Saturday, October 28, 2017

CRA chases flippers

“The profits from flipping real estate are generally considered to be fully taxable as business income,” CRA spokesperson Zoltan Csepregi told The Canadian Press via email. “The facts of each case determine whether such profits should be reported as business income or as a capital gain.” Real estate deals in the Greater Toronto Area and Vancouver have been the subject of greater scrutiny....


Didn't declare that flip?  

Time for a voluntary disclosure.

The Canada Revenue Agency is analyzing 2,810 transactions involving cases of pre-construction condominium flipping in Toronto to determine whether audits need to be carried out to find tax evaders.

In the Toronto area, audit work has picked up accelerated on what are called “assignment sales” or “shadow flipping”, in which a condo is purchased from a developer and sold to another buyer before the unit is completed.



http://www.mortgagebrokernews.ca/news/cra-analyzing-nearly-3000-condo-flipping-cases-in-toronto-232980.aspx

Fair or Foul? 







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