How to Prevent a CRA Audit

Are you worried about how the CRA views your real estate transactions? Ever wondered what it takes to win a tax dispute involving property flipping?
Join me in this must-watch episode where Dean Blachford from Blachford Tax Law Firm shares his deep expertise on handling complex tax disputes with the CRA with a special focus on the intricacies of house flipping and rental property sales.
From avoiding tax court to understanding the tax implications of selling rental properties, Dean provides invaluable tips that could save you thousands.
Don’t miss Dean Blachford’s upcoming FREE webinar on Tuesday, June 18th, 2024 on "How to Avoid a Large CRA Audit." Learn how to avoid common pitfalls and protect yourself from costly CRA audits. Sign up here: us06web.zoom.us/webinar/regis...
Key Moments In This Episode
========================
00:00 Intro
02:16 Avoiding Tax Court
06:14 Tax on Selling Rentals
08:40 CRA's Criteria for Flips
12:41 Flipping Red Flags
14:36 Legal Flips & Taxes
18:03 CRA's ROI Focus
19:58 Large vs. Small Audits
23:44 Suspicious Construction Case
25:24 Winning with Evidence
If you have any questions or thoughts after watching this video, leave a comment below, and I’ll respond as soon as possible.
Don’t forget to subscribe to my channel for more videos on Canadian real estate and tax-saving strategies so you don’t miss a thing!
----------------------
Please make sure to speak to a professional that knows your personal situation before making a decision.
If you need to talk to someone on my team, email us at [e-mail].
----------------------
SIGN UP FOR OUR NEWSLETTER
Want to stay up-to-date with all the latest news about Real Estate Tax Tips, receive weekly tax tips and free real estate investment resources? Then subscribe to our newsletter here:
realestatetaxtips.ca/youtube
----------------------
Want to PAY LESS TAX as a real estate investor?
Check Out All of My Tax Saving Resources HERE: realestatetaxtips.ca/resource.
----------------------
FOLLOW ME ON SOCIAL MEDIA:
Facebook: / realestatetaxtips
Instagram: / realestatetaxtips
----------------------
⭐Cherry’s Best Real Estate Tax Tips ⭐
➡️Leaving Canada for U.S. Real Estate: • Leaving Canada for U.S...
➡️How to Write-off Automobile Expenses as Employees: • How to Write-off Autom...
➡️Unfair 2024 Federal Budget Coming: • Unfair 2024 Federal Bu...
➡️8 Essential Tax Tips for Real Estate Investors: • 8 Essential Tax Tips f...
➡️Rent-To-Own & Private Lending Tips You Need To Know:
• Rent-To-Own & Private...
➡️How To Claim Home Office Expenses (2024 Update): • How To Claim Home Offi...
----------------------
DISCLAIMER:
Real estate Tax planning is a personalized decision and will depend on your situation, priorities, and risk tolerance. Consult with your legal and tax advisors to ensure you get the best personalized advice.
The information contained in this video is for general information purposes only.
The information is provided by ECRB Consulting Inc., RealEstateTaxTips.ca, Cherry Chan Professional Corporation and Cherry Chan.
While we endeavour to keep the information up to date and correct, we make no representations or warranties of any kind, express or implied, about the completeness, accuracy, reliability, suitability, or availability of the article or the information, products, services, or related graphics contained on the presentation for any purpose. Any reliance on such information is, therefore, strictly at your own risk.
In no event will we be liable for any loss or damage, including, without limitation, indirect or consequential loss or damage, or any loss or damage whatsoever arising from loss of data or profits arising out of or connected with the use of this information.
#CherryChan #RealEstateTaxTips #RealEstateInvesting #CanadianInvestors #RealEstateCanada #canada #taxes #CRA #CanadianRealEstate #RealEstateTax #HouseFlipping #CRAaudit

[@RealEstateTaxTips]

We have an upcoming workshop on how to generate 6-figure passive income in U.S. Real Estate Investing on June 8th. Sign up here: USAworkshop-ch.eventbrite.ca/?aff=YT

[@wayneosborne9973]

Best way to avoid a CRA audit? Ask for one. Seriously, I was having trouble figuring out how to do the returns on my LTD company. I lacked the funds to hire an accountant. CRA got impatient so I asked them to audit me so I could learn from them. They refused and continued refusing. I have not been audited in over 30 years.

