Buying v/s Renting
#61
Re: Buying v/s Renting
It's alright, but luckily the assessed value of the property has lagged considerably behind my estimation of market value (based on local comparisons) over the last few years. But, as ever, I don't mind paying tax.
#62
Re: Buying v/s Renting
Forgot about the farm property or "hobby" farm status - that's a great angle. I had a friend that tried it by investing in cattle and let them graze on his property. If I remember correctly, they had be on the property for a certain amount of time and you had to have a minimum amount. Needless to say, it didn't work out but I got a great deal on a freezer full of beef.
In the Okanagan, I think you need a minimum parcel size with a minimum amount of fruit trees and you're rockin'
You're lucky, in the Okanagan you're lucky to get the assessed value and I believe the assessed values are coming down because of it.
In the Okanagan, I think you need a minimum parcel size with a minimum amount of fruit trees and you're rockin'
It's alright, but luckily the assessed value of the property has lagged considerably behind my estimation of market value (based on local comparisons) over the last few years
Last edited by Hawk13; Apr 20th 2012 at 3:44 pm.
#64
Re: Buying v/s Renting
On what part?
Aviator had it right with
If you leave the country and then liquidate the gold, it depends where you're going.
As for the house, that's true on your primary residence but if you leave it to your kids they'll get dinged.
The government allows gets their pound of flesh.
Aviator had it right with
Not to be forgotten, there is no CGT on any gain in the value of your primary residence, investment gains are subject to CGT or full rate of tax depending on the investment and can push your marginal rate through the roof. You could (and likley would) end up with a hefty tax bill on investment gains.
As for the house, that's true on your primary residence but if you leave it to your kids they'll get dinged.
The government allows gets their pound of flesh.
#65
Lost in BE Cyberspace
Joined: Nov 2011
Location: Somewhere between Vancouver & St Johns
Posts: 19,840
Re: Buying v/s Renting
Property Type:
Residential
Style:
Two Storey
Year Built:
1989
Living Area:
4236 Sqft
Basement Area:
890 SqFt
Rooms Above Grade:
14
Bedrooms:
4
Full bathrooms:
3
Half bathrooms:
1
Gross taxes:
$13,377 Yes $13,377
Tax year:
2011
#66
Joined: Sep 2008
Posts: 12,830
Re: Buying v/s Renting
On what part?
Aviator had it right with
If you leave the country and then liquidate the gold, it depends where you're going.
As for the house, that's true on your primary residence but if you leave it to your kids they'll get dinged.
The government allows gets their pound of flesh.
Aviator had it right with
If you leave the country and then liquidate the gold, it depends where you're going.
As for the house, that's true on your primary residence but if you leave it to your kids they'll get dinged.
The government allows gets their pound of flesh.
There is no gift tax or death duty in Canada, if you leave it to the kids, they sell their primary residence if they have one and move in to the property they have been left.
#67
Re: Buying v/s Renting
Just for interest of those reading this thread and taxes on 1 mill valued homes look at the taxes on this one
Property Type:
Residential
Style:
Two Storey
Year Built:
1989
Living Area:
4236 Sqft
Basement Area:
890 SqFt
Rooms Above Grade:
14
Bedrooms:
4
Full bathrooms:
3
Half bathrooms:
1
Gross taxes:
$13,377 Yes $13,377
Tax year:
2011
Property Type:
Residential
Style:
Two Storey
Year Built:
1989
Living Area:
4236 Sqft
Basement Area:
890 SqFt
Rooms Above Grade:
14
Bedrooms:
4
Full bathrooms:
3
Half bathrooms:
1
Gross taxes:
$13,377 Yes $13,377
Tax year:
2011
#68
Lost in BE Cyberspace
Joined: Nov 2011
Location: Somewhere between Vancouver & St Johns
Posts: 19,840
Re: Buying v/s Renting
Its not in Vancouver, Montreal or the GTA area though.
Smaller houses of similar value in my city where taxes range from $8000 upwards but it is gross amount.
It all depends on the neighbourhood, lot size can be a factor but they base taxes on the asessed value of the home where I live.
#69
Re: Buying v/s Renting
Perhaps you're thinking of replacement value for insurance purposes?
#70
Re: Buying v/s Renting
Deemed disposition if you leave the country. Your assets are valued as if you had sold them (even if you don't) and you are taxed accordingly
What if you bought a bag of diamonds? or what if your dad left you his mint 1967 E-type Jag and you decided to (shame on you if you did) sell it, they don't ding you CGT on the difference of what your dad payed for it and what its worth now.
#71
Lost in BE Cyberspace
Joined: Nov 2011
Location: Somewhere between Vancouver & St Johns
Posts: 19,840
Re: Buying v/s Renting
Several factors go into assessing your property:
■It is assessed at the “current market value”, or the price your property could normally sell for on the real estate market. This is done for a “reference” year which is normally the year after the last general assessment.
■The City assesses the value of both your land and buildings to get a total property assessment. It decides your land’s value by studying sales of similar properties and comparing lot size, local improvements, location, and other factors which influence its sale value. It decides your building’s assessed value by its age, size, condition, construction and materials. Even if you built it yourself, the City judges your building by the same criteria as other buildings so it can equitably assess all similar buildings.
■The City factors depreciation for normal deterioration into your building’s assessment.
#72
Joined: Sep 2008
Posts: 12,830
Re: Buying v/s Renting
I don't pretend to be right up on this stuff and need more enlightenment. So how do they know what you have? A friend of mine bought $10K worth five years ago so I'll ask him what documentation was involved. I'm curious as to how this works 'cus what if you were sell all your gold jewelry, do you somehow pay CGT on that?
What if you bought a bag of diamonds? or what if your dad left you his mint 1967 E-type Jag and you decided to (shame on you if you did) sell it, they don't ding you CGT on the difference of what your dad payed for it and what its worth now.
What if you bought a bag of diamonds? or what if your dad left you his mint 1967 E-type Jag and you decided to (shame on you if you did) sell it, they don't ding you CGT on the difference of what your dad payed for it and what its worth now.
http://www.cra-arc.gc.ca/tx/ndvdls/l.../menu-eng.html
http://www.cra-arc.gc.ca/tx/nnrsdnts.../lvng-eng.html
#73
Binned by Muderators
Joined: Jul 2007
Location: White Rock BC
Posts: 11,682
Re: Buying v/s Renting
As for the house, that's true on your primary residence but if you leave it to your kids they'll get dinged.
The government allows gets their pound of flesh.
The government allows gets their pound of flesh.
#74
Re: Buying v/s Renting
This might be true if you owned the gold prior to becoming tax-resident in Canada and leave again within 60 months. Otherwise you have a deemed disposition when you leave Canada and any capital gain is captured
The increase in value whilst it was a principal residence remains tax-free
#75
Re: Buying v/s Renting
I appreciate I may be making an incorrect assumption.