Tax cops cometh

It’s estimated six in ten homeowners in Vancouver have a suite in the basement occupied by a blinking, mole-like creature called a ‘tenant’ who probably has a bike and votes NDP. Some of these apartments are legal, with the owners deducting expenses and declaring the rent as taxable income. A motherlode are not. And the CRA has one of their famous ‘projects’ ongoing to sniff them out.

Actually the revenuers have been in overdrive recently, moving into Van and the GTA to sift through the remnants of the property bubble and Hoover up their share of the windfall profits. These guys are now opening about 250 new files each and every week, looking primarily for condo flippers. In the last three years the feds have siphoned off $650 million in taxes and fines from people who bought and sold units in pre-con buildings or acquired and dumped houses for a profit, trying to claim an exemption or a capital gain.

All this will get more interesting after Christmas when income taxes are filed, now that all residential real estate transactions have to be reported, detailed and (if you are asked) proven. As this pathetic blog pointed out two years ago when it became necessary to apply for a capital gains exemption on residential real estate (instead of  being assumed, as before), the first step was taken in taxing homes. That is to establish a federal CRA property registry – matching addresses with owners, sellers, buyers and transactional details. In a few years you will see where this leads. It won’t be pretty.

Meanwhile the biggest guns are being leveled at those who bought unbuilt condos then sold them as assignments. That’s perfectly legal, but many have tried to escape tax by saying they intended to live there (so it was really a principal residence), or claim the profit as a capital gain subject only to 50% tax. Of course, the feds don’t see it that way. To them it’s income. The profit must be added to your regular pay and taxed 100% at your marginal rate.

Ditto for flippers, those who bought a home during the FOMO frenzy, then sold it again for more a few months later. It even applies to DIY dudes and amateur contractors who buy properties, live through a reno, then list. The CRA says this is a business activity and the income generated (above expenses) should be taxed as such. Worse, if you try to avoid declaring this money it’s possible you could face a further 50% penalty for gross negligence. Ouch.

Now, about renting your basement…

First understand what a PR is. To qualify as a principal residence and pay zero tax on the money you make selling it, the property (owned or leased) must be inhabited by you, your squeeze or your kids for a portion of the year. If it’s with listed with the CRA, on your driver’s license and health card, there’s no issue. Yes, you can try claiming the cottage while living in the city, but don’t be surprised if you’re challenged. And remember if you claim a secondary property as PR in order to escape tax, you’ll be eliminating your primary property at the same time.

Here’s a redneck alert: the PR status only applies to your house and about 1.2 acres (or half a hectare). The rest of the property will not qualify for tax-free status in the event of a sale. The goats are on their own.

Now, back to renting. Whether your basement is legal with the city or not, you still have to deal with the CRA. If you collect rent, Ottawa expects you to declare it and pay tax – but you can deduct expenses, including a portion of the mortgage payment, utilities and fumigators. The real question is whether or not renting out some space alters the tax-free status of your home.

The answer is no, if (a) the area rented is a small part of your overall property, (b) you alter nothing in order to create a rental space and (c) you don’t claim depreciation.

However, if you created a rental suite by adding a door to the basement, erecting a stair case to a rental apartment, putting in a new bathroom or even a shower in an existing bath, or throwing up some drywall to separate the suite, then – bingo – everything changes.

In that case the part of the property which is rented will be deemed to have been disposed of. In the eyes of the tax cops you sold at fair market value and bought back the same day. Thus you’ve reduced the overall future capital gains tax exemption by a significant amount so when you sell, a portion of the profit will be, in fact, taxable.

At that time you’ll have to split the selling price between the PR amount and the taxable portion. “We will accept a split based on square metres or the number of rooms as long as the split is reasonable,” says the CRA. On the non-PR portion capital gains will need to be reported, while the rest stays at zero.

Now, think about a Van house that’s escalated wildly over the past decade. By carving out a basement suite or a laneway house, and reducing the PR exemption by 30% or 40% you could be making a life-altering windfall taxable, at least in part. Chances are the (taxable) rent collected from the moldy beings in the cellar would never compensate for the new tax hit.

Moral: keep the fruit cellar for fruit.

191 comments ↓

#1 ShawnG in TO on 11.19.18 at 5:34 pm

law without enforcement is only a suggestion

#2 Howard on 11.19.18 at 5:41 pm

Where’s Bitcoinnaire?

Yoohoo…Bitcoinnaire….

Shouldn’t it have been at $100,000 by now? Or did you mean $1,000.00?

#3 The Greater Cauliflower on 11.19.18 at 5:42 pm

Thanks for the information.
However there aren’t enough CRA auditors to catch people cheating on their taxes by not declaring rental income.
Just sayin’

#4 waiting on the westcoast on 11.19.18 at 5:42 pm

The tax man taketh, and taketh, and taketh, and taketh…. to infinity and beyond!

This will be the the final straw if heavily enforced in Vancouver. I know too many people that fit this mold.

#5 crowdedelevatorfartz on 11.19.18 at 5:46 pm

” It even applies to DIY dudes and amateur contractors who buy properties, live through a reno, then list. The CRA says this is a business activity and the income generated (above expenses) should be taxed as such. Worse, if you try to avoid declaring this money it’s possible you could face a further 50% penalty for gross negligence. Ouch.”
++++
I know a few people who have done this for 10 -15 YEARS.
Wife plays “Martha Stewart” and designs, gets quotes, hires contractors, deals with inspectors, renos while hubby goes off to work.
After living there a year….flip. Tax free.
She has been taking a salary off the eventual sales proceeds…an not declaring it.
And in the uppa uppa uppa Vancouver market, they have made out like bandits…..never lost money and made nice some nice coin.

I’ve told them what they were doing was a recipe for disaster….
“Everyone’s doing it !”….so guess that makes it ok?
Time , and the CRA, will tell.

#6 Drew on 11.19.18 at 5:52 pm

How is it possible to prove that nobody lived in your basement, if CRA believes that someone did?

#7 JonBoy on 11.19.18 at 5:53 pm

By extension, then, if you “sold and bought” at fair market value on the day you did alterations to allow for a rental space, and your house LOSES value after that day, you would then be able to claim depreciation and/or a loss, would you not?

As such, this could be a way to potentially reduce your taxes in the event of a real estate market crash. Merely “turn the basement into a rental” and use that percentage of the building floor area as a tax-reducing deduction based on the decline in property value.

If the rules apply when the value is going up, they must apply when it comes down. Seems like it could be a great loophole, especially if you “only have to add a door or a shower”… Heck, you don’t even have to actually rent it out – you can just put it up for rent (make the price really high!) and then claim the deduction when you are forced to sell the place, since apparently INTENT matters just as much as ACTION. This could be relatively cheap insurance to help reduce your real estate losses in at-risk locales.

Considering that basement suites in an older bi-level home are roughly 50% of the total area, that’s a big tax deduction! Even in a more modern basement + two storeys-above-ground house, you could deduct 1/3 of your losses this way.

Either way, we’re still losers in this situation. The government is looking high and low for new revenue and this is a way to get it.

#8 ShawnG in TO on 11.19.18 at 5:55 pm

CRA could easily force a deal with uber, lyft, etc. to issue annual income reports on each driver just like companies issues T4s. since those companies know exactly how much each fairs were, that should be easy to do.

similarly with airbnb.

lots of fat that CRA could easily go after.

#9 FOUR FINGERS WATSON on 11.19.18 at 5:55 pm

DELETED

#10 common sense on 11.19.18 at 5:57 pm

Gee only a few interest hikes and the markets are in a tizzy….you really think after Dec’s rate bump they will raise as fast in 2019?

What a shallow recovery (?) after 10 years of pumping BILLIONS into economies worldwide.

Take away the punch bowl and look out below…what a complete joke.

#11 PeterL on 11.19.18 at 6:02 pm

The gov’t started a major effort to tax flippers towards the end of 1980s housing bubble in Vancouver. I remember going into the federal building downtown, where there was a thick book in the foyer showing all the transactions. As I recall, the rule-of-thumb was that if a person had more than one real estate transaction in a year, then they were potentially liable for taxes as a flipper.
(During that bubble, the conventional wisdom was that housing prices were being driven by Hong Kong residents trying to set up a safe place to move to, in case the hand-over to PRC went sour. After the bubble burst, my recollection is that Hong Kong money had had only a minor affect on the bubble.)

#12 Bob Dog on 11.19.18 at 6:04 pm

I call BS. If the worthless POS government of Canada had an ounce of integrity, we would not be in this mess.

We have institutionalized money laundering. Do you expect me to believe justice will be served?

NAFTA-TN1 visa people

#13 AK on 11.19.18 at 6:06 pm

My parents started renting their parking space at their Condo this year.
Are there any expense I can apply against the rent received? I can’t find anything on Google.

#14 Team.OMG on 11.19.18 at 6:06 pm

Garth said,
<>

Hi Garth, I think that this rule is not as hard-and-tight as you mention.

There are at least a couple exemptions: (a) unless the acerage is required for the normal needs of the family claiming it as a principal residence and (b) if the municipal zoning laws mandate a minimum residential space that is larger than 1.2 acres.

For point (a) above, an example would be a 3 acre property where there is a septic field set back farther than one might ordinarily expect because of topology or environmental concerns, and perhaps a seperate garage and workshop used by the family which is also set back a distance from the house such that those structures use the entire portion of the property. Under that scenario the capital gains exemption for a principal residence could be claimed. The CRA would probably request supporting documents such as past building permits and municipal zoning information to substantiate the expemption should they review the sale as recorded on a tax return.

For point (b) a municipality may have zoning regulations in effect prohibiting the severance of a larger piece of land such as 5 acres, and in this case the entire acreage would also be exempt from capital gains tax if the principal residence was located there.

In either case, I’m sure a qualified professional account would be needed to safely navigate the waters…

As far as the construction of a space suitable for a renting tenant is concerned, it should be trivial for the CRA to request a list of all permits within any given municipality where the creation of an additional exterior door, interior bathroom, or expanded electrical work has been performed. After all, everything at the provincial level here seems to be kept in a big Oracle DB, and those statements are quick to execute. People should take better care with their renovation plans going forward. There’s a lot of government debt and unfunded liabilities to be paid for.

#15 Paul on 11.19.18 at 6:16 pm

Said many times,if the powers that be make too much financial grief .To make it not worth the emotional grief of having a tenant and the owners take back the basement rentals there will thousands looking for a place to live.

#16 Blutterfy on 11.19.18 at 6:16 pm

@ #4. “Fit this mold”.
Haha haha you are punny lol.

……………….

“Here’s a redneck alert: the PR status only applies to your house and about 1.2 acres (or half a hectare). The rest of the property will not qualify for tax-free status in the event of a sale. The goats are on their own.”

That sounds like the government is discriminating against farm and small businesses. I wonder if petitions to change that would actually do anything.

#17 SaraJ on 11.19.18 at 6:17 pm

crowdedelevatorfartz -If they have made out like bandits…..never lost money and made some nice coin, even if CRA gets to them and settle some kind of payment out of them, they will still be way ahead. The problem is that folks cheat on taxes and only when it becomes too big problem CRA reacts …way too late.

#18 Leftover on 11.19.18 at 6:17 pm

CRA to collect tax on basement rentals?…..Good

On pre-sale condo flippers?…..Ditto

On DIY folks avoiding declaring business income and Cap Gains?…..Fantastic

These are all tax evasions. Full stop, no excuses.

#19 Reximus on 11.19.18 at 6:18 pm

My exGF did this for 15 years. Always had two roommates who paid decent $$, helped her get by, a lot. I warned her about not declaring the revenue, as tenants often paid by cheque, but she didnt care

Finally sold the house about 10 years ago, bought a smaller condo, and thought that was that.

Guess who came knocking last year

#20 For those about to flop... on 11.19.18 at 6:18 pm

Race to a million.

Burnaby edition.

Let’s see what’s happening with this mid-century masterpiece.

Built in 1954 this house has had at least a few updates with a bit more to go by the sounds of it.

The details…

4910 Laurel st, Burnaby

Originally asking 1.19

Now asking 999k

Assessment 1.27

So now it’s on for more than 20% less than assessment, right at the bottom of the detached Burnaby market.

The waited only a month before doing the big chop, trying to pull something out of the dying ashes of 2018.

Laurel knows next Spring he will face increased competition from Yanny…

M44BC

https://www.zolo.ca/burnaby-real-estate/4910-laurel-street

#21 SoggyShorts on 11.19.18 at 6:19 pm

#107 Tater on 11.19.18 at 8:11 am
#48 SoggyShorts on 11.18.18 at 5:45 pm
you don’t know enough about markets to be investing your own money.
***************************
Ummm that’s why I’m asking questions? If I knew everything why the hell would I ask?
Do you also make fun of the fat guy at the gym? That’s why here’s there.

#22 AGuyInVancouver on 11.19.18 at 6:21 pm

#5 crowdedelevatorfartz on 11.19.18 at 5:46 pm
I know a few people who have done this for 10 -15 YEARS.
Wife plays “Martha Stewart” and designs, gets quotes, hires contractors, deals with inspectors, renos while hubby goes off to work.
After living there a year….flip. Tax free.
She has been taking a salary off the eventual sales proceeds…an not declaring it.
And in the uppa uppa uppa Vancouver market, they have made out like bandits…..never lost money and made nice some nice coin.

