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Just wondering if anyone has had to pay Capital Gains on a camp they've sold that is on a Land Use Permit? My lawyer seems to feel that since we don't own the land there is no capital gains to be paid. The camp has appreciated significantly in value so we will incur a profit. I can't see the Ontario government allowing an untaxed profit on anything. LOL.
If your lawyer is experienced in tax law,he's likely correct.
Why does it need to be owned to be considered a Capital Gain? It is an investment in real estate that went up, make sure the lawyer knows tax law.
First lesson. Don’t get financial advice from a lawyer. Get it from an accountant. Get legal advice from a lawyer. Get investment advice from financial advisor. Pretty simple.
It just may be regular income. Not a capital gain. In this case it you would pay more taxes on the income. Or, it may not be income at all. Im one of these three and I’m not an accountant. My best legal advice for you.
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Likely You are right on the "money".............so to say Goosesniper.Quote:
Originally Posted by Goosesniper
There is "no free lunch"here when taxation is considered.
Why would you pay capital gains on a property you don’t own ? Without a land use permit, it’s pretty much worthless, unless you can move the cabin..... I would think anyway.
My thoughts exactly !Quote:
Originally Posted by rick_iles
You can't sell something you do not own.
As others have said get the right advice from the right profession. In this case it is likely better if it is a capital gain as you can deduct some losses and/or expenses and then only pay tax on 50 percent of the "gain". If it is not a capital gain then the full amount of the gain would likely be taxable.
I sold a piece of property a few years back and never did anything at tax time to file a capital gain. I have yet to be notified I owe any taxes. I took my lawyers advice, took my money from the sale and kept my mouth shut. He did tell me I may get notification but it's been about 7-8 years and so far nothing
You'll love the interest and penalties when they finally do find out.Quote:
Originally Posted by canadaman30