CRA targets vancouver condo flippers

The Canada Revenue Agency is going after condo flippers for taxes due.  They are already taking developers to court for info an presales buyers who flipped contracts. Guess the taxman wants his cut of the boom.

In an emailed statement, Canada Revenue Agency (CRA) spokesman David Morgan explained the rationale behind the applications.

“In general, people who buy and resell homes in a short period for a profit may be engaged in property flipping. The CRA acquires and analyzes third-party data and uses this information to identify whether all income from property flipping is being reported correctly. The profits from flipping real estate are generally considered to be fully taxable as business income. The facts of each case determine whether such profits should be reported as business income or as a capital gain,” Morgan wrote.

Read the full article here.

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Rediculous
Guest
Rediculous

Gee…welcome to the game CRA…..about bloody time

Oracle
Guest
Oracle

Problem is many of these flips are going to go underground or on overseas websites like Juwai and proceeds will change hands overseas or in cash. Transaction will appear like no money made thus no taxes.

patriotz
Member

As has been pointed out many times, if a transaction gets recorded at an artificially low price it puts the owner on the hook for artificially high gains. Eventually someone is going to have to take the hit.

Shut It Down Already
Guest
Shut It Down Already

They both get to commit tax fraud and the seller gets to trust that a total stranger will give a friend of theirs overseas a stack of cash (which now needs to be hidden). How is this meant to be a plausible scenario again?

Abdul Lahazi
Guest
Abdul Lahazi

CRA has to get on the undeclared basement suite rental income too.

Oracle
Guest
Oracle

They won’t as these provide a affordable housing alternative. Doing so would jack up rents faster.

Shut It Down Already
Guest
Shut It Down Already

They don’t need to as in most cases there’s no profit to tax.

patriotz
Member

Most basement suite landlords have no net rental income. What CRA will go after is capital gains. There are only incurred when the property is sold so this isn’t a disincentive to landlords who are only interested in paying today’s bills.

Just me
Guest
Just me

http://www.cbc.ca/news/canada/british-columbia/bc-liberals-leadership-wilkinson-vancouver-quilchena-1.4229995

Worst possible news for those hoping the BCLibs would change and move towards a more nuanced tone on housing and Chinese migration. This guy was the right hand man of Christy, and even more confrontational then het on those files.

Lert’s hope other candidates are more reasonable people.

Just me
Guest
Just me
kabloona
Member
kabloona

“In Canada, a nation of realtors braces for the end of the boom”

Sad!

😉

https://ca.finance.yahoo.com/news/canada-nation-realtors-braces-end-051055541.html

best place on earth
Guest
best place on earth

you read yahoo news and quote them even! only the supper “smart” minds read yahoo news.

Combat roach
Guest
Combat roach

Here comes the genius, always saying a little but extremely stupid. You should enter the politics.

Oracle
Guest
Oracle

He is mocking because here are the facts (nothing else is significant):

1) Immigration floodgates wide open

2) Foreign money pouring into BC real estate. Example: $500 K townhouse and $900K houses in Abby?? Good luck ever owning anything..

kabloona
Member
kabloona

Oh, sorry…..here ya go, the original story from Reuters….

😉

http://ca.reuters.com/article/domesticNews/idCAKBN1AH31Z-OCADN

Just me
Guest
Just me
From the article: Realtors’ ranks in Canada’s largest city and hottest housing market have surged 77 percent since 2008 to more than 48,000 – nearly 10 times the pace of Canadian job growth. Nationwide, that number has risen 26.9 percent.(Graphic: http://tmsnrt.rs/2eQKCqS) By comparison, there are over 13,500 realtors in Chicago, according to the Chicago Association of Realtors. With Canadian home construction jobs rising at nearly the same pace as real estate jobs, housing has become the top driver of employment and economic growth, accounting for the bulk of Canada’s economic growth last year. As the nearly one million housing sector jobs now far outstrip those in oil and gas extraction and mining combined and approach the size of the manufacturing sector, economists brace for a painful reckoning if the housing slowdown turns into a long correction. This is why our… Read more »
oncebittwiceshy
Guest
oncebittwiceshy
Look south, my friend and you will see what happens to an economy that became so dependent on the FIRE industries. 1.5% of USA GDP was tied up with the FIRE industries and we watched first hand the devastation that happened. …..but we don’t have subprime mortgages.. uh huh …..but we don’t have excessive debt…ohhh …..but we never had ninja loans..lol …..well, we don’t have speculation or foreign investors….right Okay, maybe we have had all of that but everyone wants to live in Vancouver. That’s one the Bulls had better pray for every night. http://www.myrealtycheck.ca/ Vancouver: Average Change: -1.60% Up:105 Down:274 Overall $ Change: -57909839.00 Average Change Amount:-152796.41 So, apparently the Bulls haven’t been praying hard enough as price drops measured $57,000,000 this month, in Vancouver alone. I know, I know, those are simply people that have listed too high… Read more »
Oracle
Guest
Oracle

They are playing people who think like you. The underlying dynamics suggest rents going much higher.

