Sunday, November 08, 2009

CRA and Moving expenses

I hope that you find that this article is interesting and will give you some insight into some of the items to consider when moving. This will also give you some of the expenses that are deductible.

This is another in a series of articles meant to help and educate you with regards to real estate.

It’s important to know that not all moves will qualify for such tax relief. The tax rules provide that, where a taxpayer moves to be at least 40 kilometers closer to his or her place or work (for example, a taxpayer who moves from Toronto to take a job in Regina), most moving costs will be deductible from employment or business income earned at the new location. The 40- kilometer distance is measured using the shortest route normally available to the traveling public, which inmost cases would mean the distance by road. Also,moving to be closer to work doesn't have to mean moving to a new company; a job transfer to another city while continuing to work for the same employer will qualify, assuming the 40- kilometer criterion is met.

Spring is typically the busiest season for real estate sales and, consequently, the time when most moves take place. Selling one’s home and moving qualifies as one of life’s more stressful experiences, but it’s an experience that most families will go through at least once. In addition to the upheaval of leaving behind a home, a school, and a neighbourhood, the financial outlay associated with moving can be considerable. While our tax system can’t do anything to help with the non-financial costs of moving, it does, in some circumstances, minimize the financial hit by providing a deduction from income for moving expenses incurred

The list of expenses that may be deducted is fairly comprehensive, but not all moving related costs are deductible. Under the Canada Revenue Agency' administrative policies, as outlined in its Form T1-M, Moving Expenses Deduction (available on the

CRA Web site at http://www.craarc.

gc.ca/E/pbg/tf/t1-m/t1-m-08e.pdf), the

following are considered eligible moving expenses:

• traveling expenses, including vehicle expenses,meals, and accommodation, to move the tax payer and members of his or her family to their new residence (note that not all members of the household have to travel together or at the same time);

• transportation and storage costs (such as packing,hauling, in-transit storage, and insurance) for household effects, including items such as boat sand trailers;• costs for up to 15 days for meals and temporary accommodation near either the old or the new residence for the members of the household;• lease-cancellation charges (but not rent) on the old residence;• legal fees incurred for the purchase of the new residence, together with any taxes paid for the transfer or registration of title to the new residence;• the cost of selling the old residence, including advertising, notarial or legal fees, real estate commissions, and any mortgage penalties paid when a mortgage is paid off before maturity; and• the cost of changing an address on legal documents, replacing driving licenses and noncommercial vehicle permits (except insurance), and utility hook-ups and disconnections.It sometimes happens, especially where, as is now the case, the real estate market is slow, that a move to the new home has to take place before the old residence is sold. In such circumstances, the taxpayer is entitled to deduct up to $5,000 in costs incurred related to the maintenance of that residence while it is vacant and efforts are being made to sell it. Specifically, costs including interest, property taxes, insurance premiums, and heat and utility expenses paid in relation to that residence may be deducted.It may seem from the foregoing that virtually all moving-related costs will be deductible; however,there are some costs that the CRA will not allow to

be deducted, as follows:

• expenses for work done to make the old residence more saleable (i.e., home-staging costs, furniture or art rental charges, cleaning costs, etc.); deduct them from income earned in subsequent years.• any loss incurred on the sale of the old residence;• expenses for job- or house-hunting trips to another city (for example, costs to travel to job interviews or meet with real estate agents);• expenses incurred to clean or repair a rental residence to meet the landlord’s standards;• costs to replace such personal-use items as drapery and carpets; and• mail-forwarding costs.To claim a deduction for any eligible costs incurred,supporting receipts must be obtained. While the receipts do not have to be filed with the return on which the related deduction is claimed, they must be kept in case the CRA wants to review them .Anyone who has ever moved knows that there are an endless number of details to be dealt with. In some cases, the administrative burden of claiming moving-related expenses can be minimized by choosing to claim a standardized amount for certain types of expenses. Specifically, the CRA allows taxpayers to claim a fixed amount, without the need

for detailed receipts, for travel and meal expenses

related to a move. Using that standardized, or flat rate,

method, taxpayers may claim up to $17 per meal, to a maximum of $51 per day, for each person in the household. Similarly, the taxpayer can claim set per-kilometer amount for kilometers driven in connection with the move. The per-kilometer amount ranges from 49.5 cents for Saskatchewan to 66 cents for the Yukon Territory. In all cases, it is the province or territory in which the travel begins that determines the applicable rate. These rates were in effect for the 2008 taxation year – the CRA will be posting the rates for 2009 on its Website early in 2010, in time for the tax-filing season.



Any moving-related expenses can be deducted from employment or self-employment income (but not investment income or employment insurance benefits) earned at the new location. Where a move takes place late in the year, it’s possible, especially where the move is a long-distance one, that such expenses will exceed income earned at the new location during the calendar year. In such cases, it's possible to carry forward the excess expenses and deduct them from income earned in subsequent years. Generally, these rules apply to moves made from one location to another within Canada. While it’s possible to deduct expenses arising from moves

from Canada to another country, from another

country to Canada, or between two locations outside of Canada, the rules governing deduction sin such situations are far more restrictive.

