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tdma800
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Posts: 2977
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Re: What must the governments do to stop speculation?

Sat Apr 22, 2017 12:33 pm

What I don't understand is why the CRA doesn't collect capital gains on these assignments, they should put a withholding tax on the proceeds of the assignment.  This is total BS that the gov doesn't crack down on this, and the media only talks about a speculator tax....how about enforcing our existing tax laws!!!



From the Globe and Mail:Vancouver’s presale condo market reaches fever pitch - http://www.theglobeandmail.com/real-est ... icle+Links
Ottawa is cracking down...

"Ottawa to spend $500M on pursuit of tax cheats, budget reveals
Money will be used to hire more auditors and develop computer systems to “target high-risk international tax” evasion..."


https://www.thestar.com/news/canada/201 ... veals.html


Of course, a withholding tax would also be a good thing.  :mrgreen:
instead of complaining about things that aren't related to you, try to get a post secondary education and better oneself
 
VanLord
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Re: What must the governments do to stop speculation?

Sat Apr 22, 2017 12:43 pm

What I don't understand is why the CRA doesn't collect capital gains on these assignments, they should put a withholding tax on the proceeds of the assignment.  This is total BS that the gov doesn't crack down on this, and the media only talks about a speculator tax....how about enforcing our existing tax laws!!!



From the Globe and Mail:Vancouver’s presale condo market reaches fever pitch - http://www.theglobeandmail.com/real-est ... icle+Links
Ottawa is cracking down...

"Ottawa to spend $500M on pursuit of tax cheats, budget reveals
Money will be used to hire more auditors and develop computer systems to “target high-risk international tax” evasion..."


https://www.thestar.com/news/canada/201 ... veals.html


Of course, a withholding tax would also be a good thing.  :mrgreen:

Yes but this is likely going to tighten the screws on avg people not addressing the actual problems

Kinda like when the US hired tons of cops after 911 and then proceed to squeeze avg people for minor speeding and road infractions.
 
tdma800
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Posts: 2977
Joined: Wed Jan 23, 2008 9:12 am
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Re: What must the governments do to stop speculation?

Sat Apr 22, 2017 12:46 pm

What I don't understand is why the CRA doesn't collect capital gains on these assignments, they should put a withholding tax on the proceeds of the assignment.  This is total BS that the gov doesn't crack down on this, and the media only talks about a speculator tax....how about enforcing our existing tax laws!!!



From the Globe and Mail:Vancouver’s presale condo market reaches fever pitch - http://www.theglobeandmail.com/real-est ... icle+Links
Ottawa is cracking down...

"Ottawa to spend $500M on pursuit of tax cheats, budget reveals
Money will be used to hire more auditors and develop computer systems to “target high-risk international tax” evasion..."


https://www.thestar.com/news/canada/201 ... veals.html


Of course, a withholding tax would also be a good thing.  :mrgreen:

Yes but this is likely going to tighten the screws on avg people not addressing the actual problems

Kinda like when the US hired tons of cops after 911 and then proceed to squeeze avg people for minor speeding and road infractions.
^-- as usual, incorrect.
the US has always had a different style of policing. plonk
 
tdma800
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Posts: 2977
Joined: Wed Jan 23, 2008 9:12 am
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Re: What must the governments do to stop speculation?

Sat Apr 22, 2017 12:47 pm

What I don't understand is why the CRA doesn't collect capital gains on these assignments, they should put a withholding tax on the proceeds of the assignment.  This is total BS that the gov doesn't crack down on this, and the media only talks about a speculator tax....how about enforcing our existing tax laws!!!



From the Globe and Mail:Vancouver’s presale condo market reaches fever pitch - http://www.theglobeandmail.com/real-est ... icle+Links
Ottawa is cracking down...

"Ottawa to spend $500M on pursuit of tax cheats, budget reveals
Money will be used to hire more auditors and develop computer systems to “target high-risk international tax” evasion..."


https://www.thestar.com/news/canada/201 ... veals.html


Of course, a withholding tax would also be a good thing.  :mrgreen:
^-- lol even the droolers cant agree on which
 
tdma800
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Re: What must the governments do to stop speculation?

Sat Apr 22, 2017 12:48 pm

People that actually live here know we're going to the moon!
 
jimtan
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Re: What must the governments do to stop speculation?

Sat Apr 22, 2017 1:17 pm

What I don't understand is why the CRA doesn't collect capital gains on these assignments, they should put a withholding tax on the proceeds of the assignment.  This is total BS that the gov doesn't crack down on this, and the media only talks about a speculator tax....how about enforcing our existing tax laws!!!



From the Globe and Mail:Vancouver’s presale condo market reaches fever pitch - http://www.theglobeandmail.com/real-est ... icle+Links
Ottawa is cracking down...

