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david ingram replies:

I have to admit that your question offends my sensibilities.  Wasting the Candian Governments time giving you a PR status when you only want to move to the USA is disgraceful.  Not only that, you are slowing down another person's ability to immigrate to Canada. 

AND, once you 'are' in Canada, you will still have to apply for a job in the US and wait for a company to process an H1 visa for you to work there.  At the moment, that is taking about a year.  If your skills are such that you will qualify for a job and an H1 visa to the US, why not just apply directly from Dubai.  10's of thousands of Indian Nationals are in the US working on H1B visas without wasting the Canadian Government's time, money and energy by going through Canada.

An H visa is a dual purpose visa which allows you to apply for US citizenship later.

If you do come to Canada as a PR andtay here for three years, you 'will' qualify for Canadian citizenship.  If you get citizenship, you can then qualify for a simpler visa to work in the USA under the North America Free Trade Agreement. However, to qualify for a TN visa, you have to fit into 63 occupations.  The following list is an example:

TN - NAFTA Professional - (North America Free Trade Agreement) PROFESSIONAL BUSINESS PERSON

A professional is defined as a person with a minimum of a bachelor's degree, who applies for a position, which requires a degree as its minimum entry-level requirement unless otherwise specified.

This is the one we heard about in the news. To meet this classification which is unique to Canadians, you must have a bone fide job offer and all licenses and degrees in place for your profession. 

CHECK LIST for the TN Visa

    * An applicant for admission must establish Canadian citizenship

    * The applicant must be entering the United States to engage in a profession or occupation at a professional level under NAFTA

    * The applicant must be in possession of an offer or contract of employment from a United States employer stating:

        1)     The professional activity to be engaged in

        2)     Purpose of entry 

        3)     Remuneration

        4)     That the position is temporary in nature and will not exceed one  year  (although it can be renewed)

* The applicant must provide documentation of his or her educational degree or professional qualifications

* The applicant must meet all licensing requirements

* Employment need not be full-time 

* Permanent residence abroad is not a prerequisite

* Maximum period of admission of a TN is one year

* TN dependants accompanying the principal TN will be admitted under the  "TD" classification for the same amount of time as the principal 

* A $56 U.S. fee is required ($85.00 for renewal by mail)

* TN applicants are not permitted to enter as a professional to participate in any way to circumvent a strike


The following is a partial list of some who qualify under a TN Visa. Please note that extensive experience can equal a degree in many cases. All need a Bachelor or Baccalaureate degree unless otherwise noted. In some cases, 3 or 4  years of practical work in a discipline can count for one year of a University degree.  Therefore if the University BA requires 3 years, you need 9 or 12 years of work experience to qualify. 

* Accountants - RIA or SIA or CPA or CGA or CMA or CA

** Actuaries (this is one of two classifications added since 1989)

* Agriculturalists

* Agronomists

* Animal Breeders

* Animal Scientists

* Apiculturist

* Architects - BA or state / provincial license

* Astronomers

* Biochemists

* Biologists

* Botanists

* Chemists

* Computer Systems Analyst - BA or Post-secondary Diploma or Post-secondary certificate and three years of practical experience. This does not get you to the USA, if your job is programming a computer.  An Analyst might spend a day a month working on some modifications (in a testing mode for instance), but they better not be thought of as a "programmer" within the company.

**** Computer Software Engineer *** This is NOT here as an approved occupation.  However, Jackie Bednarz (US head of the NAFTA Section 16 Working group in Washington stated specifically that if a recognized University was to offer the degree, she would consider computer software engineers under the ENGINEER classification when a recognized University granted the degree.  My understanding is that SFU and McGill are now granting such degrees and that the Professional Engineers of British Columbia have recognized graduates as members of their professional society.  Note that TC and TN's were being granted for this category on a sporadic basis until the INS realized that no such "official" degree existed. 

