One of the larger issues attracting the attention of the CRA is assignment clauses, where one person agrees to purchase a condo before it is built but ultimately sells his or her right to buy that condo before the building is even registered
New York, NY (PRWEB) June 25, 2013
Business Review today announces Mark Feldstein and Associates' advisement to Canadian taxpayers that they may want to think very carefully of how they want to record their housing sale. Now that tax season is over, The CRA is taking a closer look in the condominium sector in what some industry insiders have called the “Condo Project” where property owners in the business of “flipping” might have to pay twice the tax amount originally expected and face up to a fine of 50 per cent of the tax owed for making a false disclosure. If the property is a principal residence, there is no additional taxes to be paid, as long as there the paperwork to prove it. Business Review spent the last 30 days reviewing Canada’s leading chartered accounting firms and has named Mark Feldstein and Associates as a trailblazer in the industry with its pulse on the constant beat of the latest CRA news, updates and other information affecting tax payers and the speedy distribution of such information to the public. Business Review found more information available from articles published on the Mark Feldstein & Associates website.
The warning from the CRA to tax evaders is becoming quite clear. If the CRA suspects that condominiums are being “flipped” and not lived in, it will start by sending a letter to the taxpayer asking for the full details about when and why they sold their property, and individuals typically fill out the questionnaire without any legal advice. If the condominium has never been lived in, it is going to be difficult to prove it to be a principle residence. “One of the larger issues attracting the attention of the CRA is assignment clauses, where one person agrees to purchase a condo before it is built but ultimately sells his or her right to buy that condo before the building is even registered,” says Mark Feldstein of Mark Feldstein and Associates. “Those who have assigned their units to another buyer are going to have a difficult time proving they planned to use the property as an investment property rather just flipping it for a profit, meaning the CRA is highly unlikely to allow them to count money made at the lower capital gains rate.” The CRA admits that it has resources to finding tax evaders and is putting them in place but will not release what those resources are.
Further information into the CRA’s look into the condominium market can be found at the CRA website, http://www.cra-arc.gc.ca. Tax payers can contact Mark Feldstein and Associates regarding any options for disclosure claims or other taxpaying information at http://toronto-accountant.ca/.
Mark Feldstein & Associates, Chartered Accountants, provide a wide range of professional services to businesses and individuals. To ensure clients receive the best advice in each area, like voluntary disclosure, Mark Feldstein & Associates hire only seasoned specialists who, in turn, devote a good portion of their time to upgrading their skills through in-depth professional development. Mark Feldstein has been practicing public accounting since 1982. He has experience in a wide variety of industries, including retail, manufacturing, importing and exporting, wholesale distribution, technology, restaurants, law firms, engineering firms, architecture firms, education, IT consultants, wealth preservation planning, forensic investigations, internet service providers and construction.
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