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Legal Ease
Legal Ease, Lawyer
Category: Canada Tax
Satisfied Customers: 101395
Experience:  Lawyer
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I'm operating in Canada as a Corp, if I provide the

Customer Question

I'm operating in Canada as a Corp, if I provide the downpayment to a home buyer for th purchase of their principal residence which for the home buyer upon selling of said home negate any taxes due to it being their principal res. If the homebuyer paid me out of the proceeds of sale my principal back as well as additional monies on top would there be taxes on additional monies?
Submitted: 1 year ago.
Category: Canada Tax
Expert:  Legal Ease replied 1 year ago.

Your name would not be in title correct?

This would be an investment and you are hoping to see a profit, is that correct?

Customer: replied 1 year ago.
Correct, but am trying to structure in a way that minimizes If not completely avoids taxes, or has taxes paid on the buyers end
Expert:  Legal Ease replied 1 year ago.

But you have to understand that there's no way that you can earn income and not pay taxes. I understand what you want to do is have somehow come under the exemption of the principal residence for capital gains purposes but if you invest money and you get a larger return that it would be tax fraud not to declare that income and pay tax on it.

Do you see what I mean?

Customer: replied 1 year ago.
Is there a way to have the person on title pay the tax for for the income I earn?
Expert:  Legal Ease replied 1 year ago.

That cannot be done legitimately. If he pays the taxes that is more income to declare.

Customer: replied 1 year ago.
How do I structure this than to pay the least amount of taxes?
Expert:  Legal Ease replied 1 year ago.

There is no real way to do that. Everyone wishes there was.