Accountants are seeing significant audit actions by the CRA relating to real estate transactions. They are being very aggressive in their audit letters stating that gains are 100% taxable as business income and not capital gains. This is CRA’s starting position with regards to persons owning and selling multiple properties, particularly condos. The CRA is also questioning whether the residence was a principal residence.
In this video, I interview Jordan Weinberg who is a Chartered Accountant and we discuss how investors need to be more cautious now than ever before. The CRA are doing everything in their power to go after taxpayers and reassessing their real estate transactions and leaving the onus on the taxpayer to prove their innocence.
If you have any questions about how to determine whether to claim your real estate transaction as business income or capital gains, please feel free to contact Jordan at 416-515-3857 or through email at Jordan.Weinberg@mnp.ca