David,


I spoke to you on the phone, and thank you for the information. If I were to buy a condo(let's say $200,000.), how much do I have to pay for property tax each year for non-resident and what is the % of tax on the profit after the sale of the property in Canada? Can I have any tax break over this mortgage interest if my income is over 150,000 a year in US?

Thank you.

Hello David,

I was hoping you could point me in the right direction...

I purchased a home 2 1/2 years ago that I currently rent out, it's also listed as my principle residence, and yes I am using the interest on the mortgage as a tax deduction thanks to your Thursday night seminars. I would also like to purchase a studio condo unit and rent it out, I have the cash and could buy it outright but thought it wiser to take out a line of credit or HELOC against my current home so that I may right off the interest on the loan. The condo is under $25,000 and I was just wondering if this is the best way to go...?

Kind regards

My question is: Canadian-specific

QUESTION: Could you please clarify something for me? Is OWNING and SELLING a
house the same as having BOUGHT it?

When my husband and I divorced, we agreed that I should continue living in
"our" house, though he had been the buyer and sole owner.

Later, I remarried and my second husband bought out my first husband, though
only my name went on the title. Exclusively.

Then, when my second marriage ended and we decided to sell the house and
divide the proceeds, I was the SELLER.

I ask this because I'm going to buy a house in BC sometime soon (as my
principal residence) and read that the Land Transfer Tax is not imposed on
first time buyers.

Well, I never bought a house - but sold one, having come into possession of
it by the vagaries of life. I'm assuming that for the purposes of this
enquiry, I'm deemed to have virtually "bought" it somehow. But there's no
harm in asking.

Thank you so much! I love following your e-mails.

My question is: Canadian-specific

QUESTION:

I am providing a consulting services to a client through a third party/headhunter, means my client where I actually work doesn't directly pay me, she pays to the Headhunter/personal resources company, then they pay to my Company and my Company pays me …. I have been working for the same client almost 2 years, and my client wants to renew my contract to another 6-12 months, but they are saying per Canada Revenue, "A contract worker can't work on the same position more than 2 years", so the only way that I can renew my contract is, if I just work till end the end of my current contract and then work some where else for 4-5 months, and then I can come back and can work on the same position as a contractor
My questions: First, is there such a rule per CRA, second would that rule apply to my situation, where all payment transactions are made between the Incorporated companies; no one directly pays to me but my own Incorporated company..

Thanks

In respect to the question and answer listed below. Is it possible for a Canadian resident to use funds from RRSP account to invest in secured 1st mortgage? Self-directed RRSP account allows mortgage investments, so why not advance the funds in a form of a mortgage?
Your comments would be appreciated.

Thank you,

QUESTION: I'm a Canadian citizen who has a work visa in the U.S.
Should I consider contributing to my company's 401(k) plan? What are my
options when I return to Canada as far as getting the money or rolling into
something else?
What are the tax implications in each case?

Hi David:

I am an british subject... canadian landed immigrant status.... I would like
to eventually move across the line to Blaine to live with my boyfriend... I
have written to you prior and you told me I have to first get my canadian
citizenship.. which I am working on. My question is this.... it could take
up to 18 months to get my canadian citizenship... do I have to wait til then
to move? Can I not start the process now? I plan on only living there a
couple years...also plan on keeping my job in Canada.. and going to school
in Canada.. just want to live there. Is there anyway of doing this before I
get my citizenship and how do I go about it?

Thank you for you reply.

P.S. You had said to me.. if I were to live in the states without papers...
I would have to return back for - was it 60 days? Does that mean 60 days in a
row... or 60 days throughout the year?

My question is: US-specific

QUESTION: Hi,

I am in the process of having a home built buy a local builder in AZ. There
is only a couple of weeks until the closing date and I have decided to go
into business with a partner but we would plan on moving the business to TN
due to land costs. I am currently renting an appartment since i sold my
previous home of seven years. I own no other residences and "planned" for
this to be my primary home. Will I be able to avoid capital gains if I just
flip the home and move to TN? Thanks!

Mr.Ingram:

I believe the tax rate is the same for short term capital gains and regular income (other than earned income which is also subject to FICA) here in the US so it would't matter in this case. However, if the writer had a loss, he would be subject to a limitation of being able to write off more than $3000 against his other income unless he had offsetting gains. Also, since it appears this person is not a realestate professional is is unlikely the IRS world allow him to claim his gain/loss any place other than the capital gains schedule.