If you are not a Canadian resident, or will not be on the day of closing, budget for getting a lot less money on the day of closing. Tax laws in Canada may require that you pay capital gains tax, and so your lawyer could have to hold back up to 25% of the sale price...
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Tax
Death and taxes
Someone once said that the only sure things are death and taxes. Sometimes, those come together. When you die, you still owe taxes for the year of your death. You could also owe back taxes, and Canada Revenue Agency will not forgive them because the person has died....
Pay your taxes
Most people aren't aware of this, but if you don't pay your municipal property taxes, the city or town has the right to sell your house out from under you. Keep in mind that just because they can, doesn't mean they necessarily will. First, the municipality cannot...
HST rebates
Here’s another tax-related post for near tax time: HST rebates on a new home. If you are buying a brand-new home, you are entitled to a rebate, but only in specific circumstances: You must intend to live in it as your primary home. It can’t be a cottage or other...
Tax tips for executors
If you are the executor of an estate, you have very clear and strict rules for filing taxes for the deceased. First, you have to file their final return. This includes all income received up until the date of their death. If the date of death is before October 31, the...
Tax time
With tax time coming up shortly here in Canada, I thought I would revisit a topic: when do you have to pay HST on a house? The short answer: always, unless there is an exemption. One major exemption is for resale homes; as long as it has been used for residential...
Getting credit
If you are a first-time buyer, you are eligible for tax credits for costs associated with buying your first home. Items like legal fees, land transfer tax, and other costs associated with buying your home are open for a claim on your income taxes the following year....
First-timer benefits
The Home Buyers’ Plan is a plan that allows a home buyer to withdraw funds from most registered retirement savings plans (RRSPs) in order to buy or build a qualifying home either for you, or a relative that has a disability. Some RRSPs that do not allow any...
Property assessments
Last week, I received my 2012 property assessment notice from MPAC. The Municipal Property Assessment Corporation assesses property values every four years for the purpose of determining municipal taxes. They do this through an analysis of sales, and focus on five...
An update on taxes for Americans outside of America
I've written several posts before on tax planning for Americans in Canada (you can see them here, here and here). The Globe and Mail published this article a couple of weeks ago on what the IRS is now doing to assist Americans living outside of the U.S. who have not...