My question is: Canadian-specific
QUESTION: I am currently looking at flipping a house. It will
sell for $90,000 and will need $40,000 in upgrades. On our local
market I should receive $150,000 to $165,000 when it is done. The
work will be done primarily by myself. What is the tax situation
for the flip? What kind of return will I make? I am in the %40
tax bracket. If I envolve a friend should we set up a company to
share profits and expenses?
thank-you
-----------------------------------------------------------------
----------
david ingram replies:
A company may be a good idea but will add to your cost and not
save any tax if you are going to take the profits to live on.
This is not very accurate because every province is different but
if I assumed that you already have another $30,000 of income from
a job, then you would pay from 27 to 33 % tax on the next $35,000
which is the amount of profit you seem to be expecting.
The following is a prior answer to the same or a similar
question.
My question is: Canadian-specific
QUESTION: Hello,
I've recently been very interested in the idea of partnering with
my family
and buying, fixing up and then reselling homes. It looks like
this works
great in the US, however, after mentioning this idea to a realtor
here in
the Lower Mainland im not so sure.
What type of tax implications are there for doing something like
this? Does
this actually turn out to be a good way to make a profit?
Thanks,
Dxxxxxxx
-----------------------------------------------------------------
----------
david ingram replies:
If you buy property with the "right" things wrong, being a
renovator can be
extremely rewarding and profitable.
By the right things wrong, I mean cosmetic items that can be
cleaned up and
put right.
cleaning up the yard
replacing light fixtures and painting
maybe a new counter top but not all new cabinets.
NOTHING STRUCTURAL.
However most newcomers and amateurs end up buying a building with
structural
problems or they decide to do a kitchen and end up with a
nightmare of
expensive rewiring, re plumbing, dry rot and maybe a crumbling
foundation.
It is NOT a job for amateurs.
Because it is a BUSINESS, any profits are taxable at regular tax
rates in
the US and / or Canada.
Good Luck.
Answers to this and other similar questions can be obtained free
on Air
every Sunday morning.
Every Sunday at 9:00 AM on 600AM in Vancouver, I, david ingram am
a
permanent guest on Fred Snyder of Dundee Wealth Managers' LIVE
talk show
called "ITS YOUR MONEY"
Those outside of the Lower Mainland will be able to listen on the
internet
at
www.600AM.com <http://www.600am.com/>
Call (604) 280-0600 to have your question answered. BC listeners
can also
call 1-866-778-0600.
Callers to the show and questioners on this board can also attend
the
Thursday Night seminars on finance and making your Canadian
Mortgage
Interest deductible.
David Ingram's US/Canada Services
US / Canada / Mexico tax, Immigration and working Visa
Specialists
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Res (604) 980-3578 Cell (604) 657-8451
(604) 980-0321
New email to davidingram at shaw.ca <mailto:davidingram at shaw.ca>
www.centa.com <http://www.centa.com/> www.david-ingram.com
<http://www.david-ingram.com/>
Disclaimer: This question has been answered without detailed
information or
consultation and is to be regarded only as general comment.
Nothing in
this message is or should be construed as advice in any
particular
circumstances. No contract exists between the reader and the
author and any
and all non-contractual duties are expressly denied. All readers
should
obtain formal advice from a competent and appropriately qualified
legal
practitioner or tax specialist in connection with personal or
business
affairs such as at www.centa.com <http://www.centa.com> . If you
forward
this message, this disclaimer must be included."
Be ALERT, the world needs more "lerts"
This from "ask an income tax and immigration expert" from
www.centa.com
<http://www.centa.com/> or www.jurock.com
<http://www.jurock.com/> or
www.featureweb.com <http://www.featureweb.com/> . David Ingram
deals on a
daily basis with expatriate tax returns with:
multi jurisdictional cross and trans border expatriate problems
for the
United States, Canada, Mexico, Great Britain, the United Kingdom,
Kuwait,
Dubai, Saudi Arabia, Thailand, Indonesia, Japan, China, New
Zealand, France,
Germany, Spain, Italy, Russia, Georgia, Brazil, Peru, Ecuador,
Bolivia,
Scotland, Ireland, Hawaii, Florida, Montana, Morocco, Israel,
Iraq, Iran,
India, Pakistan, Afghanistan, Mali, Bangkok, Greenland, Iceland,
Cuba,
Bahamas, Bermuda, Barbados, St Vincent, Grenada,, Virgin Islands,
US, UK,
GB, and any of the 43 states with state tax returns, etc.
