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Announcement: Acquiring Tax Sale properties in Canada

Secrets of Super Wealthy Professional Real Estate Investors part 1 of 10

Many provinces in Canada levy property tax on Real Estate based upon the current use and value of the land and this is the major source of revenue for most municipal governments in Canada. While property tax levels vary between municipalities in a province there is usually common property assessment or valuation criteria laid out in provincial legislation. The municipality has the right to collect property taxes owing even if they have to sell the property to recuperate the property taxes owing. These properties are never listed on MLS or Real Estate Brokers. This is another secret of super wealthy Professional Canadian Real Estate Investors and or Apprentices to acquiring Tax Sale properties in Canada.

Acquiring Tax Sale properties in Canada

The secret of super wealthy Canadian Professional Real Estate Investors and or Apprentices have used this secret to build huge wealth. The city or municipalities are not required to sell these properties at market value, instead they sell them for the amount of taxes owing. This way the Professional Real Estate Investors can buy a property for 10 cents a dollar. The key is to learn the act, law and the process to find and finance them and than make a great fortune.

Acquiring Tax Sale properties in Canada

What is a Canadian Property Tax Sale

Simply put, tax sales are public auctions where properties are sold to the highest bidder.  Throughout the year, cities, towns, villages, townships and municipalities, in each province, compile a list of properties against which taxes have been outstanding for at least two consecutive years.  After this two year period, the municipal treasurer prepares a tax arrears certificate and registers it against the property in question.

This certificate gives an accurate description of the property and indicates that the land will be sold by public sale if all taxes are not paid to the municipality within one year of the registration of the certificate.

In spite of the municipality's efforts to collect these taxes, they often go unpaid and the properties are put up for auction, allowing the public and the super wealthy Canadian Professional Real Estate Investors and or Apprentices the opportunity to purchase these properties and this is how you get real bargains.  Property can be bought for as low as 10 cents on a dollar.

Professional Canadian Real Estate Investors and or Apprentices can buy property "free and clear" at a tax defaulted deed auction. These taxing agencies sell property to the highest bidder in an effort to recover the original taxes and costs due.

 Why the Canadian Property Owners don’t pay their Property taxes?

There are many reasons why properties are sold for non-payment of taxes. Some of the most common ones are financial difficulties, law suits, ignorance, death of an owner (with no apparent will or heir), owner living abroad and not realizing his/her obligations, owner moved and cannot be traced, disputes of ownership with no party resorting to the courts for settlement, etc....

How to become a Professional Canadian Real Estate Investor and/or Apprentice

Proper education and training makes all the difference!  By becoming an Apprentice of World Wealth Builders and a member of the Professional Canadian Real Estate Investors and or Apprentices website, you will have access to: 

  1. Current Listings of Tax Sale Properties being sold for delinquent taxes
  2. Sheriff sales (property seized by local authorities)
  3. Canadian Grants

The Property Tax Sale advertisements are gathered directly from many different sources including the websites of the city and the provincial courts. 

What kind of properties get SOLD In Canadian Tax sales

They can include vacant lands (such as bush lots and timberland), improved lands (such as farms, cottages and houses), commercial or industrial properties, and occasionally islands. They vary from small lots to large parcels, with hundreds of acres. 

How do the Professional Canadian Real Estate Investors and/or Apprentices BUY these properties at basement bargain prices

First you have to learn the proper law, act and its implementation including the exemptions. Proper education, training and knowledge in order to obtain where, when and how to do it is mandatory unless otherwise you want to buy a lemon....

There are two ways in which tax authorities sell properties: either by public auction or public tender, with sealed/closed bids.

Public Auction for Canadian Tax Sale Properties

This format is similar to other auction formats.  An auctioneer accepts bids from several bidders and then recognizes the highest bidder as the winner.  The place, date, and time of the auction will be clearly defined by the municipality and can be found in the auction advertisement on our website.

If you are the highest bidder, you will be required to pay the amount that was bid and any applicable land transfer tax to the auctioneer by money order, bank draft or certified check.

Public Tender for Canadian Tax Sale Properties

If you wish to submit a tender, you can ordinarily obtain a tender form the municipal office, which will be identified in the sale advertisement on our website. Your submitted tender should be accompanied by a deposit, usually 20 percent (but specified by the sale advertisement) of the tender amount, in the form of a money order, bank draft or certified check.

