One way to make money without paying taxes is to live in a home you are renovating to sell so you can claim the principal residence tax exemption. Of course if you do this as a way to make money you are actually operating a business and you owe those taxes anyways, either as capital gains or income taxes.
The CRA is going after people using this loophole to illegally avoid paying taxes and are using third party data to find them. If you are thinking of Reno flips without considering the tax bill, this might not be your best money making strategy.
From justme: people that own homes worth more that 3 million dollars may have to pay an extra housing tax. For a 3.5 million dollar property that could cost as much as $50 to $100 per month.
“Owners of multi-million dollar homes are probably not going to endear themselves to the public by pleading financial hardship. Nevertheless, more than 100 Vancouver residents gathered in a park last week to protest a surtax introduced by the provincial NDP government on homes worth more than $3 million. They wielded signs claiming the government “wants to confiscate your hard-earned home savings!” The tax, they said, is “unfair,” “exorbitant” and “predatory.”
Read more here.
Did you know that Richmond BC matches the downtown Eastside for one of the poorest neighborhoods in Canada? Shared by hyper-mega-bull:
Sign the petition to build modular housing in RICHMOND, one of canada’s poorest neighbourhoods.
Richmond, Downtown Eastside have similar levels of low-income, working-aged people: study
and the neighbourhood that this housing is going into is literally the poorest in richmond.
SIGN THE PETITION. GET MUCH NEEDED HOUSING RELIEF TO CANADA’S POOREST NEIGHBOURHOOD!
DO IT NOW!
Just a reminder, flipping condos as a money making venture means you have to pay taxes on that income and the CRA is going after those who don’t report condo flipping profit.
From April 2015 to December 2017, the CRA audited 4,951 files in British Columbia and assessed $140.0 million as a result of these audits.
The penalties for non-compliance are harsh.
“The CRA will apply a penalty equal to 50% of the additional tax payable if a taxpayer knowingly makes a false statement when filing a return,” the CRA says. “During the period of April 2015 to December 2017, the CRA applied 1,254 penalties, totaling $38.6 million. The highest penalty was almost $2.5 million.”
Read the full article here.
Southseacompany pointed out this one: Vancouver home sales fell twice as fast as a bank thought they would after new NDP taxes.
“Vancouver home sales dropped by around 30 per cent in the month after the BC NDP government introduced a plan to tackle housing affordability. But the losses look even more dramatic on a quarterly basis, according to calculations by a major bank.”
Read the full article here.