Shut It Down Already
Guest
Shut It Down Already

Not really, as no matter the rate of arrivals they need to have a source of income to have any impact on rents. The labour market doesn’t really paint that rosy a picture.

VanRant
Member
VanRant

“it was common practice” for realtors at New Coast to write their manager’s name on documents submitted to the Real Estate Board of Greater Vancouver, and that she left the firm because she refused to take part in what she believed were “unethical and unlawful practices.”
http://vancouversun.com/news/local-news/rbc-says-it-takes-appropriate-action-in-response-to-fake-chinese-collateral-case-allegations

Combat roach
Guest
Combat roach

Traditional ideology, Mao’s doctrine…

Abdul Lahazi
Guest
Abdul Lahazi

Why are these Asian bucket shop real estate companies not shut down by the regulators? New Coast, Metro Edge, etc. a bunch of crooks.

Time to go
Guest
Time to go

Problem is the real estate industry has been playing fast and loose with rules and regs for years, so it’s hard for them to call out an agency without everyone’s books being opened. At least that’s my take. This shop should have been shuttered after the first set of infractions.

bullwhip29
Guest
bullwhip29

when the heat was turned up at new coast, many of the same players resurfaced at newly created RE co’s like nu stream and metro edge and continued on business as usual. if/when some new rules that actually have some bite are implemented these rats will jump ship and take all their winnings with them.

bullwhip29
Guest
bullwhip29

yes, it was common practice and now all parties pointing the finger as the walls begin to close in. anyone that for a second didnt believe the same nonsense was conducted at nu stream and metro edge immediately following the new coast investigation have their heads in the sand. i’m afraid the new powers that be will find it next to impossible to audit many of these transactions and locate the funds as the parties involved have vanished into thin air. anyone heard from or seen the likes of julia lau?

Diadora
Guest

Same realtor (Wendy Yang) that appeared on another Sun article last year.
http://vancouversun.com/business/mortgages/couple-claim-they-were-told-to-fake-assets-to-buy-richmond-home
Why is she still selling RE????

Abdul Lahazi
Guest
Abdul Lahazi

What a a gong show the chineze have turned our real estate market into.

bullwhip29
Guest
bullwhip29

she was the same one who placed her own realtor signs with fake sold stickers on vacant houses all over richmond

southseacompany
Member
southseacompany

“Canada’s realtors brace for the end of the housing boom”, BNN

http://www.bnn.ca/canada-s-realtors-brace-for-the-end-of-the-housing-boom-1.819173

“Canada’s long housing boom has drawn thousands into the sector, from realtors and home stagers to construction workers, and a looming slowdown threatens to trigger an exodus that could wipe out many of those jobs and force the economy to shift down”

Abdul Lahazi
Guest
Abdul Lahazi

The economy needs to “shift down” to the point where we are actually productive again.

Doomcouver
Guest
Doomcouver

I could envision only 25% of the real estate agents in Vancouver being able to keep their job for more than a decade at this point. Hope they have fallback careers, or they’ll be driving their BMW SUV’s to the unemployment line.

southseacompany
Member
southseacompany

“‘Day of reckoning’ looms for Canada’s consumer debt bomb”, Globe & mail

https://www.theglobeandmail.com/report-on-business/top-business-stories/day-of-reckoning-looms-for-canadas-consumer-debtbomb/article35853823/

“It’s growing ever tougher to afford a home, particularly in Vancouver, Toronto and Victoria. But it’s relatively easy to go bust, as some overextended Canadians may soon learn.”

“That’s the takeaway from a handful of recent studies, one of which warns a “day of reckoning” may be looming, at least for those who have borrowed far more than they should have.”

