Illegal Tax Evasion Adds Fuel To Bubbles – “I know a lot of flippers using their family members to buy and qualify as a first time buyer to take advantage of the system. They sell a year later and claim the capital gains.”

Criminal tax evasion exaggerates already large profits from RE speculation, and  adds extra momentum to RE bubble markets. Honest, hard-working citizens, labouring under substantial tax burdens, trust that our revenue services are vigorously pursuing fair taxes on real estate profits. -vreaa

averagejoe at vancouvercondo.info 17 Mar 2010 10:58 am“I know a lot of flippers using their family members (such as sons, daughters and even grandparents) to buy and qualify as a first time buyer to take advantage of the system. They will sell a year later for $100,000 (or more) [profit] and claim the capital gains.”

taylor192 17 Mar 2010 12:05 pm & 2:48 pm – “I’d like to see Mr Flaherty curb speculation. Remove the capital gains exemption for flippers, ie those selling within 5 years of taking possession. The only exemption is for those who move XX kms for work and can prove it.” … “CRA assesses professional flippers and rightfully so. My comment concerns the amateur flipper. For example the FTB who buys a property pre-sale with the expectation to sell it 1 day after it is built for a huge profit. This flipper had no intention of living in the property and should not be able to claim capital gains exemption for their principal residence. Since this flipper only does it once, they fly under the CRA radar. … I have a friend in Toronto that is on his 3th condo over 5 years with this approach. He buys one, lives in it while putting down a deposit on another building. Once complete he sells the current condo, moves into the built condo, and repeats. All legal, all his principal residence, and isn’t flipping often enough to raise CRA eyebrows.”

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