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.