My understanding is that he had it listed for sale while it was empty, not listed for rent.This quote is hidden because you are ignoring this member. Show Quote
My understanding is that he had it listed for sale while it was empty, not listed for rent.This quote is hidden because you are ignoring this member. Show Quote
triple- I should have been more politically correct on some wording but the fact remains new landlords have a lot of overlap on items theyll buy for their rentals that they can possibly use elsewhere.
For example at some point the OP will start receiving calls about plugged toilets, problems with heat or other general issues. He can be prepared and buy equipment in advance or be stuck without the tools during an emergency late at night. At some point he wont be in the city to help his tenants and will need family checking in on things for him.
On the topic of an accountant you'll notice the first post I said speak with an accountant and yes I said that again later on. I'm happy to leave things to the experts as everyones situation is different.
Now the question begs if reappraisal is helping since it's worth less than when OP bought the place. He can always tell CRA the original 2015 purchase price when he sells it, reappraisal to today's lower value will trigger cap gain when he sells it for more down the road, even if OP only recover what he paid for.This quote is hidden because you are ignoring this member. Show Quote
jwslam covers most things, and gwill's tips are ok within reason.
Also OP, if you have $500 neg cash flow but if your principle portion of mortgage payment is over $500, you still have income. And given you have a day job, it'll be taxed at top rate.
Last edited by Xtrema; 03-13-2019 at 12:17 PM.
i have come across this before but thought it was only for a true sale. Now that i read into the link you provided more, it does make sense that this applies for changing use too.This quote is hidden because you are ignoring this member. Show Quote
this was my biggest concern. assuming a recovery in the market, i'm basically setting myself up for a big capital gain depending on what i use for the current value. Ideally i would like to just use my purchase price in 2015 as the value but not sure if that will fly. ultimately it's not going to be a crazy gain like Vancouver/Toronto markets so maybe i'll be able to fly under the radar from CRA.This quote is hidden because you are ignoring this member. Show Quote
yeah realized this after jwslam's post. it's about 900 principle so i guess i'm "earning" around 400 extra a month. that kinda sucks but oh well, not much i can do about it at this point.This quote is hidden because you are ignoring this member. Show Quote
So yeah, unless you have some room in RRSP to offset that $400, you owe CRA another $200/month when you file.This quote is hidden because you are ignoring this member. Show Quote
This is why I set rent at less than market to get the best applicants. I can subsidize it as long as I still have a day job. You are giving 1/2 to CRA anyway, may as well try to get the best clients you can for less trouble.