Jackie Bednarz also pointed out (She was part of the original negotiating team when the original FTA (Free Trade Agreement) was being negotiated in 1985, 86, 87 and 88, there was no such thing as the INTERNET, "web masters" and "web sites". When negotiating the job titles, no thought was given to the computer revolution, other than the computer system analyst designation, which at the time meant a main frame analyst for a $1,000,000 computer.

(Thanks to Stuart Lynne and Richard Pitt) (, the CEN-TA Group was an official member of the internet as far back as 1986 and thanks to Bill Gates himself (he told me to use Microsoft Xenix as my operating system) and Radio Shack Model 16 computers, CEN-TA was using "email" between offices in Toronto, Ottawa and Vancouver as early as 1983. 

As another aside, Stuart Lynne and Richard Pitt went on to found WIMSEY, the FIRST ISP in CANADA. Bill Gates became quite famous as well. 

* Dairy Scientists 

* Dentists - DDS, DMD, or state / provincial license

* Dental Technicians

* Dietitian

* Disaster Relief Insurance Claim Specialists - (claims adjuster employed by an insurance company located in the territory of a party or an independent claims adjuster) - BA and successful completion of training in the appropriate areas of insurance adjustment pertaining to disaster relief claims; or, three years experience in claims adjustment and successful completion of training in the appropriate areas of insurance adjustment pertaining to disaster relief claims

* Doctors - (see physician further on)

* Economists

* Engineers - BA or state / provincial licensing

* Entomologists 

* Epidemiologists

* Forester - BA or state / provincial licensing

* Geneticists

* Geochemist 

* Geologist 

* Geophysicists  (including Oceanographer in the United States)  

* Graphic Designer - BA or post-secondary diploma and three years    experience.

* Hotel Managers - BA in hotel / restaurant management; or,       post-secondary diploma or post-secondary certificate in hotel / restaurant management and three years experience in hotel / restaurant management

* Horticulturist

* Industrial Designer - BA or post-secondary diploma or post-secondary certificate and three years experience

* Interior Designer - BA or post-secondary diploma or post-secondary certificate and three years experience

* Journalist BA plus three years experience - (This category is no longer valid and has been left in to explain the circumstances. As I understand it, journalists in general took it as an insult that they had to have a BA degree, because, "most, if not all," of the best known journalists do not have a BA degree.)

* Land Surveyor - BA or state / provincial licenses

* Landscape Architect

* Lawyer (including notary in the Province of Quebec) - LLB, JD, LLL, BCL degree (five years); or membership in a state or provincial bar

* Librarians - MLS or BLS (for which another BA was a prerequisite)

* Management Consultants - BA; or equivalent professional experience as established by statement or professional credential attesting to five years experience as a management consultant, or five years experience in a field of specialty relating to the consulting agreement.  I must make it clear here.  A Management Consultant is NOT a manager.  The surest way to lose your management consultant renewal is to show up at the border with a business card with the title General Manager, Western Region, or Human Resources Manager, or, or, or.  A management consultant could consult with the actual sales manager about sales techniques or about selling into Canada.  A management consultant could be advising the actual human resources manager in hiring techniques or even suggesting that one candidate is a better fit than another one.  A management consultant can do market research, gather and assemble data and write a report to give to the manager. This is likely the hardest TN visa to get but is also a very important one when it comes to serving the needs of the US company.

Note that the management consultant does NOT need a degree, just five years experience.  This is the perfect job description for the person with 23 years of job experience who has never gone through the formal process of getting a university degree in the discipline.

* Mathematician (including statistician)

* Medical Laboratory Technologist (Canada) / Medical Technologist (U.S.) - BA; or post-secondary diploma or post-secondary certificate and three years experience

* Meteorologist

* Nutritionist

* Occupational Therapist - BA; or state / provincial license

* Organic Chemist  

* Pharmacologist (Pharmacist) - BA; or state / provincial license

* Physician - (teaching or research only), MD or state /provincial license. To work as MD, a doctor must pass his MLE (medical licensing exam), which has three, parts written over a year.  After passing, he or she would enter the U.S. under an H-1A.

