Feigenbaum Law

real estate

Vacancy Tax- Overhead view of suburban street

Personal Tax Planning

Foreign Buyer Challenging $249,000 Vacancy Tax Levied by City of Vancouver

A homeowner in Vancouver has sued the city after being subject to a $249,000 vacancy tax on a property on which she does not reside. The matter has reinvigorated debate and discussion about the impact of foreign buyers and vacant properties on a continually overpriced and hot housing market in Vancouver and other large centers across Canada. The Home at Issue The property at issue, a home located at 4749 Belmont Avenue, was sold for… Read More

Real estate tax

Personal Tax Planning

CRA Collects More than $1 Billion After Cracking Down on Real Estate Tax Evaders

We’ve often blogged about tax issues pertaining to real estate, including the fact that fewer home buyers are purchasing homes in Toronto, Vancouver and other hot markets after the introduction of Foreign Buyers’ Taxes and other measures, how buying property from a non-resident of Canada can have significant tax implications, as well as the tax consequences of owning a cottage, among others. Now, the Star is reporting that… Read More

Foreign buyers

Personal Tax Planning

Newly Released Statistics Reveal that Fewer Foreign Buyers are Buying Homes in the GTA

We’ve previously blogged about measures being implemented in various jurisdictions across Canada intended to cool down the housing market and address affordability by taxing foreign buyers. Among such measures was a Foreign Buyer’s Tax introduced in British Columbia (and separately also within Vancouver). We also blogged about creative ways that foreign buyers have been attempting to circumvent measures such as the Foreign Buyer’s Tax. Much like in BC, Ontario has its own foreign… Read More

Corporate taxes

Corporate Tax Planning

New Report Calls for Increased Regulation to Address Money-Laundering in Canada

This week, CBC News is reporting that lax regulations have made Canada a prime location for money laundering. These headlines come in the wake of a recent report issued by well-known policy think-tank C.D. Howe Institute titled “Why We Fail to Catch Money Launderers 99.9 percent of the Time” in which the Institute highlights ways in which Canada has been deficient in fighting money laundering. Why Money… Read More

Vacancy Tax- Overhead view of suburban street

Personal Tax Planning

A “Service” Intended to Avoid the B.C. Foreign Buyers Tax is Being Provided in Vancouver

We’ve previously blogged about the B.C. government’s introduction of the Foreign Buyer’s Tax, which came into effect 2016 and requires all foreign entities (including foreign nationals) to pay an additional 20% on the purchase of residential property in the Greater Vancouver area. The purpose of the tax was to cut down on the number of foreign buyers who were purchasing homes in the region, but not living in them, leaving many homes… Read More

Vacancy Tax- Overhead view of suburban street

Personal Tax Planning

Buying Property from a Non-Resident of Canada Can Leave You with Huge Tax Liability

As a recent Tax Court of Canada decision illustrates that if you are purchasing a condo, home, or cottage from an owner who is a non-resident of Canada, you may be personally liable for their Canadian capital gains tax, unless certain precautions are taken. Taxable Canadian Property: A Primer All Canadian residents must pay tax, in Canada, on their worldwide income (i.e. income earned both in Canada and anywhere outside of Canada). Read More

Vacancy Tax- Overhead view of suburban street

Personal Tax Planning

Tax Changes in B.C Mean Stress for Long-Time Homeowners

The British Columbia budget recently revealed a school-tax increase that will calculate tax at 0.2 percent on property valued above $3 million and 0.4 percent on property valued above $4 million. A small group of long-term homeowners in British Columbia are claiming that they will not be able to afford the increase and that they may be forced to move as a result. This has led to mixed reactions. A Case Study Lynne Kent (aged… Read More

Personal Tax Planning

How Ontario’s Fair Housing Plan Will Impact US Buyers

Ontario recently announced its Fair Housing Plan, which includes a “Non-Resident Speculation Tax” that will impact all US buyers of residential property in Ontario. With an eye to keeping housing prices from climbing out of reach for most buyers, the Ontario government has implemented a 15% Non-Resident Speculation Tax. What purchases are subject to the Non-Resident Speculation Tax? The tax applies to any purchase or acquisition of residential property containing up to six… Read More

non-resident

Personal Tax Planning

Tax Information for Non-Residents Selling Canadian Property

If you are a non-resident individual or corporation that owns Canadian property, take note of these extra legal hurdles before you decide to sell your property. Canadian tax legislation requires that any purchaser of property from a non-resident can be liable for taxes if they are unpaid. In many cases, to protect against this potential liability, 25% of the sale price will be withheld by the purchaser’s lawyers until the Canada Revenue Agency (CRA) confirms… Read More