Maybe I wasn’t exactly clear on my post, was more looking for ways to prolong having to pay the taxes, by continuing to purchase property with the capital gains made with the property.
At the end of the day you will always have to pay taxes, just hoping not to have to pay every time I’m looking to transfer funds into a larger investment.
You can claim depreciation on your rentals which will lessen your taxes in the short term. When you sell, if you are paying taxes, it means you made money on your property.
Any idea if you just transfer funds to a different property if taxes are paid? Or just when cashing out on an investment?
I've only sold one of the properties that I used as a rental. I paid taxes on 50% of my net profits (it was a bit less as I had lived in it for a few years). If it is all held within a company, maybe it is different; but I'd ask a good accountant.
Even if you buy a well cash flowing property you still won't pay tax until it is ~ 50% LTV if you use CCA. And depreciation is essentially a 0% interest loan as even if you sell they only ask for what you claimed back, not what you claimed + interest for the decade or three you owned it. Mortgage brokers hate when investors use CCA because it lowers your qualifying income. Personally, I love it.
Flipper/Rehabber · Ottawa, ON · Member since 2020 · 7 posts · 0 votes
6y
Maybe I wasn’t exactly clear on my post, was more looking for ways to prolong having to pay the taxes, by continuing to purchase property with the capital gains made with the property.
At the end of the day you will always have to pay taxes, just hoping not to have to pay every time I’m looking to transfer funds into a larger investment.
Maybe I wasn’t exactly clear on my post, was more looking for ways to prolong having to pay the taxes, by continuing to purchase property with the capital gains made with the property.
At the end of the day you will always have to pay taxes, just hoping not to have to pay every time I’m looking to transfer funds into a larger investment.
Investor · Columbus, OH · Member since 2015 · 99 posts · 35 votes
6y
Yes great ideas!,
@Jim Chuong those are same strategies in US, keep the property, just leverage the equity, refinance, in this market it's best not to sell, rates in US are very low!