* Physicist (including oceanographer in Canada)

* Physiotherapist/Physical Therapist - BA; or state     /provincial license

* Plant Breeder

** Plant Pathologists (This is one of two professions added since 1989)  

* Poultry Scientist

* Professional (most recognized professions)

* Psychologists - state / provincial license

* Range Conservationist

* Recreational Therapist

* Registered Nurse - state / provincial license

* Research Assistant (working in  post-secondary educational institution)

- * Scientific Technician - Possession of: (a) theoretical knowledge of any of the disciplines: agricultural sciences, astronomy, biology, chemistry, engineering, forestry, geology, geophysics, meteorology, or physics; and (b) the ability to solve practical problems in any of those disciplines, or the ability to apply principles of any of those disciplines to basic or applied research.

* Social Worker

* Soil Scientist

* Sylviculturist

* Teacher (College, Seminary, or University) (Post Secondary level only)

* Technical Publication Writer - BA, or post-secondary diploma or post-secondary certificate, and three years experience

* Urban Planner (including geographer)

* Veterinarian

* Vocational Counselor

* Zoologist

The disadvantage of a TN is that it is NOT a dual intent visa.  That means that you can NOT intend to apply for US citizenship with a TN visa as you can with an H or L visa. Many do manage to do so but it is a very nerve wracking process because if you leave the US fior any purpose, the next guy at the border has the right to cancel your TN visa meaning no job and you have to leave the USA.  The terms of obtaining the TN visa are that you MUST be intending to return and live in Canada.
Do yourself, the Canadian Government, and someone else who does want to come and live in Canada a favour.  Withdraw your PR application and start looking for your US job with vigor.  In the meantime, while waiting for it you are working free of income tax in Dubai and not having to sweat it out in tax paying Canada while awaiting your dream.
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USA resident buying rental in Canada and maybe moving in

Hello David,

I am booked for a 9 PM consultation tonight (June 21st). 

My wife and I are Canadians that have been living in the US since 2002.  I am on a HB-1 visa and my wife is a dependent that is not working, I am also part way through a green card application.  I would like to figure out what I need to do to buy and investment property in Alberta Canada without changing my tax status.

I have 100% US income with no income from Canada, and have had no Canadian taxes since the first full year here.  We severed our significant ties when we left and I am currently an deemed non-resident in Canada for tax purposes (and would like to stay that way).  I have heard of nightmares where people had to pay on their world income in Canada because they purchased a house because it was seen as a significant residential tie.

Question 1: How can I buy investment property in Canada without affecting my tax / residency status? 

(David's Answers in Italics) Buying a house as an investment and renting it out will NOT affect taxation on your earnings in the USA.  If you bought it, left it empty and your family used it often (homesick for Canada) it could.

Question 2: What legal language do I use when trying to secure a Canadian mortgage?  Is there any reference material?

I do not quite understand the question.  I think  you are asking, "What do I say?" If you always tell the truth, you do NOT need to remember what you said.  Just ell them you are buying the home as an investment to rent out.  The mortgage company will likley want a third as a down payment because you are a non-resident of Canada.  If you are short and borrow on your US house to make up the down payment, the interest on the down payment loan is deductible in both countries.

Question 3: Should I be looking for a particular type of mortgage firm?  A particular type of mortgage?

For cash flow and tax purposes, having a HELOC (Home Equity Line) and paying inte5rest only allows you to use the extra cash flow for other tyoes of investment otr personal use.

Question 4: What do I need to know come tax time? What reference material can I get to help?


*    The CRA produces an excellent guide on rentals at

* Aspecific Guide for electing as a non-resident is at

Your mother or someone else will have to become your Canadian Tax Agent. 