Your tender form, along with the deposit, should be enclosed in a sealed envelope, which is labeled as "tax sale for" and a short description or municipal address of the property to indicate which property the tender is for. Then, enclose that envelope in a second envelope, addressed to the treasurer of the municipality, as indicated in the sale advertisement and on our website.

The above article provides general commentary of an educational nature. It does not constitute advice for any specific person or any specific set of circumstances. Because circumstances vary, readers should consult professional advisers in order to obtain advice that is applicable to their specific circumstances.

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Tax Credits For Canadians

“Canadians should take advantage of all eligible tax credits and deductions. In Canada, federal, provincial and territorial governments offer a variety of credits aimed at reducing the amount of taxes” says Navtaj Chandhoke, founder of  World Wealth Builders, a Canadian real estate Investors training centre serving Canadians since 1993. “Canadians owe; however, in order to take advantage of tax credits, they must be identified and claimed on your tax return and get proper advice from Canada Revenue Agency and or their Tax professionals”.

tax credits for canadians

Some often overlooked tax credits and deductions are as follows:

Apprenticeship Job Creation Tax Credit: Businesses that employ an apprentice in a skilled trade are eligible to receive a non-refundable tax credit equal to 10 per cent of the salaries and wages paid to the apprentice (or up to $2,000) in the first two years of an apprenticeship contract (registered with the federal, provincial, or territorial government).

Educational Examinations Tax Credit: Many students who acquire a professional status must pass a licensing exam which would carry an additional expense. Students who paid a qualifying institution to take an examination, in addition to their tuition fees, can generally claim this expense as a tuition tax credit.

Textbook Tax Credit: Textbooks for post secondary education can cost upwards of $200 per book. Students can claim textbook expenses up to $65 per month of study for full-time and $20 per month of study for part-time students.

Tradepersons' Deduction for Tools: Many tradespersons must purchase tools up-front in order to earn employment income. Meeting the criteria for this tax deduction allows a tradesperson to expense up to $500 of the cost of eligible tools - including any GST or HST provincial sales tax, or HST paid - in their tax return.

Children's Art Tax Credit and Children's Fitness Tax Credit: Many Canadian children are involved in extracurricular activities. Parents are entitled to claim two tax credits of up to $500 each for each child under the age of 16, to cover expenses related to the cost of a child's registration or membership in an eligible artistic, cultural, recreational or developmental activity and/or programs that endorse physical activity (such as hockey, dance, soccer, etc).

Caregiver Tax Credit: Canadian families that are providing in-home care for a dependant adult relative, including an aging parent, or other relative with a physical or mental impairment, may be eligible for a caregiver tax credit provided the dependant's net income is below certain threshold amounts.

Tax Cheats are regularly investigated based on tips the public provides to the Canada Revenue Agency (CRA) the federal government department responsible for making sure people declare all of their income when they file their returns.

One program, known as the Informant Leads Program, allows people to provide information to the agency while protecting their identity. The program’s website encourages spouses to get in touch with details that reveal someone’s net worth, such as documents showing ownership of cottages and boats.

It’s one of the many tools the Canada Revenue Agency (CRA) has at its disposal for trying to recover the money it is legally owed so the government can spend it. Canada Revenue Agency (CRA) employees have a complex algorithm they use to identify who is most likely cheating on their taxes. The details of what they look for, however, are kept secret so as not to tip off the cheaters.

tax credits for canadians

Your success is our Passion!

Healthy Homes Renovation Tax Credit for Seniors

Homes Renovation Tax Credit for Ontario Seniors get $10K Tax Credit for Renovations. Ten thousand dollars in Tax credit will be available for Ontario seniors to renovate and improve accessibility. The bill passed in Ontario government with majority in favor.

It was a promise Premier Dalton McGuinty made a year ago during the last election campaign.  Navtaj Chandhoke, founder of Professional Real Estate Investors Group (PREIG) Canada said, "The tax credit is up to $10,000.00 in eligible home renovations or 15% up to $1,500 each year"

Health Minister Deb Matthews says in a press release.This Healthy home renovation tax credit will also help achieve the goals of our Action Plan for Health Care by keeping our loved ones out of hospitals and long-term care, and at home, where they want to be.

