GTA Accounting Insights

Category: Real Estate Tax

What is HST for Resale Homes?

Many homeowners are confused about the HST tax on a resale home. You have to get some of the background information first to understand the HST for Resale homes completely. The new harmonized sales tax has been made with two taxes: HST with Provincial Sales tax of 8% and the Federal GST tax of 5%.…
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All About the Toronto Vacant Home Tax

Toronto is going to implement a tax on Vacant houses in the city. This tax has been planned to increase the affordability of the houses in Toronto. It is observed that the prices of real estate are continuously increasing even in the COVID-19 pandemic. As the affordability crisis worsens in more Ontario regions, rising housing…
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Key Points For The Canadian Rental Property And Allowable Deductions

If you own a rental property in Canada and receive rental income, you will need to complete Form T776, i.e., Statement of Real Estate Rentals. This form will help you calculate your rental income and expenses to be reported in your tax return. There are a few deductible expenses that are associated with your rental…
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5 Benefits of Incorporating a Personal Real Estate Corporation in Canada

A PREC is a legal corporation that allows you to receive income and pay the expenses of your real estate business. A PREC is required to submit a separate income tax return to the CRA as it is a separate legal entity apart from the owners. Forming a personal real estate corporation in Canada may…
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Property Taxation in Ontario; How This Tax is Calculated?

Property tax raises revenue to fund different municipalities of the local government. Almost 25 percent of the property tax revenue is used to fund education in Ontario. As there are many responsibilities of the municipal finance department, certainly property taxation is one of the most important – not the least. The reason being that it…
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The First-Time Home Buyer – What are the Options Available to Buy a Home in Canada?

Before you decide to buy your home in Canada, you need to ensure that you are aware of all the options available to you and you weight out each option. Your research should be primarily focused on comparing the benefits of Buying Vs. Renting. You should also ensure that you are financially strong enough to…
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Efficient Ways for Canadians to Own A Real Estate Property in the U.S.

A mortgage is one of the most popular ways for Canadians to buy a property in the United States. The reason why Canadians are inclined to purchase a property in the U.S. is that they might want to diversify their investment portfolio, or they want to gain tax benefits, or they simply want to have…
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Rental Property for Non-Residents

What is Section 216 The real estate sector is one of the fastest-growing sectors of the Canadian economy. Income taxes in Canada are relatively high as compared to the other parts of the world. Therefore, people tend to move to gulf our other tax havens to avoid paying the Canadian tax. This can be achieved…
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Reducing Tax on Real Estate Sales in Canada

Real estate sales attract a lot of taxes that you must pay to the CRA. You have to be smart in your real estate business to ensure you minimize your taxes and maximize your profits. Most individuals in the real estate business do not know how to reduce their taxes on the sales of real…
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Tax implications for Canadians selling U.S. property

There are a few things Canadians selling their U.S property should be aware of: 1: The 15% holding tax: As a Canadian or a non-resident of the U.S., you are subject to U.S. tax laws when selling your U.S. property. Regardless of the cost of your property, a 15% tax must be paid on the sale…
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