"Ottawa to spend $500M on pursuit of tax cheats, budget reveals
Money will be used to hire more auditors and develop computer systems to “target high-risk international tax” evasion..."


https://www.thestar.com/news/canada/201 ... veals.html


Of course, a withholding tax would also be a good thing.  :mrgreen:

Yes but this is likely going to tighten the screws on avg people not addressing the actual problems

Kinda like when the US hired tons of cops after 911 and then proceed to squeeze avg people for minor speeding and road infractions.
I think that Ottawa under young Trudeau will do better than that.
The problem is that the punishments are so lenient. In the States, the IRS send people to jail regularly.
 
tdma800
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Posts: 2977
Joined: Wed Jan 23, 2008 9:12 am
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Re: What must the governments do to stop speculation?

Sat Apr 22, 2017 1:28 pm

Ottawa is cracking down...

"Ottawa to spend $500M on pursuit of tax cheats, budget reveals
Money will be used to hire more auditors and develop computer systems to “target high-risk international tax” evasion..."


https://www.thestar.com/news/canada/201 ... veals.html


Of course, a withholding tax would also be a good thing.  :mrgreen:

Yes but this is likely going to tighten the screws on avg people not addressing the actual problems

Kinda like when the US hired tons of cops after 911 and then proceed to squeeze avg people for minor speeding and road infractions.
I think that Ottawa under young Trudeau will do better than that.
The problem is that the punishments are so lenient. In the States, the IRS send people to jail regularly.
The non issue here is that the penalties are so strict, in Canada, the Crown sends residents to prison on a regular basis
 
tdma800
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Re: What must the governments do to stop speculation?

Sat Apr 22, 2017 1:29 pm

 
yzfr1
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Re: What must the governments do to stop speculation?

Sat Apr 22, 2017 3:09 pm

Let's cut out the personal attacks and one-upmanship and talk about real estate instead.
When jitman runs out of arguments it always results to personal attacks. Just like when diplomacy ends, vilolence starts. Again it illustrates my point.

Yes selling a presale assignment can be taxed, anytime anything trades hand it can be taxed. Selling lemonade on the side of the road can be taxed. When you buy a used car on Craigslist and register the car you must declare the value and then its taxed. Most people cheat and declare a lower value.

My point about taxing a presale is, without setting up a very complicated regulatory system it's impossible to tax.

When you enter a contract on a presale, you have the right to purchase the property at a future date and a fixed price. Your right can or cannot be excersized.

If the market drops you can choose not to buy it.

Now when you sell a pre build. No property is changing hands. You are selling the right to buy that property.

How will you tax it? There is no intrinsic value of the contract, its the right to execute at a date. Its like a futures contract.

Now what if someone holding onto a pre purchased condo and the value goes down. Should they be taxed as well?

My whole point is, its impossible to tax the transfer of the contract.

All you can do is ban foreign ownership.
 
tdma800
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Re: What must the governments do to stop speculation?

Sat Apr 22, 2017 3:41 pm

Let's cut out the personal attacks and one-upmanship and talk about real estate instead.
When jitman runs out of arguments it always results to personal attacks. Just like when diplomacy ends, vilolence starts. Again it illustrates my point.

Yes selling a presale assignment can be taxed, anytime anything trades hand it can be taxed. Selling lemonade on the side of the road can be taxed. When you buy a used car on Craigslist and register the car you must declare the value and then its taxed. Most people cheat and declare a lower value.

My point about taxing a presale is, without setting up a very complicated regulatory system it's impossible to tax.

When you enter a contract on a presale, you have the right to purchase the property at a future date and a fixed price. Your right can or cannot be excersized.

If the market drops you can choose not to buy it.

Now when you sell a pre build. No property is changing hands. You are selling the right to buy that property.

How will you tax it? There is no intrinsic value of the contract, its the right to execute at a date. Its like a futures contract.

Now what if someone holding onto a pre purchased condo and the value goes down. Should they be taxed as well?

My whole point is, its impossible to tax the transfer of the contract.

All you can do is ban foreign ownership.
just use the bc initiative law
 
myraa
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Re: What must the governments do to stop speculation?

Sat Apr 22, 2017 5:31 pm

Can they tax assignments like they do stock options?  With a stock option you have at the right to buy a stock at a fixed price.  You can choose to exercise the option and buy the stock but if you sell the options to someone else for a profit you would incur a taxable gain.  I think the logistics of how to implement this would be tricky for assignments.

Alternatively, can they just ban the sale of assignments?  If you want to sell it early you would have to sell it back to the builder.  Or you can wait until after completion to sell it but would have to pay property transfer tax.  

Any thoughts?

 
 
tdma800
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Posts: 2977
Joined: Wed Jan 23, 2008 9:12 am
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Re: What must the governments do to stop speculation?

