Services
Real Estate & Property Tax Services
Real estate transactions come with important tax implications. HTPA Accounting provides Real Estate & Property Tax Services to help you navigate taxes when buying, selling, renting, or changing the use of a property. Every step – from purchasing a home to becoming a landlord or selling an investment property – requires careful tax planning and compliant reporting. We offer professional solutions for all property-related tax matters, ensuring you manage your obligations efficiently, legally minimize taxes, and avoid unnecessary risks.
Service Details
Principal Residence Exemption Planning
Advice on designating a principal residence to shelter capital gains from tax when you sell your home. We guide you through eligibility (such as one property per family unit) and partial exemption calculations if the property wasn’t your principal residence for every year of ownership.
Rental Income and Expense Management
Assistance with annual reporting of rental income on your tax return. We ensure you claim all allowable expenses (mortgage interest, property taxes, insurance, repairs, depreciation on appliances, etc.) to offset rental income, and we maintain proper records in case of a CRA review.
Sale of Investment Property
Tax planning for selling a rental or second property. We calculate expected capital gains and explore strategies like timing the sale, deducting any selling costs, or utilizing capital losses to reduce the taxable gain. We’ll also advise if the transaction could be considered business income (fully taxable) rather than a capital gain, based on frequency and intention of transactions, so there are no surprises.
Change-in-Use Rules
Guidance on the tax implications of changing a property’s use (for example, moving into a rental property as your home, or converting your residence into a rental or business property). We help with the required elections (such as the Section 45(2) or 45(3) election) to defer taxes or preserve exemptions where possible.
HST on New Homes & Assignments
If you purchase a new construction home or condo, or if you are involved in assigning a pre-construction contract, we advise on the HST New Housing Rebate and New Residential Rental Property Rebate. We prepare rebate claims and ensure you meet all criteria to recover the HST you’re entitled to. For assignment sales, we clarify the HST and income tax obligations so you remain compliant.
Applicable Clients
Homeowners and Home Sellers:
Individuals buying a home or selling their property who want to understand taxes such as the principal residence exemption or potential capital gains on sale of secondary properties.
Real Estate Investors/Landlords:
Those with rental properties or investment real estate, who need to report rental income, claim expenses, and plan for taxes on appreciation or sale.
Builders and Renovators:
People involved in building new homes or substantially renovating properties (including house flippers) who need advice on HST implications and income classification (business income vs. capital gains).
Why Choose HTPA?
Specialized Knowledge
Real estate tax rules can be intricate. Our team has extensive experience in this area, including up-to-date knowledge of CRA’s latest positions on principal residence and house flipping rules. We give advice grounded in current policy to protect you from audits.
Maximized Deductions
We ensure you’re not leaving money on the table. Many property owners miss deductions or rebates simply because they are unaware. HTPA will identify every opportunity – from claiming home office use (if eligible) to capturing renovation costs that can increase the cost base and reduce future gains.
Clear Guidance
We translate tax jargon into plain language. Whether it’s explaining an election or the difference between capital and income treatment, we make sure you fully understand your situation and options.
End-to-End Support
Real estate taxes often intersect with other areas (such as HST or estate planning). Our multidisciplinary expertise means we consider the full picture – for example, how selling a property might affect your overall income or retirement plans – and coordinate advice accordingly.
Frequently Asked Questions
If the house was your principal residence for every year you owned it, the principal residence exemption generally allows you to sell it without paying capital gains tax. You still need to report the sale on your tax return, but the gain can be sheltered. If it was not your principal residence for the entire ownership period (or it’s a rental/investment property), part or all of the gain may be taxable. We can compute the taxable portion and help utilize any exemptions or adjustments available.
Common deductible expenses for rental properties include mortgage interest, property taxes, home insurance, utilities (if you pay them), property management fees, repairs and maintenance, advertising for tenants, and depreciation (Capital Cost Allowance) on the building or certain furnishings. However, you cannot deduct the principal portion of mortgage payments or costs of capital improvements (those are added to the property’s cost base instead). We will guide you in categorizing your expenses properly to maximize deductions while staying within CRA guidelines.
Navigate Real Estate Taxes with Confidence
Our experts are here to help you with all your property tax needs. Contact us for a consultation.
Call Us Directly
(647) 895-6188
Send Us an Email
Acc@htperfect.com
Visit Our Office
20 Bamburgh Circle, Scarborough, ON