Canada first introduced capital gains taxation in 1972. The GST is a federal, value-added tax that applies to the supply of most goods and services in Canada. Almost everyone has to pay GST/HST on the purchase of taxable supplies of goods and services, and on gains realized on the disposition of capital property. These tax can apply to both residential and commercial real properties.
The application of evolving accounting and tax rules to real estate business realities remains a significant challenge. The increase in complexity in the terms of real estate transactions has resulted in diversity of practicesfor revenue recognition by companies in this sector.
Success will require weighing the advice and real estate investing and tax strategies of several professionals - lawyers, insurance agents, lenders, and accountants. This combination of experience is needed to realize the full benefit of your real estate investments.Whether or not push-down accounting for financial statements is appropriate for a particular real estate company requires careful consideration of a number of factors.
The real estate industry is highly susceptible to changing demographics, interest rate, and economic indicators. To maintain a competitive edge, companies need to ensure that they are taking calculated risks and seizing the right opportunities.
At Faris CPA, we understand challenges facing the real estate industry and the concerns of CRA officials. We can bring clarity and simplicity to the issues and complexities that your organization faces on a day-to-day basis by providing high level accounting, financial, taxation, and business advisory services.
Call us today at for a Confidential Initial Assessment about any accounting or tax matters. As an experienced, certified, licensed, and expert tax accounting firm we help our clients handle all tax and accounting issues. Give us a call today at 1 844 340 5771.
Sam Faris is a Toronto-based Chartered Professional Accountant who practices as an independent consultant on high-level Canadian tax matters and handles disputes with CRA. He has recently published an article a business magazine: HERE