It’s that time of year again, when tax time updates for real estate investors are paramount. As the busiest tax time of the year approaches, knowledge of the ever-evolving landscape of tax rules and regulations, strategies, and opportunities for real estate investors is critical. Recently, I had the privilege of joining Patrick Francey, the CEO of Real Estate Investment Network (REIN), on the REIN Channel on YouTube for a “tax time” discussion on a range of topics to help investors get up-to-date on changes in the Underused Housing Tax, changes to bare trusts, treating real estate like a business, a side detour into mortgage fraud, and some information about choosing and getting ready for year-end.
Interview: Tax time updates for real estate investors
In this exclusive interview, Patrick and I delved into several key areas that every investor should have on their radar. From legislative updates to strategic insights, we covered it all. So, without further ado, let’s recap some of the highlights from our conversation:
1. Underused Housing Tax
I talk with Patrick about the latest and greatest rule changes with the Underused Housing Tax (UHT) – and luckily these ones are finally more favourable for taxpayers.
2. Bare Trusts
Understanding the nuances of bare trusts is essential for any investor. Bare trusts often arise from a financing perspective or a joint venture perspective. I review with Patrick: What is a bare trust, what are the advantages, what are the new tax filing requirements, what are the financing implications?
3. Mortgage fraud
We touch on the topic of disclosure with mortgages, and mortgage fraud, particularly in relation to bare trusts.
4. Treating real estate investing like a business
Viewing real estate investment through the lens of a business can unlock a world of opportunities. We discussed the mindset shift required to treat your investments as a business and the benefits it can yield.
5. Deciding on your year-end
We talk about fiscal year-ends, which may or may not be December 31st. and in fact, when given the option, I don’t often recommend a December 31st year-end. It’s crucial to ensure that your financial affairs are in order, and that your year-end dates fit with your needs. For example, having multiple companies with multiple year-ends can make reconciliations more difficult, but it also means more work in the same timeframe to complete the year-end reporting.
Throughout our conversation, Patrick and I aimed to empower investors with the knowledge and tools they need to thrive in today’s dynamic real estate market with these tax time updates for real estate investors in Canada. Whether you’re a seasoned investor or just starting out on your journey, there’s something for everyone in this discussion.
To dive deeper into these topics and gain invaluable insights, I invite you to watch the full interview below:
As always, I want you to Do Wonderful Things™.
Until next time,
George Dube
Resources
For additional resources related to bare trusts and the Underused Housing Tax, see:
More questions?
Still have questions? I want to help you Do Wonderful Things™, so please contact me today.
Remember – circumstances are unique! This information is summary in nature. Seek out advice from your tax advisor about your specific situation.
