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April 14th, 2019, 03:27 PM
#11

Originally Posted by
rf2
You'll love the interest and penalties when they finally do find out.
A lawyer who advised you to potentially commit tax evasion. Great lawyer. Sounds like Saul. Thread carefully.
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April 14th, 2019 03:27 PM
# ADS
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April 14th, 2019, 03:47 PM
#12
Has too much time on their hands

Originally Posted by
rf2
You'll love the interest and penalties when they finally do find out.
8 years so far...lol. Why would I pay tax when I have not been notified to do so?.. And btw my taxes were audited 4 years ago to boot.
Last edited by canadaman30; April 14th, 2019 at 05:49 PM.
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April 15th, 2019, 08:25 AM
#13

Originally Posted by
rick_iles
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.
It is an investment in real estate that created a net gain.
I hear what you are saying but if someone invests in a building complex but they are not the owners of said complex I am pretty sure their income on the investment is a capital gain.
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April 15th, 2019, 09:08 AM
#14
Great responses, guys! I agree with every comment. I told the lawyer to talk to the accountant before he does anything. There's another wrinkle in this question. There are 5 owners on the LUP. One of them has passed away. He left no instructions as too what to do with his share because he assumed his name would just be removed and his share would simply pass onto the four remaining owners.
I suggested his estate should pay the capital gains on his share of the camp. The lawyer's suggestion is in my OP. I asked what happens when the final owner passes away? The final owners estate gets nabbed for the complete capital gains on the camp??? Geez that sounds expensive and unfair.
I loved the lawyers quote to me, "There's no room for logic in the law!". LOL.
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April 15th, 2019, 09:11 AM
#15
LUP is not ownership.
Capital gains apply to "Real Property" only.
If you do not pay property taxes on the camp, then you cannot be taxed on the sale of what amounts to a shelter, which at the whim of government , could no longer be yours to use.
"Camo" is perfectly acceptable as a favorite colour.
Proud member - Delta Waterfowl, CSSA, and OFAH
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April 15th, 2019, 10:14 AM
#16

Originally Posted by
DanO
Great responses, guys! I agree with every comment. I told the lawyer to talk to the accountant before he does anything. There's another wrinkle in this question. There are 5 owners on the LUP. One of them has passed away. He left no instructions as too what to do with his share because he assumed his name would just be removed and his share would simply pass onto the four remaining owners.
I suggested his estate should pay the capital gains on his share of the camp. The lawyer's suggestion is in my OP. I asked what happens when the final owner passes away? The final owners estate gets nabbed for the complete capital gains on the camp??? Geez that sounds expensive and unfair.
I loved the lawyers quote to me, "There's no room for logic in the law!". LOL.
The one guy passed away with no instructions, oh fun.
I had a friend who dealt with this, his family camp was simply moved around on hand shakes between parties, the last owner passed away and there were a lot of lawyers involved sorting it out, even though nobody was arguing thank god.
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April 15th, 2019, 11:52 AM
#17

Originally Posted by
Bluebulldog
LUP is not ownership.
Capital gains apply to "Real Property" only.
If you do not pay property taxes on the camp, then you cannot be taxed on the sale of what amounts to a shelter, which at the whim of government , could no longer be yours to use.
This would be my opinion as well....if you don’t own it, how can you be forced to pay CG tax???
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April 15th, 2019, 12:16 PM
#18

Originally Posted by
Fox
The one guy passed away with no instructions, oh fun.
I had a friend who dealt with this, his family camp was simply moved around on hand shakes between parties, the last owner passed away and there were a lot of lawyers involved sorting it out, even though nobody was arguing thank god.
This sounds like the Tax law of Crystallizing an asset. It isn’t. But is similar.
Whereby a gain is Crystallized and then a new ACB gets assigned and the process starts again.
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April 15th, 2019, 12:19 PM
#19

Originally Posted by
Bluebulldog
LUP is not ownership.
Capital gains apply to "Real Property" only.
If you do not pay property taxes on the camp, then you cannot be taxed on the sale of what amounts to a shelter, which at the whim of government , could no longer be yours to use.
Paying property tax has no bearing on gains or losses.
Capital gains are realized on a number of factors. Paying property tax on them is not a consideration.
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April 15th, 2019, 12:39 PM
#20

Originally Posted by
Goosesniper
Paying property tax has no bearing on gains or losses.
Capital gains are realized on a number of factors. Paying property tax on them is not a consideration.
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Insofar as what is being asked. I used paying property tax by example only.
A LUP with a camp on same, is not an appreciable asset. It is not valued by MPAC, nor does it have a relevant valuation that a capital gain ( or loss) could be verified against.
Unless I'm completely mistaken, in order to qualify for assessment for capital gains, the land must be owned, by the individual or other party ( Not the Crown). Which is why capital gains still apply for cottages etc on leased land.
"Camo" is perfectly acceptable as a favorite colour.
Proud member - Delta Waterfowl, CSSA, and OFAH