How can We Help?

  • This field is for validation purposes and should be left unchanged.
-->

Setting up reserves CRA

Tax QuestionsCategory: FeaturedSetting up reserves CRA
Bernie Hudson asked 10 months ago

I have sold a property and the buyer is making the payments over a five year period. Do i need to pay the tax on my full capital gain right away? This will create a cash flow nightmare for me.

1 Answers
GTA Accounting Staff answered 10 months ago

No worries, we are here to help you. Not going in too much technicality, we can set up a reserve for you in the tax return and you will pay the tax on capital gains as a ratio of the cash you will receive. In this way you will not have cash flow issues .

Tax Tips