As of January 1, 2023, CRA implemented a new anti-flipping rule that requires you to report any profit made from selling a property within 365 days after purchasing it as business income unless you meet one of the exclusions.
But how do you determine if your sale is considered a flip or long-term capital gain? What factors do CRA and tax courts consider when making this determination? And most importantly, how can you minimize the taxes paid on flips?
In this video, we’ll cover all of these topics and more. We’ll explain what’s considered property flips, how to decide if your sale is considered a flip, the 12 factors that CRA and tax courts look at, the tax implications of house flipping, and how to minimize the taxes paid on flips.
If you're currently involved in flipping houses or planning to do so and are looking to maximize your profits while minimizing your tax liability, you’ll find this information very valuable.
Key Moments In This Episode
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0:00 - Intro
0:36 - What’s Considered a Property Flip?
3:43 - Anti-Flipping Rule
4:10 - 12 factors that CRA looks at when considering a Flip as a Business Income
8:34 - Tax Implication of Flipping Properties
10:45 - Examples with Different types of Ownership Structure
15:55 - How to Minimize Taxes Paid on Flips
17:30 - 10 Common tax deductions you can make as a flipper
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Please make sure to speak to a professional that knows your personal situation before making a decision.
If you need to talk to someone on my team, email us at [email protected].
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DISCLAIMER:
Real estate Tax planning is a personalized decision and will depend on your situation, priorities, and risk tolerance. Consult with your legal and tax advisors to ensure you get the best personalized advice.
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