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Get ready condo flippers, Canada Revenue Agency is hunting y

Sat Apr 20, 2013 9:05 am ... urce=pubv1
“The tree is capital and it produces a fruit and the income is the profit that is derived when that fruit is sold,” he says.

If your condo is that tree and your rental income is the fruit and you make a profit from that rental income, that’s taxed as full income. You eventually sell the tree for more money and that’s just a capital gain, taxed at the 50% rate.

If your entire businesses is just trading trees and not producing fruit, that’s business income.

Wonder how many people have gotten away with just a capital gain on flipping condos over the past 10 years in Vancouver

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