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56 votes

Can I buy a new house before selling my current house?

You can make a contingent offer: "I will buy this house if I sell my own." In a highly competitive environment, contingent offers tend to be ignored. (Another commentator described such a contingency ...
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21 votes

Why would my tenant want me, landlord, to buy his leasehold interest in my own property?

Ask your tenant what he wants to get out of this arrangement - NOT the legalese - but: What end result the tenant wants in plain English (it sounds like free money). Why does the tenant think he ...
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16 votes

Can I buy a new house before selling my current house?

The two most common scenarios are: You put an offer on a house which is conditional on you selling your own house first. You sell your house with the condition that you will rent it from the new ...
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  • 45.7k
16 votes

Why would my tenant want me, landlord, to buy his leasehold interest in my own property?

What does he mean exactly? How the heck does it make sense for a landlord to "buy" a "lease" from his own tenant? It sounds like they're hoping you might pay them to vacate/end their lease. It ...
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  • 64.6k
15 votes
Accepted

If my rental property income and mortgage payment are equal, do I need to pay income tax on any rent revenue?

Generally incorrect. Some of your mortgage payment is interest, and some is repayment of principal. When it comes to deducting your rental property's expenses against its income, you generally aren't ...
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  • 31.4k
14 votes

Can I buy a new house before selling my current house?

A bridge loan (or bridging loan) is designed for exactly this circumstance. They're short-term loans (6 months is common) designed to help home-buyers to bridge the gap between buying and selling. ...
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13 votes
Accepted

Defer bonus pay to next year

This option is useful if for any reason you think you will have a lower taxable income in 2015 than 2014, or you can arrange for that to happen. Retirement is an obvious case, but others might include:...
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  • 30.7k
12 votes

Can I buy a new house before selling my current house?

If you can qualify for two mortgages, this is certainly possible. For this you can talk to a banker. However, most people do not qualify for two mortgages so they go a different route. They make ...
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  • 75k
11 votes

I am starting a new job on Monday. Can they screw me over somehow with the information I need to provide? Does this look sketchy to anyone else?

“Remote” job position plus “bitcoin” = scam. I’m sorry - your best bet at this point is to block them, delete any messages and move on. If you have already given them any of your personal information ...
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  • 21.8k
8 votes

Why would my tenant want me, landlord, to buy his leasehold interest in my own property?

Let's say that the lease has a year left to run at $100 per month, and he offers to vacate for $500. Let's also say that you could lease it right now for a year at $200 per month if it were not ...
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  • 89
7 votes

Do I have to pay tax on Capital Gained on primary property?

There is nothing confusing about this though it may feel unfair. First, there is no such thing as a "primary property" in Canadian tax law. You seem to feel that if you only own one property, it's ...
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  • 12.1k
6 votes
Accepted

What amount of money can a corporation spend on entertainment

There is no simple rule like "you can/can't spend more/less than $X per person." Instead there is a reasonableness test. There is such a thing as an audit of just your travel and entertainment ...
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  • 12.1k
6 votes
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What is the pitfall of using the Smith maneuver

The catch is that you're doing a form of leveraged investing. In other words, you're gambling on the stock market using money that you've borrowed. While it's not as dangerous as say, getting money ...
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  • 769
6 votes
Accepted

How does depreciation affect real estate capital gains tax in Ontario?

In Canada, you have the option of claiming depreciation expense, called capital cost allowance (CCA), it is not required. At time of sale, any CCA that you have claimed is recaptured and taxed as ...
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  • 64.6k
6 votes
Accepted

Buying portion of house

The current mortgaged owner would typically not have the right to sell any portion of the house without approval from the bank. The bank doesn't "own" the house through the mortgage, but they do have ...
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5 votes

Can I buy a new house before selling my current house?

There's also the option to put most of your stuff into storage and rent an apartment or go to an extended stay hotel. Some apartments have month-by-month options at a higher rate, though you may need ...
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  • 287
5 votes

Will CRA suspect, if you never filed and now retroactively files taxes?

There is no penalty for filing a tax form late in Canada if you do not owe any taxes. The penalties are all in terms of percentages of the taxes you owe. So if he genuinely never earned more than the ...
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  • 30.7k
5 votes

Why would my tenant want me, landlord, to buy his leasehold interest in my own property?

There is a process in rental property colloquially called "cash for keys" where the landlord pays a tenant to terminate a lease. Usually it comes up as a kind-of win-win for both sides where the ...
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  • 8,251
4 votes
Accepted

What is meant by pensionable earnings

The "Pensionable Earnings" referred to in box 26 means the amount of your income that counts towards determining your CPP (or QPP for Quebec) contributions. For many this will be the same amount as ...
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  • 769
4 votes
Accepted

Is the interest earned on a TFSA account tax deductible if it is moved to an RRSP

How would the RRSP know where the money came from? You have two separate financial operations going on: You invest some money, within the limits set by the law, in a Tax Free Savings Account. Near ...
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  • 4,254
4 votes

Do I need to register as self employed in Ontario, Canada?

If your business name is your name, you are automatically considered a sole-proprietorship and any income you generate and expenses you incur can be calculated on your personal tax return. You can use ...
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  • 1,149
4 votes

Employer added health insurance premium to my T4 Income statement

Yes, it's normal. If you "buy" your own disability insurance with after tax money, any payout you get is non taxable. If your employer "buys" your disability insurance with their own money, any payout ...
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  • 12.1k
4 votes

In Ontario, Canada, how can I calculate when charitable donations lower my total payable tax?

The CRA gives this example How do I calculate my charitable tax credits? - Canada.ca Danielle lives in the province of Saskatchewan and donated $400 in 2013 to registered charities: The ...
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3 votes
Accepted

Can I still charge and keep money from my small business, listed under HST?

First off, the basics on HST/GST: You don't need to collect HST, if you don't want to, until you hit 30k in a particular three month period (assuming you're not regularly passing $30k). You then ...
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  • 35k
3 votes

Calculating capital gains tax on sale of second home in Ontario

The capital gain is based on sale price minus purchase price. The amount of mortgage is irrelevant. In your example the gain is $300k. You would pay that times the appropriate rate. You can claim ...
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  • 30.7k
3 votes
Accepted

If I join a prop trading firm, will I enjoy low commissions

Prop (proprietary) traders trade using huge amounts of a bank's money (i.e. other people's money) so the reason why they have such low commissions (and they certainly do) is that the firms for which ...
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  • 8,502
3 votes

Can I buy a new house before selling my current house?

As the other answers suggest, there are a number of ways of going about it and the correct one will be dependent on your situation (amount of equity in your current house, cashflow primarily, amount ...
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  • 614
3 votes

Can I buy a new house before selling my current house?

If you're living in a market where some houses are going for $150K over asking, then you MUST buy before you sell. In a seller's market, you will get multiple offers on your current house when you ...
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  • 31
3 votes

As a contractor, if my business makes no net profits, do I owe taxes?

So the main reason that you aren't getting answers is that the question is not really answerable on this site without putting a lot of details about the expenses of your company online. Even then you ...
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  • 6,530
3 votes

Is there a list of financial assistance programs in Ontario, for the poor but not disabled?

In Canada and the U.S., you can dial 2-1-1 on your phone to talk to someone about assistance programs. These phones are usually staffed by the United Way. Besides the call-in service, they also ...
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