Big Money for the CRA, Potential Headaches for Investors
The Canada Revenue Agency (CRA) has significantly ramped up its focus on real estate audits in recent years, and it's paying off handsomely. Since 2015, they've identified a staggering $2.7 billion in additional taxes and penalties from these audits, with a particular emphasis on Ontario and British Columbia.
What This Means for You
As a Kelowna real estate investor, it's crucial to understand the areas under increased CRA scrutiny:
- GST/HST Rebates: Double-check all eligibility requirements before claiming a rebate on a new or renovated property, especially considering the recent surge in audits related to these claims.
- Flipping Properties: Be prepared to report capital gains if you buy and resell a property quickly.
- Principal Residence Exemption: This exemption is strictly for your primary residence.
- Foreign Ownership: If you're not a Canadian resident, understand the tax implications of owning property here.
Enhanced Information Gathering
The CRA has improved its ability to gather information from builders and developers, leading to more effective audits. This is particularly evident in the rise of GST/HST cases since 2018.
We're Here to Help You Navigate
The CRA's focus on audits shouldn't deter you from making sound real estate investments. By working with a knowledgeable real estate professional from Coldwell Banker Horizon Realty Kelowna, you can ensure your transactions comply with regulations and minimize the risk of any issues with the CRA.
Contact Coldwell Banker Horizon Realty Kelowna today! We'll connect you with a realtor who can guide you through the buying and selling process while navigating the complexities of real estate taxation.
Key Takeaways
- CRA audits in real estate have yielded significant additional tax revenue ($2.7 billion since 2015).
- Ontario and British Columbia are major areas of focus.
- GST/HST rebates, property flipping, and foreign ownership are key areas of scrutiny.
- The CRA has improved its ability to gather information from builders and developers.
- Coldwell Banker Horizon Realty Kelowna can connect you with the expertise you need to navigate real estate transactions with confidence.
Source: CRA
