6 Ways to Avoid Capital Gains Tax In Canada | Reduce Capital Gains Tax Canada

[@ScottBrown-b7o]

Been watching, listening, and paying attention to all of predictions and forecasts since early Covid. He hasn't disappointed yet 👌

[@RichardWilliam-i4z]

Well said! I am also here to learn how to invest after listening to a lady on tv talk about the importance of investing and how she made 7 figures in 3 months, somehow the video taught me nothing and left me even more confused, I'm a newbie and I'm open to ideas on how to invest for retirement

[@ScottBrown-b7o]

@@RichardWilliam-i4z lookup KRISTIN GAIL CUNNINGHAM , this is her name online, she's the real investment prodigy since the crash and has helped me recover my loses

[@RichardWilliam-i4z]

@@ScottBrown-b7o Despite the economic crisis and the rate of unemployment now is the best time to invest

[@ScottBrown-b7o]

@@RichardWilliam-i4z Investment now will be wise but the truth is investing on your own will be high risk. I think it will be best to get a professional👌

[@RichardWilliam-i4z]

@@ScottBrown-b7o Thank you, Going through her profile on her webpage out of curiosity, and surprisingly she seems proficient. I appreciate this.

[@yayap2954]

Hi Thomas, thank you for the quality content. I have a question: in the Flow-Through Share example, how come even if your shares did not increase nor decrease and you sell the shares at $10k, the CG is still $10k instead of $0? Thank you.

[@nishunksaxena5592]

Same question came in my mind

[@Todd.T]

Another great video from Thomas C. Chan. He tells you all the things that took me 8 years to figure out and more.

[@ThomasCChan]

Haha Thanks Todd for your kind compliment!

[@Drozes]

Thank you for the great Canadian content!

[@ThomasCChan]

Hi Matt! Glad you like it!

[@zoelee2738]

That’s exactly what I’m looking for! Thank you 🙏

[@ThomasCChan]

Great! Glad it's helpful!

[@smilesoulhealing]

Thank you for this great video!

[@ThomasCChan]

@@smilesoulhealing thank you!!

[@PerfectFitVacations]

Love your videos!

[@ThomasCChan]

Thank you!

[@johnnyv5995]

RRSP(provided yo have the room) seems to be the simplest & safest way. Thanks Thomas, this will be put to good use.

[@ThomasCChan]

Thanks for always watching johnny! Indeed is simplist but sometimes not enough to offset. That's why it's important to know other ones too

[@ken2338]

People will enjoy instant benefit each time they contribute (or max out) RRSP. As the size of RRSP grows every year as well as the investment return, people will retire with a remarkable huge RRSP. Each withdraw you will be taxed as income and affect most of the senior benefits; you may wonder is RRSP an excellent option.

[@ThomasCChan]

@@ken2338 hi Ken, Yes but at the same time you are delay the tax bill and buying time. So you have extra time planning how to take the money out. Instead giving one lump to cra right away 😃

[@ken2338]

@@ThomasCChan My spouse and I has a combined RRSP pool of >$750K. It is really challenging to give CRA a smaller share of pie. Keep in mind converting to RIF at age 71 requirement. I still think RSP contributions is a good choice for retirement planning; plan to cap to the size which is optimal. If people do not mind to pay more tax to CRA your silent partner, don't bother what I said.

[@ThomasCChan]

@@ken2338 hi Ken! For sure! And congrats on the hard work saving. Yes in this case it's a problem. But we might able to provide stragies to meltdown the Rrsp tax effectiently. Feel free to have a chat with us!

[@edwinchan19590125]

Like it, thanks Thoma!

[@ThomasCChan]

Thanks Edwin!

[@benjaminswee-shaders]

A very helpful video for those into crypto! Thanks Thomas, great as always.

[@ThomasCChan]

Yup please share it to your friends!

[@kennpainagan123]

Much appreciated.. Will it be consider superficial capital loss if I sell my stock A by December 31, 2021 for a loss and repurchase it by January 1, 2022?

[@jenueheightz6851]

How/where do we purchase a flow through shares? Can we purchase from Questrade platform? Thanks

[@ThomasCChan]

Mainly have to deal with specific companies that offer those. And starting in mid 2022 cra starts to hammer this kind investment so might not be as effective now

[@mieabosamra1]

Thanks for the video, I am a housewife and I don’t have an income, but me and my husband own another couple of investment properties other than our primary house. 1- How to avoid the capital gains on the other properties whenever we want to sell them?! 2- Should we actually move to each one of them before we sell?! 3- Or maybe put only my name “as I don’t have an income ” ?!! 4- Or to transfer each property it to each of our kids?!! Thank you so much Really looking forward to hearing from you

[@lovekidz988]

Me also looking for same answer

[@ThomasCChan]

Those are great questions! pretty much CRA is the smartest person in the room where you cannot completely not paying, but with the right timing and plan, we can achieve tax optimization. and everyone has a different agenda, so feel free to have a chat with us. www.thomascchan.com/thomas Happy holiday!

