7. Pursuant to subsection 74.1(3), the attribution rules in subsection 74.1(1) apply to transferred or loaned property which is used either to repay borrowed money that was used to acquire property or to reduce an amount payable for that property. For example, if an arm's length lender lends a taxpayer the money to acquire income producing property and later, the taxpayer's spouse makes a gift to the taxpayer equal to the taxpayer's indebtedness on the property and the gift is applied to retire the indebtedness, the income from the property will attribute to the taxpayer's spouse.
But if you mail a cheque, you can leave the money in the account longer - and even $4K at 2.75% (which Scotia High Interest pays) will cover the postage in 2 days.Payment happens immediately, you get a confirmation and there's no postage to pay.
Dennis wrote:You can also post date the tax payment to the due date using on line payment.
Jo Anne wrote:G-money, you need to get the rental properties tax guide from Revenue Canada. This explains how net rental income is calculated.
You appear to have very little idea of what you are getting into here. If I were you, I'd back off the rental property idea until you have a better handle on the whole issue.
Is it treated as regular income, or is it taxed as investment income?
G-money wrote:Two scenarios:
1. I have an existing morgtage on a rental property. a) How is the income taxed, and b) how is the interest I pay on teh mortgage treated tax wise?
2. When the mortgage is paid off and teh majority of the rent paid is profit/income, how is this treated tax wise? Is it treated as regular income, or is it taxed as investment income? What are the different tax rates between the two, if any?
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