News Category: Business News,CRA Updates

17
Oct

TAX DEPARTMENT ATTACK ON CONDO SALES

Have you bought and sold a condo over a relatively quick period in the last 3 years? If so, you should be expecting to be contacted by the Tax Department shortly.

The Tax Department is currently reviewing records at the Land Titles Office, looking for purchases and sales of condos within a short time frame. The transactions commonly know as “flips” are considered as ordinary income (100% taxable) and not capital gains (50% taxable) by the Tax Department. Also, it may have been your principal residence which meant that the transaction was non-taxable.

The problem is the Tax Department is just automatically reassessing taxpayers at 100% taxable without inquiring as to the nature of the ownership of the property. However, if the property was your principal residence then it would be non-taxable, or if you had intended to rent the property then it would only be 50% taxable.

If you have received such an Assessment, please contact us immediately to assist in getting resolved for you as there is only a 90 day window of opportunity to Appeal the Assessment.


Gregory & Associates