[@Fuuuntiiime]

Thomas why would you take the oas and gis if your financially set like in this example that you have non taxable assets in your TFsa? Aren’t you going to be taxed a lot between your 60 to 70? Are they going to be working or not during that time?

[@ThomasCChan]

Hey Jay. Good question. it depends on how much taxable income in those years. Side note. Having more income indeed equals more tax. But at the end, you still get more in the bank account. And for oas and cpp usually are gone once you passaway vs other asset you can pass it down to the next generation

[@NaveedAhmad-cd6wj]

Hi i need more information. Whats best time we can meet.

[@thanhle-pt5qy]

Hi Thomas !!! Can we use property taxes to deduct capital gains ?

[@ThomasCChan]

Hi Thanh. I don't think so...

[@cellochai]

Nice video on tax! But I think you've missed the most popular tax saving strategy, which is to incorporate!

[@ThomasCChan]

Hey Nina! Don't spoil my secrets! 😆

[@rosemariel.9000]

Hi Nina and Thomas. Can you elaborate more on this strategy - incorporate. do you need to have a business.

[@arkopolo1]

Hi Thomas can you use your Tax free account to put your CG into?

[@ThomasCChan]

Hello. So before you put into tfsa. You have to sell the investment in your non reg account. Which triggers capital gain. .but on going in the tfsa will he tax free

[@reggieortiz]

can you assist on calculating my capital gains when i sell my rental property?

[@ThomasCChan]

Right now. Investment property is still at 50% capital gain. Which means half of the growth will be consider as you income. And tax on that rate

[@nekeol]

Hi want to know capital deffer strategy

[@carolliu3829]

Hi, Thomas: If a short sell position is not covered before Dec 31, 2021, how can we report the gain/loss, since there is selling, but no buy back covering. thanks a lot for your help.

[@ThomasCChan]

That is very interesting. I do have to look into it. 😃

[@FrankBullitt390]

Are we allowed to make charitable trusts or even a foundation to save on taxes from gains?

[@ThomasCChan]

Yup donation is one way to reduce it. It's a good course. But you are not the beneficiary

[@bhavinshah3542]

Hello Thomas, Manitoba has small business venture tax credit too. Can you explain more on that? Also please explain more on capital gain reserve with your accountant friend. Thanks

[@thebboyzrule6591]

Yes please

[@ramamoorthysarangapani7258]

can we get exemption for having two flats out of capital gain? sec 54 and 54 F differs. i think that from ay 20_21 we have option to have two flats out of capital gain.kindly.advise.thanks

[@harishdewangan2661]

Great video, one question. I sold my prop in Dec 2021 but the closing is in Jan 2022 (when I get the proceeding) should this transaction be reported in April 2023 or April 2022 ?

[@ThomasCChan]

Highly recommend to talk your accountant. Because it can be either 😂

[@harishdewangan2661]

Thanks for your reply, most likely it would be April 2023, will check with CRA.

[@ThomasCChan]

@@harishdewangan2661 Thank you Harish!

[@tonycaputo2966]

May goodness I need someone like you right now. My wife and I are about to sell our rental property, and I am terrified of the amount of capital gains we will have to pay. I have no idea which of your 7 strategies I should use, or perhaps use several at the same time. I have no idea where to start. We currently live in Ottawa Canada. Any advice would be appreciated.

[@ThomasCChan]

So first do you really need to sell it in Dec. Or you want wait until early next year to sell it. Maybe use your rrsp to offset it. Any capital loss you can claim Etc etc

[@tonycaputo2966]

First off a million thank you’s for even responding. My tenants will be leaving at the end of November. Then I need to access the property, see if I need to put money into refreshing the place to re rent, or sell. I’d like to keep it, but my wife wants to sell it. I am in a unique situation, the property was gifted to use and so when having to calculate capital gains, I have no idea what the property was worth when we acquired it.

[@tonycaputo2966]

So to answer your question I can and probably will wait until the spring to sell.

[@tonycaputo2966]

@@ThomasCChan First off a million thank you’s for even responding. My tenants will be leaving at the end of November. Then I need to access the property, see if I need to put money into refreshing the place to re rent, or sell. I’d like to keep it, but my wife wants to sell it. I am in a unique situation, the property was gifted to use and so when having to calculate capital gains, I have no idea what the property was worth when we acquired it.

