This is a multi-part message in MIME format.
---------------------- multipart/alternative attachment
My question is: Canadian-specific
QUESTION: I am a new immigrant to Canada. I landed last May. I had read that if a landed immigrant purchases property within the first 3 years they are exempt from paying GST. Is that true?.
---------------------------------------------------------------------------
david ingram replies:
I have not heard this one before and I do not know what province you are in but I think that you have perhaps commingled three or four different sets of rules.
1. Assuming that by property, you are referring to a house, there is no GST on a used house being sold by one residential occupant owner to anyone. I say it this way because It is possible to buy a used residence from an owner who built it and rented it out for a while before selling it. In this case, there would be GST payable by anyone.
However, I can imagine that a new immigrant might have bought a house with no GST and perhaps being told by an unscrupulous seller (or just as a joke) that there was no GST because he was a new immigrant.
2. There is a five year immigrant trust arrangement which refers to Canadian income tax. In this case, a new immigrant of means can set up a FIVE year immigrant trust which shields the income in the trust from Canadian Income tax for five years. I have found this to be dangerous because I have now seen three people have their trusts turned down by the CRA and suffered large financial setbacks when the paperwork was not perfect.
3. In BC, there is property purchase tax. If the house is under $225,000 anywhere or under $275,000 in Whistler, Squamish, the Fraser Valley or Victoria and the purchaser has never owned a home "anywhere in the world" before, the PPT is waived.
4. If the purchaser of a home has not owned a home in the past five years (some extra waivers if disabled) one can remove or borrow up to $15,000 from their RRSP tax free. they have to pay it back in equal installments over the next 15 years.
Hope this helps.
======================================================================================
Answers to this and other similar questions can be obtained free on Air every Sunday morning.
Starting this Sunday at 9:00 AM on 600AM in Vancouver, Fred Snyder of Cartier Partners and I will be hosting an INFOMERCIAL but 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
===================================
David Ingram's US/Canada Services
US/Canada/Mexico Tax Immigration & working Visa Specialists
US / Canada Real Estate Specialists
4466 Prospect Road
North Vancouver, BC, CANADA, V7N 3L7
Calls accepted from 10 AM to 10 PM 7 days a week
Res (604) 980-3578 Cell (604) 657-8451
Bus (604) 980-0321
[email protected]
www.centa.com 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 & the author and any and all non-contractual duties are expressly denied. All readers should obtain formal advice from a competent financial, or real estate planner or advisor & appropriately qualified legal practitioner, tax or immigration specialist in connection with personal or business affairs such as at www.centa.com. If you forward this message, this disclaimer must be included."
This from ask an income tax immigration planning and bankruptcy expert consultant guru or preparer from www.centa.com or www.jurock.com or www.featureweb.com. Canadian David Ingram deals daily with tax returns dealing with expatriate:
multi jurisdictional cross and trans border expatriate gambling refunds for the United States, Canada, Mexico, Great Britain, the United Kingdom, Kuwait, Dubai, Saudi Arabia, South Africa, Thailand, Indonesia, Egypt, Antarctica, 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, American and Canadian and Mexican and any of the 43 states with state tax returns, etc.
income tax wizard wizzard guru advisor advisors experts specialist specialists consultants taxmen taxman tax woman planner planning preparer of 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.
Paris, Rome, Sydney, Australia Hilton
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 -
---------------------- multipart/alternative attachment
An HTML attachment was scrubbed...
URL: http://www.centa.com/CEN-TAPEDE/centapede/attachments/9ecfa537/attachment.htm
---------------------- multipart/alternative attachment--
What's Related