The rules governing the deduction of moving expenses are outlined in some detail on the CRA’sT1-M form, and any questions not answered by that form can be directed to the CRA’s individual enquiries line at 1-800-959-8281.



I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987

(
BUS 905-828-3434
2
FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

Friday, November 06, 2009

Conditional offers and Banks selling under Power of sale

I had another email inquiry with good questions about POS properties and thought I would share it with you.
Mark

Hello Mark;
I have been following your listings for the last couple of weeks now, and have read most of your information on the ins and outs of PofS shortfalls / opportunities and have a quick question on the list price. Where does this number come from? Is it negotiable?
Also are home inspections possible? or better still home inspection reports already completed available to view? Will a bank do a mortgage pre approval based on a Pof S. property?

At any rate. I am getting closer to finalizing my separation agreement and will be buying shortly thereafter and need to ensure I am not wasting my time studying Pof S.
Any feedback would be helpful.
thanks

BW



Hi BW,

Thank you for your real estate inquiry. These are all very good questions!

The list price is typically market value and often true market value, read about both here:
http://www.mississauga4sale.com/Power-of-Sale-True-Market-Value.htm
http://www.mississauga4sale.com/market-value-real-estate.htm

Yes, you can do a home inspection. The bank does not want any problems before or after the closing, they just want the property sold and off their books, thus they will often accept offers conditional upon home inspection. But, if you are in a competing situation, the bank will likely accept the highest non-conditional offer. This is understandable.

Yes, they will also accept a conditional upon financing offer, but again, if you are in competing offers, the best offer will often be accepted before a conditional offer. Thus, you need to get your financing in order ahead of time.

Please let me know if you have any other questions or if there is anything else I can help you with.

Thank you again for contacting me and I will do my best to help you with your real estate needs,

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987

(
BUS 905-828-3434
2
FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com



Thursday, November 05, 2009

October GTA Real Estate Reports Strong Growth in sales

This is the October report for TREB for the average prices and the number of sales, both were very strong last month.

TREB Reports Strong Growth in October MLS Transactions

TORONTO, November 4, 2009 - In October 2009, Greater Toronto REALTORS® reported 8,476 sales, up 64 per cent from October 2008. The average price for October transactions was $423,559 – up by 20 per cent compared to the same month last year.

Year-to-date sales, at 74,721, were up nine per cent compared to the first ten months of 2008.

Average price, at $392,264 was up by almost three per cent. "After a short dip in the winter, the average home price in the GTA has rebounded because sales have been high relative to listings," according to Jason Mercer, TREB's Senior Manager of Market Analysis. "Watch for listings to rebound in 2010 as home owners react to the strong sales and price growth experienced in the latter half of this year."

"Strong sales growth has occurred across many property classes – from price ranges that would attract first-time buyers to luxury properties selling for over one million dollars," said TREB President Tom Lebour. "The highest rate of sales growth in October was experienced for properties selling for over $750,000. In contrast, luxury home sales declined at an above-average rate last year."

Read more: http://www.mississauga4sale.com/TREBprice.htm

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987

(
BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL
: mark@mississauga4sale.com
Website : Mississauga4Sale.com

Financial markets and the possibility of a crash! Series

Fourth in a series of articles about our financial markets here in Canada



...of this past "crash".There were bailouts, injections of large amounts of cash, by both Banks and private individuals.Interestingly enough, there was no Government intervention. The Fed's felt that the prevailing markets could best be served if left to their own devices.

Although many felt that this was the cause of the Great Depression, noted economists, both today and then,state that this may just have been a contributing factor, however, all agree it was not the cause.
Seems just like today, except the Government did the bailouts.


I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987

(
BUS 905-828-3434
2
FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

Wednesday, November 04, 2009

Financial markets and the possibility of a crash! Series 3

Third in a series of articles about our financial markets

Quite probably, also as was the term Credit Crunch which was liberally used.And we think we invented everything.

Oddly enough, there were many rich investors on a ship on which J.P. Morgan had an office onboard, with a wireless connection to their NY office.

These investors who held huge positions on margin, when they left Southampton were rich, however when they arrived in NY they were wiped out,although they had been trying to sell all the way on their return voyage home.

Many of these people lost as much as $20 Millions each and one of the investors in NY offered and finally did put up $25 Millions of his own Capital, only to lose it.

Being somewhat entrepreneurial, he had saved some cash and bought back the $250.00 shares for 20 -30 CENTS EACH and held onto them.

His son was interviewed from his Long Island home a few weeks ago. Apparently, they have kept the fathers spoils of war, as they are not living in abject poverty.

The moral of the story could be: Hold Nortel and Bre-x, they just may come back


I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987

(
BUS 905-828-3434
2
FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

Tuesday, November 03, 2009

Real Estate Market Market Trends 2009

This is the latest press release from RE/MAX regarding the housing market in Ontario Atlantic Canada, all good news, of course!

