My wife owns a condo overseas
She would like to transfer this condo to our Inc. (Incorporated IT professional) and to start renting it.
I think that this falls under Transfer of a property to a Corporation under Section 85 ( )
Here is how what we understand and what we don't understand in this:
Let's say the property overseas now worths 90000CAD.
The property was purchased 20 years ago
For Canadian tax purposes how do I calculate...
Just curious on the general line of thinking; for those with a renewal coming up within 6 months,
what are you choosing?!
I m leaning towards a 5 yr fix closed which seem to be trending around the 2.4ish range right now. Varr just don't seem to be really jumping at me right now....
So we are going into our 5th year with our landlord and there was something interesting he did with the Residential Tenancy Agreement (BC) for renewing another 1 year lease.
We have been doing 1 year leases every year for the past 4 years.
Every year, in Section 2 Length of Tenancy our landlord has checked off the box:
i) the landlord and the tenant may agree to enter into a new tenancy agreement
- If the landlord and tenant do not enter...
Are there any landlords here that collect rent via automatic debit? I'm not talking about you receiving an automatic Interact etransfer but actually having the money withdrawn from the tenants account and deposited into yours (with his or her authorization of course)
How does it work? Do they have to bank at the same bank as yours? I looked online on a few major banks but couldn't find anything and Google is not really of any help either....
I own a rental property. Rental income after expenses works out to 2.5% per year in a problem-free year. In a year with major expenses (new roof, new sewer, etc) or vacancies, that number is closer to 0%. No mortgage. The property value has increased by 5-6% per year on average, although the last 4 years have been flat or perhaps even declining slightly. So, since purchase, it has returned ~7.25% per year (rent + property value - renovation...
I'm trying to get a mortgage to buy a home that involves an older 1970 mobile home. It's on its own .48 acre lot, not in a trailer park. The home is listed as 12x56 but it's much wider than that because a lot was added on to it. You can't see the mobile home part at all any more. It's on a cinder block foundation and has a shingle roof in good condition that an assessor said looks to be about 4 years old. It even has a small basement where...
Hi,
Assuming one is in the highest tax bracket, I'm wondering if there's any reason NOT to claim the Capital Cost Allowance (CCA) on the building portion of an investment property? I've never done it so far but this year go me thinking for next tax season next month.
As far as I can tell, any recapture being done when I sell can't be worse then now (unless income tax rates increase of course) as I am already at the top bracket. I am also...
I'm a homeowner in the GTA. When we did some work in our basement in 2013, I discovered lead paint on the walls. The paint tested for significant concentrations. Fast forward to now. I want to sell the house some time this year.
I looked into lead cleanup companies, and OH, what a nightmare! More on that later if anyone's interested. BTW, by remediation, I mean damp ragging under zero-pressure environment followed by sealing the...
Along with my parents and my brother, we own an investment property that has gained substantial value throughout the years (purchased 400k, worth 1.1M today) and my parents went on retirement this year and I was wondering if we should be incorporating to gain from income splitting.
My train of thought is that since their revenue will be reduced substantially while my brother and I are currently...
While I happily rent and invest in my couch potato, some interesting things have happened over the last 12 months.
- 1 year ago $1 USD = $1.16 CDN, today $1 USD = $1.39 (~ 20% loss of value)
- The U.S. Federal Reserve raised interest rates 0.25% for the first time in a decade, with more to follow
- Oil is now ~$37 / barrel
- We have a newly elected government who wants to run a deficit, cut the TFSA limits and try to tax the wealthy more
-...
Hi I bought a home for $560k in 2007 , paid 10% down and did an interest only mortgage for the loan for 10 years.I was making close to 200k when I initially bought the house and since my wife wasn't working and with two kids my expenses were high and I couldn't save anything.I lost my job in 2014 and found another paying 130k in another state.I rented out my original home to someone to cover the mortgage and I am living on rent where I work.I...
Has anyone visited San Juan, Puerto Rico or own real estate there?
There's a big sale on Puerto Rican homes
John Paulson: Why I put billions in Puerto Rico
Despite Puerto Rico's massive debt crisis, Paulson sees big profits ahead. He has plowed quite a bit -- an estimated $1.5 billion -- of his personal wealth into buying hotels, a resort and office buildings on the island.
(snip)
At the summit, Paulson clarified that most of these...
I may have missed this elsewhere but CRA has announced that effective Jan 1, 2016, all principal residence exemptions will have to be proactively claimed to avoid penalties et al. A very good move really. May help catch some of those slimeys not reporting investment property gains.
First time poster here. I realize this is a Canadian forum and I live in Los Angeles, but this seems like a great forum and I'm looking for opinions on the Buy vs. Rent question.
My situation:
• Freshly divorced w/ a 14yo daughter who is a freshman in HS.
• I owned a home for 18 years that had to be sold as part of the divorce on which I made a huge profit.
• I will have about 225-250K to use as a down payment.