OVERALL  - this is CRA site general info on non-resident rentals

*    You should both sign and file Form NR-6 and a Pro-forma rental schedule BEFORE the first month's rental. 
- -

*    Then, she will have to fill in forms NR4 and supplementaries before March 31st of the next year.
- (fillable form)

*   Then you have to fill in a Canadian T1 on forms 1159 and 776 by June 30th.
- (fillable)

*   You will have to fill in a CCA (capital cost allowance // depreciation) schedule which is part of the T776

*   You will convert the Canadian currency to US and put the numbers from form T776 on US form Schedule E
- - instructions at -
- - instructions -
*   If you paid any tax to Canada, it will go on US form 1116.
- - instructions -

Question 5: Can your firm help with taxes for 2007?  What are your rates for this type of tax situation? 

  Yes - it is what we do -   Prices, etc., can be found further below

Question 6: If we later move back can we move into this property and convert it to a non-income property that we live in what will happen?

If you move back to Canada and move into the property, you are deemed (considered)  to have sold and reaquired the property and trigger an immediate capital gain.  The profit would be calculated on schedule 3 and entered on the T1 tax return on line 127.  HOWEVER  You can then make an election under Section 45(3) to defer paying the tax until sale by putting the same amount on line 256 AND ATTACHING a letter making the election - There is no form, you have to write a letter.

Warning - if you have been deducting depreciation in Canada, you will have to pay the tax 'now' on any depreciatioon claimed because you have now 'recaptured' the depreciation unless the price of the property went down.

Question 7: Is this type of purchase common?  Is there any risk come tax season?

Yep, I have been recommending it for years so that someone can return to their place of origin at 'today's' price. If you want to retire to Florida or Vancouver Island or Hawaii or Great britain, I recommend that one go there now and buy a rental so that when retirement time comes, you KNOW you will have the funds to buy there.  There is no tax risk - just a more complicated tax return. There IS the risk that property will NOT go up of course..

Question 8:  What have I missed?  Do you have a check list for this type of thing?

Can't think of anything - You now have a check list as made up above. And, I will use it as a newsletter.

Looking forward to our call.

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Part III - TDF 90-22.1 Reporting rules

Great Update.  Does this mean that returns that did not include accounts without earning on Schedule B, should amend the return?  I have filed all my TDF90-22's and 8910's ( Ithink you mean 8891's - david) in the past and reported all earning from account on Schedule B (or D, where appropriate)
david ingram replies:

No, they want schedule B filed to say yes or no in the bottom two questions - there is nowhere to put a non earning account on B. 

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Moving back to Canada from Korea

David Ingram,
I will be moving back to Canada in October after working for 7 years in Korea.
I will be coming to you to help me with my taxes, and am wondering:
1. Do I need a form from the Korean government related to my residence status?
No - but you should make sure you come back with a record of your earnings and what you paid to the Korean government.
2. My employer wants to know the address to which they should send my income tax record. 
    Should I ask my employer to give me this information, or should I give them your address,
    or the address for Canada Revenue Agency?

Send it to your home addressin Canada if they cannot give it to you before you leave.  The address on the forms should be the Korean Address you were at but it can be mailed to your Canadian address.  If you are not sure, you can have it sent here.
3. Is there anything else I should take care of over here before returning to Canada?
Not that I can think of.  Make sure you make a really good list of anythng you are bringing back with you.  You will need to give it to Canada Customs.

You are welcome
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Part II - TDF 90-22.1 forms

Thank you for your e-mail re the filing of TDF 90-22.1 reports, David.  We sent in the TDF 90-22.1 forms, in accordance with your instructions, but XXXXX did not file a Schedule B on his tax return because he had no interest or dividend income in 2006.  The interest income from all our joint accounts and GICs was my money when we were married and I reported it as my income.  Should this be revised since he is a joint owner with full signing authority on all my accounts and we showed him as having a financial interest in all of them?  We have an appointment with you on June 27th to do XXXXXX's Canadian/US tax returns so, if something more has to be filed, can we leave it until then?   Thank you once again for keeping us informed on all this! ----------------------------------------------------------------------------------------------- david ingram replies:

During the phone conference (which was world wide) the two IRS participants made it clear that a Schedule B should be filed by anyone with out of the country accounts so that the two questions on the bottom of schedule B were filled out.