I’ve told them what they were doing was a recipe for disaster….
“Everyone’s doing it !”….so guess that makes it ok?
Time , and the CRA, will tell.
_ _ _
Yup, a snitch line for such types would be welcome. All they do is contribute to the real estate inflation spiral.

#23 would-be buyer on 11.19.18 at 6:22 pm

“However, if you created a rental suite by adding a door to the basement, erecting a stair case to a rental apartment, putting in a new bathroom or even a shower in an existing bath, or throwing up some drywall to separate the suite, then – bingo – everything changes.”

How do you rent a basement suite without adding a door to the basement or throwing up drywall to separate the space? Basically, every basement suite in Vancouver is a disposition of PR. This explains why renting extra rooms to students is becoming popular.

#24 HowDeepThePain? on 11.19.18 at 6:28 pm

I think there will be a lifetime PR Capital Gains Exemption CAP within a few years. Maybe 250K per person.

Too many people building mansions wasting fossil fuels building, heating and cooling. Not to mention the space taken up that could be used for more housing. The media already loves to talk about ’empty bedrooms’ in the GTA.

#25 Shawn Allen on 11.19.18 at 6:31 pm

A dollar is a dollar…

Could save a lot of debate by eliminating the half-price tax rate for capital gains and tax all income equally.

This would also allow the marginal tax rates to be reduced on regular income.

If all income were declared and taxed equally, marginal tax rates could probably come down a lot.

#26 Sebee on 11.19.18 at 6:31 pm

Owning a house is starting to look like a real pain in the butt.

Add maintenance, leafs, gutters, snow, grass and having the indignity of rolling trash to the curb…how much time does all this eat up each year? Just to have room for stuff? That’s expensive way to store your stuff.

#27 Lead Paint on 11.19.18 at 6:34 pm

It boggles the mind. I tried to follow the post tonight but my eyes glazed over trying to understand all the rules and permutations.

When I talk to my accountant or lawyer about to plan my business taxes or estate, my eyes glaze over.

When I talk to my clients about their challenges and opportunities and costs in front of them, their eyes glaze over.

But I work and consult in IT. Technology and expectations change continuously. This field has to be confusing for laypeople, given the rate of change. Taxes, real estate and rules around renting out or owning second properties need not be.

Currently, if you invent, create or produce something of value, lawyers, accountants and the government take 75% of the eventual profit while having risked nothing, and scaring away almost everyone who might want to start up their own business.

The government seems to be in the business of creating business for themselves, lawyers and accountants. Rule after rule after rule…. understood only by CPAs and their ilk, which charge high fees to keep you out of the sites of CRA.

Society needs to decide that a certain percent of the populace can’t compete and thrive in a market economy, and tax those that do, and redistribute with very simple, clean rules. Wealth redistribution is happening and necessary. What isn’t necessary is the layers of lawyers, accountants and bureaucrats.

Lawyers and accountants, and bureaucrats will scream with the unjustness of it all… but that can only be a good thing. Otherwise we’re all just risking, and working, for them.

And for those of you to stump for Trump on this blog… his tax rules are absolutely contrary to what I’m proposing.

#28 more tent cities on 11.19.18 at 6:34 pm

Amateur landlords will try and muzzle their tenants but there’s a risk of exposure. Cut a deal with the tenant and have their word in return that if and when CRA ever came knocking, the tenant has a good story.
Not so risky is keeping the place empty or selling because playing landlord is not all that it was made out to be.

Bottom line.. this is bad news for tenants. Fewer places to rent. Those landlords declaring tax, will charge more of course. The cost gets passed to the tenant.

There will be fewer affordable digs, more stress on the rental market and government does what it does best.. messing up the market and achieving the polar opposite it had hoped for.

Alas, the road to hell is paved with good intentions.
When do people ever learn that more government means more bureaucracy, higher costs and usually less competition (capitalism).

#29 Sebee on 11.19.18 at 6:36 pm

You buy a house, borrow to the teeth, rent the basement, have CRA on your butt potentially for taxes or future gains taxes and your basement dwellers are going to summon you the Lord of the Land to plunge their toilet at 2am?

“Unclog my toilet, My Lord!” …now read it again with an evil voice.

#30 dr talc on 11.19.18 at 6:36 pm

It has been typed here in the comments section hundreds of times:
‘they’re renting out their basement and probably not declaring the income of their tax returns”

How can anyone possible know that???

Fact: everyone is obliged to file a tax return.
So these mythical tenants are not filing?
Or, they Are filing, but what do they write in box that says ‘address’ for the taxation year?
If they put in the landlords address, the return can be compared to the landlords to check if he reported the income.

#31 Trisha on 11.19.18 at 6:38 pm

In 2006/7 our daughter was completing a degree at UBC and living in a basement rental suite in West Van. We drove our small camper from our home in SK to visit her and were told by her landlord, through her, that we could not park on the street in front of his/her house as all the houses on that street had renters and all the curb side parking should be for owners and tenants, not visitors. The rental suite was, for all, it seems, , a “ mortgage helper” without which the large and attractive houses would have been unaffordable. How much more prevalent is this today for those living in those ridiculously priced houses and how many claim the income? I do wonder…..

#32 Dolce Vita on 11.19.18 at 6:39 pm

Great info. Thought I understood PR well until today.

“mole-like creature…goats…fumigators…fruit cellar”

Well, THAT was an ensemble.

Still killing myself laughing. Thanks for the humour Garth on a very serious heads up topic today (love the dog picture, the canine version of Eminem’s “Without Me”).

—————————————–

#3 The Greater Cauliflower

“However there aren’t enough CRA auditors to catch people cheating on their taxes by not declaring rental income.”

No one knows how many auditors they have for catching rental income tax cheats but when they manage to hoover up $650 MM in YVR and 416 in taxes and fines over 3 years plus open 250 files each and every week on Condo & House flippers:

I would not want to play RUSSIAN ROULETTE with them, no, not with that demonstrated voracity.

If anything, I’d declare right away after reading today’s Blog and seek a settlement for unreported past income.

I am 1-0-1 with the CRA on audits (side income consulting apart from my then day job income – debate on deductions). CRA makes your life an absolute misery during a tax audit.

They are the last people that find “catch me if you can” amusing.

#33 Damifino on 11.19.18 at 6:43 pm

Of course, the feds don’t see it that way. To them it’s income. The profit must be added to your regular pay and taxed 100% at your marginal rate.
————————————–

The CRA will also assume you’ll have continued success in your ongoing business ventures. They’ll expect you make quarterly remittances the following year, and likely the years after that.

#34 Penny Henny on 11.19.18 at 6:47 pm

#5 crowdedelevatorfartz on 11.19.18 at 5:46 pm
And in the uppa uppa uppa Vancouver market, they have made out like bandits…..never lost money and made nice some nice coin.

////////////////

How many times do you need to be told? In order to emphasize the increase you must write “uppa Uppa UPPA”

#35 crowdedelevatorfartz on 11.19.18 at 6:48 pm

@#22 Van Guy

As annoying as they were, bragging about their “brilliance’ as house reno “flippers”….. They always bought bigger, bigger,bigger using the profits to afford more expensive housing.
I hear their latest “flip” aint selling………and they refuse to drop the price.

#36 Vancouver Mike on 11.19.18 at 6:48 pm

How can CRA tell/reasonable suspicion that you have an illegal basement suite in a detached house?

Isn’t it obvious that a bunch of unrelated people have the same damn address on their drivers license/tax forms and no one reports any rental income/expenses?

#37 jess on 11.19.18 at 6:49 pm

Odebrecht and Colombian financial firm Grupo Aval

Colombia Investigates Death of Whistleblower and Son

Print article
Published: Monday, 19 November 2018 16:19
Written by Alex Cooper

The whistleblower at the heart of the corruption probe into Brazilian construction firm Odebrecht sought United States protection before he suddenly died last week along with his son, who drank poisonous water he found on his father’s desk, Bloomberg reported Friday.

=========
isn’t this the guy who overpaid for trumps property in florida?

==========
Rybolovlev’s Rules A Russian Billionaire’s Monaco Fiefdom

In 2011, a Russian billionaire set out to rescue the ailing AS Monaco football club. He invested in top players and invited government, police and justice officials to matches. He handed out both gifts and jobs. Last week, however, Dmitry Rybolovlev was charged with corruption. By DER SPIEGEL Staff

…”Rybolovlev, it seems, bought far more than just a sports team — he also appears to have the principality’s officials under his thumb. Using AS Monaco, he was apparently able to build up a tight network with close contacts to ministers, members of parliament and police officials who helped him with his business interests, provided him with confidential information and formulated draft laws reflecting his needs. That network entailed the exchange of information, favors and gifts both small and large — the kinds of things that can be used to establish or maintain friendships.

Rybolovlev is a master at calculated generosity. In retracing his history, one stumbles across two killers, an energetic investigating judge, Donald Trump, a wife in prison, a painting by Leonardo da Vinci and the job hunt of Princess Stéphanie’s son…..

https://twitter.com/SPIEGEL_English/status/1063487902200590338

#38 You know on 11.19.18 at 6:50 pm

I read a couple of recent articles that the Federal Reserve made statements regarding potential hesitation for future rate hikes,…is this fake news?

#39 Fish on 11.19.18 at 6:50 pm

Pretty simple really, It doesn’t take a giuness to see,

but I’m sure there will be more to come, time will truly

tell, especially in RE price and listings

#40 Out Of Work CEO, Will Travel on 11.19.18 at 6:55 pm

LCBO holiday vibe was muted; downbeat and no festivity was seen except in the boxed sets of liquors and coffee or snifter sets; same grinch gloom at the Dollartree and Bulk Barn. Unusually kind and decent clerks were very mannerly and sweet and helpful…I am taken aback in this retail season when Canadians from all income brackets are “downbeat and (depressed)” I thought Canada was in a boom. Go out and shop people ….I have never seen such good service and manners (you would imagine people were British or something).. Canada being polite is a tell we are for sure in for a bumpy ride.

#41 A Question on 11.19.18 at 6:56 pm

As a landlord living in a 4-plex undivided building, with my grandson on the top floor and myself on the ground floor, but tenants on the two other floors, do I qualify for capital gains tax exemption if I sell the entire building? Or is only the portion attributable to the 1st and top floor eligible, that is, half of the gain?

#42 jess on 11.19.18 at 7:01 pm

will trump supporters chant lock her up only the her is ivanka!

White House ethics officials learned of Trump’s repeated use of personal email when reviewing emails gathered last fall by five Cabinet agencies to respond to a public records lawsuit. That review revealed that throughout much of 2017, she often discussed or relayed official White House business using a private email account with a domain that she shares with her husband, Jared Kushner.

The discovery alarmed some advisers to President Trump, who feared that his daughter’s practices bore similarities to the personal email use of Hillary Clinton, an issue he made a focus of his 2016 campaign. Trump attacked his Democratic challenger as untrustworthy and dubbed her “Crooked Hillary” for using a personal email account as secretary of state.”

https://www.washingtonpost.com/politics/ivanka-trump-used-a-personal-email-account-to-send-hundreds-of-emails-about-government-business-last-year/2018/11/19/6515d1e0-e7a1-11e8-a939-9469f1166f9d_story.html?noredirect=on&utm_term=.e2bbf1d8d9b9

#43 Dolce Vita on 11.19.18 at 7:13 pm

Still cannot get over the numbers you posted today about CRA catching the assigner, flipper tax cheats.

Voracity an understatement.

Draconian.

$650 MM over 3 years, 2 cities, shows the extent of the greed & avarice of these tax cheats with 250 new “CUSTOMERS” each and every week…unbelievable.

CRA as Vishnu:

“I am become Death, the destroyer of worlds.”

and CRA as Shylock:

Wanting their pound of flesh. A lot of Portia lawyers will have their feed at the trough as well I suspect.

What a crazy messed up World.

Buonanotte.

#44 Dave on 11.19.18 at 7:16 pm

Smell something fishy??? No….you should. All these real estate loop holes were always visible but why close them all now? Timing is everything, and the trap has caught all the greedy people and now there is no where to go but pay debt for the rest of your natural life.
2019 is going to be an epic year, money will transfer in epic amounts.

#45 Paying Rent on 11.19.18 at 7:19 pm

What happens if you move in with a family member ie. sibling for example. Are you allowd to enter into a cost sharing agreement where you live there rent free but pay for the monthly groceries and utilites ?

#46 For those about to flop... on 11.19.18 at 7:23 pm

Less than assessed.

Well a few people seemed interested that you can now by a house on the Westside for similar money as the Eastside and this one also fits into that category.

The details…

8587 Adera st, Vancouver.

Originally asking 1.89

Now asking 1.68

Assessment 2.44

So it is on for 30% less than assessment.

They paid 1.15 in 2013 so it will take a while if at all to get back to that number.

You’re not spoiled for choice,as yet, looking for detached properties on the Westside under 2 million but inventory is slowly growing and competition seems almost non existent as the cheapest ones lately are going at or below ask.

There is another one on Blanca that is a similar type of situation…

M44BC

https://www.rew.ca/properties/R2323008/8587-adera-street-vancouver-bc

#47 yvr_lurker on 11.19.18 at 7:24 pm

Indeed go after the flippers who claim PR for a place they had for 3 months. However, there are so many places in YVR with basement suites that contribute to easing the housing crunch. College students, people here short-term etc… My bet would be that if the CRA comes down hard on tracking down all the landlords to make sure that taxes are paid, you will see many places being rented not on an annual basis to avoid having duplicate addresses. The Gov’t will find out that these suites have been a real important mix in the housing landscape in YVR.

