#8: Chantal Couture Talks About Real Estate Taxation x Montreal Commercial Real Estate



Real Talk with CHIA #8: Buying an income property in personal name or from a company? Possible to exempt the salty welcome tax of a commercial building? Tax impact following a change of use from owner-occupant to landlord or vice versa? Possible to recover the GST/QST paid on a new building or when the seller is a corporation? What are the tax risks if we do the quick and repetitive real estate flips? End of qualification for principal residence status held by a trust in 2018, its tax impact? Self-assessment in self-construction? Portion of rental income to retain when you are a non-resident Canadian investor? Do women entrepreneurs invest in real estate? Chantal Couture, CPA, CA, Demers Beaulne, host Chia-Yi Tung's guest expert, is generous to share her 30 years of experience with the Straight Talk audience with CHIA!

This episode aired on February 16, 2022 and is rebroadcasted on Youtube, here is its transcription:

Chia: Hello everyone, I'm Chia, your animator for Real Talk with Chia. Today I am pleased to invite Chantal Couture CPA and the partner at Demers
Beaulne with us to demystify real estate taxation, we try taxes, we will learn
a lot with Chantal.
Chantal: Hello Chia, thank you very much for the invitation, it's a pleasure.
Chia: It's a pleasure, me too, sparkling people, we're happy to be here, aren't
we?
Chantal: Yeah absolutely.
Chia: That's because in fact we met a lot of times, we met at the Sphere of
which you are a co-founder, can you tell us a bit about this organization?
Chantal: Yes, the Sphere is a group of women, actually I am a co-founder, I
have lost count of the years but it must have been around twenty years
when the partition into two groups, one of which you are part of and the
goal of that was to network and to have varied expertise basically so that
everyone could see the added value for each of our respective clients, so it's
really a group of women bankers, lawyers, people in marketing, HR, both
areas, as varied as possible basically makes it rewarding for each of us, it also
allows us to have a good network for our clients if necessary.
Chia: Yes, in fact I adore all these women there with whom I have met for
ten years, I feel so honored, enriched each time so thank you very much for
having founded and for cultivating this organization there for the
advancement of women. So I'm really pleased to welcome you today
because in fact in everyday real estate brokerage, there are always, always a
lot of clients who have a lot of questions because it's not only about a
transaction, you also have to know how to save taxes so you will be able to
explain all that to us. Basically today what I want to address as a subject is
therefore a few scenarios, the questions that I am asked most often and
then following this meeting I think that I will be better equipped and our
audience too.
Chantal: Absolutely.

Chia: Perfect.
Chantal: Here we go.
Chia: Ok, here we go. For example, a client, she bought a condo in Montreal,
she signed a work contract, she left for Europe for a year, then during that
time she was not ready to leave her condo, so she rented his condo to a
third party, ok? Then there she left but a year later she's back with her
fiancé it's beautiful then both of them say well we need a bigger living space
so we're going to buy a house, she thinks about going to sell her condo,
which she had lived in but which she rented for a year, now she is taking
over. So here we see here there is a change of use so what happens in terms
of taxes when we make changes of use.
Chantal: Yes, it's basically, in a particular scenario, but the wholesale change
of use is very, very important, why? But in fact there is a two-way street, so
either I have a residence that I live in and that I want to rent or I have a
residence that I rent out and that I would like to convert into my personal
residence. Why is it important here? Basically it's a concept that everyone
knows but which is very important is that here we have an exemption for
principal residence, what does that mean? It's only your main residence that
you live in, so when it sells, you have an extension and you don't pay tax on
the cultural gain you make on that. You have to be very careful because
since then I don't want to be wrong but I think it's 2018, we have to declare
so we have to when we sell a property even if it's our main residence there's
a form choices that must be completed.
Chia: Alright.
Chantal: Let's come back to the change of use, basically when you change
the use of an asset, the basic rule is that you are presumed to have this asset
there, but in the real end if I take my house then I decide to rent it, I haven't
really disposed of it, I would have to say to myself aye, I don't want to pay
the capital gains tax because I haven't disposed of it but technically I would
have a disposal at market value.

