Let's talk Canadian Real Estate (buying land and taxes)

Say there is a piece of land valued at 300 000$, in a fast developping region, and the seller wants to sell it to you for 200 000$ because he is in need of cash. He asks for a check for 75 000 and 125 000 in cash. He does this simply because he wants to put down on paper that the land was only sold for 75 000$ so that he doesnt pay all those taxes on the additional 125 000.

Now you own this piece of land, and say the value goes up to 400 000$. If you were to sell it, how much taxes would you pay? Is it easy to find people to give you a check of 150 000$ and the rest in cash? What other options do you have to profit from this as much as possible and not lose almost everything in taxes?

thank you!

You can also contact me on ICQ instead of talking about it here: 178-340-550

[the Shemp]

crowbar hotel...

[Dagwolf]

Run away, man! Don't deal with that guy without a real estate lawyer, and get a receipt for the full amount. I smell low tide.

Originally Posted by Dagwolf

Run away, man! Don't deal with that guy without a real estate lawyer, and get a receipt for the full amount. I smell low tide.

everything is fully legal including a notary and whatever lawyer that is wished to be brought in.

doesnt what he is doing make sense?

[the Shemp]

Originally Posted by bdjuf

everything is fully legal including a notary and whatever lawyer that is wished to be brought in.

doesnt what he is doing make sense?

you said the land is 300K, but he will sell it for 200K, so that is a loss of 100K.
he is doing it to save the taxes on 125K.... which would be far less than the 100K he lost by selling it low....am i missing something here?

[sonofsam]

Originally Posted by the Shemp

you said the land is 300K, but he will sell it for 200K, so that is a loss of 100K.
he is doing it to save the taxes on 125K.... which would be far less than the 100K he lost by selling it low....am i missing something here?

that's the way i read it also

and as far as i know, they arn't going to be taxing you 1/3rd of the home value


btw: he wouldn't need to drop the price 100 grand to get "fast cash" im sure if he dropped it 50 grand below market value, a real estate agent would put up his own money to buy it and flip it

Originally Posted by the Shemp

you said the land is 300K, but he will sell it for 200K, so that is a loss of 100K.
he is doing it to save the taxes on 125K.... which would be far less than the 100K he lost by selling it low....am i missing something here?

see I don't know how much the taxes are for 225k profit on land

selling it for 200k or 300k is a big difference in finding a buyer in a short amount of time

[Sarah - GTS]

Sounds very shady to me......plus your cost base on paper would be much lower than it should be, and then if the value goes up and you sell for $400k, but your cost base is only $75k then you will pay a capital gains tax on $275 yikes!
Mind you I wouldn't think it would matter how the funds are actually paid, whether cheque or cash, the sale price as per the lawyers docs should all be full price.........

[sean416]

Originally Posted by Sarah - GTS

plus your cost base on paper would be much lower than it should be, and then if the value goes up and you sell for $400k, but your cost base is only $75k then you will pay a capital gains tax on $275 yikes!

Whats 'yikes!' is your math, you mean 325k not 275k

[directfiesta]

info here: http://www.webcomicsnation.com/aaron...gay/series.php

[Veterans Day]

it gets better with every post

[sfera]

dont know canadian tax laws but if they are similar to the us, the irs can track your deposits in your bank acount

[Phoenix]

wont you also get hit with the capital gains?
like you bought on paper for 75k and now it is worth 400 so you pay taxes on 325k

[Kassidy]

When it sounds too good to be true, it usually is.

Sounds very scammy to me. Money laundering maybe? Do you want to get caught up in this guy's legal issues?

I'd bet that the capital gains you'd pay on this transaction would be the least of your worry.

[Jer]

bdjuf is all about s-am. If it's a four letter word that starts with s and ends with am he loves it!

j/k

[Axeman]

Originally Posted by Phoenix

wont you also get hit with the capital gains?
like you bought on paper for 75k and now it is worth 400 so you pay taxes on 325k

Ding Ding Ding...

If your buying this, you better be damn sure the FULL price is on the contract so that you don't get fucked by the capital gains. If that guy wants to try and cheat the taxes its on him.

But this sounds way to shady to me.

[beemk]

if it sounds too good to be true, it probably is.

[Saeun]

I was at the airport last night. Before taking off, all the planes were lined up, waiting to take to the runway. As we came to the corner approaching the runway, I looked out of the window and saw there was an Air Canada plane in front of us. I just saw it starting to speed up down the runway, before the plane I was in straightened up, so I didn't actually see the plane lifting off.

Secretly... I was hoping that it would stall & crash.

[WiredGuy]

Sale price is a sale price. Whether you do it in cash, check, pennies, whatever doesn't matter. Now if he's looking to take that cash and underreport the sale, run. Run quick. He's already cutting out the $100k from the $300k value and he wants to hide even more. Way too shady to even consider in my opinion.

And as Sarah mentioned, your capital gains will be huge and will actually hurt you in the long run... ie: If you sell for $400k and on paper you only paid $75k, then you're going to pay taxes on capital gains on $325k even though you only paid $200k. This is going to hurt you in the long run if it works, but to me, its too high risk. Run.

WG

[grumpy]

dont you have an account who you can ask those things. You think a good accountant is here or lawyer???? Ask an accountant, get his advice. Or do you wanna show of about the deal. Wich will bite you in the ass btw.

[s9ann0]

you are asking advice on this shit on GFY = you are mad son