#48 Herb on 11.19.18 at 7:24 pm

#13 AK,

only the condo/maintenance fees they paid on that parking space, the property tax paid for the space, and the interest paid on that portion of the purchase if it was mortgaged with the condo. The accounting will be fun.

#49 Brendan on 11.19.18 at 7:29 pm

OK – but what if I own a “cottage” property out of town, and claim is as my primary residence (no tenants and this is my only property) but I also RENT and live in a place in the city to keep my commute down sometimes and stay in the depressing months.

Do I have to pay tax when i sell it (like a secondary property)?? I HOPE NOT

#50 akashic record on 11.19.18 at 7:32 pm

I suspect the CRA was not eager to enforce these old rules in order to maximize the rental unit supply and keep rental fee lower.

Cost of doing business in Capitalism is built into the price. Expect higher rents and if the inconvenience of renting out no longer makes financial sense, people will just stop providing the service.

At that point the CRA cops can start collect money from other sources to build “affordable housing” or the cops just lose their teeth, like in the past decades.

#51 Renter's Revenge! on 11.19.18 at 7:36 pm

#107 Tater on 11.19.18 at 8:11 am
#21 SoggyShorts on 11.19.18 at 6:19 pm
“That’s why here’s there.”

=============

Whoa! Whoa! No need to get metaphysical on the poor guy! :)

#52 Where's The Money Greedeau? on 11.19.18 at 7:36 pm

Re: #128 Ace Goodheart on 11.19.18 at 12:43 pm

Interesting development for all those folks who thought it would be a good idea to purchase weed online using their credit cards.

Turns out our major credit card companies are actually all American companies (who knew?), and they share their purchase data freely with the US government, when it comes to purchases by non-US Citizens (ie, individuals without any rights under US law).

If you buy weed, and the US government finds out about it, you will be banned from entering the USA for life.

I believe you can apply for a waiver.

Oh, and now that our government is going to start collecting detailed records of all of our bank accounts, and since our government routinely shares our personal information with the USA for “anti terrorism” reasons, you can expect that if you used your bank card to buy weed, you will also likely be banned for life.
++++++++++++++++++++++++++++++++++++
Don’t be fooled, the US have our Canadian banking info for years.
The US Gov’t/Insurance Companies have all your bank transaction information if you have a bank account and have a money manager installed or do online banking.
I found this out when my now “federal bank” Coast Capital Credit Union sent me a letter to advise me that they would be installing a “money manager” on my account, but I could opt-out if I contacted them.
I opted-out and they installed it anyway, proceeding to my investigating the company that installed that program. The “bank” said to me that I never opted-out and when I produced proof I did when questioning the “bank’s” privacy director, continued the farce by saying the info never left Canada. I proved that wrong and she retracted that comment. So they “disabled” the money manager but it is still installed on my account, just showing “disabled”, lol.
So much for privacy of your accounts anyway.
What I found was the small $50mm company, MX Technologies (https://craft.co/mx-technologies), was based in Lehi Utah, a couple blocks from the US NSA’s data collection center (biggest in the world).
It is also owned by a huge conglomerate of insurance companies/hedge funds that also own Canadian Insurance companies.
Consider that, they will now know all your purchases thereby having a way to deny your insurance claim for whatever reason.
Sure it’s all about money laundering.
I found all the big six banks except TD Bank have these programs on your accounts and you cannot opt-out.
TD Bank only keeps the money manager off your account ONLY if you don’t do online banking, otherwise you’re hooped.
Pure evil.

#53 Smartalox on 11.19.18 at 7:37 pm

https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/suspected-tax-cheating-in-canada-overview.html

All right Fartz, and anyone else who has friends who brag about being tax cheats!

#54 Juve101 on 11.19.18 at 7:39 pm

Geez why pay for tax advice when you can get it here for free, and enjoy a good laugh while at it! Thank you sir.

#55 Smartalox on 11.19.18 at 7:40 pm

What happens when you alter a property to remove any features that make a portion of the property a rental? If I buy a home and turn the basement apt. into a mancave, or a media centre, can I claim the cost of renos, AND claim a personal residence exemption?

#56 David on 11.19.18 at 7:40 pm

Landlords in Quebec give tenants an official rent receipt that becomes a useful (but small) tax deduction.

It’s much harder to be a tax cheat under this system and every province should adopt it.

#57 Debtslavecreator on 11.19.18 at 7:40 pm

Word has it finance is working on several policy options for taxing Primary Residence “wealth”.
Some think the lead scenario is a lifetime cap gain then everything above will be taxed
Word has it they are leaning toward allowing 500 k tax free then any gain above will be subject to tax
Of course broke and corrupt governments will eventually reduce that down and eliminate the tax free amount
Just like the ol cap gain exemption
Make no mistake they are coming for your house “gain” that was primarily created as s result of the government s fraudulent inflationary policies (bank of Canada:cmhc etc)

#58 Moses71 on 11.19.18 at 7:41 pm

Phew!! Good thing my twin and I declared our KTown house rental income the year we started collecting after daughters done their UBCO edu.
People who scam need to check their self esteem levels, as per Nathaniel Branden, as deep down they really want to get caught, which I hope they get. Being that I am an honest one. Play by the same rules or no sympathy from over here

#59 Barb on 11.19.18 at 7:41 pm

“the PR status only applies to your house and about 1.2 acres (or half a hectare). The rest of the property will not qualify for tax-free status in the event of a sale.”
———————————————
CRA is, in effect, discriminating against owners of larger acreages.

If the property hasn’t been–or cannot be–subdivided (it’s all one title) this should be challenged in a court of law.

#60 CRA Snooper on 11.19.18 at 7:43 pm

We are monitoring everything. Landlords who have never occupied properties but claimed PR status are the next biggest group in our sights, and current and former tenants are invited to share their knowledge of scammers. We can go back to 1998 to establish patterns of evasion.

Get ready for an explosion of investment in new prisons.

(Garth, is there an ETF for that?)

#61 tkid on 11.19.18 at 7:47 pm

To anyone who thinks there aren’t enough auditors to find the cheats: all it takes is a database. Create a database of names and addresses from everyone’s tax returns. Anyone who has an address that matches another address (minus the apartment #) gets flagged.

That’s one method. From the addresses that weren’t flagged, compare them to the property databases for every city. Anyone who has an address on the property database that isn’t on the above database, also flagged.

Ain’t computers wonderful!

#62 Bruce MacLachlan on 11.19.18 at 7:56 pm

My wife and I had a house in Toronto in a great area with rentals above and below for 25 years
It was not easy and intrusive to live with people above and below.
We claimed every penny and deducted every expense.
When we sold we had to pay capitol gains of close to 100,000 dollars.
It was not outrageous and callous of the tax department. It’s the rules.
It wasn’t even hard.
We had the windfall of the huge gains on the sale of the property. We just paid the tax and the rest was ours.
Was it worth it?
It’s what we did.
I can’t complain

#63 CRA on 11.19.18 at 8:04 pm

#22 AGuyInVancouver

“Yup, a snitch line for such types would be welcome. All they do is contribute to the real estate inflation spiral.”

There is a snitch line. Here it is. Start snitching!

https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/suspected-tax-cheating-in-canada-overview.html

#64 arfmoocat on 11.19.18 at 8:07 pm

Oooops… landlord and tenant have the same address on their tax return.

Landlord… never thought of that
Tenant… to bad for you

#65 Brampton Billy on 11.19.18 at 8:08 pm

Report a tax cheat and earn some coin….

I have done this five times now. The last time was the best. I made $12,500 commis. Well worth seeing all those leased cars hauled off.

https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/suspected-tax-cheating-in-canada-overview.html

#66 Frank on 11.19.18 at 8:20 pm

That is to establish a federal CRA property registry – matching addresses with owners, sellers, buyers and transactional details. In a few years you will see where this leads. It won’t be pretty.

I can see where it goes and it’s glorious. Tax wealth not income. We have a wealth inequity problem yet we’re still taxing a guy making $60K/year a third of his income and a guy making $160K/year half. Meanwhile old money and real wealth pays a much smaller ratio as they sit around collecting capital gains and dividends. We say it’s because the wealthy are ‘taking risks’ as if the dude trading 8 hours of his day for 40 years of his short life is playing it easy.

Tax wealth, encourage it to move and invest, don’t tax workers.

People build wealth with after-tax dollars. Now you want to suck that away? – Garth

#67 ww1 on 11.19.18 at 8:23 pm

#61 Long-Time Lurker on 08.15.18 at 7:53 pm
Report a tax cheat and earn some coin….
I have done this five times now. The last time was the best. I made $12,500 commis. Well worth seeing all those leased cars hauled off.
https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/suspected-tax-cheating-in-canada-overview.html

Are you trolling, Mr. Long-Time Lurker?

From your linked page :

“Furthermore, the CRA does not give monetary rewards for information about suspected tax cheating under this program.”

#68 Tax Man on 11.19.18 at 8:29 pm

#49 Brennan

“Do I have to pay tax when i sell it (like a secondary property)?? I HOPE NOT.”

No you don’t because it is your only residence. The rental in the city is not owned by you. If you owned the condo in the city only one of the two properties could be a principle residence.

#69 arfmoocat on 11.19.18 at 8:33 pm

Reading all the posts defending tax cheating renting out their basement…. LMAO

I think there’s a lot of people out there doing it because they couldn’t make their mortgage payment without it.

#70 Cash rich on 11.19.18 at 8:34 pm

Every night I pray to the gods above to bring me double digit interest rates so that my GIC will yield me great profits so that I can fly away from this forsaken land. I want to go where the sky is clear and the snow bleaches everything white. I pity all those living for the now…well maybe not. Ha ha ha.

#71 tccontrarian on 11.19.18 at 8:38 pm

#65 Brampton Billy on 11.19.18 at 8:08 pm

Report a tax cheat and earn some coin….

I have done this five times now. The last time was the best. I made $12,500 commis. Well worth seeing all those leased cars hauled off.
———————-
Sure thing Billy-Bob:

Except we can actually read and do research:

“The CRA uses the information in your lead to make sure the tax system is fair for all Canadians. Your lead could also boost the actions the CRA is already taking to fight tax cheating. However, you will not receive feedback or updates after you submit a lead. This is because the CRA cannot disclose information about other taxpayers. Furthermore, the CRA does not give monetary rewards for information about suspected tax cheating under this program. When you submit a lead, you are supporting your community and the programs and services we all rely on to improve quality of life in Canada.”

TCC

#72 West Coast Woman on 11.19.18 at 8:41 pm

The CRA may be starting to deal with the Vancouver market, but they’re still not looking very much at property flips in the detached market.

On the west side of Vancouver, people are making $1-2 million tax free by buying an older home, tearing it down and building a new luxury mansion on the site, then selling and claiming it as their principal residence even though they never lived there. They escape detection because their rebuilds can take years, so they own the property for about 4-5 years before reselling.

About 80% of the new builds sold every year fit this model, so the CRA is still missing out on about $800 million per year.

#73 Brendan on 11.19.18 at 8:43 pm

# 68 Tax Man

Great thanks for replying! A follow up question – can you use first time home buyer and other government/financial incentives to purchase an out-of-town property (cottage/hobby farm) while continuing to rent, and live part time in, an in-town property (apartment/condo)? Seems like the same logic would apply?

#74 Brampton billy on 11.19.18 at 8:43 pm

WW1

Trolling for fresh fish! I have spoken to some CRA folks and they tell me they have kids working for them that troll social media and make commis. The kids are very say. Maybe it is time to disconnect Alexa because who knows if the NSA and CSIS is also listening in. I love the Patriot act. ….don’t you?

LOL

#75 the Jaguar on 11.19.18 at 8:50 pm

61 tkid on 11.19.18 at 7:47 pm
To anyone who thinks there aren’t enough auditors to find the cheats: all it takes is a database.

Well kid, it’s a big country and I suspect that some days at Rev Can might seem like there just aren’t enough CRA auditors to go around. The lower mainland alone is famous for what an earlier poster called ‘the mortgage helper’. Some local municipalities don’t even enforce their bylaws on illegal suites because they are so prevalent (hello Surrey). BC interior isn’t far behind.
It’s cultural. The way they are wired. Tax avoidance is fine. Tax evasion shows a lack of character. Character seems to be out of fashion these days. A relic from a bygone age. Every once in a while you get exposed to it and it feels like like a bolt lightning went through your body.

#76 westcoastguy on 11.19.18 at 9:06 pm

I remember when working at the big green bank in east Vancouver that sometimes you would look up an account by phone number and tens of names would all show up for the same place.

All the exchange students and homestays and such all using the same bank and living in the same house at one point in the past.

I’m sure when the home owner came in and deposited all those cheques at the beginning of the month that CRA was duly noted right?

East Van is ground zero for that by far.

#77 mogulrider on 11.19.18 at 9:09 pm

#27 Lead Paint wrote

Society needs to decide that a certain percent of the populace can’t compete and thrive in a market economy, and tax those that do, and redistribute with very simple, clean rules. Wealth redistribution is happening and necessary. What isn’t necessary is the layers of lawyers, accountants and bureaucrats.

Lawyers and accountants, and bureaucrats will scream with the unjustness of it all… but that can only be a good thing. Otherwise we’re all just risking, and working, for them.