Chia: Alright.
Chantal: So what we do here is that there are choices that can be made, so
the choice is not the form, for that sometimes it takes a tax specialist to do
these things, it is that it is a letter in the background that we send to
revenue canada which says I am making the choice in the background of
change of use for a choice which allows me to apples taxed on a provision
taken mid of my ticket, at that point we continue then let's assume it was
my primary residence then I convert it to a rental well it also allows me by
making this choice to add four years of possibilities of main residences on
this building there it is because if we have one or more we can decide
depending on the time of a sale which is our residence principal for each
year, basically, per year that the choice is made. This choice is very
important then I think that there are a lot of people who make it precisely
ah I have a condo, I buy myself a house I keep it I start investing in real
estate and I'm going to rent it , well it is absolutely necessary to make this
choice, it is very important in fact that for this purpose if you do not make
your declarations you really have to notify people, you have to work with a
tax specialist to make this change there and the same the other way around
too. We can have a rental building that we want to convert into a residence,
there are a lot of people who buy a duplex yes something like that then they
say to themselves I want to stay in Montreal, I want to transform my duplex
into a two-storey residence , well, there is a presumed disposition and then
there is also a possibility of making this choice so that we are not taken but
have disposed of the property we have at market value.
Chia: Yeah that's wise.
Chantal: That's very wise. But we have to be warned there, we can't do what
we want because we have to understand that if we haven't made the choice
in the end, there is a tax audit by Revenu Québec and revenue canada 07:00
you have a deemed disposition and you must pay tax on the capital gain
Chia: Well that's exactly it, I remember that and also I think the question is
to know it is important and also the professional around us that he knows it
too, that's very important, I remember that for a year I sold the same year
my main reason, the real one and then my chalet so second home and then

at that time my accountant really asked me in which residence you have the
more gains and then at that time we will make this choice, precisely, at the
level of tax declarations to seek the most exemption.
Chantal: Right. There is education to be done since I would also say very
important today more than before because before we had the exemption
but it was automatic, now you have to indicate it so if you sell a residence
that was a personal residence it is very important to inform the person who
will do your tax return.
Chia: Absolutely.
Chantal: Because that's really huge there.
Chia: Yes, I agree with you, and by the way, another tip that I often give to
my clients, for example, they live in their main residence here in Montreal
and then suddenly they want to leave for a foreign country for x time that
they don't know yet and during that time it's rented, what I advise is to bring
in a certified appraiser when they leave to take a picture of the market value
at that time, if they don't know, if they don't know 08:42 back so that means
that the capital gain that will exempt during the period when he actually
lives there, we can determine it for taxes.
Chantal: It's great, then not knowing the date but when the SIC, as I told you
earlier, maybe make the choice, it allows us to add a four years where we
can still keep this residence there as his main residence.
Chia: That's great, perfect. So what leads me to think that someone who
lives but for profit, we've often heard, now it's a little less because the fact
that it's just started to check more, in fact, in my head what i'm thinking
right now is real estate flippers so it was and still will run that some general
contractors or who are very very manual who buy a building that needs
renovations so they live there and then as soon as it's renovated, it's ready,
he puts it back on the market to make that profit. So can you please shed
some light on how often this person might do these kind of quick flips
whether I call or not and what is their risk?

