CANADIANS TO PAY MORE REAL ESTATE TAXES

CANADIAN  REAL  ESTATE  LAWS   CHANGING

Canadian Finance Minister Bill Morneau introduced tax changes that are primarily targeting foreign investors in Canada’s real estate to ensure they abide by existing tax regulations. However,  Canadian residents are also paying tax on their principal residences.  Our tax rules are so complex that many Canadians don’t realize then when they sell a property they don’t have to pay taxes on their principal residence but then don’tpay taxes on the sale of other properties they may own.  Many have not paid taxes on every sale of their other residences thinking that every residential sale are tax-free, when they are not.   The Principal Residence Exemption (PRE) only applies to a Canadians principal property.  This has caused many not to report the sale and have paid no tax, even in situations where tax should have been paid.  These false dispositions have gone undetected by Canada Revenue Agency (CRA). That’s changing!

Example :  If a person purchased a home in year 2000, in 2005, he purchased a cottage, yet in 2011, he sold his principal home for a profit and purchased a new one. Then, in 2016, he sold the cottage for a profit.  If he didn’t report the sale of the city home in 2011 because the PRE sheltered his full capital gain from tax.  If he reported the sale of his cottage in 2016 because he correctly knew that a cottage can qualify as a principal residence.   The problem is that owners believe cottage sales are also tax-free, thanks to the PRE – but isn’t!  His city home was his principal residence for each year he owned it.  Since he did not file the form that designates a property as your principal residence and fraudulently not report the sale on his tax return.   The CRA thinks he designated his city home as his principal residence for the years he owned it, the result being no tax is owed. While the cottage is not entitled to designate it as his principal residence from the years 2005 to 2011, because he already “used up” those years on his principal home.  The result is that part of the capital gain on his cottage is taxable and he is required to file  the report that his cottage sale should have paid some tax.

Many Canadians are confused by the rules and have inadvertently escaped tax on the sale of all properties they owned.   Under the new rules, the CRA will mandatorily inform that tax is required to be paid on all property sales, other than the principal residence.  This new rule requires you to now report every sale of a principal residence on your tax return, whether you owe tax or not.  This starts with in 2016.  If you sold a home earlier this year, you’ll have to provide basic information (date of purchase, proceeds of disposition and a description of the property and sales amount) when you file your 2016 tax return.

If you fail to report a sale of a residence in 2016 or later years, you are not entitled to the PRE.  If you forget to designate a property as your principal residence in the year of it’s sale, ask the CRA to amend your tax return for that year.   The CRA will accept late designations but penalties usually are applied (penalty could be $100 for each complete month the designation is late, or $8,000, whichever is less).  The onus is on you to understand our principal residence rules.

Example :  When you have not sold your residence, you are deemed to have sold the place in certain situations (if you change all or part of your residence to or from a rental or business operation)  which will require you to report this to CRA.    You should keep track of all costs of capital improvements that you make to your residence.  Keep your receipts and invoices. These will increase the adjusted cost base (ACB) of your property and could save you tax later if it turns out you can’t fully shelter any gains on your property using the PRE.

You can thank the tax-loving greedy  LIEberal party of Canada.

YOU  SHOULD  REVIEW THE CANADIAN  TAX  LAWS  TO  KNOW HOW TO  PAY LESS TAXES

TRUTH ABOUT MARIJUANA LEGALIZATION

Is  Canada really going to legalize Marijuana  or was that a carrot for votes to sucker in  the 18 to 35 age voters?  Sure some older pot users and growers voted for the LIEberals too, but most will not admit it because they have been tricked by government and authorities before.  As THE  WHO  said, “We won’t get fooled again!”

How is Canada going to deal with the United Nations restricted worldwide law system it spread around the world? Why does the  DRUG WAR CONTINUE ON?   Can the UN and NATO  stop the true legalization?   oStop total legality over and above MEDICAL MARIJUANA?

Will the LIEberals allow Canadians to freely grow this sweet herb in our gardens like we do Dill, Sage or other plants?  Will we have to pay fees, penalties or licenses to access it like certain provinces are doing?  Will we be allowed to use Maryjane in public like cigarettes?  Or will it be treated like alcohol or even sold only in government liquor stores in packages designed with catchy name = like Mexican, Columbian or Skunk?  Will these packs have photos of healthier people who use pot for illness and to stop nausea?  Or will they show grisly diseased lungs and cancerous body parts?

I DON’T TRUST the LIEberals or the CONservatives.  It is only a matter of time before they have a complete list of who uses and distributes marijuana and the authorities can test their new Bill C-51 laws to arrest and detain those involved in the Drug trade.  Remember, the DRUG WAR IS NOT OVER YET.  They could pass a law tomorrow that states any one using a drug (which Marijuana still is) has to turn in any firearms or register them.  It would be the kind of sneaking underhanded move the political parties would try in the future.

When are they going to remove those in prisons for using weed?  Will they release those who are serving time for selling pot?  Will PARDONS BE ISSUED to Canadians that have had their criminal records scarred and are tainted with this ridiculous nonsense (Criminal Record)?  DON’T   HOLD  YOUR  BREATH.

NEVER  TRUST  ANYONE!!!

 

Sandford  Tuey  Jan 10, 2017 (c)