another firm with losses if asset is held in a corporation
4. Or commingle with losses say from previous years ( either personally or in a corporation )
5. Or buy in the US (in a corporation) as you can roll forward gains tax free if you buy another asset, the so called 1031 rollover provision. Very powerful wealth creation tool used by wealthy folks that bought a house or apartment building or old strip mall in the 1960's for a few ten thousand $s that is now worth millions in 5 office towers !

 

[RE123RE]

commingle with losses say from previous years ( either personally or in a corporation ).

Hi,
So if a corporation has a retained loss of 100K for example from the previous 10 years (Total revenue - Total operating expenses in years 2005-2015), and has just sold a property purchased for 100K, for 200K,
then there will be zero capital gain tax to pay?
Thanks

 

[Thomas Beyer]

I believe capital gains can only be commingled with capital losses, not operating losses from operation.

 

[RE123RE]

Or commingle with losses say from previous years ( either personally or in a corporation )

Hi,
I understand by losses here you mean capital losses.
Thanks

 

[Cory Sperle]

This question always makes me smile. I want to pay as much tax as I possibly can.

 

[RE123RE]

makes me smile. I want to pay as much tax as I possibly can.

Hi,
You always smile when you pay or only when it's to CRA?
Thanks