Doomcouver
Guest
Doomcouver
Globalism has led to a brand new dynamic in the normal boom-bust cycle of many assets. We’re now confronted with mega booms, and mega busts the likes of which have not existed before. Wealthy people’s money sloshes around the globe searching for highest yielding assets, leading to bubbles in all kinds of things that historically would have been driven almost exclusively by local market forces. Ultimately, we need more laws to protect us from these potentially destructive forces, while harnessing the good parts of globalism. Hopefully after the Great Canadian Real Estate Crash some intelligent economists will point politicians in the right direction. Who am I kidding though? I’m betting after a few decades of worthless housing, it will spike back up to insane prices again and politicians will line their pockets. The endgame is more wealth consolidation at the… Read more »
southseacompany
Member
southseacompany

“Canadian economy’s addiction to real estate fees is ‘stunning,’ says analyst”, CBC

http://www.cbc.ca/news/business/real-estate-fees-home-sales-1.4226630

“Real estate commissions, land transfer taxes, legal costs and fees for inspecting and surveying homes make up almost two per cent of Canada’s economy.”

“”This is a stunning 1.9 per cent of GDP,” said Macquarie analyst David Doyle. “It’s really concerning, it’s really unhealthy.” ”

“By comparison, agriculture, forestry, fishing and hunting account for 1.6 per cent of GDP, Statistics Canada reports.”

bullwhip29
Guest
bullwhip29

it is the other segments of the economy that directly benefit from the wealth effect created as a result of the RE bubble that make up a far greater % imho

Doomcouver
Guest
Doomcouver

Oh yeah the wealth effect shouldn’t be underestimated. The fact that American malls are empty and the Canadian malls are still fairly full has to do with how wealthy Canadians think they are. They’re dead wrong and when their paper wealth goes up in smoke, Canadian consumerism will come to a grinding halt. At that point the last two pegs holding up our economy (the housing market, and retail/service consumerism) will get completely obliterated.

Abdul Lahazi
Guest
Abdul Lahazi

Remember Gordon Wilson?

http://globalnews.ca/news/3640145/bc-liberal-appointed-lng-advocate-fired-by-ndp/

Wilson apparently gave only oral reports, his calendar was full of cancelled meetings. Wilson was paid $550,000 for this.

CBM999
Guest
CBM999

Is that the same Gordon Wilson?

I went to his twitter and he was criticizing the NDP and then he’s working for the Liberals!?

Didn’t he leave the Liberals back in the 1990s and start his own party, and then joined the NDP as a cabinet minister?

I think he also left his wife when he saw an opportunity with Judy Tyabji.

Talk about a snake and an opportunist. He seems to go with whatever will make him money. Maybe he can join New Coast Realty.

bullwhip29
Guest
bullwhip29

krusty obviously had some dirt on the two of them as she directed wilson to sell out and pump her pet project while tyabji was tapped to flog that glowing work of fiction which just happened to be completed just before the election campaign sprang into gear.

Just me
Guest
Just me

I really hope Tyabji was not paid with public funds. But I would not put it past Christy Clark to use tax money for her biographer.

bullwhip29
Guest
bullwhip29

many layers to this story…and the more you peel off, the more putrid the odor gets. i wouldn’t be surprised if marissen never really left the picture and has been there behind the scenes the whole time

bullwhip29
Guest
bullwhip29
bullwhip29
Guest
bullwhip29
Just me
Guest
Just me

This is all so utterly vulgar and corrupt. It is beyond comment.
So glad Christy Clark is no longer our Premier: this is not about left or right-wing politics. This is about basic decency.

patriotz
Member

Not dirt really, they were just broke and Christy offered them a lot of money to come onside.

Doomcouver
Guest
Doomcouver

This guy sounds like a worthless turd. A prime example of government waste by the BC Libs. I’m sure it won’t be the last one to be uncovered by the NDP.

Just me
Guest
Just me

A worthless turd with a lovely SFH on the west side and a defined-benefits pension. And he probably goes around patronizing others about the anti-Chinese sentiment and the need for an open non-racist society. All for his own benefit.

Doomcouver
Guest
Doomcouver

In my opinion this guy is a criminal and should be locked up for defrauding the Canadian taxpayers.

