Hello,
The CRA sends in "pre-assessment" or "processing" reviews to obtain supporting documentation for tax credits and tax deductions one claims on their returns. So they will ask for receipts and proof for whatever it is you are claiming.
With that said, the following are some tax credits and deductions you can claim to lower your tax burden:
1) child fitness - $500 max
2) child arts - $500 max
3) donations
4) medical expenses for yourself, spouse, and child
5) child care expenses
6) RRSP deduction
I hope that helps.
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Madan Chartered Accountant team
http://www.madanca.com" rel="nofollow">LINK
I apologize, this was submitted in error. This was supposed to be a reply to another post.
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Madan Chartered Accountant team
http://www.madanca.com" rel="nofollow">LINK
Hi Team,
I have a Condo unit from which I moved out in 2008 to a house and rented this unit. Now as I am planning to sell it. Now when I calculate the capital gains tax on this unit it wants the Fair Market Value of 2008 to be subtracted from the sale price to calculate the capital gains tax.
I have talked to a few real estate agents and they have expressed inability to look into MLS to give me a number. So my question is:
1. Can I use the bank's estimate used for sanctioning mortgage when I renewed my mortgage in 2008? -- $180K
2. Should I use the MPAC assessment, although the assessment has a foot note saying the market value could be higher by 5.6% basis on year to year basis? $171K
3. Can I use the market value on utmost good faith basis and CRA will accept it?
Pls advise.
Thanks a ton in advance!
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Ash
Location: Western Hemisphere
Posted on: 05-03-14 15:34:49
Number 1 option would work. If you have a written document of the bank's appraisal (official appraisal, emails, etc), that would help quite a bit.
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Dimple2001
I can ask the bank but the way they did it was to permit me to mortgage 80% which was $144K retaining 20% with them as is the norm for revenue property. But your suggestion is well accepted and let me try to get such a letter from the banks.
If I can not get that what could be the other sources?
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Ash
Location: Western Hemisphere
Posted on: 05-03-14 16:29:14
Your MPAC is a written document. You might be able to use that estimate by adding the 5.6%. In the end, FMV is a theoretical number anyway. As long as it is done in good faith and looks reasonable, CRA would most likely accept it.
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Dimple2001
Quote:
Originally posted by sghosedelhi
Hi Team,
I have a Condo unit from which I moved out in 2008 to a house and rented this unit. Now as I am planning to sell it. Now when I calculate the capital gains tax on this unit it wants the Fair Market Value of 2008 to be subtracted from the sale price to calculate the capital gains tax.
I have talked to a few real estate agents and they have expressed inability to look into MLS to give me a number. So my question is:
1. Can I use the bank's estimate used for sanctioning mortgage when I renewed my mortgage in 2008? -- $180K
2. Should I use the MPAC assessment, although the assessment has a foot note saying the market value could be higher by 5.6% basis on year to year basis? $171K
3. Can I use the market value on utmost good faith basis and CRA will accept it?
Pls advise.
Thanks a ton in advance!
--------
If you are planning to sell it, you could be getting a RE Broker to help you with the sale. Most of them are really helpful and might do it for you free. Also, he will provide you with the current value. But your sale price might be higher than the estimates. So, be prepared to accept it.
MPAC will have the values running back to 2008 and you can get the yearly appraised value in your area from them.
ALSO, there might be an identical condo that got sold in the year 2008, not neccessarily on the same floor. If you can find out the details from the Building Super, you will be able to narrow it down throough the RE Registry. Most of the RE Agents have access to them and they can fish it out in no time. But the Paper copy of the same might cost you a few bucks.
Depending upon what is within your CONDO and how clean it has been kept and the fittings there in etc., will fetch a better price and you can take pictures of these features and retian them and also claim the additionaL Price enhancement of 5.6% that they allow. But you must show the proof if you get audited. (Can't come back and take pictures later)
Hope this helps.
FH.
https://www1.toronto.ca/wps/portal/contentonly?vgnextoid=63f78b206f2ef310VgnVCM10000071d60f89RCRD
http://canadianbudgetbinder.com/2012/09/17/mpac-assessment-and-the-value-of-my-house/
http://oneforall.ca/?gclid=CPP8gtur_bwCFYtDMgodAz0AAA
