4 Things You Should Know Before Investing in Canada
Sunday Mar 08th, 2020
Planning to do real estate investment in Canada? Before you hop into the investment procedure, you need to know some points to make sure that you are refraining yourself from doing any illegal process. Today we will be discussing about some very important points that you need to take care of while doing investment in the real estate world in Canada. If you are not Canada investing in Canada but in other countries, then also you can go through this guide to have a basic knowledge what are the mandatory things you need to know.
So, let’s check out the important points to focus on before you do real estate investment in Canada:
4 Points to Keep in Mind While Investing in Real Estate in Canada:
- Reporting Rental Income:
Being the investor in Canada, it is mandatory that if you are owning any property you have to report about all the rental income and associated expense with it annually. No matter, you have earned profit from it or you have suffered from a huge loss, you have to submit the report that says everything about the profit and loss you earned from the property. The advantage in reporting rental income is that suppose you have suffered from a huge loss, you can still use that thing to represent as the off-set income that you earn from other sources, it can be any.
- Capital Gains:
As you know gains represents the “profit” so the name Capital gains represents that if you have done real estate investment in Canada, and you have earned a good profit from it then you have to pay a certain amount of tax from that total profit. This is all Capital Gains refers to.
- Principal Residence Exemption:
Let us understand this with an example. Suppose you have done real estate investment in Canada, and you own a property. Now, in that property either you have lived or your family members or any relatives have lived then in this scenario you will be benefited as your total tax will be reduced in the capital gains. But the condition is either you should have stayed their or any of your family member not an outsider.
- HST/ GST New Housing Rate:
If you own not one but multiple properties then make sure you have all your documents with you and you have submitted the accurate details about the property to the respective builder. If not, then you might get into trouble when CRA comes for an audit.
There are hundreds of investors who do real estate investment in Canada every year and if you are also an investor then it is important for you to know these things before you start investing in Canada.
Share this information with your friends who are in the investing field so that they will also be aware of these points if they are not till now. Invest and make your dream home.