[@tonycaputo2966]

@@ThomasCChan So to answer your question I can and probably will wait until the spring to sell.

[@andreydavidenko3212]

Please tell me if you know about it. I live in Canada for half a year and plan to invest for 10 years and save ETF funds, not to sell, only to save and collect, then I plan to go to another country where there is no capital gain tax, for six months or more (in order to change tax residence) and already in this country to sell assets and take the money to another country is it possible?

[@ThomasCChan]

It's not that simple. 1. Where you going to that ETF funds? In non reg account? Then you need to file tax every year. 2. Sure you can def go to other countries and still have the account active. But what will your status be? Non resident in Canada? Then you need to report foreign income? I suggest talk to an accountant for details

[@motivationmastery684]

For a pre-construction condo, if you move in and make it your primary residence at occupancy date, and after final closing in a few months, if you sell, would you still pay capital gains tax?

[@KhalilOmar]

What about a charity trust?

[@ThomasCChan]

Hi Khalil. Yup charity is another way to do it! I will share more in the future!

[@KhalilOmar]

@@ThomasCChan please do. Because isn't it completely tax free and the trust can be invested in a fund which earns a return.

[@ThomasCChan]

@@KhalilOmar in theory yes. But requires additioal cost to set up the fund. And it's not as liquid as people think

[@cbcmanbcc2709]

Is there a roll over option for realeastate?

[@ThomasCChan]

Spouse ok. Others no.

[@micheleemcdaniel389]

I am about to receive a large amount of money from the sale of family company shares. What would be my best strategy to minimize taxes? Please let me know. Thank you.

[@rationalevidence9095]

Do i understand correctly that if I sell a property and end up with $100,000 capital gain, that would only be taxed at 50% as normal income but if i put it into an RRSP instead, when i take it out, it's taxed at 100% as normal income? So this strategy would be terrible to defer capital gains, wouldn't it?

[@ThomasCChan]

yes and No say you are currently making $100,000 work income, you sold your property and have $100,000 therefore 50% of the profit, (50,000 will add to your income) so that 50,000 will be taxed and give 18632 if i put that 50,000 into my rrsp, so it will be offset each other, and no tax 1) and later i am going to take out $10,000 every year for the next 5 years now assuming same tax rate, that $10,000, i will get tax $3100 $3100 X 5 = 15300 < $18632 or 2) i wait until my income is low say 50,000 , then i take out the 50,000 from rrsp so that portion i will get tax 15019 still loweer than 18632

[@rationalevidence9095]

​@@ThomasCChan but you're also getting taxed on all the gains inside the RRSP until you take it out (instead of it growing outside the rrsp and being taxed as a cap gain at 50%.....)

[@ThomasCChan]

@rationalevidence9095 correct. So rrsp is just a tax later tool. So strategy matters Because if you leave it outside. Everything you have growth you have to pay tax as well.

[@victorferr1]

can we contribute $100k in rrsp to offset capital gains? profit from selling an investment property? if I have the room at one shot?

[@ThomasCChan]

Yup that's the whole pupose

[@victorferr1]

tes if you have room.

[@coltukkor]

What if you took your capital gains and put them in a TFSA account?

[@ThomasCChan]

When you take it out from your non reg. Then the profit will become capital gain that year. That means you need to pay the tax first.

[@dannycravalho2493]

Hi Thomas! Thanks for a very informative video. I bought a house last 2005 for 210k and became our principal residence for 13 years. Then in 2018, I took an equity from this house an amount of 80k. The 80k was used as a down payment to buy another house which became our residence. The first house we bought became a rental property since 2018.. We had a balance of 230k from the bank when I took the equity. I just sold this rental property this month for 350k. My question is: How do I compute for the capital gains? Is it from the purchase price in 2005 or when we converted into a rental property? Please advise.

[@ThomasCChan]

Hi Danny, thanks for your question.. anytime until 2018 will be tax emept.. however please talk to your accountant.. so he can give you a exact number of taxes you need to pay..

[@cellochai]

You can make a subsection 45(2) election to designate your former residence as principal residence up to 4 years after the change of use to rental property. However, this election should be filed with your 2018 personal tax return. Late filing of the election is possible as long as you haven't deducted any capital cost allowance on the rental property against your rental income since 2018.

[@ThomasCChan]

@@cellochai glad i have an accountant here! 😆

[@dannycravalho2493]

@@cellochai thank you for the info you shared to me. Since I did not claim any capital cost allowance since 2018, does it mean that this property will be exempted from capital gains tax when I will file my income tax return next year?