• My target price for a home is...
I am currently going through the cycle of offering on homes and being denied due to the finance condition. My realtor says that in order to be competitive, this clause needs to be gone. Of course, she wants a purchase a done deal so she can get us off her back. However, I am extremely hesitant due to the financial risk this poses for me. Pre-approval is not final approval, and final approval is conditional on appraisal, and any other...
Would like to better understand the principal residence exemption and how recent changes may impact my purchase of a house.
My mom purchased a home last year and had my name added to the title of the property. I do not live in the house nor do I currently own another house. Would I be liable for paying capital gains tax if she sells the house prior to me purchasing a property next year or after I purchase a property next year? Does it make...
Hi all, I'm a Canadian recently moved to the US for employment. I'm currently in the process of buying my first house. Now about 30 days or so from closing. I'll be making a down payment of about $40k US. I've saved up about $15k US in my TD US account but the rest of the payment will have to come from my Canadian TD checking account. What is the best way to go about the currency exchange and wire transfer payment on closing day? Thanks!
Not really sure where this belongs or who I should ask. 2 years ago, I bought a house with my sister and her boyfriend/fiancé. Each of us contributed a third of the down payment with the agreement that after at least 1 year, should any one of us want to be bought out, the other two would buy that person's share, and if they couldn't, the house would be sold and each person's share and and any equity earned in the home would be...
We are considering making an offer on a home in the Royalwood community of Winnipeg. The only thing is it's about 100 meters from a train track. You can't really see it from the house we are looking at, but you could likely hear it. The people across the cove would have the train track basically in their backyard. I did some research and CP rail said the train comes 4-6 times per day, and the whistle does not blow, as the city requested it to be...
Hi. First time poster looking for advice. I own a unit in a strip plaza. The unit has a commercial space on the main floor occupied by an optometrist, and a residential apartment upstairs. Both tenants have been there 15+ years. I am getting older and have decided to sell the property, and the optometrist has expressed interest in purchasing it (the entire unit). The optometrist's five-year lease expires at the end of January, 2017. The...
I'm 23 years old from Niagara, completed half my BBA but not in school currently, made an offer for a house for $269k and the conditional offer is good until tonight at midnight. I'm self employed with a business with a questionable future (although I've been running for 5 years). I've made good money and continue to make good money at the moment (200K+/yr).
Currently have about $600K net worth, most money is invested in high...
I would like to understand which benefits my spouse would qualify as a first time home buyer. The situation is that she has never owned any real estate whereas I have ownership of a property that neither of us have lived in (we have lived in a rental since being married). I also lived in a property that I owned in the last four years prior to us being married/living together.
I believe that neither of us would qualify for the first time...
Which is more profitable in the long run? Commercial or residential real estate? Is single residential houses better to rent than multi-family apartment complexes?
Hello,
I have a simple question: I am paying cash for a property and my attorney/closing agent is getting title insurance, but the title company is dragging their feet and we are going to now miss our closing date possibly because of them, because they are taking so long.
The seller has a mortgage they will be paying, and of course have title insurance - is it possible to have their title insurance transferred or deeded to us? Would this be a...
I used to know all about this years ago. A young friend has told me he is being transferred to Toronto from Mtl. He has to sell his house and then buy or rent in Tronno. IIRC there used to be a plan where the employer would arrange to have the house sold at a certain price )or the owner could sell it himself) but the rest I do not recall.
I have a friend who is a builder, the company is about 20 years old, I've known them for 15. What with one thing and another (sick parents, illness, a crazy client) money is really tight and there's not a lot of work in the pipeline. They need a good break and deserve one. We're on the west coast where the market is crazy hot and a spec house seems like a relatively safe project right now.
I am contemplating some sort of partnership or financial...
My situation:
- retired within the past couple of years
- significant cash remains in corporation, which has therefore become a holdco
- rental houses in my personal name with equity (net of mortgages) about the same as the funds in my holdco
- most of my investment income is either in my corporation or in my RRSP. Only CPP and net rental income are in my personal name.
It would be nice to get the cash out of the corporation so I am weighing...
hey guys, i'm thinking of buying my first condo very soon, i'm not a big spender so this is quite a big deal for me :) i'm looking for a place to live but i also know i won't be there forever so i'm looking for something that will hopefully be desirable to others in the future. people always say location location location, and this place is in a good location, adjacent to the water in old montreal.. literally a ten second walk to the water,...
Hey. I used to always think that having a bad credit means, you will never be able to get a good mortgage. I know many of us believe that, to get a good mortgage it is necessary to have at least a 650+ credit rating. But recently one of my friends found a mortgage company that provides bruised credit mortgage. He had credit rating below 500 and was really in need for good mortgage and that’s how he found this company. Actually it's really news...
If I buy a house in my name, then in a few years I want to add my wife/common lay partner to the title of the house, what is the process? My Dad thought that I would need to (on paper) sell the house, then buy it (again just on paper) in order to add my wife. Then I'd need to pay capital gains on the new purchase. This can't be accurate, can it?
