How do you avoid paying taxes in canada with real estate

13 Replies

I don't think such thing exists as in US, check with your CPA, Accountant for ways to minimize taxes in Canada, as laws are completely different. 

Originally posted by @Hayden Reinisch :

@Theresa Harris

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.

@Hayden Reinisch

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.

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.

Originally posted by @Hayden Reinisch :

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 REFI or get a HELOC on the property