[@cellochai]

@@dannycravalho2493 You will have to file the Subsection 45(2) election ASAP as it is already late. CRA will then let you know if they accept the late-filed election. If they do, then you will be able to designate the rental property as principal residence for the entire ownership period and the capital gain will be fully sheltered under the principal residence exemption, given you've disposed the property within 4 years after change of use.

[@TamaraRestall]

How long does the taxes take on a estate? Everything is paid from the estate except what ever the taxes will be Never collected senior benefits and yes capital gain is part of his estate Being done by an accountant

[@TheBigMan1955]

You failed to mention 1. Alternative Minimum Tax (AMT) risk when you make a substantial RRSP contribution in the tax year you realize a capital gain; 2. Donating shares to a charitable organization, not having to pay tax on the capital gain on the property donated and claiming a donation amount in the year the shares were donated; 3. Some losses could be Allowable Business Investment Loss (ABIL) if such losses are realized on Canadian Controlled Private Corporations (CCPC) shares or loans receivable / debentures.

[@TheBigMan1955]

ABILs may be applied against any source of income in the year of loss

[@TheBigMan1955]

By the way, you should consider making an RRSP spousal contribution, which may help save tax in the long term when withdrawing funds from your RRSP or RRIF IN future years

[@ThomasCChan]

Which method do you like the most?? Let me know! and please share it with your friend who recently sold a property or receive a huge profit from stock or crypto! Here is an E-book to help you prepare for retirement during this global crisis finance.thomascchan.com/high-inflation-retirement

[@jaysontapiod5353]

Thanks for the info..im a new subscriber..by the way i have tfsa and lets say from 15k it went to 25k and i want to withdraw all of the 25k..do i need to pay tax for that?

[@ThomasCChan]

@@jaysontapiod5353 thanks for joining the channel! So if you have 25k in your tfsa and you like to take it out. Everything is tax free. Hence the account name is tax free account. Ps if you need to take it out. Try take it out before Dec 31 So the room reset in Jan 1 and you have extra $10k room compare to others ☺️

[@jaysontapiod5353]

@@ThomasCChan wow..thank you very much for the info..i learned a lot today and its almost tax season..more power to your channel 😀

[@ThomasCChan]

@@jaysontapiod5353 great if you can share and comment on my latest video! 🙏😉

[@zeesmart6540]

I invested with my small business money in stocks and capital gain resulted to my personal name how I can save tax

[@Taxia123]

Try this method: Open a trading account in Singapore and there’s no capital gain tax forever. Use an American credit card to pay most bills and wire cash from Singapore to America to pay off credit cards.

[@myth-breaker-ww3jh]

World income is taxable in Canada for a Canadian Resident. So you are supposed to pay taxes for income earned in Singapore or Dubai or any country. Under CRS program CRA can easily figure out your world income if they choose to scrutinize you. and there are severe penalties for Tax Evasion.

[@michaelmorris2623]

Hi, quick question. Looking to buy a house and sell it to make some money. I make 80k per year and my wife make 0. If I put the house in my wife's name would I pay less capital gains tax?

[@Taxia123]

Yes

[@michaelmorris2623]

@@Taxia123 ok👍

[@VideosForRen]

If I make more $, I lose to the gov through tax. If I don't earn any $/income, I can get $ from the gov support. Hmmmm... Which path to choose...

[@robertk5441]

Good content, but background music is distracting, annoying, and unnecessary.

[@ThomasCChan]

Noted!

[@cypherpunk7675]

Next best thing to just abolishing taxes in favor of public DAOs.

[@MrSheSmiledAtMe]

I have one strategy: Don't declare it. Use a VPN and a decentralized exchange.

[@lovekidz988]

What is vpn ?

[@deadpool3978]

Can I just move out of the country? Made huge gains.

[@THEgenXFARMER]

50% is only bc !!!

[@conniemcqueenschodnhofer4744]

Mrs Clarissa is legit and her method works like magic I keep on earning every single week with her new strategy

[@mikejuwan7120]

Wow I' m just shock someone mentioned expert Mrs Clarissa thought I' m the only one trading with her

[@mikejuwan7120]

She helped me recover what I lost trying to trade my self

[@susannahrobert680]

I think I'm blessed because if not I wouldn't have met someone who is as spectacular as expert Mrs Clarissa I think she is the best broker I ever seen

[@lucaskurt8326]

My first investment with Mrs Clarissa gave me profit of over $24,000 us dollars and ever since then she has never failed to deliver and I can even say she's the most sincere broker I have known

[@alandidio7939]

Reach her through What's App ⏬⏬

[@danielkjm]

*PAY YOUR TAXES*

[@Todd.T]

What do you mean?

[@ybc8495]

everyone in here is paying taxes

[@lovekidz988]

For ur support. ?

[@ladyjade6446]

So you can collect government benefits? 🤢