Looking for some help, I'm not well versed in self directed mortgages. I have a client whose got a RIF with approx. $300K. He has equity in his property and so does his son. His son has run into credit difficulties and owes approx. $100K. The client with the RIF would like to help out and is thinking about using that as the fixed income portion to his RIF. As I understand he could do that with his rif if his paying out a mortgage. Could he add a...
A couple payments before breaking my mortgage, I cancelled my prepayment privileges. I signed up for a 30-year amortization period initially, but with generous pre-payment privileges applied to every payment I was on track for a 12-year amortization period. I cancelled these a few payments before breaking the mortgage so that I'd have extra cash on hand for lawyer fees/etc.
That was a stupid decision because...this made the IRD penalty...
At the bottom of the article there is a 60 Minutes documentary on the Australian housing bubble.
The housing bubble in Australia has been talked about so extensively and has lasted so long without any harm coming to it that people here have pretty much dismissed the very possibility of a crash
My Mother in law is considering moving the title of her home into her 4 kids' names (one of whom is my wife), in the hopes that it will simplify estate planning for her in the future. She's only 65 and is planning on fully retiring later this year (she's a part-time teacher). I'm wondering what the risks would be of her doing so.
Some wrinkles: She was born in the US but moved to Canada many years ago (at least 4 decades). I'm pretty sure she's...
As a first home buyer, which is the best choice for me to get my expense filled? I was thinking to get a mortgage, even though I’m not sure about it’s formalities or hurdles. Most of the people I seek advice told me to get a mortgage from any reputed finance provider. I’ve contacted a residential mortgage broker in Ontario of the Northwood Mortgage and they have got good rates. Does anyone here have an advice?
Recently, I began thinking about buying a condo as an investment property. First step as always is reading, but the answers to a few questions are eluding my googling skills. There seem to be quite a few advanced RE investors here, so I humbly turn to the forum for advice. My questions are:
1. I know that minimum LTV for a rental mortgage is 80%. But even with a 20% down payment, will lenders still require CMHC because they consider it...
So I've been mortgage free for a few weeks now, and every day I check the mail for a letter from my ex-lender. No, not the mortgage discharge letter, which is almost worded like a collection letter, but a congrats and thank you letter. When I used to make prepayments, they'd send me a confirmation letter thanking me for the payment and told me the amount left. When I made the final payment, I got absolutely nothing, as if they're sour with me. I...
Talking to accountant the other day and given changes to increasing tax brackets not sure whether to pay off my home mortgage early or to let it ride and renew while leaving money in Prof Corp. Stable job in Alberta.
Have 5 year term that ends August 2018 with 262K left at 2.81% fixed. Should I make a large tax payment take out cash from PC as a large dividend this year with lower taxes so that I can make 92K payment in 2016 and 2017 and...
Does anyone know anything about this?
Is it worth bothering with?
Here is some information I found...
As of April 2005, there were five title insurers actively doing residential business in Canada:
First Canadian Title
Stewart Title Guaranty Company
FNF Canada
St. Paul Guaranty
Lawyers Professional Indemnity Company (LawPRO) which offers the TitlePLUS product.
Apparantly you can only buy it through a lawyer. Certainly our current house...
Helping some family members with Canadian RE and mortgage issues. A few questions on mortgages up there.
1- When one renegotiates the mortgage when the interest rate period expires (or doing so before that time and paying a penalty) is the original amortization period unchanged?
2- In the situation in '1', so then I assume that the monthly payment is determined based on the remaining principal, the new...
America's trailer parks: the residents may be poor but the owners are getting rich
Currently more than 20m people, or 6% of the population, live in trailer parks, according to US census figures.
Also referenced in this article 39% of wage earners make less than $20,000 a year.
You can see the statistics here from a US Government reference
Distribution of wage earners by level of net compensation
The American Dream?
HI. We're new to this site so forgive any errors. We retired one year ago and recently sold our home in NY for about $165,000. Our original plan was to purchase a condo or villa in West Palm Beach county. However, we've chosen to rent in our area for about two or three years because we have one son beginning his masters locally, and a 20 year old renting but potentially needing to stay with us from time to time. Rather than leaving the proceeds...
My husband I just moved to the US for a job opportunity he received. We got pre-approved for a mortgage and signed a purchasing agreement for a house. We now have been denied our mortgage due to me not having a social security number therefore negating my financial contributions (which is most of our value at this point). We had enough for a 20% down payment and reserve, but his credit history is lacking therefore we are now in a bind to get a...
I'm new into this property owner/rental and all so I was trying to figure out if I could make money out of it before buying a condo for rental (I prefer a condo to start since it has less management needed). I did quite a few calculs to figure out what type of income I could get out of it. The best that I've been able to get is the equivalent of a 6% interest per year over 20 years. What I would like to know is... are my math right, am I...
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