And for those of you to stump for Trump on this blog… his tax rules are absolutely contrary to what I’m proposing.

_____________________

Like hell will I work 70+ hour weeks to be taxed to pay for people that partied in high school and smoked dope and never bettered themselves. They refused to better themselves and dithered while we worked hard at school, worked nights, etc…

They need to work – period. If not starve

The age of socialism is over – not starting.
The time to call it dead is coming

Taxpayers are sick and tired of paying for deadbeats who refuse to support themselves

Work or starve

Get over it Sir/Madam

#78 Sideshow Rob on 11.19.18 at 9:09 pm

#74 Brampton Billy

I know around 50 CRA auditors and I call BS on your story.

#79 Shawn Allen on 11.19.18 at 9:12 pm

Don’t Tax Wealth From After Tax Dollars?

Arn’t after-tax dollars basically the only kind of dollars people get their hands on legally?

Canada taxes income earned on after-tax dollars. Could anyone argue against that? It does however get huge tax breaks like dividend tax credit, 50% rate on capital gains and usually no tax on unrealized capital gains.

Property wealth is taxed because it is thought to be a fair way to share the costs of running municipal government.

Other than property, wealth that does not earn an income is not taxes.

Wealth in a bank account or in the stock market is not idle. An empty house or unused land may be idle wealth.

Deemed disposition on death causes capital gains taxes on death for the middle class. Seems fair.

The really wealthy however have tax lawyers to legally avoid taxes on mega wealth upon death if I am not mistaken. (I have never once heard of the heirs of a large Canadian corporation having to sell shares to pay the taxes upon the death of each subsequent generation.)

I tend to agree that a wealth tax is not needed. It might be in future though as more and more income comes from capital / wealth and less from income (jobless economy)

A Royal Commission on Income Tax is needed.

#80 mogulrider on 11.19.18 at 9:13 pm

Just wait until CRA ask the courts for your talking radio recordings and listens to your and your spouse plotting tax scams….

Oh my

Alexa how do I flip houses?

You folks do realize that everything you say is recorded right? You didn’t believe your were in a private setting did you?

#81 EP on 11.19.18 at 9:15 pm

S&P500 – Bull market death watch continues….

Day 3 of a bearish crossover 50 and 150 moving averages – slowly moving towards the 50 and 200 crossover of the death cross for this bull market, hello again Jan 16, Aug 15, Aug 11, Jan 08. It may not happen but the tighter these lines get and the more they flatten , the smaller a drop is needed to break down these technicals.
Again, it does not mean it will be justified but one thing triggers another and the charts don’t lie – go back and check for yourself, you’ve been warned.

#82 Tax Man on 11.19.18 at 9:18 pm

#73 Brennan

All the incentives would apply because it is your principal residence. Here is more info on principal residences.

https://www.canada.ca/en/revenue-agency/services/tax/individuals/topics/about-your-tax-return/tax-return/completing-a-tax-return/personal-income/line-127-capital-gains/principal-residence-other-real-estate/what-a-principal-residence.html

#83 HT on 11.19.18 at 9:18 pm

Pretty bang on, Garth.

I also find it amusing how the comment section is filled with misinformation. Just another reason to get your tax advice from a pro, not your BIL, and certainly not from blog comment warriors!

Multiple real property audit projects now underway. It’s beyond compliance, it’s now political.

#84 SoggyShorts on 11.19.18 at 9:19 pm

#66 Frank on 11.19.18 at 8:20 pm
I can see where it goes and it’s glorious. Tax wealth not income. We have a wealth inequity problem
*******************************
So if I live frugally and save while you live paycheck to paycheck by choiceI should give you some of my money?
Bite me.

#85 Paul on 11.19.18 at 9:19 pm

#22 AGuyInVancouver on 11.19.18 at 6:21 pm

A snitch line.
————————————————————————————————
Perfect for a guy like you,

#86 Matt on 11.19.18 at 9:32 pm

Hey Garth!

If I rent in the city, and own a cottage, can I make the cottage my PR? Technically it’s the only property I would own..

Just a thought…

Matt

#87 The Blinking Mole on 11.19.18 at 9:36 pm

My landlord is a white capitalist colonizer settler who raised my rent and whines that I smoke weed in my room. Of course I outed him to the CRA. My Aunt says I can live with her in the summer if my car gets too hot.

– wipes potato chip grease on most recent Xbox game wrapper, and lowers Oculus.

#88 akashic record on 11.19.18 at 9:49 pm

Turning people into rats. So many volunteers.
This used to be a nice mind your own business country.
The poorer people become, the more vulnerable she is to be like any other shithole. The thin veneer is wealth.
When that’s gone it’s all Venezuela.

#89 Shawn Allen on 11.19.18 at 9:51 pm

Getting Back to Reality

Perception / Claim: Canada sells almost all of tis oil to one customer the United States!

Reality: The United States as in the country buys I am sure extremely little oil from Canada or anyone else. Canadian oil sold in the U.S. is sold to dozens if not hundreds of different corporations and buyers who compete on price. The notion that it is sold to only one customer is pure bunkum.

Furthermore “Canada” (as in the government of Canada) does indeed sell some oil but most of the oil produced in Canada is produced under license and is sold by hundreds of individual corporations. And once “our” oil was sold off (in the ground) via a lease to an oil company it is not in any real sense “our” (collective) oil anymore.

But the narrative of Canada selling “our” oil to only the United States is of course a lot more sexy so that is what is believed.

#90 Hello World on 11.19.18 at 9:56 pm

Yep
Everything is going so great in Montreal that within a tv program of half an hour, trustees in banckruptcy…hum hum proposals, ads rolling in loop for three different firms…Raymond Chabot, Pierre Roy and MNP.

#91 According to Zolo on 11.19.18 at 9:59 pm

According to Zolo… Vancouver sales, across the board (detached, townhomes, condos), down 76% from this time last year.
This is a statistically and significant number.
Panic will set in among sellers by Spring.

https://www.zolo.ca/vancouver-real-estate/trends

#92 Kona on 11.19.18 at 10:00 pm

Auditors? The CRA doesn’t need more auditors – it just needs to expand its artificial intelligence. The CRA is the largest government purchaser of AI.

https://ipolitics.ca/2018/11/16/feds-have-spent-8-4-million-on-artificial-intelligence-since-2015/

#93 Remembrancer on 11.19.18 at 10:02 pm

#3 The Greater Cauliflower on 11.19.18 at 5:42 pm
Thanks for the information.
However there aren’t enough CRA auditors to catch people cheating on their taxes by not declaring rental income.
Just sayin’
—————————————————————-
There’s a little thing called data analysis, day and night sifting and cross-referencing with blinking lights determining fate in a cool heartless machine room… Oh look, a renter at 28A Main Street* is claiming a deduction on their $2000/month rent , but that’s funny, there’s no landlord for 28A Main Street* claiming income + expenses on that rent. Hmm, there’s a Lesser Carrot at 28 Main St.* though on file. Let’s get a human to check that out, they should be back from coffee break now…

(*) address for dramatic portrayal only, not meant to portray any real 28 Main St. living or deceased…

#94 yvr_lurker on 11.19.18 at 10:12 pm

I think that municipal Gov’t turned a blind eye to regulations regarding basement suites in YVR, as they realized that a crackdown would accentuate the housing problem. Basement suites provided much needed housing in a city with a pitiful vacancy rate. I do think it is fear-mongering to say that the CRA is going to aggressively go after everyone with a suite (with capital gains, cross-referencing addresses). There is a huge other market of uncollected taxes; private contractors who do cash only small renos, cutting hedges, cleaning houses, minor car repairs, private tutoring for kids, breeding dogs and cats etc.. The underground economy is huge. Many people have some extra side job to bring in a little extra cash. Can’t see the CRA doing much about this, and there is no way I would ever rat on a neighbour who I know is doing this. It is not China in the 1960s. Tax my salary at 53% marginal, go after organized house flippers, people working off-shore claiming welfare level salaries and living in Dunbar, and other massively corrupt panama-paper type-players. But even to this leftie, there are limits to what the CRA should focus its energies on…

#95 penguin on 11.19.18 at 10:15 pm

Having visited over 100 homes for sale the last couple of months in Brampton, more than 1/3 have basement apartments, and probably closer to 50%. It was super annoying with so much inventory excluded in our search.

#96 For those about to flop... on 11.19.18 at 10:19 pm

Less than assessed.

Here is a recent sale that went well below its retail recommend price.

The details…

148 e 64th ave Vancouver.

Originally asking 1.99

Just sold for 1.30

Assessment 2.00

So it has an Eastside address, only just.

It went 35% less than assessed and original ask.

Look around.

The moat is missing a few Lego pieces…

M44BC

https://www.zolo.ca/vancouver-real-estate/148-e-64th-avenue

#97 Ponzius Pilatus on 11.19.18 at 10:32 pm

MAKE America Rake again.
Finland just about 3 million people.
No homeless people.
Great hockey players.
The Finns and the Swedes have more NHL players than the HOME AND NATIVE LAND CANADIANS.
By the way:
Carrie Price is a HOME AND NATIVE LAND CANADIAN.
The only one playing for a Canadian Team.
What a shame.
But Don Cherry will approve.

#98 Long-Time Lurker on 11.19.18 at 10:33 pm

#61 ww1

From Long-Time Lurker.

I didn’t post anything today. Have another look.

#99 genbizx on 11.19.18 at 10:37 pm

Hey government –
Non tax revenue grab idea for ya…
Every time personal data is lost/stolen/ misplaced, instead of the pathetic “oops sorry” that companies offer, companies like Facebook/equifax etc. on and on would be fined. Bigly. 250 million or more…
Of course this might not work as these companies would likely cover up such events even more than they surely do already but maybe we could find a way…
We’d ease our tax burden and/or get these entitled goofs to actually care about securing our data and safeguarding all the “world changing” tech innovations they say we need (think about self driving cars and hacking events)

#100 Rentin on 11.19.18 at 10:39 pm

Time for your incorporated company to buy half a house with yourself, claim the cheap rent as a taxible personal benefit and buy out the companies share once the market tanks.

Losing corporate money is perfectly acceptable to the CRA.

#101 Ponzius Pilatus on 11.19.18 at 10:47 pm

All CRA has to get some smart guys writing an Algo comparing tax expense claimed by renters to income declard by landlords (probably not many).
Garth, you were in charge of CRA back in your days.
What do you think?

#102 Fcufma on 11.19.18 at 10:49 pm

Hat are the penalties for not declaring bsmt rental income? Ack taxes, fines, court, criminal record? Realistically what do those that get caught face?

#103 theoryAndPractice on 11.19.18 at 11:01 pm

#3 The Greater Cauliflower on 11.19.18 at 5:42 pm

——
AI and Big Data, the rest is story. There is no need for auditors to find that out.

#104 Proud Dreg on 11.19.18 at 11:03 pm

So the CRA is FINALLY going to go after the tax cheats in RE eh? Only took them 50 years. Your Government at work.

#105 Bob Loblaw on 11.19.18 at 11:08 pm

A much more effective and efficient method would be for the CRA to allow a small tax credit to the renter….the renter would claim the credit when they file their taxes, thereby doing 95% of the groundwork for the CRA auditors. Then, all they would have to do is match homeowners against the filers that claimed the credit.

This happens all the time with unlicensed home daycares. You better believe parents are claiming the daycare deduction, making it nearly impossible for daycares to avoid claiming the income.

#106 Wait There on 11.19.18 at 11:22 pm

#8, Are you saying that AirBNB and Uber etc. does not report to the CRA on the income that was derived?
How is this fair when Ebay must report to the CRA all sellers who sold more than $1000 per month.

This is super crazy. Totally ridiculous because in fact the drivers are netting more than a poor guy selling old stuff on Ebay, even if not used, still his net earnings would be less than a few nights rented out on AirBnB.

Yet, CRA is going after the Ebay sellers.

#107 Wait There on 11.19.18 at 11:29 pm

#30, What happens when that person you are renting to is a foreigner like a student, or an undocumented foreigner working for cash within Canada.

Income taxes filed? In vancouver for example you can bet there are a lot of foreign students. Even in Waterloo, Canadian students filing income taxes will likely be residing at their parents home over the holidays.

Ever wonder why there are so many Money Marts and who uses them? What is their official primary business versus real. Do you know the percentage of “contract” workers and what portion of that subset is undocumented workers? It could be surprising!

Do TFWs file income taxes?

A small weakness in the plan perhaps?

#108 Yycnotretired on 11.19.18 at 11:58 pm

It won’t be pretty for who? If CRA was matching me to properties it would find that I’m a law abiding and tax paying citizen- if others aren’t then they deserve to be caught out

#109 AGuyInVancouver on 11.20.18 at 12:23 am

#85 Paul
Uh oh, looks like we’ve got a real live speculator on the line folks. Feeling a little burned that your latest Vancouver flip went badly Paul? Painting over the mold in some overpriced West Side crack shack only netting you losses this year? Real estate speculators are vermin, the sooner the CRA checks them into the Risch Hotel the better.

