Investing In Canada Compared To The U.S???

General Real Estate Investing
1

I have heard that in Canada, if you sell an investment property you have not lived in for over a year you will be forced to pay capital gains tax. Say that you just finished renovating a fixer upper you have owned for only 3 months and just sold it for a $30,000 profit, how much of this would go to the capital gains tax? Also, does this make it much easier to make a living flipping houses in the U.S? OR, are there other things to consider that make it possible to do just as well flipping houses in Canada? Basically, I’d like to know both the advantages and disadvantages of flipping houses in Canada compared to the U.S. in terms of taxes, laws etc.

Also, What if you own a property for many years and have a tenant living in it, then you sell it, do you have to pay capital gains tax on that as well? If you could also explain the advantages/disadvantages of being a landlord for both single and multi-unit properties in Canada compared to the United States aswell.

Any responses would be greatly appreciatted.

Thanks in advance.

2

Well MrMan123 my philosophy is that real estate is local. You can make money in real estate wherever you are. You just need to learn which strategies and laws work where you are (not all strategies work everywhere) and pursue them. That will enable you to make your fortune in Canada or Boston or wherever you are.

3

There are no 1031 exchanges in Canada.
All gains are subject to capital gains. You take your profit, divide it in half, and pay your marginal income tax rate on that figure.

For example, if you pay 50% income tax and you make 100K on a property, write a cheque to Ottawa for $25K.

DAve

4

One thing about taxes. Sure nobody wants to pay more taxes than they have to, but you have a job and they take taxes out of your check. You don’t turn down a job bacause they are going to tax you. If it is a good deal, do it. Get expert help on how to minimize the taxes but remember that money is money.