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Capital gain - Land

Alvaro Sanchez

Ottawa-Gatineau Investor
Registered
Joined
Jun 5, 2009
Messages
966
I have the opportunity to get some land (5 acres) in two lots of 2.5 acre each next to a property that I am currently negotiating. The land is currently held in a corporate structure (that owns other property). I am looking for a creative ways to defer/minimize capital gain taxes for the seller. Any pointers will be greatly appreciated.
 

Thomas Beyer

0
REIN Member
Joined
Aug 30, 2007
Messages
13,881
Generally land without income is held for development, speculation or active business purposes, i.e. there is no capital gain, just normal income taxes payable. Farmland (i.e. land with income) might be different.

You can lease the land on sale for a lower price with a perpetual or annual (higher than normal) lease, i.e. defer income, but not avoid it.
 
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