QUESTION:
Dear David Ingram: Thank you for your E-mail of October 8 concerning Ontario
resident sold Lake Havasu Arizonia Property.
Clearly I need help in filling out and filing the proper forms and am glad
to know you offer this service. I am still wondering though, if there is
some way to save or defer some of this Capital Gains Tax if not all of it.
I have been reading Robert Kiyosaki's book Rich Dad, Poor Dad. It states
that the Tax Code of the U.S.A. allows ways to save on taxes by using a
Section 1031 of the International Revenue Code, which allows the seller to
delay paying taxes on a piece of real estate that is sold for a capital gain
through an exchange for a more expensive piece of real estate. As long as
you keep trading up in value you will not be taxed on the gains until you
liquidate.
I am sole owner of this property, have no income this year due to illness,
which is why I sold it in the first place. The escrow has closed and
proceed funds are being sent to me by UPS here in Canada. Is there any
provision available here in Canada, similar to the U.S. provision?
Looking forward to your input on this. Sincerely