Later on, when a question was asked by a practitioner abouit whether or not to file a 1040X with a schedule B, the male IRS agent clearly said not to bother retroactively, if they had caught up with the TDF 90-22.1 forms which they kept on referring to as "T bar" forms In other words, there was a bit of backpedaling.  However, in my lexicon, since the broadcast was NOT binding on the IRS, but was an attempt to bring practitioners up to speed on the requirements and dealt with some pretty esoteric stuff, my inclination would be to file a 1040X with a properly filled out Schedule B.

You can leave it until the 27th.

As an aside, they dealt with the signing authority of an account because a taxpayer is a controlling shareholder and "could" take control of an account.  They were really clear that if A signs accounts for XYZ company and XYZ company controls another company NOP that has a foreign account in Canada, France, Germany, Japan, etc., that A needs to fill in a T D F 90-2.1 for NOP's foreign accounts because A has the ability to become a signing authority.

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TDF 90-22.1 Reporting rules

This is not the result of a question but is the result of an IRS Tele-conference on June 20, 2007. 

The subject was the reporting of foreign bank on form T D F 90-22.1.

In particular, the tele-conference made the point that  June 30th  "IS" the deadline and that fines are being increased and in particular, there are / will be severe penalties for non-compliance.

It would seem that there is NOW a $10,000 penalty for failure to file the form although that is in the regulations and not on the form.

I know from other sources that some 1,000 clients of former advisor Jerome Schneider are in the process of  being fined as I write this.

I also admit that I have not worried much about the June 30th filing date in the past.

However, the teleconference made the point that practitioners are subject to fine for not following up on these filings.

As I write this Terry or Phyllis ?? is making it very clear that RRSP accounts must be reported but that the Company Pension does not have to be reported.

So--- if you have not being reporting your foreign accounts - report now.

AND, they also made the point that everyone with foreign accounts MUST file schedule B, even if there is no earnings form the accounts.

AND, they also made the closing  remark that if they have NOT been filed inteh past, taxpayers shoiuld file back SIX years.

david ingram �
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U.S. and Canadian Taxes


I am a U.S. citizen. If I move to Canada to live and work there as a Canadian permanent resident (living with my Canadian girlfriend), do I pay both U.S. and Canadian Taxes?

david ingram replies:

Congratulations, 'You' get the only question answered today of about 60 I have received.

If you live in Canada and are a US citizen, you are taxed first in the country that is the source of the money.  Therefoe, if you live and work in Canda, you are taxed frist in Canda on your wages and then you have to report them again on your US 1040 and claim a foreign tax credit to avoid US tax.

If while living here, you have somemutual funds or bank deposits or a rental house you left in teh US, the US gets the tax first and then you report the income again on your Canadian return and claim a foreign tax credit in CANADA for the tax paid to the US.

This is not double taxation but you do have to file returns for both countries.

GOTO and read the October 1995 newsletter in the top left hand box and then read the US/Canada Taxation section in the second box down on the right hand side.

And, if you have any Caandian Accounts when you get here, if the total is over $10,000 US at any time in a year, you have to fill in form TDF 90-22.1 for each account.  If you happen to start a Canadian Corporation, you have to fill in form 5471.  If you buy a Canadian RRSP, you need to fill in form 8891.  You can find allthese forms under forms and publications  at
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housing tax on Canadian house sale


We are American citizens who have lived in Canada for 9 years.  We sold our house here and have purchased a house in the states.  Do we have to pay tax on the money we make on our Canadian house sale?

------------------------------ david ingram replies:

You are getting the only question answered in two days.  Been Too busy for others.

There is no tax on the house in Canada because (in genereal) we do not tax any profits on the sale of a principal residence.

However, the sale is subject to Capital Gains tax if the profit was over $500,000 US.

