tag:blogger.com,1999:blog-4402283548766807872.post473167583593759761..comments2024-03-14T19:35:14.456-04:00Comments on The Blunt Bean Counter: Formalize Housing Loans to Your Married Children!The Blunt Bean Counterhttp://www.blogger.com/profile/11358868550072516313noreply@blogger.comBlogger18125tag:blogger.com,1999:blog-4402283548766807872.post-75286519529821290142015-08-17T17:45:34.263-04:002015-08-17T17:45:34.263-04:00ok. Thanks for your thoughts. I thought it sounded...ok. Thanks for your thoughts. I thought it sounded too easy.<br /><br />Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-61442833722712769642015-08-17T12:05:40.666-04:002015-08-17T12:05:40.666-04:00Hi Anon
You must speak to your accountant or hire...Hi Anon<br /><br />You must speak to your accountant or hire one. This a bit of a minefield. The CRA may assess u a benefit for the entire loan if all your employees are not offered the same loan terms. This is not a green light, but an amber with huge tax consequences. Get advice.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-13147655476058941832015-08-14T23:28:41.681-04:002015-08-14T23:28:41.681-04:00I read -and reread- IT-119R4 today, and am still s...I read -and reread- IT-119R4 today, and am still scratching my head.<br /><br />I am trying to understand if my 100% owned small business corporation can give me a loan or 'mortgage' to buy a house without any adverse tax effects?<br /><br />I understand there may be a taxable benefit from unpaid loan interest - but what I am really worried about is the entire loan amount being taxed as income in my hands.<br /><br />If I understand it right 15(2.4)(b) appears to say that as long as I am an employee of the corporation I have a green light here -- but it leaves me scratching my head as it appears to be a tax loophole that is too good to be true.<br /><br />What am I missing here?Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-1091717544991715462013-03-29T21:40:52.448-04:002013-03-29T21:40:52.448-04:00BBC - thanks,I will ask and yes I have been audite...BBC - thanks,I will ask and yes I have been audited albeit 20+ years ago ... it was a wake-up call I will admit. No penalties, a slap on the wrist and refile of the previous 5 or so years ... pay the corrected tax and move on. I'll take some blame but my so called accountant of that era wasn't doing their job!<br />That's when I got a new accountant who coincidentally had worked for Rev Can. He got me smelling clean. <br />NuggetAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-46301154185451817672013-03-29T15:23:29.223-04:002013-03-29T15:23:29.223-04:00Thx,I try.Thx,I try.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-69047360162160987062013-03-29T14:28:26.424-04:002013-03-29T14:28:26.424-04:00Great topic Mark. As always - relevant, practical ...Great topic Mark. As always - relevant, practical and interesting.Anonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-70370419917284358532013-03-29T08:16:11.205-04:002013-03-29T08:16:11.205-04:00Nugget,
Unless you have been audited, you have n...Nugget, <br /><br />Unless you have been audited, you have not passed a smell test; u just have not been audited. It does not matter if kids are s/h. The wording in 15(2) is connected to the S/h. Just saying not so clear cut as you assume it is. Ask you accountant if he considers your kids connected or not?The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-21702141541507926662013-03-28T22:15:32.878-04:002013-03-28T22:15:32.878-04:00Shareholder appropriation issues ???