#110 paulo on 11.20.18 at 12:36 am

In Ontario part of your income tax filing is claiming your
Ontario tax credits aka trillium credits.
One of the credits is a portion of annual rent paid, the person claiming has to provide the name and address of the landlord rent was paid to!
so if you are one of the estimated 8 out of 10 landlords that fail to report rental income in Ontario look out.
it is just a matter of time before integration of data bases between the provinces and the CRA catch and flag you, the fact of the matter is that the information required to snag you is already on file

#111 Smoking Man on 11.20.18 at 12:38 am

Feds getting banking info on 500k Canadians.. Bet on it. Risk takers and entrepreneurs under the microscope.. The enemy of the unelected thugs.

The UN Compact on migration. Zero MSM coverage.
Zillions of migrants are going to be flooding western countries with voting rights. Making sure a one world communist govt gets a shot at this.

Resist with all you got.

Communism is not compatible with human nature. It only leads to blood shead.

Resist… Become a real freedom fighter.

#112 Frank on 11.20.18 at 12:53 am

People build wealth with after-tax dollars. Now you want to suck that away? – Garth

Because most people don’t build wealth, they inherit it. You have this libertarian wet dream where wealth is all owned by people who pulled themselves up with pure grit and will. That’s simply not the way most wealth is, it’s cyclical, wealth begets wealth and poverty is a hole people struggle to get out of.

And “suck it away” is mischaracterizing my words. We don’t need to demonize wealth, nor should we want to see those with it poor. There’s nothing wrong with wealth. We just need to stop kidding ourselves that inequity will solve itself as is, in fact it’s getting worse.

I’m not big government, I don’t think we need more public workers. I want to see all increased wealth taxes to have corresponding income tax breaks. We should pride ourselves on how high we can raise our basic minimum credit. It would be amazing to say “Welcome to Canada where you don’t pay a dime on income earned under $35K. Come and earn a fortune. Start a business and sell things to those make the least, they’ll be able to buy it.”

#113 Frank on 11.20.18 at 12:55 am

So if I live frugally and save while you live paycheck to paycheck by choiceI should give you some of my money?
Bite me.

No, I’m advocating for policies which aren’t in my best interest. And living frugally doesn’t help the economy. Spend more cheapskate, amassing a fortune doesn’t do anyone any good why should society reward you?

#114 Dominion Minion on 11.20.18 at 1:32 am

“In that case the part of the property which is rented will be deemed to have been disposed of. In the eyes of the tax cops you sold at fair market value and bought back the same day.”

If you stop renting a year before the property is sold, and remove any renovations that qualified the rental, would the full capital gains exemption be restored?

#115 crowdedelevatorfartz on 11.20.18 at 1:48 am

@#87 Blinking Mole
“– wipes potato chip grease on most recent Xbox game wrapper, and lowers Oculus….”
++++

One of the better lines I’ve laughed at in a while!

******************************
@#92 Kona Gold
“The CRA is the largest government purchaser of AI.”
+++

Just wait til the CRA’s AI starts talking to the Stats Can AI with all our “private” banking info…….

AI to AI,
“That’s a Bingo!”

#116 When Will They Raise Rates? on 11.20.18 at 3:15 am

Bitcoin capitulation in progress…

#117 When Will They Raise Rates? on 11.20.18 at 3:48 am

Absolute carnage on BTC

#118 Stan Brooks on 11.20.18 at 4:41 am

Quite interesting add-hoc approach to taxation.

1st house even though it is an investment incentivized by government is capital gains tax free. Of course this is going to change most likely to capital gains tax above certain threshold.

The profit from the second house is somehow a business profit and not an investment gain. Beats me why. Good luck in trying to reduce (business) income though for the year in which you sell for loss, as there will be tons of flippers eating losses pretty soon.

Three conclusions.

1. Government is spear heading and incentivizing inflation (it is surprising how blind people are to their inflationary policies) in order to impose hidden tax.
Using depreciating Poloz peso/aka as the ‘loonie’ as a base to calculate gains is idiotic.

2. Tax policies are created add-hoc based on absolutely arbitrary ever changing post-factotum rules and the principle – screw whoever you can/who has something to take away from.

3. Soon they could start taxing the apples that grow on your cottage or the work that you do at home, like cooking, cleaning, taking care for the kids AS IT IS ONLY FAIR FOR ALL CANADIANS as daddy’s boy, french villa guy or the confused individual with the fancy organic socks like to say.

Anything left within reach will be taken.

==============================

So keep growing that RRSP people, there will be good use found for it by somebody else (for the good of all Canadians), I am sure.

And I am sure tons of investors will jump in on board to join this wonderful rich, booming society that we are creating with these amazing, smart, agile, forward looking, wise liberal government policies that features prosperous, wealthy, smart, happy people enjoying an wonderful weather and living in harmony with the environment.
Amen.

#119 Stan Brooks on 11.20.18 at 4:50 am

It is intersession why this late in the game (i.e. now) is this chase of tax cheats non declaring rental income or profit on property filliping starting and not much earlier in the credit/housing cycle.

I am certain it is a coordinated activity of the big game whose only goal is to ensure you/the general population/aka as the ‘sheeple’ leave this world naked, with nothing, exactly the same way you came here.

#120 Jacky Dangerous on 11.20.18 at 4:59 am

The CRA actions will trigger a cascading wave of lawsuits of Canadian v Canadian. Foreigners who flipped properties to Canadians collected capital gains and left the country, those capital gains are now tax payable by the current owners. There are thousands of deals configured variously through both pre sale condos and houses which were flipped many times hand to hand. It’s like a game of musical chairs and the CRA will collect from the current owner as the original owners are untouchably ensconced offshore.

Lawyers will be sued by lawyers, owners suing agents, agents suing conveyancers. This has been reported on for over a year but it seems a blanket of hopeful forgetfulness has decended on Vancouverites involved. The CRA has not forgotten. So if you bought a property from a foreigner and your lawyer, agent, notary, agency didn’t check to see if capital gains withholding had been paid, you’re on the hook , as you are low hanging fruit and available and the foreign national is not. Good luck.

#121 Ace Goodheart on 11.20.18 at 6:39 am

Home equity wealth taxes are almost a certainty if T2 wins another election. If you own a house, no matter how much it turns your stomach or makes you want to barf, you should vote for the Scheer guy.

I know, you wouldn’t date him, and you wouldn’t hang out with him or party with him, and if you saw him alone walking along a dark street you’d be hard pressed to resist the urge to give him a massive wedgie.

But he is the only thing that stands between you and the government CRA vacuum cleaner that is about to suck up your net worth.

In other news, the ongoing downward spiral of equities markets is creating a massive buying opportunity. If this continues into the new year, and the “January dip” becomes a January tropical depression, and widens into a February hurricane, then we are going to see some equities buying opportunities that have not existed since 2008.

#122 Another Deckchair on 11.20.18 at 7:00 am

@111 Frank;

“Because most people don’t build wealth, they inherit it.”

Proof please.

The very wealthy that I know came from normal families, and were truck drivers, construction business owners, government employees, franchise business managers (NOT owners), who have one thing in common:

They live well below their means.

Go on-line and find “The Millionaire Next Door”, in PDF format, and read it.

Listen to what Garth is saying here, and understand it.

What those “they inherit it”people actually “inherit” is knowledge.

Educate yourself before you go making blanket (and, incorrect) statements.

#123 Capt. Serious on 11.20.18 at 7:22 am

Bitcoin headed towards its intrinsic value of 0. >70% loss since the peak last year.

#124 NYCer on 11.20.18 at 7:25 am

Garth, given the requirements on the home to be a PR or not. What if you purchased the home and it was already a home that had tenants that took up 2/5 of the home.

Would it still be a PR and non-taxable when you sell since you did not alter the home yourself?

“The answer is no, if (a) the area rented is a small part of your overall property, (b) you alter nothing in order to create a rental space and (c) you don’t claim depreciation.”

#125 Stan Brooks on 11.20.18 at 7:26 am


#119 Jacky Dangerous on 11.20.18 at 4:59 am
The CRA actions will trigger a cascading wave of lawsuits of Canadian v Canadian. Foreigners who flipped properties to Canadians collected capital gains and left the country, those capital gains are now tax payable by the current owners. There are thousands of deals configured variously through both pre sale condos and houses which were flipped many times hand to hand. It’s like a game of musical chairs and the CRA will collect from the current owner as the original owners are untouchably ensconced offshore.

Lawyers will be sued by lawyers, owners suing agents, agents suing conveyancers. This has been reported on for over a year but it seems a blanket of hopeful forgetfulness has decended on Vancouverites involved. The CRA has not forgotten. So if you bought a property from a foreigner and your lawyer, agent, notary, agency didn’t check to see if capital gains withholding had been paid, you’re on the hook , as you are low hanging fruit and available and the foreign national is not. Good luck

So what you are saying is that it is the responsibility of the buyer to ensure that capital tax gains on the house by the previous owner are paid, i.e. tax gains come with the house, not the owner?

So…….. you just got overstretched 4-5 times more than you should be with a humongous mortgage and now you own several hundred thousands more + potential backward penalties + some heavy lawyers fees because previous owner did not pay the capital appreciation tax and now they want it from you?

Yes! That is the cherry on the cake, an absolute delight and a few more big nails in the coffins of the greatest fools who bought near the top.

What a mental institution indeed.

#126 Tater on 11.20.18 at 7:45 am

#21 SoggyShorts on 11.19.18 at 6:19 pm
#107 Tater on 11.19.18 at 8:11 am
#48 SoggyShorts on 11.18.18 at 5:45 pm
you don’t know enough about markets to be investing your own money.
***************************
Ummm that’s why I’m asking questions? If I knew everything why the hell would I ask?
Do you also make fun of the fat guy at the gym? That’s why here’s there.
—————————————————————–
You bought an ETF and to value it you only need to know 2 pieces of information. And you didn’t know one of them.

You should have known this BEFORE investing. It was dumb, own it and learn from it.

#127 Hamsterwheelie on 11.20.18 at 8:07 am

Hmmm. So we built a fourplex and we live in one unit so we only get a pass on the appreciation of that unit. Ok.
But we sold our PR and ploughed that money into building this place.
We’ve always claimed all rents and even any money earned from AirBnB (we used to rent out rooms in our PR because it was kinda huge for us, part of why we sold it & downsized)
No plan to sell anytime soon but seems sad to be penalized out of a greater windfall than if we’d chosen a single family home.
Thanks for bringing this to my attention – have been meaning to figure this out. will require some tete a tete w the accountants methinks.

#128 jess on 11.20.18 at 8:08 am

regulation lite

https://www.thestar.com/business/technology/2018/11/19/apple-ceo-tim-cook-we-have-to-admit-when-the-free-market-is-not-working.html

#129 crowdedelevatorfartz on 11.20.18 at 8:08 am

@#111 Frank
“Because most people don’t build wealth, they inherit it. You have this libertarian wet dream where wealth is all owned by people who pulled themselves up with pure grit and will. That’s simply not the way most wealth is….”
+++++

Frankly, that is possibly one of the stupidest generalizations I have read on here for a while.

Majoring in “socialism 101” are we?

Everything I have earned was due to MY hard work and saving.
So…. in the spirit of generalizations….

Perhaps you should pull your head out of your ass, take that hand you have held out for “freebies” and grab a tool of any kind and entertain trying that horrible four letter word called…….work.

Oh, right. Working hard and saving is for “losers”.

#130 The CRA on 11.20.18 at 8:17 am

Don’t like the circus of basement rentals in your neighbourhood? We can help. Please provide us what you know and we will return the favour.

https://www.canada.ca/en/revenue-agency/programs/about-canada-revenue-agency-cra/suspected-tax-cheating-in-canada-overview.html

#131 jess on 11.20.18 at 8:29 am

ruling over the unruly

why rules become rules

No Title of Nobility shall be granted by the United States: And no Person holding any Office of Profit or Trust under them, shall, without the Consent of the Congress, accept of any present, Emolument, Office, or Title, of any kind whatever, from any King, Prince, or foreign State.[3]

History

The Framers’ intentions for this clause were twofold: to prevent a society of nobility from being established in the United States, and to protect the republican forms of government from being influenced by other governments. In Federalist No. 22, Alexander Hamilton stated, “One of the weak sides of republics, among their numerous advantages, is that they afford too easy an inlet to foreign corruption.” Therefore, to counter this “foreign corruption” the delegates at the Constitutional Convention worded the clause in such a way as to act as a catch-all for any attempts by foreign governments to influence state or municipal policies through gifts or titles.[4]
========================
A self-regulatory organization (SRO) is an organization that exercises some degree of regulatory authority over an industry or profession. … The principal federal regulatory authority—the Securities and Exchange Commission (SEC)—was established by the Federal Securities Exchange Act of 1934.

#132 IHCTD9 on 11.20.18 at 8:31 am

#146 MF on 11.19.18 at 4:44 pm
IHCTD9

Come on IH. I already posted about this.

Zero evidence to support that claim. Complete opposite Is occurring.

MF
___

I replied back to that post the same day with all kinds of back up, I didn’t make any of it up, and it sure as hell is 100% happening.

#133 When Will They Raise Rates? on 11.20.18 at 8:52 am

#131 IHCTD9 on 11.20.18 at 8:31 am

#146 MF on 11.19.18 at 4:44 pm
IHCTD9

Come on IH. I already posted about this.

Zero evidence to support that claim. Complete opposite Is occurring.

MF
___

I replied back to that post the same day with all kinds of back up, I didn’t make any of it up, and it sure as hell is 100% happening.
———————

Well then it didn’t get published. A real shame too, I’m curious to see what you posted in response.

