THE GOVERNMENT IS STEALING OUR RETiRMENT FUNDS

[cinist]

When a new condo or apartment building is being built the developers have too sell 30% of the units before they can dig the hole in the ground. So usually these units go too other people in the business and they sell for CHEAP. So if you buy these units and then flip them after 6 months, a year, maybe more, you make pure profit.
Today the government established a new rule that they will tax you on the profit you make on your condo, instead of taking those taxes only when you originally buy the property.
So if you flip apartments regularly this is going to hurt your pocket book big time.


wack

[Senior]

Originally Posted by cinist

When a new condo or apartment building is being built the developers have too sell 30% of the units before they can dig the hole in the ground. So usually these units go too other people in the business and they sell for CHEAP. So if you buy these units and then flip them after 6 months, a year, maybe more, you make pure profit.
Today the government established a new rule that they will tax you on the profit you make on your condo, instead of taking those taxes only when you originally buy the property.
So if you flip apartments regularly this is going to hurt your pocket book big time.


wack

Money money $$$$$$ Money.... yeah!

[cinist]

^^

i used to think money was evil too. i've come to the conclusion though that the only way we can help people is to combine the bourgeouis money bagging ideals of the elitist and combine them with the radical leftist beliefs of the giving socialist. How can you give or progress if you have nothing? Too better society we still need rich people, so i am going to one day be rich.

[glitter]

Well, technically you don't own the condo until it's completed, so as much as it sucks, paying tax on that amount makes sense. YBy selling, you'll also get stuck with no GST rebate, capital gains and no rebate on property purchase tax. For all these reasons, and the way higher initial price of the real estate, I don't think it's really worth it to flip anymore.

When I completed the sale on mine, the lawyer told me that the Property Purchase tax is supposed to be paid on the value of the condo on the day of completion and not the price you actually paid. Since that's pretty much impossible to pinpoint, they usually just charge you on what you paid for it. But these days, in the 2 year waiting period, the prices increase drastically! That could be a lot more tax than you bargained for.

[Clayton.]

Fuck the man!

[glitter]

If want to talk about benefits of real estate in the States, you can't forget the tax deductible interest on mortgages! Although, that's just not enough for me to want live in the States. Canada should do this! Dammit!

[SEAN!]

Originally Posted by cinist

When a new condo or apartment building is being built the developers have too sell 30% of the units before they can dig the hole in the ground. So usually these units go too other people in the business and they sell for CHEAP. So if you buy these units and then flip them after 6 months, a year, maybe more, you make pure profit.
Today the government established a new rule that they will tax you on the profit you make on your condo, instead of taking those taxes only when you originally buy the property.
So if you flip apartments regularly this is going to hurt your pocket book big time.


wack

so..oif your buying units for construction price then its usualy like 1/3 or 1/2 the market value..your still gonna make a shit load of money.

i thought you were a socialist anyway.

[cheebus420]

socialist? Can't you tell he's the next hitler?

[SEAN!]

Originally Posted by cheebus420

socialist? Can't you tell he's the next hitler?

cinist is a she, bro....


yeah and developers dont have to sell 30% of their units...it depends on how they are financing the project and the arrangement with whatever institution is providing the money.

developers with alot of retained capital can finance the entire project themselves, but thats an unwise move as its always better to use someone elses money then your own...

30% of their units is a very very large amount. the construction costs of a building aren't very high relative to the market vlaue of the building despite recent rate price increases in the construction indsutry.

oh and cinist your right..capitalism is the only way out...without the capital raised by capitalism how do you expect to pay for all of our wonderful social services?

[gslse]

Originally Posted by cinist

^^

i used to think money was evil too. i've come to the conclusion though that the only way we can help people is to combine the bourgeouis money bagging ideals of the elitist and combine them with the radical leftist beliefs of the giving socialist. How can you give or progress if you have nothing? Too better society we still need rich people, so i am going to one day be rich.

. . my goodness . . . ppl like you frighten me. They thought this back in the late '60s - early '70s . . . and nothings fucken changed . . rich people do not 'better a society.' Righteous people better society, and usually they're poor. Also, money is not 'evil.' It is the 'root' of all evil. Meaing money is actually neutral. It's the force that uses the money, manipulates the funds that is evil. And, it is much easier to be led along the path of good intentions with mucho dinero . . . and we all know where that path leads. . .

[Ms.Chop]

Originally Posted by Attila

Sometimes I wish I lived in the USA, when a property there appreciates in value, and there is 'capital gain' you can uptrade for a 'new' property that costs more and you will not be taxed on the capital gain. The IRS has a special clause in their tax specifications just for this. This is great if you want to flip real estate, and can allow anyone to keep uptrading to build more and more equity.

Unfortunately in Canada there's no such thing, which is really unfortunate. And yes, having to pay taxes sucks big time!

i was watching sumthing on A&E .. and it was talking bout how the IRS fucks ppl over... i wouldnt wanna live in the USA becuz.. the IRS fucks ppl over in many ways.. they like making things complicated and they liek screwing ppl over for money... there was a case where this couple killed themselves and the IRS told their son (after he was informed of his parents demise) that the "battle" wasnt over and he would have to pay for his parents debt...

im glad i live in Canada.. if i lived in the US..

[Ms.Chop]

Originally Posted by Attila

Sometimes I wish I lived in the USA, when a property there appreciates in value, and there is 'capital gain' you can uptrade for a 'new' property that costs more and you will not be taxed on the capital gain. The IRS has a special clause in their tax specifications just for this. This is great if you want to flip real estate, and can allow anyone to keep uptrading to build more and more equity.

Unfortunately in Canada there's no such thing, which is really unfortunate. And yes, having to pay taxes sucks big time!

i was watching sumthing on A&E .. and it was talking bout how the IRS fucks ppl over... i wouldnt wanna live in the USA becuz.. the IRS fucks ppl over in many ways.. they like making things complicated and they liek screwing ppl over for money... there was a case where this couple killed themselves and the IRS told their son (after he was informed of his parents demise) that the "battle" wasnt over and he would have to pay for his parents debt...

im glad i live in Canada..

[Ms.Chop]

opps i accidently posted twice.... lol

[miss.myra]

Thing is, debtors can still collect from next of kin in Canada too...and they do!

[SEAN!]

Originally Posted by miss.myra

Thing is, debtors can still collect from next of kin in Canada too...and they do!

um....i dont think so

[miss.myra]

^ Collections agencies working on behalf from the government commonly go after next of kin for individuals who died had had outstanding MSP premiums, I see it happen lots :\