Buying a flip? Budget for taxes.

As you’re probably aware, flipping real estate is a business and the Canada Revenue Agency is going to want their cut whether you’re a Canadian citizen or not. But what if they can’t track down the foreign seller? Then they’ll get it from the buyer. That’s right, if you’re buying property from a foreign seller there’s a small but important detail you should be aware of:

Under section 116 of the Income Tax Act, when a non-resident disposes of taxable Canadian property, the purchaser “is required to withhold 25 per cent of the purchase price…until such time as a certificate of compliance is obtained by the non-resident vendor.”

The non-resident vendor is required to notify Canada Revenue of the disposition either prior to the sale or 10 days after the disposition date.

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[…] mattymatt at vancouvercondo.info February 24th, 2011 at 9:22 am – “My wife makes the average income of about $52,000 a year and I own a machine shop in Richmond, my take home is about $110,000. In 2008 we thought the market was going to tank, so we sold (“Big mistake”) our paid-off condo in Richmond, banked some of the money and invested the rest. For a 1-1/2 years we rented a top floor of a Vancouver “shit” house in the neighborhood of 20th and Fraser (bigger mistake). It also had a “basement” which was rented out. LIVING IN VANCOUVER IS NOT GREAT! : Traffic and commuting back to Richmond. Expensive rent for really old and shitty place! Assholes in basement suite…No parking everywhere… and the list goes on and on. So, as of January, we moved to Queensborough New… Read more »

jesse
Member

@painted turtle: That paper needs to study the Charter. It is not valid to deny a hospice a permit based on endogenous harm of nearby residents.

I'll be blunt: if this were a home for blacks and residents believed black people bring bad luck do you think they would stand a chance? Under the Charter, there is little to no difference between being old and sick and being black.

CRASH JPMorgan-Chase
Guest
CRASH JPMorgan-Chase

@painted turtle: ARE THEY FUCKING SERIOUS? That article outlines point by point why those people from Asia should immediately be given maps to the airport where they can get on a plane and GO HOME. I'm so fucking sick and tired of the assholes on this thread who try to deny that it's Asians that are ruining our community and driving prices up. IT IS ASIANS. People, do not be afraid to speak your minds, it's still a free country and if you don't like our immigration policies and the practice of Asian (with the help of their white real estate sluts) realtors you have a RIGHT to express your opinion. FUCK those who call it racism to speak out. WE are the victims of racism but most Canadians are too FUCKING STUPID to do anything about it. In Australia… Read more »

Kosta
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Kosta

@painted turtle:

http://www.myuna.ca/wp-content/uploads/2010/04/Ca

page 6

Holy Gaddafi, those wackos are for real and live in the neighborhood? I'd think it can be only in the movies. Let's import some Talibans too to mix it up.

asia man
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asia man

let me share with you the blood sucking real estate vampire, very funny and a window into the future in BC.
http://www.youtube.com/watch?v=E2IjktYtwwo&NR

painted turtle
Guest
painted turtle

My favorites are:

the poor lonely wife relocated by her Feng Shui master

the kid who refuses open windows

the toddler who wants to sleep with Mum

It tells you how much the kids got scared by the hysteria of the mothers over the prospect of declining property value.

Anonymous
Guest
Anonymous

@painted turtle: What a sickening display of empty-headed political correctness.

Did you see that pandering piece about the fathers working back in China "to earn income sufficient to support the family and the purchased property"?

Poor depressed immigrants suffering so much in their million dollar condos. Give me a freakin break. They are rich enough to choose to live the way they do. If they don't like it, GO HOME. Or don't live somewhere so expensive.

You want to see real suffering, go to the Downtown Eastside.

VHB
Member
VHB

Here is the update using Larry's numbers.

February 2011 month-end projections

Days elapsed so far 18

Days remaining 2

5 Day Moving Average: Sales 162

5 Day Moving Average: Listings 278

SALES

Sales so far 2806

Projection for rest of month (using 5day MA) 325

Projected month end total 3131 +/- 68

NEW LISTINGS

Listings so far 5121

Projection for rest of month (using 5day MA) 557

Projected month end total 5678 +/- 31

Sell-list so far 54.8%

Projected month-end sell-list 55.1%

MONTHS OF INVENTORY

Inventory as of February 23, 2011 12621

MoI at this sales pace 4.03

painted turtle
Guest
painted turtle

Also on page 3:

"Residents Request same Fair Treatment as UBC Students"
http://www.myuna.ca/wp-content/uploads/2010/04/Ca

painted turtle
Guest
painted turtle

Hospice News !!! Don't miss them 🙂

Residents Receive UNA Support In Quest to Revise Hospice Location

President Predicts Hospice Site Debate Likely Meet in April

Also an interesting article about a Chinese developer building the next mixed residential complex on campus.

http://www.myuna.ca/wp-content/uploads/2010/04/Ca

Best place on meth
Member
Best place on meth

Haven't seen Mr. B. so here are Larry's dailies.

Dailies – List | Sold

Vancouver East & West*

New Listings – 73

Back On Market Listings -1

Price Changes -20

Sold Listings – 49

Vancouver All Areas*

New Listings – 280

Back On Market Listings – 3

Price Changes – 67

Sold Listings – 137

*Attached & Detached – Date: 02/24/2011 Time:19:35 Pacific YatterMatters.com:Courtesy REBGV. Data believed to be accurate but is not guaranteed.

