Cashback = land transfer tax
As a real estate agent, instead of offering clients (buyers) cachback, can I pay land transfer tax for them and deduct it as expense later?
Sep 1st, 2020 9:14 am
Sep 1st, 2020 10:00 am
Sep 1st, 2020 10:11 am
It's the same either way. It's 100% deductible. Pay tax based on net income. (Well I'm not an accountant so don't know if land transfer tax is some exception)sircheersa wrote: ↑ If you do cashback up front wouldn't that essentially be a 100% deduction since you never received the income? Why would you want to take the income and then pay an expense to get a partial credit of like 30%?
Sep 1st, 2020 10:22 am
Sep 1st, 2020 11:06 am
Sep 1st, 2020 11:22 am
Sep 1st, 2020 5:17 pm
No it's not, cash back is a deductible expense, so are other legit expenses such as paying for staging, paying for inspectors, reimbursing other amounts etc.
Sep 1st, 2020 6:24 pm
Sep 1st, 2020 7:13 pm
Sep 1st, 2020 7:41 pm
Sep 2nd, 2020 9:17 am
Sep 3rd, 2020 11:33 pm
Sep 4th, 2020 9:55 am
Sep 4th, 2020 11:06 am
Sep 4th, 2020 12:24 pm
Sep 4th, 2020 1:35 pm
thx, that's exactly what I'll do.deal_with_singh wrote: ↑ OP - I highly suggest you speak to your accountant on this. Based on the questions you're asking, you're going to get yourself into trouble, and I say this as both a RE agent and an Accountant myself - there are records you need to keep in case the CRA comes knocking at your door. Do not just hand your clients cash, and paying for things like Land Transfer tax can just get messy.
I also don't understand why you brought up before tax/after tax. There is no HST on Land Transfer tax....
Sep 4th, 2020 8:11 pm
You can expense any legitimate expense but I'm curious...
Sep 5th, 2020 7:37 am
My initial question was more theoretical.licenced wrote: ↑ You can expense any legitimate expense but I'm curious...
What is the purchase price amount that would be so low that it prompts you to want to pay the land transfer tax which is a percentage of the purchase price rather than a rebate which is a percentage of the percentage of the purchase price?
Sep 5th, 2020 7:42 pm
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