Sat Apr 22, 2017 5:35 pm

Can they tax assignments like they do stock options?  With a stock option you have at the right to buy a stock at a fixed price.  You can choose to exercise the option and buy the stock but if you sell the options to someone else for a profit you would incur a taxable gain.  I think the logistics of how to implement this would be tricky for assignments.

Alternatively, can they just ban the sale of assignments?  If you want to sell it early you would have to sell it back to the builder.  Or you can wait until after completion to sell it but would have to pay property transfer tax.  

Any thoughts?

 
why should it concern others when people a place that doesnt exist yet and sell it for a higher price?

and for anyone thats actually done it instead of being just envious they'd know there are already high fees for doing that
 
reallyreal2
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Re: What must the governments do to stop speculation?

Sat Apr 22, 2017 5:40 pm

Let's cut out the personal attacks and one-upmanship and talk about real estate instead.
When jitman runs out of arguments it always results to personal attacks. Just like when diplomacy ends, vilolence starts. Again it illustrates my point.

Yes selling a presale assignment can be taxed, anytime anything trades hand it can be taxed. Selling lemonade on the side of the road can be taxed. When you buy a used car on Craigslist and register the car you must declare the value and then its taxed. Most people cheat and declare a lower value.

My point about taxing a presale is, without setting up a very complicated regulatory system it's impossible to tax.

When you enter a contract on a presale, you have the right to purchase the property at a future date and a fixed price. Your right can or cannot be excersized.

If the market drops you can choose not to buy it.

Now when you sell a pre build. No property is changing hands. You are selling the right to buy that property.

How will you tax it? There is no intrinsic value of the contract, its the right to execute at a date. Its like a futures contract.

Now what if someone holding onto a pre purchased condo and the value goes down. Should they be taxed as well?

My whole point is, its impossible to tax the transfer of the contract.

All you can do is ban foreign ownership.
Sorry - I don't think you understand how presales work. It is a contract - you have to buy at a future date. You don't have an option to buy and if the market goes down walk away.
 
tdma800
Real Estate Talker
Posts: 2977
Joined: Wed Jan 23, 2008 9:12 am
Contact:

Re: What must the governments do to stop speculation?

Sat Apr 22, 2017 5:41 pm

Let's cut out the personal attacks and one-upmanship and talk about real estate instead.
When jitman runs out of arguments it always results to personal attacks. Just like when diplomacy ends, vilolence starts. Again it illustrates my point.

Yes selling a presale assignment can be taxed, anytime anything trades hand it can be taxed. Selling lemonade on the side of the road can be taxed. When you buy a used car on Craigslist and register the car you must declare the value and then its taxed. Most people cheat and declare a lower value.

My point about taxing a presale is, without setting up a very complicated regulatory system it's impossible to tax.

When you enter a contract on a presale, you have the right to purchase the property at a future date and a fixed price. Your right can or cannot be excersized.

If the market drops you can choose not to buy it.

Now when you sell a pre build. No property is changing hands. You are selling the right to buy that property.

How will you tax it? There is no intrinsic value of the contract, its the right to execute at a date. Its like a futures contract.

Now what if someone holding onto a pre purchased condo and the value goes down. Should they be taxed as well?

My whole point is, its impossible to tax the transfer of the contract.

All you can do is ban foreign ownership.
Sorry - I don't think you understand how presales work.  It is a contract - you have to buy at a future date.  You don't have an option to buy and if the market goes down walk away.
Sorry - I don't think you understand how presales work.  It is a contract - you don't have to buy at a future date.  You do have an option to buy and if the market goes down walk away.
 
tdma800
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Posts: 2977
Joined: Wed Jan 23, 2008 9:12 am
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Re: What must the governments do to stop speculation?

Sat Apr 22, 2017 5:42 pm

Let's cut out the personal attacks and one-upmanship and talk about real estate instead.
When jitman runs out of arguments it always results to personal attacks. Just like when diplomacy ends, vilolence starts. Again it illustrates my point.

Yes selling a presale assignment can be taxed, anytime anything trades hand it can be taxed. Selling lemonade on the side of the road can be taxed. When you buy a used car on Craigslist and register the car you must declare the value and then its taxed. Most people cheat and declare a lower value.

My point about taxing a presale is, without setting up a very complicated regulatory system it's impossible to tax.

When you enter a contract on a presale, you have the right to purchase the property at a future date and a fixed price. Your right can or cannot be excersized.

If the market drops you can choose not to buy it.

Now when you sell a pre build. No property is changing hands. You are selling the right to buy that property.

How will you tax it? There is no intrinsic value of the contract, its the right to execute at a date. Its like a futures contract.

Now what if someone holding onto a pre purchased condo and the value goes down. Should they be taxed as well?

My whole point is, its impossible to tax the transfer of the contract.

All you can do is ban foreign ownership
+1 and anyone(except fakefake3 who's actually done one before knows you can walk away (without a deposit though) lol
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