Real Estate Tax Planning
WHAT IS REAL ESTATE TAX PLANNING?
Real estate transactions including rental income typically result in capital gains or losses. Real Estate Tax Planning both in advance and after the acquisition of property prior to a sale or from rental income allows you to achieve the maximum financial benefit from the transaction by minimizing taxes that include Income Taxes, Estate Taxes, Withholding Taxes, HST, Land Transfer Taxes, and Probate.
WHAT IS THE CAPITAL GAINS TAX?
Capital assets are assets that are typically held for a long time such as land, buildings, cottages, homes, stocks and other long term investments. Often it is not clear whether an asset is a capital asset for tax purposes. When a capital asset is sold the difference between the amount you paid for the asset and the amount you sold it for is a taxable capital gain, or capital loss. Since capital gains get a lower tax rate than other income, the government often challenges capital gains.
WHAT ARE THE BENEFITS OF REAL ESTATE TAX PLANNING?
Real Estate Tax Planning is a crucial element to obtaining the best tax consequences related to a real estate transaction, including rental income. There are many financial benefits to Real Estate Tax Planning including preserving capital gains and avoiding probate.
Contact the C2 Global Law tax lawyers prior to engaging in a real estate transaction for the purchase or sale of property or rental income. Whether you are purchasing a property for personal use, speculation or for generating long-term lease revenues we can create a tax planning strategy particular to your needs and circumstances. Our areas of expertise include but are not exclusive of:
- Structuring tax driven real estate investments
- Ownership of a real property by a trust, corporation, or partnership
- Transfer of real estate by exchange, sale, inheritance, or gift
- Mergers and acquisitions of REITs (Real Estate Investment Trust)
- Tax issues for non-resident investors in Canadian real estate
- Tax issues for Canadian non-resident investors in U.S. real estate
- Canadian and U.S. tax considerations on purchase, ownership and disposition of real estate
- International real estate acquisitions
- Avoidance of taxes upon death including Land Transfer Taxes, Capital Gains, Income Taxes
Let the C2 Global Law real estate tax planning lawyers maximize the financial benefits of your real estate transactions. Contact us today to schedule a consultation.