Toronto Considering Land Transfer Tax Increase

In early 2007, the City of Toronto instituted a Toronto Land Transfer Tax (on top of the Ontario Land Transfer Tax) as a way to increase revenues while avoiding large (and politically unpopular) increases in property taxes or decreases in expenses. This tax applies only to properties in the “Old Toronto” 416 area code. For… Read More

Capital Gains Tax And Your Principal Residence

House Values Rising

Tax-free profit on the sale of your principal residence is alluring, but it can be elusive. Under the federal Income Tax Act, property owners are entitled to tax-free profit on the sale of their principal residence, provided they follow the Canada Revenue Agency (CRA) guidelines. Capital gain is the net difference between the cost of… Read More

Land Transfer Tax a Bad Idea According to C.D. Howe Institute

Land Transfer Tax a Bad Idea

Land transfer taxes are a bad idea that have a negative impact on both homeowners and the governments that enact them, says a new report by Benjamin Dachis, senior policy analyst for the C.D. Howe Institute. The tax measure reduces the number of homes that are sold, particularly in the lowest price ranges, and inhibits… Read More

Beware the Taxman When Buying and Selling Often

Beware the Taxman when flipping condos

When you sell a property that isn’t your principal residence and make a profit, half of the amount is taxable. This is the so-called capital gains tax and it’s pretty straight forward, but every situation is different. It all depends on how the Canada Revenue Agency views the transaction. Click here to view the full… Read More

HST Does NOT Apply To The Price of a Resale Home!

Real Estate Taxes

An Ontario Real Estate Association (OREA) survey reveals that confusion about the Harmonized Sales Tax (HST) and buying a resale home has not decreased in the last year despite efforts by the provincial government and real estate industry to educate the public. The survey conducted by Ipsos Reid shows that 58 per cent of Ontarians… Read More

How To Buy Your Kids a House in Canada

Three Generation Family

Many Baby Boomers have paid-for homes, while their grown children are contemplating entering the housing market. Instead of letting them rent during their first foray after leaving the nest, it’s tempting to buy a second “investment” property with Junior as the main tenant. Fully 10% of Canadian parents are considering this, according to TD Canada… Read More