Homes Renovation Tax Credit Continue reading Healthy Homes Renovation Tax Credit for Seniors

Top 10 tips to save yourself tax dollars in Canada

 “Canadian taxes rarely cause excitement for professional real estate investors but following the simple rules by

 

 

 

 

 

Canada Revenue Agency CRA can provide you all the guidelines to save money” says Navtaj Chandhoke of Professional real estate investors group (PREIG) Canada. The rules are constantly changing and tightening,Don't despair; there are still simple ways for Canadian real estate investors to limit their tax exposure. Here are top 10 tips to save yourself tax dollars in Canada. And there are three bonus more optional tips.

Top 10 tips to save yourself tax dollars in Canada
Top 10 tips to save yourself tax dollars in Canada

Continue reading Top 10 tips to save yourself tax dollars in Canada

Tax Credit and Savings – Canada Economic Action Plan

Canada Economic Action Plan

“Canadians can take full benefit from the following Tax Credit and Savings provided they are aware of them. As Canadians prepare to file their 2012 taxes, they will be able to claim the Family Caregiver Tax Credit for the first time. Claiming these credits by filing online and using direct deposit will, in most cases, help Canadians to receive a refund in as little as eight days, compared to four to six weeks for a paper return” says Navtaj Chandhoke, founder of Professional Real Estate Investors Group (PREIG) Canada, the largest Real Estate Investors network group in Canada.

Tax Credit and Savings

Continue reading Tax Credit and Savings – Canada Economic Action Plan

Use Canadian RRSP Tax Refund as Down Payment

It's RRSP season! If you're a first-time buyer, consider how the Federal Home Buyers' Program (HBP) and a tax refund can boost the funds you have available for your purchase.Canadian RRSP Tax Refund

If you have RRSP contribution room, you should contribute your savings before March 1, 2013 or 60 days after the December 31.

Continue reading Use Canadian RRSP Tax Refund as Down Payment

Real Estate Investments in Canada

Investing in Canadian real Estate requires Professional real Estate investors to acquire properties which are under value with huge positive cash flow where the Canadian grants, rebates and tax write offs are available.

Quick flips or assignments, short term fix and flip and long term buy and hold are few strategies applied by Canadian real estate investors. Professional Real Estate investors do not invest for the sake of it instead this is simply intelligent business decision to make money. The tax laws in Canada allows Canadian home owners to keep all their gains to themselves without paying any taxes. Capital gains tax does not apply to Canadian home owners. Continue reading Real Estate Investments in Canada

Tax Saving Tips for Real Estate Investors in Canada

Tax Saving Tips for Real Estate are as important as Real Estate investments.There are two things certain in life, death and taxes. Majority of Canadians do not understand the complexity of taxation." A major portion of your earning goes toward your taxes which can be as big as 46-80% of your total earnings. Knowing a little about taxes can save you huge amount of money" says Navtaj Chandhoke, founder of Professional Real Estate Investors Group (PREIG) Canada.

Tax Saving Tips for Real EstateHere is brief description of top ten tax saving tips. These are simple guidelines and are not rendered as professional advice. Your Chartered accountant can assist you professionally.

In its T4036 Guide to Rental Income, the Canada Revenue Agency provides a number of questions you can ask yourself to help determine whether an expense is current or capital in nature. For example, you replace wooden steps with concrete steps, it's a capital expense. But if you simply repair the wooden steps, the expense is currently deductible.

Dont exaggerate your home office expenses. This is a red flag for the CRA. There are always exceptions, but a good rule of thumb is a maximum of 25 per cent as the business share of heat, hydro, property taxes and so on.

Keep a careful log of car expenses. This is another red flag for CRA.

If you run into trouble or make a mistake, call the CRA. Most times they will be very helpful, especially if you call before the crunch.

Whatever you do, dont ignore communications from the CRA, respond promptly and make notes of your conversation right on the letter for future reference.

Unless you are incorporated you are required to complete a Statement of Business and Professional Activities (T2125) at the same time as you file your personal taxes.

Dont wait until the last minute. Its impossible to get yourself properly organized under eleventh-hour time pressure and its difficult to make good decisions to minimize your taxes.

Make an estimate of your expected tax bill. If your revenue is going to be high, you might consider making that machinery or computer purchase before years end. Youll defray some of the expense through capital cost depreciation.

You should set aside 30 to 40 per cent of your gross income to cover income tax and CPP. Even if you are the only employee of your business, you are responsible for paying the employee and the employer CPP contributions.

Keep proper records differentiating business from personal If you cant prove it, the CRA will likely assume the expense is personal. Use the categories provided by CRA on the T2125.

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