So....election in 2024!? | Page 7 | GTAMotorcycle.com

So....election in 2024!?

GreyGhost said:
As his washed through an estate. If the estate paid capital gains that were based on a value of X and evo sold house for X-400 you have a decent paper trail. I have no idea if that paper trail is sufficient to appease CRA.
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If that’s the way it works, bonus! I forgot how little I know.
 
Have an engineer declare the building structural unfit . Transfer property at new value , undertake massive pretend reno and have property declared fit .


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crankcall said:
Have an engineer declare the building structural unfit . Transfer property at new value , undertake massive pretend reno and have property declared fit .


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Aside from the issue of finding the dodgy engineer, lot is big and cottage is small. I don't think the appraised value would change much based on the condition of the cottage. The value is the land and the cottage is almost free. If they found soil contamination, that could swing the value but you risk the value never recovering as if that gets out, nobody believes it wad properly remediated.

In any case, it is just a punt. That would lower the effective cost which would increase capital gains in the future.
 
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GreyGhost said:
As his washed through an estate. If the estate paid capital gains that were based on a value of X and evo sold house for X-400 you have a decent paper trail. I have no idea if that paper trail is sufficient to appease CRA.
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This is a tough call. Capital gains and losses are based on FMV of the house at the time it is inherited. If the house is put up for sale after inheritance, CRA has a formula that determines FMV based on comps and time between inheritance and sale -- you can't just deem your own value.

It would be a tough argument to make that a house lost significant value in southern Ontario, perhaps a new build in Brampton or Oakville -- ot anything 50KM from downtown.
 
Underused Housing Tax (C-8). This is the one you have to file every year.
According to the source, the government has spent $59 million administering it, and brought in a whopping $0, so far. Source is biased.
 
Mad Mike said:
This is a tough call. Capital gains and losses are based on FMV of the house at the time it is inherited. If the house is put up for sale after inheritance, CRA has a formula that determines FMV based on comps and time between inheritance and sale -- you can't just deem your own value.

It would be a tough argument to make that a house lost significant value in southern Ontario, perhaps a new build in Brampton or Oakville -- ot anything 50KM from downtown.
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M=IO-Ls house was appraised just after she died. Will issues kept it from being sold for over a year and the selling price was $130,000 higher than the appraisal. 50% of that ($65,000) was added to her next to nothing income. IIRC the estate paid $13,000 to the government.

If you went back before 2016 the rules were kinder.

If a person wanted to keep the Cap Gains lower could they pay yearly based on appraisals? Paying tax on $50,000 a year is a lot lower than paying on $500,000 after ten years.
 
mimico_polak said:
I always wondered how does that work…

Let’s say I get cottage (500k value), and sis gets family home (1M) value…

How does the estate pay that capital gain?

Where’s that money come from exactly if the bank account is empty?

Everyone always says ‘the estate will pay that’…but how?
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If there is no money in the estate, assets have to be sold to pay the bills, government, creditors, lawyers etc.
 
mimico_polak said:
How’s that work with capital gains? Can one transfer a property to their grandkids if they’re not of legal age?

My parents have 5 grandchildren so if that’s an option we’re all ears.
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The problem is guessing the mentality of the grandkids as they get older. I know a guy that inherited just short of $100K from his mother. He was late teens when she died and her brother invested the original amount well. Son blew it all in a year. Back then $100K was a 40% down payment on a house.

Sadly some would buy enough drugs to kill themselves.
 
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