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Tax Auditors target condo sellers in hunt for "flippers"

Honest Advertising for condo projects

2 more drug labs found in Scarborough Highrise

Ont Government Stricter Requirements for Balcony Glass

CANADA.COM

Condo Buyers Research Builder - National Post

CONDO BUSINESS  REMI NETWORK

Honest Advertising for Condo Projects

GLOBAL NEWS TORONTO

Condo-shopping? Be wary of window repair cost

METRO NEWS

Changes to Condo Act will offer greater protection Liberals say

 Toronto Condo Fraud: Embezzlement, Kickbacks and bid-rigging

MISSISSAUGA NEWS

Realtor Rallies Disgruntled Condo Owners

Fraud Allegations Shock Condo Owners

Mississauga business welcomes Trudeau with hesitation

City lets Mayors' Caucus take lead on land transfer tax

Condo Life means pared-down seasonal decorating

Expert to Province: Tread carefully with Condominium Act Revision

Mississauga's real estate sector expects another good year ahead

COA pres says Condo Act revisions don't go far enough

Significant number of Marilyn Monroe condo units being sold

Condo Act Review lobbyist calls for more owners to join the fight

Interest groups divided over condo act lobbying efforts

OMB rejection won't deter Oakville homebuilder says Realtor

 NATIONAL POST

Condo Buyers - by Helen Morris, National Post

NEWS RELEASE PROVINCIAL GOVERNMENT

Building a Better Condominium Act

QP Briefing - Queen's park

Condo Changes won't come soon

REM REAL ESTATE MAGAZINE remonline.com

Ontario moves to License Condo Managers

SIMCOE COUNTY

Vaughan condo fire leaves owners in limbo

THE SPEC - Hamilton - thespec.com

Strong United Voice Would Help Protect Condo Owners

TORONTO SUN

Understanding Condo Insurance - Condo Hero

Mississauga Condo Owners now two  months without elevators

TORONTO STAR

Push to Revamp the Condo Act

Property Manager bilked $20 M in condo fraud

Condo Life means pared-down seasonal decorating

Toronto Star Queens Park - Changes to Condo Act will offer protection

Cost of Gridlock - is that condo parking spot becoming an albatross

Condo Owners should have more say, panel recommends

TORONTO ist

Will Condo -Dwellers have a say this election?

TORONTO MORTGAGE GROUP.COM

Windows Tempt Buyers

OTHER REPORTS & ARTICLES

Condo Conundrum by Ted Kesik, PH.D. P.Eng UofT

Can Highly Glazed Building Facades be Green? by John Straube, University of Waterloo

YOUR WARD NEWS

Round Two in the Condo Bullpen

TV NEWS 

CP24 NEWS

New Ont. rules aim to prevent glass falling from balconies

Glass falls from condo, stretch of Bay Street closed

High-rises making firefighting harder, Stewart Says

Woman injured by falling glass - Street closed by falling glass

City Inspectors called in after glass falls from building

CBC NEWS - THE NATIONAL

Throw away Buildings - The slow-motion failure of Toronto's glass condos

Throw away Buildings - Thermal Window Failure: How it Happens

Fallen condo glass being investigated

Window pane falls from Ottawa Condo Balcony - Ottawa CBC News

 
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Seniors need assistance; in particular to the availability of answers to questions they may have and/or a support system geared to Seniors in condominiums. Many Seniors, especially those with a chronic condition may be in their units and not have a support system in the event of a serious alert of medical issues.

Seniors over the age of 65 are the fastest growing users of the internet.   The internet helps them to keep in touch with their family and friends and day-to-day activity such as banking and obtaining information on health related questions.  At the present time there is a digital consumer application called Mi-health which helps individuals to take better control of their health but it will not help in emergency situations in Condominiums. Ideally with the growing popularity of medic alert devices consideration should be taken by Builders and our Ministry of Health to implement a specific device for emergency situations in Condominiums both for Seniors and other Condo Dwellers. At present there are no Health and Safety Mandates in Condominiums defined in the Condo Act.

The Ministry of Consumers Services has been approached by COA - Condo Owners Association to take into account the various Ministry's to ensure that all aspects relating to proper governance, health and safety and proper Municipal regulations be reviewed and recommendations be brought forward. The recommendations would be geared to specific relating to the operations of a Condominium. Example: Health and Safety Mandates for spas and swimming pools; specific guidelines relating to Hoarders as a Health issue.

Each Condo had to confirm compliance with the AODA - Accessibility for Ontarians with Disabilities Act however the Government almost missed the boat with Condominiums when they recently mandated new guidelines as of JANUARY 2012 enforcing up to a $50,000 per day or part day for Directors and Officers, and fines of up to $100,000 per day for Corporations not in compliance with the AODA. A Condo Corporation does fall under the AODA for compliance therefore recognizing a higher possibility of Seniors in Condominiums who may require assistance It is a growing concern and the Condo Review process should be including the entire situation of Seniors in Condominiums and also recognize the implementation of stronger guidelines relating to the AODA

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The Condo Owners Association recognizes how Charitable Organizations and Non Profit Associations play an important role in everyone’s lives
 

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Mississauga Heritage Society http://www.heritagemississauga.com/index.php

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Investor Information in a National Post article

Get ready condo flippers, Canada Revenue Agency is hunting you

National Post | Garry Marr | 13/04/20 | Last Updated: 13/04/19 2:23 PM ET

You just sold your condo, you made a hefty profit and know you have to pay your taxes.