From the looks of your email address, I get the idea that you are in Drumheller or High River, Brooks or another smaller Alberta town which means that although your home will have increased significantly in value, it has not likely hit the $500,000 US profit range.

You should report the profit on US Schedule D, Part II, line 8.  If the profit is less than $500,000 ($250,000 per person) deduct it on the next line under Section 121.  If the profit is over $500,000, you would deduct $500,000 under section 121  and owe tax  to the US IRS on the balance at a maximum of 15%.

Glad to file the retuirns for you if you have a problem.
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Using old house for security

QUESTION: I currently own a home which I bought in 2002 for 132K$ and I still have 92K$ mortgage on it. The present value of the home is about 225K$. Recently I have set up a home equity line of credit on the home(HELOC). I am buying a new home for about 400K$. I am drawing 75K$ from HELOC and have another 15K$ savings for down payment for new home. I want to retain the curent home for rental income.
1. Am I better off keeping the home as rental income or sell off the home and use all the capital gains for down payment for new home.
2. If I retain the current home for rental income, can I deduct the interest on the mortgage and interest on HELOC as expenses from the rental income?
3.If I retain the home for rental income, Am I better of in remortgaging the current home to draw out maximum cash for down payment of new home or leave it as is with HELOC.
4. If after 3-4 years I decide to sell the rental property, what will be the tax I will be paying on the sale proceeds? The current home is owned by me and my wife and the new home will also be jointly owned. --------------------------------------------------------------------------
david ingram replies:

1.    If property values do not increase in teh next four years you would be better off selling if you intend to sell in four years as in question 4.  If property values double in the next four years as they did in many areas in the last four, you are better off keeping it in general.   The answer is somewhere in between if 4 years is the criteria.  If keeping it for 10 years or more is the criteria, you are likely better off keeping it no matter where it is.  However, i am one of the people that finds it hard to see the values in Vancouver, Calgary and Edmonton continuing as before for the next four years.

2.   The interest on the existing 92K mortgage is deductible but not the money borrowed to buy the new house becaue it was not borrowed for investment purposes.  However, if you were to buy your wife's interest in the house and use borrowed money to do so, the interest would be deductible.

3.   It is irrelevant.  Either way the interest is not deductible.  One of you should borrow the money to buy the other one out as in 2 above.

4.    No idea, unless yo tell me what it will sell for.  The tax will be levied at standard rates on 50% of the profit.

Goto and read the November 2001 newsletter in the top left hand box to get some more ideas about making interest deductible.  Then read the capital gains Seciton of the TAX Guide (same box) for an idea of how capital gains tax works. �
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Canadian citizen buying US Las Vegas real estate (presale)