Enjoy

Mark

Luxury housing sales edge higher as purchasers take advantage of buying opportunities in Ontario-Atlantic Canada, says RE/MAX

Mississauga, Ontario (November 3, 2009) - Luxury homes sales continue to accelerate as economic recovery takes hold in major markets in Ontario and Atlantic Canada, according to a report released today by RE/MAX.

The RE/MAX Upper End Report found that momentum is building in St. John's, Saint John, Halifax-Dartmouth, Ottawa, Kingston, Greater Toronto, Hamilton-Burlington, and London as purchasers realize that the best buying period in recent history is about to come to a close. Sales are already on par or ahead of last year's levels in 50 per cent of cities surveyed, while the remaining markets are set to reach 2008 figures by year-end.

"Twelve months of healthy home buying activity have clearly been crammed into five short months," says Michael Polzler, Executive Vice President, RE/MAX Ontario-Atlantic Canada. "It's hard to believe that the transition in the market began in May. We've seen steady upward momentum since that time, with solid year-over-year gains posted each and every month."

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987

( BUS 905-828-3434
2 FAX 905-828-2829 ÈCELL
416-520-1577
E-MAIL
: mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

Financial markets and the possibility of a crash! Series 2

Second in a set about the financial markets in Canada

Depression was a result of many factors.In that the Market had crashed, the companies who used to be traded, had now shares that had no monetary value ( read Nortel ).

In that the Banks had no faith in these companies, because they had nothing that would show a positive collateral value, they could not raise funds to operate.

The words "Credit Crunch" were used liberally on the old film clips. Additionally, as these companies also had no ability to produce product, their markets shrank or actually disappeared completely. This gave rise to a continuum of layoffs and plant closures.At that point in time, the general public lost faith and just stopped buying anything except necessities.

Additionally, at that time, Credit was becoming a household word, people had borrowed money to get into the "can't lose Stock Market" and now could not pay it back. This resulted in multiple foreclosures, no building, no buying.

The rest is History, save and except a few enterprising people who had stayed out of the Market and were Cash rich.

They went out, cash in hand and bought up any Real Estate that had a potential for recovery and also expensive Automobiles that they put away and sold at huge profits when the Economy returned to normal.

All too familiar....No?

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987

(
BUS 905-828-3434
2
FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

Financial markets and the possibility of a crash! Series 1


This is a very good series of articles and this is the first of a series

of this past "crash".There were bailouts, injections of large amounts of cash, by both Banks and private individuals.Interestingly enough, there was no Government intervention.

The Fed's felt that the prevailing markets could best be served if left to their own devices.

Although many felt that this was the cause of the Great Depression, noted economists, both today and then,state that this may just have been a contributing factor, however, all agree it was not the cause.

Seems just like today, except the Government did the bailouts.

I hope this finds you Happy and Healthy!

All the Best!

Mark

A. Mark Argentino
P. Eng. Broker
Specializing in Residential & Investment Real Estate


Thinking of Selling? Best Mortgage Rates Current Home Prices Search MLS Newsletter
RE/MAX Realty Specialists Inc.
Providing Full-Time Professional Real Estate Services since 1987

(
BUS 905-828-3434
2
FAX 905-828-2829 ÈCELL 416-520-1577
E-MAIL : mailto:mark@mississauga4sale.com?subject=Mississauga
Website : Mississauga4Sale.com

Monday, November 02, 2009

Financial Markets in Canada

What is the outlook for the financial markets in Canada?
This is a question that has been asked many times over in the past.
Here are some thoughts, Enjoy!
Mark

Our morning rant about the economy and it's possible demise. Again!!

Employment numbers are up as of this morning.

RE is up yet again, both in sales and avg. values.

The Cdn. Dollar is headed back to parity. Oh well, never mind that I bought a bunch of USD before it went to $1.05 now it's about $104.4

Gold is still on the upswing at $1096

Silver at $18.45

All these are out of sync.

When the dollar goes one way, metals usually go the other.

W hat is going on?. This is either a mirage which will disappear soon or is it really possible that real recovery is in progress.

Now the Prophet of Doom speaks....SELL, The end is nigh !!.

Hope you can answer any of this, because I sure cannot.

If you can make heads or tails of the markets, let me know your secret!
Mark

Sunday, November 01, 2009

Residential real estate Tips for the week

This is a good tip from a lawyer, Bello Lagoudis

He states:


When acting on a residential property being used as a multiple family dwelling always insist on a buyer condition regarding the retrofit status of such property. This includes tenanted basements as buyers are depending more and more on this source of income generation, cities and towns are getting tougher on violators, and lenders are increasingly insisting on retrofit status.

Should the seller refuse the condition it would at least alert the buyer that the property is, in all likelihood, zoned for single family use.

I hope you find our hints helpful!

Please feel free to email any question you may have on residential real estate,

Mark