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Setting up reserves CRA

Tax QuestionsCategory: FeaturedSetting up reserves CRA
Bernie Hudson asked 1 month 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 1 month 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 .

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