Just me
Guest
Just me

I share your opinion. But it ain’t gonna happen.

southseacompany
Member
southseacompany

“Former Fed chair Greenspan sees no stock excess, warns of bond market bubble”, Globe & Mail

https://www.theglobeandmail.com/globe-investor/investment-ideas/former-federal-reserve-chairman-sees-no-stock-excess-warns-of-bond-market-bubble/article35853927/

““By any measure, real long-term interest rates are much too low and therefore unsustainable,” the former Federal Reserve chairman, 91, said in an interview. “When they move higher they are likely to move reasonably fast. We are experiencing a bubble, not in stock prices but in bond prices. ”

““The real problem is that when the bond-market bubble collapses, long-term interest rates will rise,” Greenspan said. “We are moving into a different phase of the economy – to a stagflation not seen since the 1970s. That is not good for asset prices.””

VMD
Member

Daughter sues Chinese politician father over $16 million West Vancouver properties
https://www.biv.com/article/2017/8/daughter-sues-chinese-politician-father-over-16-mi/

kabloona
Member
kabloona

Nice to see Chinese Communist party members are so darn productive they have $16 million available to speculate on offshore real estate assets….

😛

To each according to his needs…..

😉

BubbleTea
Guest

16 million! According to quora.com, a Chinese Prime Minister only makes 4000RMB ($630) per month. I think the chinese corruption tsar, Wang Qishan should investingate this guy fast before he disappear.
https://www.quora.com/What-is-the-pay-scale-for-Chinas-leadership

Abdul Lahazi
Guest
Abdul Lahazi

These people have no regard for our laws until something goes wrong for them and then they run to the courts/police.

Combat roach
Guest
Combat roach

Canada should introduce Chinese “legal treatment” for them and start executing those vermins.

Best place on meth
Member
Best place on meth

Neither should get the properties, instead they should be deported to face execution while the properties are auctioned off and given back to taxpayers.

paulb
Member

New
252
Price Change
66
Sold
147
TI:9763

http://www.clivestevepaul.com

Oracle
Guest
Oracle

http://www.businessinsider.com/china-india-war-dolkam-siliguri-corridor-2017-7

Hopefully the USA backs India and we send the Chinese PLA aggressors back 50 years! Its in the USA’s interest as well as the Communist Party will want to take over the world.

Best place on meth
Member
Best place on meth

Back 50 years would take them to the days when they were eating each other.

Yeah, that should be back far enough.

Doomcouver
Guest
Doomcouver

I’m beginning to think that, even though I’m 100% sure a crash is coming, the devastation may be so bad, living in Canada may be more intolerable afterwards than before. Sure, housing will be cheap, but most people won’t be able to find a job, and homelessness and crime will be everywhere. The BoC should have cared more about unintended consequences when they decided on a dangerous massive sustained rate-cut policy. Carney and Poloz are going to have a crazy amount of blood on their hands. We’re now staring down the barrel of a decade or more of economic misery.

Just me
Guest
Just me

Their horizon is that of career bureaucrats: the length of their expected tenure in the job. Then it is somebody else’s problem.
See Greenspan for an example.

Best place on meth
Member
Best place on meth

You’re getting way ahead of yourself.

First, how about we see a correction?

Then a meaningful correction.

Then we can move on to crash , devastation and the end of Canada as we know it.

Combat roach
Guest
Combat roach

It all makes sense as long as there is a substantial reduction of Chinese factors at all society and economy segments, otherwise rust and cancer will continue to destroy the “fabric”.

Doomcouver
Guest
Doomcouver

I think the bubble vs. bubble denier people have already hashed out the reasons for and not believing the bubble will pop. I do not find the bubble denier’s logic very compelling nor realistic.

Setting aside that I feel a meaningful correction is inevitable, and you do not, Canada’s has an over-reliance on housing to employ our citizens and generate GDP. This means that any meaningful correction will almost certainly have a self-feeding dynamic, where lower prices will produce negative economic impacts that will produce yet lower prices. As such a “soft landing” seems exceedingly unlikely at this point.

history
Guest
history
Bear Vancouverite
Member
Bear Vancouverite

Another Flip that Flopped?

5711 Musgrave Crescent (Richmond)
Listed Jan 2017 for $2,788,000
Now dropped to $1,999,000

2016 Assessed: $2,223,000
2015 Assessed: $1,613,000

Last sold: Mar 2016 for $2,490,000 (ouch)

Loss: $491,000 not including fees, or 25% if it sells at the new price.

Oh NO
Guest
Oh NO
Best place on meth
Member
Best place on meth

Manchurian candidates get together to discuss who can sell us out to the chinese the best.

http://cfjctoday.com/sites/default/files/styles/main_image/public/field/image/Trudeau-%20Ropbertson.jpg?itok=AknEgZAd

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