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Old Posted Oct 24, 2017, 7:44 PM
kwoldtimer kwoldtimer is offline
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Join Date: Jan 2008
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Originally Posted by whatnext View Post
CRA adding Toronto to the crackdown on new condo assignments that has been going on in Vancouver:

Federal government auditors are scrutinizing 2,800 preconstruction condo flips in the Toronto area as part of a crackdown on tax evasion in the real estate industry.

The Canada Revenue Agency obtained court orders last year compelling 44 condominium developers to hand over information about people who sold their units before projects were completed, a practice known as paper flipping or selling on assignment. The agency is still analyzing the data it received...
How does CRA make its determination in the case of a pre-construction flip (assuming the subject does not have multiple flips)? Are the capital gains presumed to be taxable unless the flipper can prove that they should not be?
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