#134 Sue on 11.20.18 at 8:55 am

Calll me crazy, if only our tax system was simple enough to be enforced. Flat tax ALL income maybe( even houses! The horror) At least it would get paid. And huge fines for non compliance. Good news for everyone except tax accountans and lawyers. Would it not be easier to follow money out of the country. For example if you have a french villa you forgot about, cra can help you remember that as well. Just a win win for everyone….

#135 KLNR on 11.20.18 at 8:58 am

@#128 crowdedelevatorfartz on 11.20.18 at 8:08 am
@#111 Frank
“Because most people don’t build wealth, they inherit it. You have this libertarian wet dream where wealth is all owned by people who pulled themselves up with pu

Oh, right. Working hard and saving is for “losers”.
__________________________________

I’m a big proponent of ‘work smarter, not harder’
past 15yrs has been an absolute gold rush.

#136 Remembrancer on 11.20.18 at 9:09 am

#126 Hamsterwheelie on 11.20.18 at 8:07 am

Bottom line, you chose to take the proceeds of PR sale, purchase a (smaller, cheaper?) residence and invest the remainder in a vehicle that has both your expectation for capital growth and income. Both of which are taxed at rates which are publicly available and in place for many years.

Yes, you should be discussing with a qualified tax planner and/or accountant as this could get complicated fast and it sounds like it may not have come up as of yet in your considerations…

#137 James on 11.20.18 at 9:17 am

Well, well, well how the tables have turned in Trumpland. Ivanka Trump (AKA Hillary Clinton) is in violation of the federal records rules. She has been a naughty, girl, (not to mention stupid) by using a private personal email to for official White House business. Now here is the sardonic aspect of it all. Donald J Trump relentlessly raised the issue of using private emails with regards the Hillary Clinton during the campaign and stated that it was unethical and illegal. Trump stated that he was going to drain the swamp in Washington. With all of the unqualified staff appointments and the nepotism within the current administration what else could we expect? The end result is that she did precisely the same thing as Hillary Clinton. If Donald J trump going to chant LOCK HER UP in his next rally he had better include his daughter. Knowing Donald J Trump I wouldn’t put it past him to throw his daughter under the bus.

https://www.bbc.com/news/world-us-canada-46271021

#138 under the radar on 11.20.18 at 9:17 am

119 124
The buyer is responsible to ensure that non residents who sell, have a Section 116 Compliance certificate or , in practice ,25% is held back until a certificate is produced. Ordinarily a sworn declaration that the seller is not a non resident is sufficient protection for a buyer unless the facts give rise to circumstances which the buyer ought to have known the seller is non resident .

#139 crowdedelevatorfartz on 11.20.18 at 9:21 am

@#134 KLNR
“I’m a big proponent of ‘work smarter, not harder’
past 15yrs has been an absolute gold rush.”
++++

Careful, Frank wants to take all your “hard EARNED” wealth….

#140 James on 11.20.18 at 9:22 am

The Van area is rampant with ghost rental properties. The cost of housing has caused a large portion of the legal home owners to go underground in order to carry the mortgage. I have business acquaintances in the lower mainland who have told me the exact same thing. Quote a few condos are in family names but owned by others in the family and rented out.

#141 Wrk.dover on 11.20.18 at 9:34 am

Leave the driving to us

And we’ll be watching you

You can do your part

By watching others too

….Neil young paraphrasing Tom Ridge, in the Greendale project

#142 James on 11.20.18 at 9:36 am

#110 Smoking Man on 11.20.18 at 12:38 am

Feds getting banking info on 500k Canadians.. Bet on it. Risk takers and entrepreneurs under the microscope.. The enemy of the unelected thugs.

The UN Compact on migration. Zero MSM coverage.
Zillions of migrants are going to be flooding western countries with voting rights. Making sure a one world communist govt gets a shot at this.

Resist with all you got.

Communism is not compatible with human nature. It only leads to blood shead.

Resist… Become a real freedom fighter.
________________________________________
Risk takers and entrepreneurs under the microscope? Are you worried that you are on the list?
As a resident alien within the United States you are subject to one or both of the tax laws according to how you have set up your structure.

If your US employment income does not exceed US $10,000.
You are present in the United States for less than 184 days in any 12-month period beginning or ending in the fiscal year concerned, and your remuneration is not paid by, or on behalf of, a person who is resident in the United States and is not borne by a permanent establishment in the United States

If you do not meet either of the above tests, you must pay US federal and, if applicable, state income tax in the United States on your US-source wages (income is sourced to the jurisdiction where the services are performed, not where you’re paid from). You will also have to report this income on your Canadian tax return. To avoid double taxation, you will generally be allowed to claim a foreign tax credit on your Canadian return for any tax you pay to the United States. You should note that the individual US states are not bound by the treaty. Therefore, even though you may be subject to an exemption from US federal tax under the treaty, there is no guarantee that you will not be subject to a state’s income tax. If you do any significant amount of work in the United States, it’s best to consult with your tax adviser to determine your Canadian and US filing requirements.

If you’re self-employed, the rules are different. US-source self-employment income is not subject to US tax if you do not have a fixed base or permanent establishment in the United States. In such cases, you’ll be required to file a treaty-based return if you are relying on the treaty to exempt you from US tax. Again, you may be subject to a state’s income tax even if you are exempt from US federal tax under the treaty. However, you should keep track of the number of days you are present in the US as you may be deemed to have a permanent establishment in the US if you or your employees spend significant time in the US in any twelve month period. Since you are self employed and unless you extend your term beyond the statutory 184 day period you are only usually paying state tax. Above is as per the CRA.
In addition what is the problem with immigrants? I thought you were the child of immigrants?

#143 PastThePeak on 11.20.18 at 9:46 am

#111 Frank on 11.20.18 at 12:53 am

We should pride ourselves on how high we can raise our basic minimum credit. It would be amazing to say “Welcome to Canada where you don’t pay a dime on income earned under $35K. Come and earn a fortune. Start a business and sell things to those make the least, they’ll be able to buy it.”
+++++++++++++++++++++++++++++

I completely disagree. Everyone should be paying income tax, above a small amount (say $5K/year). The rate should be very small for maybe that first 20K – maybe 5% – and they would also get money back in credits – but everyone should pay.

A society where a large portion do not pay tax (and hence have no “skin in the game”) is not healthy. Those that don’t pay then have no issue with demanding ever more government programs, to be financed from those that do.

#144 Sue on 11.20.18 at 9:51 am

This video is a must watch. Stephen Harper and Ben Shapiro. Common sense left government when we lost him. Hard to find anyone who voted liberal these days….

https://m.youtube.com/watch?v=nVNw03gyLmk

#145 Midnights on 11.20.18 at 9:56 am

Wow, it will move across the country…
https://m.canadianrealestatemagazine.ca/market-update/bc-makes-it-easier-to-report-real-estate-money-laundering-250863.aspx

#146 IHCTD9 on 11.20.18 at 10:02 am

#146 MF on 11.19.18 at 4:44 pm
IHCTD9

Come on IH. I already posted about this.

Zero evidence to support that claim. Complete opposite Is occurring.

MF
____________________________

Here you go MF – evidence galore:

https://www.greaterfool.ca/2018/11/14/no-hard-thing/#comment-622940

There is a lot more to read also if you’d like to Google it. Exact same thing is happening to Montreal and Vancouver for the exact same reasons.

All three cities are seeing their prime source of revenue, home sales, and consumer spending increasingly make the decision to bail. More are coming in thanks to international immigration, but the family building, house buying, power spending established youth are starting to change the way they think about Toronto.

Finally, mine what you read without being stupid.

Read this example:

https://torontolife.com/city/torontos-population-will-change-next-50-years/

Cliffs: The GTA is so popular! The population is going to double! How are we going to accommodate all these new people! Cranes everywhere! Everyone from all over the world wants to move here!

Actual data in same article: Population going from 2.9 to 5.0 Million is NOT double. This is expected over the next 50 years. That’s only 1.1% per year growth – big stinking deal! Toronto imports people like crazy and can’t even match the natural global average? In the real world (without the cheer leading section) this is sub-par growth. Just a fact mang.

If you factor in the expectations for the balance of the GTA into Toronto’s numbers you get well under 1% growth – exactly what I’ve been saying. In 1955 Toronto grew 5.5%…

The article comes right out and plainly says that the future for Toronto is way more Seniors (twice as many wrinklies as youth actually), the study period will also see Toronto’s population experiencing more deaths than births for the first time ever.

More immigrants (from Africa and the Middle East) will be needed as the natural Toronto population is just straight up dying off without even reproducing itself 1:1, leaving international immigration as the ONLY source of new taxpayers.

So there you have it: more old people, more immigrants, less youth, declining annual population growth. EXACTLY what I’ve been saying. Even as taken from a highly biased article written by an obvious Toronto fanboi.

#147 Rargary on 11.20.18 at 10:02 am

#124 re: Jacky Dangerous… that’s scary! What if CRA hadn’t caught on yet the original owner owes foreign capital gains ?like some Canadian who lives out if country more than 6 months of the year and not declaring it at the time??

#148 Remembrancer on 11.20.18 at 10:02 am

#136 James on 11.20.18 at 9:17 am
The end result is that she did precisely the same thing as Hillary Clinton.
——————————————————–
Not 100% technically correct – probably just as bad tending to worse (giving her the benefit of the doubt that any information she has is actually important).

HRC maintained an email server which stored / routed whatever emails she sent / received through it. Certainly not hardened gov-issue…

From the stories, IMT may have used whatever email provider her client app was attached to – Trump Org domain? Gmail? Yahoo! Orange? Facetime? Whatsapp Messaging? Telegram? Don’t know, has that come out yet?

Anyway, wait til a Kardashian gets in the WH – you think Twitter’s bad, try following a 24hr cycle on Instagram and SnapChat streams…

#149 dharma bum on 11.20.18 at 10:21 am

If you want to invest in real estate, just buy REITs.
Simpler.
Cleaner.
Let people who know what they’re doing, do their thing.
Sit back and collect the dividends.
Get out any time with the click of a mouse.

#150 IHCTD9 on 11.20.18 at 10:30 am

#5 crowdedelevatorfartz on 11.19.18 at 5:46 pm
” It even applies to DIY dudes and amateur contractors who buy properties, live through a reno, then list. The CRA says this is a business activity and the income generated (above expenses) should be taxed as such. Worse, if you try to avoid declaring this money it’s possible you could face a further 50% penalty for gross negligence. Ouch.”
++++
I know a few people who have done this for 10 -15 YEARS.
Wife plays “Martha Stewart” and designs, gets quotes, hires contractors, deals with inspectors, renos while hubby goes off to work.
After living there a year….flip. Tax free.
She has been taking a salary off the eventual sales proceeds…an not declaring it.
And in the uppa uppa uppa Vancouver market, they have made out like bandits…..never lost money and made nice some nice coin.

I’ve told them what they were doing was a recipe for disaster….
“Everyone’s doing it !”….so guess that makes it ok?
Time , and the CRA, will tell
___

Yep, I know many too. More the build it from scratch, live in it for a year or two, then sell. I would guess these folks would be at the bottom of the list of offenders though. At least they are building, buying, spending, and paying taxes and fees and permits, and inspectors and regulation and…

These guys essentially just get a “tax free wage” for their efforts, the days of wine and roses at this game are well done and over with. Now all the would be profit goes to the municipality and various government regulatory efforts.

#151 IHCTD9 on 11.20.18 at 10:36 am

#132 When Will They Raise Rates? on 11.20.18 at 8:52 am
#131 IHCTD9 on 11.20.18 at 8:31 am

#146 MF on 11.19.18 at 4:44 pm
IHCTD9

Come on IH. I already posted about this.

Zero evidence to support that claim. Complete opposite Is occurring.

MF
___

I replied back to that post the same day with all kinds of back up, I didn’t make any of it up, and it sure as hell is 100% happening.
———————

Well then it didn’t get published. A real shame too, I’m curious to see what you posted in response.
___

It did so – look up.

#152 the ryguy on 11.20.18 at 10:50 am

#136 James on 11.20.18 at 9:17 am
———————————————

Did Ivanka
– Delete her emails?
– Have a hidden server in her bathroom?
– Outsource to a professional on reddit? Read about StoneTear?
– Use bleachbit to delete all the metadata?
– Have her staffers destroy blackberries with hammers?
– Transmit CLASSIFIED information?

The answer to all of the above is no. You do realize the difference between a 3rd party host and a private server? Also Ivanka turned over all the emails 14 months ago?

However in the spirit of partisanship lets punish both Both Ivanka and Hillary to the fullest extent of the law, Id gladly accept that trade off.

#153 NoName on 11.20.18 at 10:59 am

#132 When Will They Raise Rates? on 11.20.18 at 8:52 am
#131 IHCTD9 on 11.20.18 at 8:31 am

#146 MF on 11.19.18 at 4:44 pm
IHCTD9

Come on IH. I already posted about this.

Zero evidence to support that claim. Complete opposite Is occurring.

MF
___

I replied back to that post the same day with all kinds of back up, I didn’t make any of it up, and it sure as hell is 100% happening.
———————

Well then it didn’t get published. A real shame too, I’m curious to see what you posted in response.

Use your feelings, When Will They Raise Rates, and find him you will.

https://www.greaterfool.ca/2018/11/14/no-hard-thing/#comment-622940

#154 For those about to flop... on 11.20.18 at 11:12 am

Canada has 46 billionaires.

