Legal Information On Tax Consideration And Condo Flipping

June 22nd, 2016 by

Watch this episode with real estate agent Joe Terceira, and Toronto tax lawyer Eldad Gerb where Eldad will discuss the topic of tax consideration in regards to condo flipping.

What are the tax considerations on the disposition of condo flipping?

There are three main ways the government considers the disposition or the sale of a condo:

1. If it is your principle or primary residence, you do not pay any tax.

2. If the condo is considered a capital property, that is to say that you bought a rental property, then half of that money is considered as part of your income.

3. What most people are being caught on is that in this condo flipping is that 100% of the amount, because the government is considering that you are running a business, is considered part of your tax.

If you sell one condo, is that considered running a business by the government?

The government has gone on record and said that even one transaction can be considered a business.

Eldad answers all these questions regarding tax consideration in regards to condo flipping and more in this video.

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Toronto, ON M3C 3E9

(416) 449-1400

http://www.devrylaw.ca

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