[@kennethyoung2077]

I was audited 50 years ago, once they found nothing they net writhed me, still nothing. However they did hit the jackpot from the person I bought the farm from. I also had a fried that was audited, his accountant used standard and accepted book keeping rules. The CRS changed the interpretation of the laws, with tax’s, fees and interest going back 10 years left him almost broke.

[@buhaycanada1917]

well flippers also influenced house prices. it's good there's a balance in nature

[@petergleeson1530]

Dean! Peter, Zoe’s friend. So great to see you on here and hear all you professional experiences, I think it’s been 15 years. I happened to start following Cherry’s channel just last week and I saw your image on the thumbnail. Great work, I’m glad you’re doing well. 😊

[@RealEstateTaxTips]

We'll pass your message to Dean for sure. It was definitely an honour to interview Dean.

[@gyoung4597]

Really excellent interview, Cherry!! Thanks!

[@RealEstateTaxTips]

Glad it's useful

[@obiomachris7685]

Hi, I recently bought a new built condo. How do i go about getting my GST rebate? The developer told me I can get it when filing my tax. Now the CPA who did my tax said it's the developer thar should help me get the gst rebate I paid. I m confused on how to go about it. I need your advice please. Thanks

[@lynnspencer7753]

Thank you to both of you.

[@tripod5147]

found your channel just recently. love all the info you give.

[@RealEstateTaxTips]

Welcome aboard!

[@oceanbreeze4361]

Do you do dual US/CAN tax returns?

[@Raygetto]

To be fair it wouldn’t be a cash cow if the real estate industry wasn’t ripe with non-compliance and straight up tax evasion.

[@RealEstateTaxTips]

Some are legitimate transactions and some are really straight up tax evasion.

[@KD-mz5xv]

great info thanks you

[@RealEstateTaxTips]

Glad it was helpful!

[@SPLToronto]

Good content thank you!

[@RealEstateTaxTips]

Thank you !

[@Som_2023]

Hello Cherry, Do CRA audit or charge any tax if we bring money from any other country (india) to Canada through a bank transfer. if yes , how much money is allowed and will not attract CRA Audit?

[@RealEstateTaxTips]

Not that I'm aware of unless the money is part of your worldwide income, but you would have already reported it on your Canadian tax return.

[@pabawathieperera9118]

Is it possible to do a 1031 exchange in Canada for a multiunit property for the same amount in value not paying tax?

[@RealEstateTaxTips]

1031 is not available in Canada. Generally the answer is a no.

[@HaviccB]

Be honest..easy

[@Patil.Vikram]

Hello Cherry, thank you doing this. I was living in the condo from 2012 to 2020 and moved to my new houses. Rented the condo for 2 years & sold last year in 2023. I believe in my reporting on capital gains, it is the difference between the fair value price of the property in 2020 (when I rented) and the sold price in 2023. It is not the original price of the property I brought in 2012 and sold price in 2023. I live for 8-9 years in that condo. Hope you can help.

[@RealEstateTaxTips]

Sounds like you have a specific question to a very specific situation - feel free to connect with your accountant or if you don't have one, feel free to contact us 416-548-4228

[@amritbhathal1487]

Speak with your accountant but you should have completed a 45(2) election in 2020 to designate the personal residence to rental property. Then reported the capital gains on the sale of the property. Your Adjusted cost basis would have been adjusted from that taxation year and pay less capital gains tax on the sale of it. I would suggest getting in touch with an accountant right away to help correct and navigate yourself to report it correctly!

[@Patil.Vikram]

@@amritbhathal1487 I have reached out to my accountant and see what he has to say. I have been reporting the rental income from the day it was rented to CRA.

[@bonniedittrich5855]

Why would these people not get professional advice before they do these things!?!?!