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I apologize if you have just received six or seven copies of a
missive about a Canadian resident giving money to their son in
Boston.
We had the same problem on April 26th or April 27th last year and
shut down for five months while we tried to figure out what had
happened.
This missive is going out (in answer to a real question) with
Richard Pitt watching the system to see if he can find out:
* what is causing the bounce
* where the bounce is coming from
* why it is happening - i.e. is it an
embedded virus in the mail program which only works on April 27th
If you have any ideas, please send them to me.
-----Original Message-----
Sent: Sunday, April 27, 2003 12:37 PM
To: [email protected]
Subject: info request from XXXXXXX XXXX
Hello,
Saw your website in the Vancouver Sun on April 26.
I was told that I could deduct the taxes I pay on two parcels of
land in BC. Neither has any income generated. Neither has a
house. Could this be true?
Thanks, XXXXXXX XXXX
--------------------------------
david ingram replies:
The answer is no. Property taxes on vacant land are not
deductible against any income other than that generated from the
land.
You can add them to the cost of the land and increase the ACB to
lower the capital gains tax when you sell the land.
i.e. - you buy a lot for $100,000 and pay $20,000 in property tax
over the next 20 years.
The new ACB (Adjusted Cost Base) of the lot is $120,000.
If you were to sell it for $200,000, the capital gain would be
$80,000.
--------------
However, you should be trying to get some revenue from the land.
The term "parcels" implies acreage and acreage can usually be
rented for grazing, haying or trees can be cut down and sold.
If you generate some current revenue, the taxes can be deducted
against that revenue.
One lady client with several parcels of land in the US sold
$22,000 worth of trees off the land in 2002 for instance.
IN fact, she sells about $20,000 a year worth of trees and never
sees the land.
I have several Canadian clients on Vancouver Island who sell a
few trees a year form their "parcels".
david ingram
---
Outgoing mail is certified Virus Free.
Checked by AVG anti-virus system (http://www.grisoft.com).
Version: 6.0.476 / Virus Database: 273 - Release Date: 4/24/03
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