> I would like to know of any precautions I should consider before
> purchasing an American condo in Las Vegas as a presale.  I am a canadian
> citizen.  Is there any additional taxes I have to endure?
> Thank you very much!
> --------------------------------------------------------------------------
> david ingram replies:
> I would worry about the condo completing and your being able to close the
> deal.
> Construction costs in Las Vegas have risen 20% in the last year and there
> is a real shortage or materials and labor.  as you will know, projects
> have been stopped locally and trhere have been a couple of examples now of
> developers returning the deposits and attempting to resell the units at
> higher prices.
> As far as taxes go, the official position is that you wil pay tax to the
> US federal governemtn and then report the income again in Canada.  Becasue
> it sounds like you are intending to flip this, Canada will treat it as
> straight income and then allow credit for the tax paid to the US on line
> 431 of schedule 1 of your Canadian return.  If this does not use up all
> the tax credit, you can claim the excess on the equivalent line of the
> provincial form 428.
> Becaue buying a presale usually involves dealing only with the developer's
> people, I advise you to take the contract to a local real estate lawyer
> and have it checked over before signing.
> Watch out for contracts that require interim draws and / or personal
> guarantees that could be called on in the event of a disaster.
> These other two questiosn will explain the Canadian side which is more
> complicatred than the American side.
> ----------------------------------------
> My question is: Canadian-specific
> If we buy a fixer-upper to renovate and flip without renting it out what
> are the allowable expenses for deductions?
> Thanks
> ____________________________________________________________________
> david ingram replies:
> In general anything you spend to do the fixing is a deduction from the
> final sale profit.  This would include but is not limited to:
> materials, subcontractors, legal, accounting, real estate commissions,
> surveyors, appraisals, interest on the mortgage, interest on a building
> loan, interest on material loans (maybe because you used a credit card to
> buy), truck expenses to get supplies and transport tools, afvertising,
> utilities, photography, landscaping, trash removal, dumping fees, building
> permits, architects fees, engineering fees, home inspection fees,
> insurance, helpers, etc.
> Remember that any profit is taxable at straight income rates on line 135.
> Flipping or renovating does NOT create capital gains tax.  The following
> older Questions will explain that a bit.
> ______________________________________________________________________
> A "friend" who is a BC realtor and has the flipping  question presented to
> her
> from time to time  recently attended a seminar that was related to this
> subject.  As a result she was able to provide me with some interesting
> thoughts to ponder concerning "intent" and "professional background" when
> it comes to "flipping houses"
> and tax in Canada.  You may possibly be looked at as a Developer all the
> subsequent implications.
> Read the full article at < 
> <>>
> ----------------------------------------------------------------------------
> david ingram replies:
> In Canada, the purchase and sale of any piece of real estate with or
> without
> renovations is considered a sale and subject to straight income tax
> unless:
> 1. It was bought for and clearly used as your personal residence and was
> intended to be used for an indefinite period of time which is usually in
> the
> five to ten year range.
> 2. It was bought as and used as a recreational property
> 3. It was bought for the purposes of earning long term rental income.
> In the case number 1, there is no tax.
> In the case of numbers 2 and 3, the sale is treated as a capital gain and
> only fifty per cent of the profit is taxed at your regular tax rates.
> Lots of / many (anyone caught) are taxed full tax rates when they buy a
> house, move in, fix it up and sell it a year or two later and then do
> another one.
> Of course, most are NOT caught in these circumstances.
> However, "any" flip is going to be straight income unless the person can
> prove that they bought it to live in and then:
> * married a person with three children and it is not big enough (had to
> sell
> and bought bigger)
> * were transferred to another city (had to sell to buy in new city)
> * lost their job, were injured, etc. and can no longer afford to move in.
> In
> this case, they would have to show that they had the finances to have paid
> for it when they bought it. (Not only can they not afford it but they have
> moved into their parents' basement (boomeranged).
> * Inherited a house from their parents and do not need it any more. (are
> living in the new house)
> You can read more by going to <> - click
> on tax guide in the top
> left hand corner and then click on the "capital gain" section.
> david
> This older q & A also gives an idea
> My daughter is closing on a presale Yaletown condominium this summer.  She
> is working until Christmas in Alberta.  She returns to Vancouver from Jan
> to
> May and if the job becomes a full time position, then she may return to
> Alberta to live.  At the time of presale, February 2004, we thought that
> the
> suite would be assigned to her and that she would live in the suite.
> I was hoping that she could declare the suite as her permanent residence
> since she is only renting in Alberta and the work is not permanent.    In
> May 2007, she could decide to keep or sell the suite.
> What does she need to do in order to qualify the suite as her permanent
> residence?
>  -----------------------------------------
> david ingram replies:
> There is no absolute answer because you can call a toad a frog all day
> long
> but it is still a toad.
> To be a principal residence and tax free for income tax purposes, the
> property must have been bought by her to live in and she HAS TO move into
> it. - No exceptions that I know of.
> You can expect that the CRA will be looking at "every" quick resale in
> downtown building.
> In deciding if it is a capital gain or a flip, the CRA will be looking at
> the suitability of the unit as a residence, the ability to pay for the
> unit
> and past and even future performance.
> In other words if she claimed this one as a principal residence and then
> did
> it again a year later, the CRA would have every right to go back and
> reclassify the first one.