Condo flippers are on Canada Revenue Agency radar
Face facts. The federal government, just like its provincial and municipal counterparts, is desperate for money.
With an election expected in 2015, Ottawa is going to pull out all the stops to try to eliminate the deficit before Stephen Harper faces voters.
Yet the numbers are getting worse for the Conservatives.
Through the first two months of this fiscal year, the federal government was $2.7 billion in the red—50 percent larger than the same period of 2012, according to a CBC report.
So it shouldn't come as a surprise that the tax authorities are looking for new ways to pluck Canadians.
According to a Toronto Star story, a tax lawyer named William Howse is accusing the Canada Revenue Agency of "abusive audit practices".
That's because people who flip condos before projects are completed pay more tax on capital gains than those who sell after living in a unit for 18 to 24 months.
They can also be forced to give back HST and GST rebates.
But in a slow economy, some people have to dump their condos early because they can't afford the mortgage payments. And they may also be getting dinged, even though they intended to buy the unit as a primary residence.