Note: Kids ar...Shareholder appropriation issues ???<br />Note: Kids are NOT shareholders of corp.<br />Mortgage documents were properly executed by their respective lawyers. 3% rate of interest which is reasonable. Corp declares income from all interest and other sources. Been doing this for several years.<br />Now realistically one day the kids will own their respective houses and it's doubtful we will die broke so they will get their money back too! <br />Hopefully I continue to pass the CRA / RevCan sniff test.<br />NuggetAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-75651106286956707222013-03-27T12:29:32.969-04:002013-03-27T12:29:32.969-04:00Nugget, glad you got legal advice. Hopefully also ...Nugget, glad you got legal advice. Hopefully also tax advice in regard to mortgages to your kids from a corp as there are sometimes shareholder appropriation issues.The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-42338563110867791892013-03-27T09:22:57.293-04:002013-03-27T09:22:57.293-04:00BBC - This topic hits close to home ... oops sorry...BBC - This topic hits close to home ... oops sorry for the pun. My company (incorporated) holds mortgages on both our kids homes and they are married and one happens to be a lawyer and that one who is a lawyer happens to be married to a lawyer ... yes having funds to help is great but we do have legal documents on file. Payments are made per the contract and the interest is realized by the company and it is satisfying to know we've taken The Banks out of the equation. After reading this post and other links I believe we have all bases covered BUT just because I feel all is well and good; if either marriage goes bad it could be messy. <br /><br />NuggetAnonymousnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-48774644265766721272013-03-26T23:51:41.222-04:002013-03-26T23:51:41.222-04:00Thx Bet, you know us CA's are known for our se...Thx Bet, you know us CA's are known for our sense of humour :)<br /><br />The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-32821779663019315712013-03-26T23:49:03.266-04:002013-03-26T23:49:03.266-04:00Be*n, as a non-lawyer I cannot provide legal advic...Be*n, as a non-lawyer I cannot provide legal advice. But I think this link by a lawyer answers your question.<br /><br />http://millsandmills.ca/2010/09/the-matrimonial-home-in-net-family-property-calculations/The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-17943678750067609862013-03-26T21:38:12.729-04:002013-03-26T21:38:12.729-04:00That's ok, I believe only my Mom knows I blog....That's ok, I believe only my Mom knows I blog. It's part of my self-imposed skills upgrading.<br /><br />I learn the most interesting things from your blog, even if the will/RESP one did set me back a little cash. But your sense of humour really keeps me coming back.Bet Crookshttp://financialcrooks.comnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-68256593307015175442013-03-26T18:04:21.090-04:002013-03-26T18:04:21.090-04:00What happens if you gift a lump sum amount to your...What happens if you gift a lump sum amount to your child before marriage? Would he/she have to give up half of the gift on separation/divorce?<br /><br />Cheers..Be*enhttps://www.blogger.com/profile/10573175666860874425noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-76858223815106361272013-03-26T13:22:34.080-04:002013-03-26T13:22:34.080-04:00Me too. Bet, I never even knew you have your own b...Me too. Bet, I never even knew you have your own blog until last week. I guess I am oblivious or you make comments that are not self serving to your blog :)The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-9078243103120943922013-03-26T09:52:00.309-04:002013-03-26T09:52:00.309-04:00I'd heard vaguely of this problem before, but ...I'd heard vaguely of this problem before, but the specific cases make the problem so much clearer. Given the high cost of homes in Toronto/Vancouver etc now, and the incredibly (to me) high rates of separation and divorce, this is really important information to get out there. I really hope, though, that it will never be directly relevant to my family (or yours!)....Bet Crookshttp://financialcrooks.comnoreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-22718861661228728922013-03-25T23:21:47.397-04:002013-03-25T23:21:47.397-04:00Thx Kevin:
Your opinion seems to come from a posi...Thx Kevin:<br /><br />Your opinion seems to come from a position as a neutral observer. I am not sure if you loaned your hard earned money to one of your children and you lost half of it, you would be as magnanimous. I certainly would not be. Just saying:)The Blunt Bean Counterhttps://www.blogger.com/profile/11358868550072516313noreply@blogger.comtag:blogger.com,1999:blog-4402283548766807872.post-1889317726185301782013-03-25T20:06:10.012-04:002013-03-25T20:06:10.012-04:00Fascinating! It really shows that these aren'...Fascinating! It really shows that these aren't agreements to be entered into lightly. I'm glad to see that the courts recognized people trying to use them as bargaining chips/tools of punishment. Kevinnoreply@blogger.com