IT__Pro
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IT__Pro

Test

oneangryslav2
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oneangryslav2

@space889: I agree with some of what you say, but you're simply wrong about the causes/triggers of revolution. Why in the Middle East right now? If you're a staunch supporter of Bush and Blair you're arguing (incorrectly) that it was their decision to bomb the crap out of Iraq about eight years ago that produced the current moment in Middle Eastern politics. Did the Tunisians and Egyptians wake up en masse one morning a month ago and decide for the first time that they wanted democracy? I'm not going to get into the history of political revolutions, but these events usually happen when general economic levels are rising and demands from the people, which are also rising, become increasingly likely to be unmet. In addition, the (potential causal) role of democracy in revolutions is also not nearly as apparent as… Read more »

DaMann
Member
DaMann

@vreaa:

Thank you very much!

Devore
Member
Devore

@scullboy: The point of investing, such as in commodities, is not to consume it, but to hold it speculatively and resell it. When you invest in oil futures, you don't want 10 barrels of crude on your doorstep, you just want to roll the contract over to the next month. There is no expectation of delivery.

jesse
Member

@YLTNboomerang: "I gotta say that it is the most messed up communist state in existence!"

Do you really think China is a communist state like, say, Cuba? Come off it.

Significant income disparity can occur during fast economic growth spurts. Not saying it's unavoidable but the US, UK, and other countries experienced (and arguably are currently experiencing) similar disparities.

Bouts of inflation are worrying for the Chinese politburo because they can lead to significant capital misallocations and popular unrest. The politburo should know: income disparity was a large reason they came to power 60 years ago!

Boombust
Guest
Boombust

"Canada has its warts too: first nations reserves have significant economic, social, and health problems…"

Hmmm…and most of those things are looked after.

Wish I didn't have to pay taxes, got free university…

So, vote me down. Go ahead.

jesse
Member

@Best place on meth: "They're a joke."

Canada has its warts too: first nations reserves have significant economic, social, and health problems. While the extent of the problem is not the same as in China, the same principle applies.

I've done business with firms in China and working conditions vary significantly. In one specific case, the parts we had manufactured there required specific skills to build so turnover was kept to a minimum and as a result conditions weren't that bad.

It's a mistake to paint the entire country with on brush, as your comment, on its surface, is doing. The owners and workers of the factory we used deserved every penny we gave them. Is it wrong for some of them to turn around and buy a Dunbar house close to St. Georges?

registered
Member
registered

#95 space889 Says: "Have it occurred to you that maybe, just maybe, part of the big reason why the quality sucks is because the foreign companies mandate it?"

Or maybe not. The only two people I know who rolled out Mainland manufacturing initiatives both described the travails of avoiding being fucked, like paying foreign private school tuition for a plant manager's daughter or preferring to hire foreign managers when possible because they're outside the local bribe syndicate. Certainly not all plants are the same but blaming the clients is as laughable as it is ludicrous. Entire third party quality assurance industries have sprung up to assist outsiders get what they order. Nice try.

oneangryslav2
Guest
oneangryslav2

@space889:

The fact that you compared China to Middle East dictatorships show just how little you know about China.

Where did I do this? Go back and read what I wrote; nowhere did I compare China to the dictatorships of the Middle East.

space889
Guest
space889

Oh yeah, anyone noticed that TSX was down a lucky 88.88 points!!! OMG how luck is that!?! Tomorrow will probably see some heavy buying in TSX by the Chinese! 🙂

space889
Guest
space889

@scullboy: Errr….I don't think the wine would still be an investment after you drink it! If you can't drink the investment then why would you need to learn to enjoy drinking wine? I can see how enjoying wine would help with picking the right investment in this case but it's not really necessary.

SourLemon
Guest
SourLemon

Granted China's growth has been accelerated and perceived to be unsustainable, but per capita wise, they still have a lot of room to catch up to that of their western counterparts.

All this China bashing and cheering mostly neglects the fact that china is basically a large collective of provinces, provinces that out populate Canada.

Even if China's per Capita does not exceed 50% of ours, they will have exceeded the US. Will there be another technological revolution that that brings the West above their current plateau?

Best place on meth
Member
Best place on meth

@space889: >>>Have it occurred to you that maybe, just maybe, part of the big reason why the quality sucks is because the foreign companies mandate it?<<< No, it hasn't. Not for a second. Your weak defense of China fails and your attempt to blame western corporations is a farce. How do you then explain the poor standards in their own products for domestic consumption? How many Chinese babies were killed from tainted formula, how many schools collapsed on their kids in minor earthquakes due to shoddy construction where some people made big bucks cutting corners? I mentioned earlier the high speed train system they're trying to get built as fast as possible, quality be damned. And how the hell do you explain this? http://www.youtube.com/watch?v=pktM__i-8IQ&fe… China is trying to catch up to the west at the highest possible speed and the… Read more »

space889
Guest
space889

@oneangryslav2: Don't hold your breath because while average Chinese have issues with the current government, the memories of what happens to China when there is a weak central government or power vacumm at the top is fresh in most people's minds. That and the rapid economic rise in Chinese economy and living standards are reason enough to prevent any mass revolutions. The fact that you compared China to Middle East dictatorships show just how little you know about China. If you want to know what's going on in China? I would recommend you go watch the Chinese channels like Phoenix TV (ch 520 on Shaw) that broadcast various programs from mainland China. I think you will be surprised at just how much actual debate there is in China about various issues of the day. Frankly these issues are much more… Read more »