What kind of tax issue will i have for the numerous income properties i own and plan to buy? - tax issue
I know I will make an average of 2 types of income from assets:
- You pay the excess income after the mortgage and property taxes
- Profit if they win the appreciation of property values and increase in equity (for the tenant to pay the mortgage, sold)
What kind of taxes we are talking about here? I am independent and will pay 20% tax - What kind of taxes I pay?
Ontario - Canada
Monday, February 1, 2010
Tax Issue What Kind Of Tax Issue Will I Have For The Numerous Income Properties I Own And Plan To Buy?
2 comments:
Net rental income will be taxed at normal marginal tax rate, depending on tax bracket. In order to calculate the net rental income, you only get to deduct mortgage interest and property taxes, but also other costs associated with obtaining such rental income (including a breakdown of expenditure, the activities are related car). You can even choose to make a deduction to reduce the discretionary income CCA net lease to zero, but remember that any joint assessment that the deduction was again as income when the property is sold. CCA deduction deduction shall be 4 years% discretion on the basis of the purchase price of the building (not just land, so they have to separate the construction value of your total purchase price).
When selling the property, provided they do not have the CEC in the past, the fiscal impact is only capital gains. Capital gain is the result of the sale, the property less the original cost. The capital gain is taxed at half the rate of taxation.
I also recommend looking for a qualified tax advisor to helpDue to the complexity of their situation, namely, taxes. itself, numerous rental properties, etc.
In response to another poster, I think, can not avoid the tax on real estate investments through the establishment of offshore companies, as under Canadian tax law, real estate is a unique way to get exactly what you can not avoid tax through the establishment of the SEA.
Net rental income will be taxed at normal marginal tax rate, depending on tax bracket. In order to calculate the net rental income, you only get to deduct mortgage interest and property taxes, but also other costs associated with obtaining such rental income (including a breakdown of expenditure, the activities are related car). You can even choose to make a deduction to reduce the discretionary income CCA net lease to zero, but remember that any joint assessment that the deduction was again as income when the property is sold. CCA deduction deduction shall be 4 years% discretion on the basis of the purchase price of the building (not just land, so they have to separate the construction value of your total purchase price).
When selling the property, provided they do not have the CEC in the past, the fiscal impact is only capital gains. Capital gain is the result of the sale, the property less the original cost. The capital gain is taxed at half the rate of taxation.
I also recommend looking for a qualified tax advisor to helpDue to the complexity of their situation, namely, taxes. itself, numerous rental properties, etc.
In response to another poster, I think, can not avoid the tax on real estate investments through the establishment of offshore companies, as under Canadian tax law, real estate is a unique way to get exactly what you can not avoid tax through the establishment of the SEA.
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