Australia has 43.

Tasmania is on the map, maybe there is a long lost uncle that can help me out.

Someone just spent 9 million on a condo downtown.

Help me uncle, for I know not what I’ve done…

M44BC

“All the World’s Billionaires in a Single Map.

If you added up all the money of every billionaire in the world, you’d have about $8.9 trillion in wealth as of 2017. That represents the greatest total growth in wealth among billionaires ever. That’s according to a new report from UBS and PWC analyzing the uber wealthy. Where do these people live, how big are their fortunes, and what does it tell us about the global economy

Every bubble on our map represents a billionaire, and the size corresponds to the fortunes for every billionaire living in that country. And the size of each country represents the grand total wealth of every billionaire living there. And finally, we color-coded each region, giving you a quick visual snapshot of the world’s most elite individuals.

The United States clearly dominates both in terms of the overall number of billionaires and the total value of their wealth. The US is home to several titans of technology, including household names like Jeff Bezos, Bill Gates and Larry Ellison. It’s important to remember that almost all of these luminaries hold their wealth in the stock market, usually tied directly to the company they founded. Mark Zuckerberg is so loaded that he lost $15 billion on a single day last summer. That’s a drop in the bucket when you compare it to the 585 billionaires in the US who control well over $3 trillion in wealth.

Asia-Pacific is not far behind in challenging the United States as an engine for astonishing levels of wealth. China alone accounts for 373 individuals boasting $1,120B in total value. Compare that to Japan, where according to the World Bank, the economy is about a third the size of China’s. But Japan has only about 10% as many billionaires (35 vs 373). Hong Kong’s billionaires have more total wealth than Japan’s despite its smaller size ($335B vs $138B).

Western Europe is also home to lots of extremely wealthy billionaires, though not as many as Asia or North America. Germany leads the pack with 123 individuals controlling $579B, followed by France with 40 people owning $320B. 101 Russian billionaires meanwhile have a claim to $409B in wealth, though it’s worth pointing out that many Russian oligarchs made their money in highly questionable ways after the fall of the Soviet Union. That’s one of the reasons why Russia has one the most corrupt large economies in the world.

And finally, one of the most interesting questions our map raises is why there aren’t more people in the billionaire club from the Middle East and North Africa. There’s certainly enough wealth in the oil industry to make at least several people fabulously wealthy, but perhaps part of the reason why we don’t see more people here is due to state-owned companies.

https://howmuch.net/articles/world-map-of-billionaires-2018

#155 Remembrancer on 11.20.18 at 11:18 am

#142 PastThePeak on 11.20.18 at 9:46 am
and they would also get money back in credits – but everyone should pay.

A society where a large portion do not pay tax (and hence have no “skin in the game”) is not healthy. Those that don’t pay then have no issue with
demanding ever more government programs, to be financed from those that do.
————————————————————-

Huh?
And how much will this cost to collect and return vs. a little bit of ink on a form for a do not pay anything calculation and checkmark? You think the act of paying and getting a refund is better use of our tax $$?

I have an issue with your desire to inflate the costs of tax collection with no material gain beyond some sort of wonky character building philosophy…

BTW – add in consumption taxes, user fees, co-pays etc etc etc mean very few if any actually earn and don’t pay any taxes of some sort at some point…

#156 Jacky Dangerous on 11.20.18 at 11:31 am

#124 Stan Brooks. Unfortunately for a lot of people , the tax consequence of unpaid gain resting in the wheelhouse of the current owner is so freaking real and scary that they can’t wrap thier minds around it. Yes,vou are exactly right, if a foreign owner paid $600,000 for a house and flipped it to any current owner for say, $900K or a million two , the current owner, who may well be a Canadian, owes the tax on the gain. In this examples maximum, $600,000 is owed.

There are thousands of these bombs waiting to go off as. Lawyers, conveyancers, agents etc all seem to have thought of the legal ramifications.

146 Rargary, sit back and laugh my friend. This will have thousands crapping thier pants.

#157 robert james on 11.20.18 at 11:33 am

Lock her up !!!!!!!!!!!!!! 1 the ryguy on 11.20.18 at 10:50 am
#136 James on 11.20.18 at 9:17 am
———————————————

Did Ivanka
– Delete her emails?
– Have a hidden server in her bathroom?
– Outsource to a professional on reddit? Read about StoneTear?
– Use bleachbit to delete all the metadata?
– Have her staffers destroy blackberries with hammers?
– Transmit CLASSIFIED information?

#158 Hogtown Harry on 11.20.18 at 11:46 am

#145 IHCTD9 on 11.20.18 at 10:02 am

You can bash Toronto all you want sir but the fact is that Toronto is the 3rd largest city in North American behind only New York and Los Angeles. That’s quite a statement for a city in a country with 1/10 the US population. Where are all the jobs in smaller cities that you claim the exodus is making its way towards? Housing is only part of the picture, they need to work. I know of no exodus among the millenials I know including family members. All have no desire to exit the GTA. It’s wishful thinking on your part regardless of what you back up your belief with. Small town Ontario bashing Toronto. I’ve heard this crap all my life…

#159 IHCTD9 on 11.20.18 at 11:52 am

#104 Proud Dreg on 11.19.18 at 11:03 pm

So the CRA is FINALLY going to go after the tax cheats in RE eh? Only took them 50 years. Your Government at work.
____

I haven’t quite figured out the CRA.

Folks working under the table and black market activities have been a huge and growing problem (at least here in Ontario) since I was a kid. As far as I can tell it’s totally out of control right now – and no one is even the slightest bit scared of getting caught – it’s all out in the open plain as day. It’s totally unbelievable how casual it all is – the enforcement effort here must have been 0% for decades upon decades.

My local FNR is busier than the local Malls are. Gas, Diesel, Propane, Smokes, MJ, Building Materials, Booze, you name it. What a crazy outfit it is, with cheap shacks and new businesses all lined up everywhere – 99.9% of the clientele is off-rez gringos who are not supposed to be avoiding taxes by shopping there. 30 years ago this place had 1 convenience store, one gas station, and one blinking yellow light. Now they have their own Provincially recognized Native Police force! If this scenario represents even half of the total Canadian FNR’s – we’re talking BILLIONS and BILLIONS in losses for T2 and Co. Where is the CRA? Who knows, probably chillin’ with the OPP.

Millions buried off-shore in the panama paper scandals as well as others. The CRA offers amnesty to anyone who voluntarily pays up. Just a hunch, but I’m guessing none did.

Now we see rampant house flipping while claiming PR exemptions, cash in pocket rentals, business activity allowed as personal transactions. Going on for decades and has now reached a fever pitch in some areas.

Forgive me if I am skeptical. But I’m starting to think that if you can put up a good fight (ie. you’re rich), the CRA will find weaker targets to go after. If you are a member of certain groups of Canadians the CRA would rather grant a pass than to find Political Correctness suddenly working against them. I could be wrong…

Just another good reason to reduce your tax remittances however you can – if you are not one of the above people. You all know they will much sooner crank taxes for everyone else to compensate for the losses, than go after the source of the problem (ie. Western Government 101).

#160 For those about to flop... on 11.20.18 at 11:57 am

These two howmuch articles might help out people on here debating hard work versus inherited…

M44BC

Are America’s Richest Born or Made? This Map Gives You the Answer.

https://howmuch.net/articles/richest-person-in-each-state-inherited-self-made

Are Today’s Billionaires Born or Self-Made? This Map Shows You the Answer.

https://howmuch.net/articles/richest-person-country-inherited-self-made

#161 James on 11.20.18 at 12:18 pm

#156 robert james on 11.20.18 at 11:33 am

Lock her up !!!!!!!!!!!!!! 1 the ryguy on 11.20.18 at 10:50 am
#136 James on 11.20.18 at 9:17 am
———————————————

Did Ivanka
– Delete her emails?
– Have a hidden server in her bathroom?
– Outsource to a professional on reddit? Read about StoneTear?
– Use bleachbit to delete all the metadata?
– Have her staffers destroy blackberries with hammers?
– Transmit CLASSIFIED information
____________________________________________
Hillary is not in the government anymore so meh, a nothingburger. Ivanka was at the rallys with her dear old daddy (that I might add wants to date her) ewww sick. She should know what he said about emails on private servers! No excuse, either she is dumb as a post or just plain entitled. Of course she is her fathers daughter. As my grandfather used to say what is good for the goose is good fro the gander. Same rules apply here.

#162 Left Behind on 11.20.18 at 12:26 pm

#157 Hogtown Harry – I am so sorry you missed the train, and were left behind. Untold thousands have left during the past few years. Opportunity exists in the smaller communities with those that have ambition and skills in need. I know of one smaller city that over 3,000 from Toronto went to live mainly in the tech field. They have started up 300 companies, and need hundreds of new employees now. Harry your life must be running on empty, so fuel up.

#163 KLNR on 11.20.18 at 12:34 pm

@#161 Left Behind on 11.20.18 at 12:26 pm
#157 Hogtown Harry – I am so sorry you missed the train, and were left behind. Untold thousands have left during the past few years. Opportunity exists in the smaller communities with those that have ambition and skills in need. I know of one smaller city that over 3,000 from Toronto went to live mainly in the tech field. They have started up 300 companies, and need hundreds of new employees now. Harry your life must be running on empty, so fuel up.
________________________
sorry dude, that one small city you know is the exception not the norm

#164 AlbertaGuy in AB on 11.20.18 at 12:35 pm

On topic of PR: who can confirm or deny or elaborate.

PR does not have to be in Canada
PR per person: wife and husband can each own a property and claim as PR

ABG

A PR can be outside of the country, but other tax implications are likely. Only one PR per couple. – Garth

#165 DON on 11.20.18 at 1:25 pm

#114 crowdedelevatorfartz on 11.20.18 at 1:48 am

@#87 Blinking Mole
“– wipes potato chip grease on most recent Xbox game wrapper, and lowers Oculus….”
++++

One of the better lines I’ve laughed at in a while!

******************************
@#92 Kona Gold
“The CRA is the largest government purchaser of AI.”
+++

Just wait til the CRA’s AI starts talking to the Stats Can AI with all our “private” banking info…….

AI to AI,
“That’s a Bingo!”
*******************

Yup…!
Information Sharing Agreements with the CRA are already in place with the Provinces for certain Provincial Programs.

Data warehousing and AI programs are receiving increasing funding especially in the area of compliance.

So all we need now is a gov digital currency and voila, a step closer to Big A$$ Brother coming to a theater near you.

Cash is KING! in more ways than one.

#166 Hogtown Harry on 11.20.18 at 1:37 pm

#161 Left Behind

Let me guess that city is Waterloo…. and as KLNR pointed out that city is the exception not the norm. As for me, life could not be better in the big smoke. The tank is full cowboy. Have been mortgage free for 30 years and you would have a stroke if you knew what my place is worth today compared to what I paid it….

#167 DON on 11.20.18 at 1:37 pm

#80 mogulrider on 11.19.18 at 9:13 pm

Just wait until CRA ask the courts for your talking radio recordings and listens to your and your spouse plotting tax scams….

Oh my

Alexa how do I flip houses?

You folks do realize that everything you say is recorded right? You didn’t believe your were in a private setting did you?
*************
and remember to unplug that smart tv, when discussing delicate matters.

#168 Is the glass half full or empty on 11.20.18 at 1:41 pm

#162 KLNR – Research will show many exceptions, if you know what to look for, so get cracking. I know of another place that has a part-time need that needs to be explored. It will take place during the busy tourist season, and can be done in several ways. This will not be work by definition, but a fun time earning an easy $100 per hour. Lots of ways to earn a living in a smaller community by identifying a need that is not serving the community. This can be done on the net or opening up a new business, or using you talents, education, and skills working for someone else.

#169 IHCTD9 on 11.20.18 at 2:08 pm

#157 Hogtown Harry on 11.20.18 at 11:46 am
#145 IHCTD9 on 11.20.18 at 10:02 am

You can bash Toronto all you want sir but the fact is that Toronto is the 3rd largest city in North American behind only New York and Los Angeles. That’s quite a statement for a city in a country with 1/10 the US population. Where are all the jobs in smaller cities that you claim the exodus is making its way towards? Housing is only part of the picture, they need to work. I know of no exodus among the millenials I know including family members. All have no desire to exit the GTA. It’s wishful thinking on your part regardless of what you back up your belief with. Small town Ontario bashing Toronto. I’ve heard this crap all my life…
___

You must mean StatsCan is bashing the GTA right? That’s where the data I posted ultimately came from. I personally don’t give a rip where the GTA is headed because I don’t live there. I do like to keep things real though.

I made no statement as to where the exodus was headed.

I don’t know many Mils/Gen X’ers leaving the GTA either, but I don’t employ the kind of logic that says “if I can’t see it, then it ain’t happening”.

I’m no partisan when it come to the limited offerings of your typical small town Ontario city. Trust me. But there is a silver lining for some on the financial front, no question about it.

The data is what it is, if you think it’s all a load of bunk, that is up to you.

To me it’s pretty much what I expected would happen eventually. Canadians are not having kids, Immigration Canada has failed to lure many Westerners to Canada, leaving us primarily with 3rd world folks who then pile into the enclaves (which are in the GTA) and will resist spreading out for at least 1 generation due to how big the culture shock would be. At some point, you know a “restructuring’ of some kind would be forthcoming as the pressure builds.

