Good information to pass along Navaz. Even though the GST has been around for 17 years now, it is overlooked so often in business and real property transactions. GST on real property (real estate) transactions is very complex, much more so than Income Tax. I think it is essential to run...

Hi Stephen, if she sells her interest in the property in 12 months, she will pay taxes on her share of the capital appreciation and cash flow. I don`t know all the facts about her, but I think her profit from the capital appreciation would be taxed as business income, not capital gain...

As long as you qualify for both mortgages (refinancing the rental and your new principal residence), you can do so with triggering a capital gain on the rental property until it`s sold even though the extra cash from the refinance is used to purchase your principal residence. The key is that...

You can not create a gain without transferring Title to someone else. Maybe you can transfer the property to your spouse or your company to accomplish this. This may create mortgage penalty issues and other issues bigger that what you are trying to achieve. You are right in your logic about...

Hi, I have read many questions and responses relating to refinancing properties. You should be aware that as long as the name(s) on Title do not change, there are no immediate income tax consequences as it relates to a sale or deemed sale (capital gain or business income). However, if there is...

Hi Jkaufman, just a quick follow up. Your understanding is not correct, capital gains will never have to be reported on a refinance, only on the eventual sale. The issue on the refinance is the eligibility to deduct the interest on the extra money after the refinance took place. Hope that...

My thoughts would be to pay the maximum amount down on your personal mortgage with the $50,000.00 and then arrange a home equity line of credit that you could use for the down payment on your investment property (should you decide to invest). From a tax perspective, you are maximizing your...

It sounds like you have some passion for what you are learning and you like what you see. If this is your vision, stick with it and the sky is the limit. The next step - action. Have fun and best of luck. Todd

You are the CEO of this business. All you want, and deserve, is to expect and receive great service from both realtors. I would suggest that you let the two agents work it out between each other and leave you out of it. Easier said than done, but it`s also that simple. Put them in the...

Hello, the same purchase contract is used. We put down our "corporation`s name and/or nominees/assingns" as the purchaser. Todd

Just a few quick thoughts. A Business Valuation is the first step to see if the "list price" is fair. There are many factors to look at in determining the value. I agree with you that you can purchase the business and with your buddy`s experience and willingness to stay, that would be...

Take a look at this one as well - it talks about the tax side of things. http://myreinspace.com/rein_members_only/Financing/89-1429-rent_to_own.html Todd

Hello Serge, your question is difficult to answer without knowing more facts about your entire situation and reviewing the agreement. In November, George made a presentation that outlined many factors to consider when making an income/capital gain determination. Download his checklist that is...

I agree, I would not close until all the environmental issues are dealt with. I am glad to see that you were given the answers you needed to hear, not what you wanted to hear. Maybe there is something we are all missing. I hope so for your sake, but environmental issues can drag on forever...

Hello, yes the building can be depreciated in either case as well as the furniture. Capital Cost Allowance (tax term for depreciation) is an optional deduction. Some taxpayers choose to claim it, some don`t. A taxpayer is entitled to claim capital cost allowance (CCA) if their income is...

That`s a good summary. From an Income Tax perspective, depending on the rental pool agreement and the nature of the properties in the rental pool, the income generated may be deemed to be Rental Income or Business Income. This may not seem much different, but Rental Income and Business Income...

Thank you for that information. It will be helpful to many of us. Todd

My advice, if there is any foundation issues - run, run, run. You can call Abalon Construction and they will assess the damage and let you know the seriousness of it and the costs to repair same. I would also check the Capital Replace Reserve report to see if there are any comments regarding...

I agree with all the repsondents - my advice to you is to find a qualified accountant and have him/her review all your needs, goals and current situation and an answer will result. You will not find the answer to your situation using this Forum since there is so much detail that is required...

Check with a broker regarding the size of the house to see if it`s too small to qualify for quality financing. If it`s a house, it my understanding that you want to have something over 700 sq. ft. or there could be trouble in the future with financing. Brokers, is this correct or is my...