Is Your Recreational Property/Cabin a Financial Asset or Liability?

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Recreational Property owners can receive some unexpected surprises when it comes to selling or gifting their cottage or cabin in later years. Jamie Powell, Financial Consultant with Investors Group Financial Services Inc discusses some major flags and strategies Canadian recreational property owners need to be aware of to ensure that they maximize their investment.

With Recreational Property purchases on the rise in Canada its astounding how many new cabin or cottage owners do not protect their investment through sound tax and estate planning strategies.

According to Jamie Powell, Certified Financial Planner with Investors Group Financial Services Inc., there are 3 key concerns recreational property owners may not be aware of:

1. What Happens to the Property on Death? Many people don't realize that there could be taxes owing on death and depending on the increase in property values this can be tens of thousands of dollars. There are some options to reduce the amount of tax owing and keep the property in the family.
2. How to Potentially Sell the Property Tax Free- Canada Revenue Agency used to have a rule that each spouse could claim a property and be able to sell that property tax free. This has been changed and as a result has created some large tax bills. There is however a strategy that may be used to still sell the property tax free.
3. How to Equalize Your Estate for Your Beneficiaries. Many people have fond memories of the family cabin and want to make sure that future generations may have the same. Different asset classes have different taxation associated with them and this can cause many issues down the road. By taking a look at the concerns now can help protect the assets down the road.

Jamie Powell will be hosting a presentation on these issues at the Outdoor Research Center located on Memorial Drive and 10th Street NW in Calgary, Alberta on Wednesday October 24th from 7-8 PM. For more information on this session visit http://investorsgroup.com/consult/jamie.powell/english/default.htm

Media Contact:
Jamie Powell, Certified Financial Planner
Financial Consultant
Investors Group Financial Services Inc.
Suite 800- 333 7th Avenue SW
Calgary, AB T2P 2Z1
403-284-0494 ext 267

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Jamie Powell,Certified Financial Planner
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