buying mother; 's house - international non-resident cross border expert income tax & immigration help estate family tr
My question is: Canadian-specific QUESTION: I have a house that is my primary residence in GTA. I am thinking of buying my mother's home in Ottawa and looking to move there in the next year or two. I am thinking of buying it now, and she would live there, paying rent for the next year or two. When I sell my house in the GTA and move to the house in Ottawa will I have to pay Capital Gains Tax. Also is there a minimum rent I need to charge her.---------------------------------------------------------------------------
david ingram replies:
If you own two houses at the same time, you will capital gains tax on one of them if they both go up ion value,. Better to leave the Ottawa house in mother's name until you buy it.
Better still, buy a different house and leave mom in her tax free house or at least make sure (if you do buy out her house) that she buys her retirement condo and does not just go and rent somewhere else.
There is no minimum or maximum retn you have to charge your mother but you can NOT claim rental losses as a dedcution on your return when rented to your mother, sister, brother, father, kids, etc.
(An exception would be where you own a condo in a building of retnal condos and you are renting it to mother for the exact market rent that all the others are rented for. If that was the case, a rental loss on your return could be claimed.)
Of course, you aren't supposed to charge your mother rent anyway. She didn''t charge you for room 'and' board for the first 16 to 25 years of your life.
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David Ingram wrote:
However, I regularly search for the words"PAYING
CUSTOMER" and always answer
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am maybe going to try and answer because they look interesting.
Calls welcomed from 10 AM to 9 PM 7 days a week Vancouver (LA) time - (please do not fax or phone outside of those hours as this is a home office)
$1,600 would be for two people with income from two countries
David Ingram expert income tax and immigration help and preparation of US Canada Mexico non-resident and cross border returns with rental dividend wages self-employed and royalty foreign tax credits family estate trust trusts income tax convention treaty
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US / Canada / Mexico tax, Immigration and working Visa Specialists
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Disclaimer:
This question has been answered without detailed information or
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David Ingram
gives expert income tax & immigration help to non-resident
Americans & Canadians from New York to California to Mexico
family, estate, income trust trusts Cross border, dual citizen - out of
country investments are all handled with competence & authority.
Phone consultations
are $400 for 15
minutes to 50 minutes (professional hour). Please note that GST is
added if product remains in Canada or is to be returned to Canada or a
phone consultation is in Canada.
This is not intended to be definitive
but in general I am quoting $800 to $2,800 for a dual country tax
return.
$800 would be one T4 slip one W2 slip
one or two interest slips and you lived in one country only - no self
employment or rentals or capital gains - you did not move into or out
of the country in this year.
$1,000 would be the same with one
rental
$1,200 would be the same with one
business no rental
$1,200 would be the minimum with a
move in or out of the country. These are complicated because of the
back and forth foreign tax credits. - The IRS says a foreign tax credit
takes 1 hour and 53 minutes.
$1,500 would be the minimum with a
rental or two in the country you do not live in or a rental and a
business and foreign tax credits no move in or out
$1,600 would be for two people with income from two countries
$2,800 would be all of the above and
you moved in and out of the country.
This is just a guideline for US /
Canadian returns
We will still prepare Canadian only
(lives in Canada, no US connection period) with two or three slips and
no capital gains, etc. for $150.00 up.
With a Rental for $350
A Business for $350 - Rental and
business likely $450
And an American only (lives in the US
with no Canadian income or filing period) with about the same things in
the same range with a little bit more if there is a state return.
Moving in or out of the country or
part year earnings in the US will ALWAYS be $800 and up.
TDF 90-22.1 forms are $50 for the
first and $25.00 each after that when part of a tax return.
8891 forms are generally $50.00 to
$100.00 each.
18 RRSPs would be $900.00 - (maybe
amalgamate a couple)
Capital gains *sales) are likely
$50.00 for the first and $20.00 each after that.
Just a guideline not etched in
stone.
This from "ask an income trusts tax and immigration
expert" from www.centa.com or www.jurock.com or www.featureweb.com. David Ingram
deals on a daily basis with expatriate tax returns with multi
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