Rockwall, Dallas,
San Antonio and Houston Texas
Denmark, Finland, Sweden Norway Bulgaria Croatia Income Tax and
Immigration
Tips, Income Tax and Immigration Wizard Income Tax and
Immigration Guru
Income Tax and Immigration Consultant Income Tax and Immigration
Specialist
Section 216(4) 216(1) NR6 NR-6 NR 6 Non-Resident Real Estate tax
specialist
expert preparer consultant expatriate anti money laundering money
seasoning
FINTRAC E677 E667 4789 4790 TDF-90 Reporting $10,000 cross border
transactions
Alaska, Alabama, Arkansas, Arizona,
California, Colorado, Connecticut,
Delaware, District of Columbia, Florida,
Garland, Georgia, Hawaii, Idaho, Illinois,
Indiana, Iowa, Kansas, Kentucky,
Louisiana, Maine, Maryland,
Massachusetts, Michigan, Minnesota,
Mississippi, Missouri, Montana, Nebraska,
Nevada, New Hampshire, New Jersey,
New Mexico, New York, North Carolina,
North Dakota, Ohio, Oklahoma, Oregon.
Pennsylvania, Rhode Island, Rockwall,
South Carolina, South Dakota, Tennessee,
Texas, Utah, Vermont, Virginia,
West Virginia, Wisconsin, Wyoming,
British Columbia, Alberta, Saskatchewan,
Manitoba, Ontario, Quebec City,
New Brunswick, Prince Edward Island,
Nova Scotia, Newfoundland, Yukon and
Northwest and Nunavit Territories,
Mount Vernon, Eumenclaw, Coos Bay
and Dallas Houston Rockwall Garland
Texas Taxman and Tax Guru and wizzard
wizard - consultant - expert - advisor -advisors consultants -
gurus - Paris
Prague Moscow Berlin
Lima Rio de Janeiro, Santaigo
New York, Boston, Sacramento, Minneapolis, Salem, Wheeling,
Philadelphia,
Pittsburgh, Atlanta, Pensacola, Miami, St Petersburg, Naples,
Fort Myers,
Cape Coral, Orlando, Atlanta, Arlington, Washington, Hudson,
Green Bay,
Minot, Portland, Seattle, St John, St John's, Fredericton,
Quebec, Moncton,
Truro, Atlanta, Charleston, San Francisco, Los Angeles, San
Diego,
Sacramento, Taos, Grand Canyon, Reno, Las Vegas, Phoenix, Sun
City, Tulsa,
Monteray, Carmel, Morgantown, Bemidji, Sandpointe, Pocatello,
Bellingham,
Custer, Grand Forks, Lead, Rapid City, Mitchell, Kansas City,
Lawrence,
Houston, Albany, Framingham, Cambridge, London, Paris, Prince
George, Prince
Rupert, Whitehorse, Anchorage, Fairbanks, Frankfurt, The Hague,
Lisbon,
Madrid, Atlanta, Myrtle Beach, Key West, Cape Coral, Fort Meyers,
Berlin,
Warsaw, Auckland, Wellington, Honolulu, Maui, Kuwait, Molokai,
Beijing,
Shanghai, Tokyo, Manilla, Kent, Winnipeg, Saskatoon, Regina, Red
Deer, Olds,
Medicine Hat, Lethbridge, Moose Jaw, Brandon, Portage La Prairie,
Davidson,
Craik, Edmonton, Calgary, Victoria, Vancouver, Burnaby, Surrey,
Edinburgh,
Dublin, Belfast, Glasgow, Copenhagen, Oslo, Munich, Sydney,
Nanaimo,
Brisbane, Melbourne, Darwin, Perth, Athens, Rome, Berne, Zurich,
Kyoto,
Nanking, Rio De Janeiro, Brasilia, Colombo, Buenos Aries,
Squamish,
Churchill, Lima, Santiago, Abbotsford, Cologne, Yorkshire, Hope,
Penticton,
Kelowna, Vernon, Fort MacLeod, Deer Lodge, Springfield, St Louis,
Centralia,
Bradford, Stratford on Avon, Niagara Falls, Atlin, Fort Nelson,
Fort St
James, Red Deer, Drumheller, Fortune, Red Bank, Marystown, Cape
Spears,
Truro, Charlottetown, Summerside, Niagara Falls, Albany STAR WARS
international non-resident cross border income tax help
assistance expert preparation & immigration consultant david
ingram, experts on rentals mutual funds RRSP RESP IRA 401(K) &
divorce preparer preparers consultants
-------------- next part --------------
An HTML attachment was scrubbed...
URL: http://www.centa.com/CEN-TAPEDE/centapede/attachments/20060105/4dcfbf12/attachment.htm
What's Related