Clause for Concern?

Understanding who pays the Speculation and Vacancy Tax in a transaction REALTORS® don’t have to worry about including a clause in a contract of purchase and sale that specifies that a buyer won’t be held liable for the Speculation and Vacancy Tax (SVT). Here’s why: When a buyer purchases a residential property, they will either

Find out What These Changes Mean for REALTORS®!

Who is or isn’t taxed? You’ve likely heard about the provincial government’s new Speculation and Vacancy Tax that came into effect on January 1 by now. In case you missed it, the tax targets homes left vacant for six months or more within a calendar year and is designed to help turn empty properties into

Government Needs Transitional Rules for All Transactions Impacted By Taxes Introduced in Budget 2018 — New Taxes Unlikely to Stabilize Housing Market

Victoria, BC – February 20, 2018. The British Columbia Real Estate Association (BCREA) calls on the government to introduce transitional rules for all transactions impacted by the new tax measures introduced in Budget 2018. The new tax measures come into effect on February 21, 2018. The Property Transfer Tax (PTT) increase to 5 per cent

A Judge’s Guide to Whim and Fancy, or Best Efforts Clauses; Seller Had to Have Actual Knowledge of Default, Not Deemed Knowledge of Agent, to Be Liable Under Contract; Note Re: Legally Speaking 332 #333

Legally Speaking

By Gerry NeelyB.A. LL.B. In one case, the conditional clause in a Contract of Purchase and Sale required the buyer to satisfy himself as to the tax implications of Canadian/USA/international law upon his purchase of Canadian property. The buyer lived and worked in California, and the purchase monies from an inheritance were to be transferred

Professional Incorporations #122

Legally Speaking

By Gerry Neely B.A. LL.B As a result of changes in legislation, lawyers may now join the ranks of businessmen and other professionals who are allowed to incorporate their businesses or practices. Individual lawyers are now deciding whether the advantages of tax deferral, income splitting, estate planning, capital gains exemptions and potentially greater expense deductions

Property Purchase Tax Act and Other Odds and Sods #104

Legally Speaking

By Gerry NeelyB.A. LL.B. The Property Purchase Tax Act, although it has only received first reading, is here to stay. The amendments to the Bill published in the Orders of the Day of May 19, 1987, primarily remove ambiguities from the Bill as originally drafted. They do remove the original perceived inequities that would have

Capital Gains Tax – Principal Residence #96

Legally Speaking

By Gerry NeelyB.A. LL.B. Following the death of a woman in 1982 who lived on a parcel of land of 6.09 acres, the Department of National Revenue assessed a taxable capital gain of $202,800.00 on the deemed disposition of the property. This assessment was based upon the Department’s contention that only one acre was necessary

Principal Residence Exemptions #42

Legally Speaking

By Gerry NeelyB.A. LL.B. In the first case, the question was whether or not the sale of 9.3 acres made by the taxpayers under threat of expropriation by a municipality, leaving 7/10ths of an acre upon which the taxpayers’ house was situated, was exempt from taxation as falling within the principal residence exemption. Fourteen years

Income Tax, Income or Capital Gain #31

Legally Speaking

By Gerry NeelyB.A. LL.B. The intention of the taxpayer as the determinative factor in whether one hundred per cent of the profit realized on the sale of property is taxed as income, or only fifty per cent as capital gain, is described in the following two cases. In the first one, the taxpayer stated that

Income Tax #25

Legally Speaking

By Gerry NeelyB.A. LL.B. One of the results of the reduction in residential sales has been an increase in the number of trades of residential properties between people who can’t find a satisfactory cash buyer. For any one entitled to deduct moving expenses under Section 62 of the Income Tax Act, the question of how the