The bill might be more than you think.

If it’s your principle residence, there’s no tax, as long as you have the paperwork to prove it. The Canada Revenue Agency is taking a closer look at the condominium sector in what some in the industry have dubbed the “Condo Project.”

Even if you own up to it being an investment property, you may not be allowed the capital gains tax break and that means a bigger hunk of your profit going to Ottawa.

Let’s say your gain is $100,000 and your tax bracket is 46%. Capital gains are taxed at 50% so you would only owe $23,000 on that profit.

Not so fast! If the CRA says you are in the business of flipping condominiums, get ready to pay based on the gain being counted as income for a tax bill of twice the amount at $46,000. And, it gets worse. You could also face a fine of up to 50% of the tax owed for making a false disclosure.

With the deadline for filing taxes coming up April 30, you might want to think very carefully about how you record that housing sale you made in 2012.

Sam Papadopoulous, senior public affairs advisor-manager with CRA’s Ontario region, acknowledges that the strength of the condo sector has attracted the attention of the taxman.

“We do from time to time target some sectors more closely than others,” he said. “We look at the real estate market in general. Of course, [there is more focus], it’s a hot market.”

People in the industry have a different view.

Some suggest it fits in with the recent budget when Jim Flaherty, the finance minister, announced his government was taking a closer look at loopholes and tax cheats — hoping to shrink its deficit in the process.

One of the issues attracting the attention of the CRA is assignment clauses, where one person agrees to purchase a condo before it is built but ultimately sells his or her right to buy that condo before the building is even registered.

Builders usually collect a fee for that privilege but ultimately when title is registered at the land registry office the original purchaser’s name is nowhere to be found.

While most builders are unlikely to voluntarily supply a list of properties in their building that were assigned, they could be forced to cough it up if they are audited by the CRA.

Those people who have assigned their units to another buyer are going to be hard pressed to prove they planned to use the unit as an investment property rather just flipping — meaning the CRA is highly unlikely to allow them to count money made at the lower capital gains rate.

“If you keep [assigning property] then it is not capital gains, that’s trade and that’s income,” said Mr. Papadopoulous, adding you do it a “couple of times” and it’s income. “Of course, that’s part of [what they are investigating].”

The warning to people flipping property and thinking they can get away without reporting the gain is pretty clear.

“We live in the information technology age,” said Mr. Papadopoulous, who wouldn’t get into how CRA is tracking down the tax evaders. “We are putting our resources to work and following the trail where we can.”

David Chodikoff, a tax lawyer and partner at Miller Thomson, said he’s seen the CRA go after people who have been living in a property and still question it as a principal residence.

CRA starts with a letter to a taxpayer asking them for details about when and why they sold their property and people often fill out the questionnaire without legal advice.

The issue goes all the way back to 1971 when there was no tax at all on capital gains so everybody tried to avoid counting gains as income.

Mr. Chodikoff says the distinction between income and capital is as simple as the difference between a tree and the fruit that it bears.

“The tree is capital and it produces a fruit and the income is the profit that is derived when that fruit is sold,” he says.

If your condo is that tree and your rental income is the fruit and you make a profit from that rental income, that’s taxed as full income. You eventually sell the tree for more money and that’s just a capital gain, taxed at the 50% rate.

If your entire businesses is just trading trees and not producing fruit, that’s business income.

“The Income Tax Act asks what was your intention when you bought that condo,” said Mr. Chodikoff. “These principles are easy to describe but harder to prove in fact.”

The law is like a civil case, a judge doesn’t have to believe you beyond a reasonable doubt, but a judge does have to conclude you are more believable than the CRA.

“We have to bring all kinds of intrinsic evidence,” says Mr. Chodikoff, noting some clients will produce something as simple as a change in address on their driver’s licence to show they were using their condo as a principal residence.

If you never actually moved into the condo, it’s going to be tough to prove that it was principal residence.

You may never have produced income from the profit but that’s not to say you didn’t plan to, so perhaps you could get the capital gains exemption.

“The question can be ‘how did they come to sell the property,’” said Mr. Chodikoff, adding the CRA might look at whether you were advertising the property for sale.

Brian Johnston, chief operating officer of Mattamy Corp., says the CRA has ways to get information on sales.

“They audit real estate companies, look at the name on the contract and look at the final deed and see a difference,” said Mr. Johnston. “They see Bill Smith bought it and Joe Blow is on the deed. They want to know how this happened and follow the paper trail.”

He has some sympathy for consumers confused about the whole process.

“I think the government should make it a little simpler in terms of filing for principle residence exemption,” said Mr. Johnston. “It’s a real gray area of the law. The government has not done a good job for Canadians trying to specifically identify all the rules around [selling homes and paying taxes]. People might have inadvertently made mistakes.”

Condominium developer Bard Lamb, who has been audited several times, said ultimately it’s better to be more conservative when you’re filing — meaning just count the gain as income if you are in doubt.

“If you are prolific buyer or seller of properties, whether it’s condos or not, you have to govern yourself accordingly. If you don’t, you’ll get caught and be fined,” said Mr. Lamb. “I decided many years ago when I started buying condominiums, after talking with my accountant, you can pay [lower tax] or you can fight 50 years with Revenue Canada.”     http://business.financialpost.com/2013/04/20/get-ready-to-pay-income-tax-on-your-condo-profit/

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