#170 Lost...but not leased on 11.20.18 at 2:21 pm

Thanks Garth…another awesome post!

Packed with valuable and timely info !

Pretty clear to conclude CRA is on major $$$ hunt..leaving no stone unturned.

Many were caught up in the euphoria of RE porn….getting away with murder re tax avoidance….now the CRA will come a calling. Bet you CRA will have both informants and others ratting out parties to save own necks…this will get VERY ugly.

Thanks also for the ” basement suite ” clarification. This was a very gray area, you’ve explained it very well re: CRA implications.
Regardless…with CRA investigating this RE “suite” aspect….there will be a lot of pain forthcoming. There will be many who may wish to own up….but can they pay up ?..this in addition to a market that is going south.

Interesting times…..

#171 Ace Goodheart on 11.20.18 at 2:24 pm

Wow. It’s black Tuesday. What a rout. Watching as the SP500 loses value steadily all day long.

I keep thinking who in their right mind would dump stocks after such a positive earnings season.

But then I think that the dumping is probably not voluntary.

It looks like people are selling to pay off debt. The kids who bought bitcoin at $20,000 per coin (buying in at fractional amounts) are all in the toilet as the price continues to crash. South East Asia allowed bit coin to be bought on 100% margin which meant that people were buying it with no capital, and paying for it by the continuous price upswing.

Those same folks are getting slaughtered right now.

The stock situation is no different. Raise interest rates, and all those margin accounts become more expensive. People are forced to sell, and when they do, the prices crash, forcing more sales.

The big players all have “stop loss orders” in place, which means as the prices continue to collapse, those orders get put in, causing prices to depress further.

And all the time shares of highly profitable companies, with great earnings outlooks and no financial problems, are getting dumped on the market for fire sale prices, simply because people bought on margin when things were on the upswing.

Add to this the Canadian housing bubble collapse, with folks having to sell their stock portfolios to pay down their mortgages and credit lines to the point where the bank will allow them to refinance, and you get this wonderful storm of rapidly decreasing equities prices, which creates an amazing buying opportunity for those of us who pay cash for things.

Oh well. I guess you could always cash in your bit coins to buy stock…..Oh, but wait, most major exchanges will only allow you to BUY bitcoins, not sell them.

Oh well…….

#172 KLNR on 11.20.18 at 2:25 pm

#167 Is the glass half full or empty on 11.20.18 at 1:41 pm
#162 KLNR – Research will show many exceptions, if you know what to look for, so get cracking. I know of another place that has a part-time need that needs to be explored. It will take place during the busy tourist season, and can be done in several ways. This will not be work by definition, but a fun time earning an easy $100 per hour. Lots of ways to earn a living in a smaller community by identifying a need that is not serving the community. This can be done on the net or opening up a new business, or using you talents, education, and skills working for someone else.
_______________________
never said you couldn’t make a buck in a smaller town.
fact is the majority of opportunity is in the larger urban areas. will there be a stampede out of the cities as housing costs continue to rise? doubt it. hasn’t happened anywhere else.

#173 Steven Rowlandson on 11.20.18 at 2:26 pm

What is next? Annual license fees for land lords and ladies? Failure to comply results in confiscation of assets?

#174 Blacksheep on 11.20.18 at 2:37 pm

James & Robert #160,

Hillary C:

Was the Head of the State Department and 4th, in ‘The line of succession’, of the US Gov. Meaning if a certain three people died, she would be running the country.

Ivanka T:

Is the head of planning family dinners, put in the W.H. playing a token role to appease the Donald. It does not matter if every single person in the Legislative, Executive and Judicial branches were to die, Ivanka is still a unelected nobody, with zero power.

Yes, of course Ivanka F-ed up with the handling of her emails, (specially after Don’s rants) but comparing the two situations as equal (in power and consequence) is completely ridiculous.

#175 Another Deckchair on 11.20.18 at 2:38 pm

Hey Flopper;

To paraphrase JayZ;

We got 46 billionaires, and I ain’t one….

:-|

Oh well, at least I don’t have their problems – you know, which jet to take to the Walmart, that kind of thing.

#176 IHCTD9 on 11.20.18 at 2:54 pm

#165 Hogtown Harry on 11.20.18 at 1:37 pm

As for me, life could not be better in the big smoke. The tank is full cowboy. Have been mortgage free for 30 years and you would have a stroke if you knew what my place is worth today compared to what I paid it….
__________

I can see why you are happy. I’d be happy too if I made 7 figures on my house. I may even think the city I live in made that possible.

You think Toronto is great, but what you like about it is presently in spirit form – long dead – the ghost of Toronto decades past.

No kids are going to be filling their tank today in 2018 Toronto – that is why they’re deciding to leave in greater numbers.

None of this should be hard to understand.

#177 Stan Brooks on 11.20.18 at 2:58 pm

Greetings to the Canadians after the 3rd glass of quality single malt scotch.

There are things to live for beyond the cardboard particles home, the glass condo and the giant mortgage/shitty weather:

https://www.youtube.com/watch?v=orL-w2QBiN8

https://www.youtube.com/watch?v=St6jyEFe5WM

Go see an NBA game and chilax.

Do you recognize yourself in the picture:

https://ca.finance.yahoo.com/news/bank-canada-turn-sheepish-guns-blazing-october-rate-hike-cibc-164647296.html

Cheers,
Stan Brooks,
Professor emeritus of Herdonomics.

#178 rate hike off on 11.20.18 at 3:01 pm

BOC is not going to raise in Dec. EOM

#179 James on 11.20.18 at 3:04 pm

#173 Blacksheep on 11.20.18 at 2:37 pm

James & Robert #160,

Hillary C:

Was the Head of the State Department and 4th, in ‘The line of succession’, of the US Gov. Meaning if a certain three people died, she would be running the country.

Ivanka T:

Is the head of planning family dinners, put in the W.H. playing a token role to appease the Donald. It does not matter if every single person in the Legislative, Executive and Judicial branches were to die, Ivanka is still a unelected nobody, with zero power.

Yes, of course Ivanka F-ed up with the handling of her emails, (specially after Don’s rants) but comparing the two situations as equal (in power and consequence) is completely ridiculous.
____________________________________________
If the shoe was on the other foot the Republicans would be screaming bloody murder. It is a rule within the legislative body. She broke it, end of discussion! If you rear end a car at 5km per hour or 50 km per hour obviously there is potential for greater damage at 50km per hour, however it is still your fault as the driver that rear ended the other driver. The law does not state its OK to have a little accident with no repercussions. So from your tone can I surmise your a amoureux de Trump ?

#180 DON on 11.20.18 at 3:09 pm

Ace Goodheart on 11.20.18 at 2:24 pm

It looks like people are selling to pay off debt.

******

I am not challenging this, just wondering how you can tell…experience, gut feel, indicators? I am thinking the same, placing my bet on human nature repeating and individuals being heavily leveraged at this point in time.

I am sure some people have been quietly consoling themselves under a ‘blanket of hopeful forgetfulness’ (thank you blog dog – I was looking for that phrase to explain the quiet).

The CRA needs to make up for the gov deficit and they have spotted their prey. They are relentless and can go back a long way to get their money. YIKES! Will this be what sparks an increase in bankruptcies?

Lots of headwinds banging on the door and more on the horizon. CRA is a game changer.

#181 Stan Brooks on 11.20.18 at 3:10 pm

#168 IHCTD9 on 11.20.18 at 2:08 pm

👍

Absolutely.

Slave’s happiness depends on the owners qualities and our owners are little, cheap, provincial lairs with small ball. But they own us.

#182 Remembrancer on 11.20.18 at 3:12 pm

#153 For those about to flop… on 11.20.18 at 11:12 am
There’s certainly enough wealth in the oil industry to make at least several people fabulously wealthy, but perhaps part of the reason why we don’t see more people here is due to state-owned companies.
———————————————————–
Or that the middle-eastern billionaires own the state / spread the wealth out differently…

#183 IHCTD9 on 11.20.18 at 3:21 pm

171 KLNR on 11.20.18 at 2:25 pm

…will there be a stampede out of the cities as housing costs continue to rise? doubt it. hasn’t happened anywhere else.
_____

Same thing happening in Montreal and Vancouver, pretty much for the same reasons.

No stampedes are happening anywhere. BUT – the increases of those deciding to leave are pretty horrific even if the actual numbers are not huge (~143,000 more left than moved into the GTA from other areas – over 5 years).

If 5 years from now the new numbers say -300,000, that is starting to get stampede worthy. If the net number is negative, you can probably add 100-200K to the number of folks who actually left but were offset by others moving back in. What if those moving in were on average much older than the mils that were leaving?

Plus, the entire census GTA area only has about 850,000 kids between 25-34 years old (2016 Census), so if you are bleeding 20-30 thousand of them per year you have a pretty serious problem IMHO.

Worse yet, as time goes on, there will only be less and less of this age group present just through natural progression of an infertile population.

The GTA loses more of its local residents than any other city in Canada – which really does say something.

#184 Stan Brooks on 11.20.18 at 3:21 pm

#172 Steven Rowlandson on 11.20.18 at 2:26 pm
What is next? Annual license fees for land lords and ladies? Failure to comply results in confiscation of assets?
==========================

Oh, just watch it, it gets better by the day.

Confiscation of assets is a given.

Run.

#185 technical analysis?? on 11.20.18 at 3:41 pm

so much for rate hikes in Canada .. bye bye preferred share market… looks like the loonie agrees by collapsing further…

Bank of Canada could turn ‘sheepish’ after ‘guns blazing’ October rate hike: CIBC

https://ca.finance.yahoo.com/news/bank-canada-turn-sheepish-guns-blazing-october-rate-hike-cibc-164647296.html

#186 Ronaldo on 11.20.18 at 3:48 pm

Bye Bye Bitcoin. Bit the dust. Anything that burns as much power as a country like Ireland to create phoney money is bound to end badly.

https://www.cnbc.com/2018/11/20/regulators-investigate-whether-bitcoin-price-was-propped-up-illegally.html

#187 Wet Willy on 11.20.18 at 3:52 pm

AHahah you so naive, just charge your rent in cash so it can’t be traced to income. Bunch of people who has their document on your address proves nothing, I let my friends live for free or they just use my address as mailing address(even I use my parents address as mailing instead of my actual). Deal in cash and enjoy tax-free money, and you keep paying uncle Sam 50% of your income and keep complaining that you are poor lol

#188 Blacksheep on 11.20.18 at 3:56 pm

Can $ tanking is really US $ up, but either way, good for our exports and foreign RE investment in Van : )

#189 Frank on 11.20.18 at 4:14 pm

“I’m a big proponent of ‘work smarter, not harder’
past 15yrs has been an absolute gold rush.”
++++

Careful, Frank wants to take all your “hard EARNED” wealth….

If you’re working you’re not rich

The very wealthy that I know came from normal families, and were truck drivers, construction business owners, government employees, franchise business managers (NOT owners), who have one thing in common

Cool story bro. I don’t give a fuck what the truck driver who saved all his money to buy a nice cabin is like. I’m talking real wealth, not someone that ate peanut butter sandwiches for 40 years and now has a brand new Harley:

http://www.faireconomy.org/press_room/2012/report_says_forbes_400_misleads_about_wealth_and_opportunity

35% of the richest americans came from families in the bottom 95% of net worth (i.e. poor or middle income families). 65% come from the top 5%. So even people who made their fortune through smarts and hardwork, like Bill Gates, started the race ahead of others. You’re kidding yourself if you think that the opportunity is there for everyone. Like I said, we don’t need class warfare we just need to be honest about the numbers.

All you losers with 6-figures or low-7 figure savings accounts after a life time who think you’ve ‘worked hard’, ‘saved’ and deserve tax breaks are clowns who are supporting policies that prop up the truly rich. Congrats, you’ve traded the majority of your waking hours for a sum on money you’re now too old to appreciate. You pride yourself on never taking luxury vacations and saving meanwhile the top 1% (wealth, not income) spend 3 weeks in Bali every year on ‘business retreats’ because their earnings are taxed a relatively low rates.

Inequity will keep getting worse until people like you stop patting yourself on the back for looking snidely down your nose at your neighbour for buying starbucks while you pack a thermos of Folgers every day and realize the problem is bigger than you:

https://cdn.theatlantic.com/assets/media/img/posts/Top1PercentHistory2.jpg

Just look at that and

#190 PastThePeak on 11.20.18 at 4:37 pm

#177 rate hike off on 11.20.18 at 3:01 pm
BOC is not going to raise in Dec. EOM
++++++++++++++++++++++++++

I don’t think many were counting on a hike in Dec, right after the raise in Oct, regardless of the removal of the word “gradual”. Maybe in January – it will depend on the Fed.

Speaking of which, down south, some of the Fed is starting to sound less hawkish, so it might be slower going than thought just a few weeks ago – but the trend is still up.

The Donald is actually calling for interest rate cuts (into record low unemployment, increasing inflation, and wage gains) – which goes to show you how financially literate he is…

#191 jess on 11.20.18 at 4:58 pm

Facebook Signs San Francisco’s Largest Office Lease Ever
San Francisco
Office
May 21, 2018

It is the largest deal ever signed in San Francisco, surpassing previous record-holder Dropbox’s 736K SF lease of Kilroy Realty’s The Exchange in 2017.
https://www.bisnow.com/san-francisco/news/office/facebooks-signs-largest-office-lease-ever-in-san-francisco-88661