Chantal: But in fact you have to see when it becomes a business and not I
buy a house then oops I have the opportunity to sell it or I have a transfer
for my job then I have to settle elsewhere that it can happen, you know, it's
a good argument to say yes but I changed employer I'm in Montreal, I went
to Trois-Rivières then after that I had to go to Fairmont well there we feel
that there really was a transfer but when you do it voluntarily, but it's sure
that afterwards, when you do two in one year plus another year after that it
becomes like a business, you know, it's sure there is a risk there, there are
questions at the level at 10:50 we must not forget what I said earlier, that
before we did not declare, there was no schedule to declare our sale of
principal residences, now we have the obligation otherwise we do not have
the exemption.
Chia: It's good.
Chantal: So what does that mean, that means it's easy to know that you're
buying and selling 11:11 after 2 in consecutive years the RC will send a little
letter, probably ask questions and that's clear but what happens is that we
really have to declare so there is a super easy trace for revenue Quebec or
revenue Canada to say we ask ourselves questions.
Chia: Absolutely, absolutely. Speaking of the renovation of a house, I'm
curious to know, for example, there is a general contractor, he acquired a
building to renovate and then finally he almost completely redid the house
or the entire building, so there he resells, since it is a company that practices
major renovation so he resells the taxable building so we are talking about
15% more than the market price and then I wonder whether the buyer as
such if the buyer also has his business incorporated so could the buyer
acquire the building which is taxable but make an accounting entry so as not
to release 15% more cash flow?
Chantal: Yes, in fact the taxes, which are supposed to be very very simple,
are really complex, so for this reason there are even more tax and real
estate specialists.
Chia: Yes absolutely.

Chantal: But if you are an individual, a company, a non-profit organization all
the rules are different what is supposed to be simple is very complex, that's
one. So yes what happens is that I have to charge the tax so if I charge it,
collect it and I put it back and the other one makes a request, when we have
companies that are registered that both in the background are registered
then that the buyer is entitled to these inputs as we say, basically the taxes
he pays, he must recover them but at that moment we can make a choice
then indeed, well it is not a question accountant but it's on the forms in the
background of GST, TVQ where the choice what she will do is that the buyer
will tell me I will put back the taxes on the sale then I have right there my
inputs so at the cash flow level I would say it's laidlow on both sides because
it's really in and an out, in the event that both are registered for taxes in the
background and it's an interesting choice that must be made on the cash
flow well it still has an impact, it's still 15%
Chia: Yes, 15% on a 2 million building is starting to...
Chantal: Right. Basically, it's a great way to go about helping transactions,
buyers and sellers.
Chia: Yes, you're right and that's also why I also remind the buyer that when
buying a taxable product like that, it's necessary that he is aware that if in
five years, six years he is going to resell, he must also ask for the GST and
QST on the sale price because that would be an incorporation in the
background.
Chantal: That's right, it's a registrant who has the transaction is taxable but
yes but there will always be the possibility of making the same choice via his
future buyer if he is registered naturally, because if he does not It's not
basically he can't reclaim inputs, you know basically, it really has to be on
both sides.
Chia: Indeed, indeed so the wheel continues.
Chantal: A wheel is a wheel, indeed it is a wheel.

Chia: Between entrepreneurs here. Well, I know that since 2018 the law has
changed with regard to the trust and its taxes. Maybe I'll explain the kind of
background a bit so that our audiences can better understand. It's that
basically there are several people or do they have quite a large heritage so
it's starting to, you know, like now they have an incorporation then quietly
they're also going to create a trust in the background to manage the family
patrimony, ok? But suddenly, because of the change in this law, the main
resistance linking with the trust is precisely not as before, can you explain
this point to us?
Chantal: But in fact the trust, yes, it's a great vehicle, a great protection
vehicle for people, basically entrepreneurs, so there's been a lot of planning
over the years and then one of the ways it's to hold the principal residence
in the trust which was like, it was really like asset protection planning what
happens is, we talked about the principal residence exemption earlier so
there we say well if we lose it, it is not advantageous but therefore to go
until 2017 the trust could request the exemption for residence main in 2000
from January 1, 2018, this is no longer the case ok so but as long as today so
there what I would say is that you have to plan things, you have to speak
with a tax expert , you see, what do we do because even so there is a major
impact, the residence increases in value a lot because it is still important,
you know at the moment we have a little real estate boom.
Chia: Yes by 22% per year.
Chantal: But so our main residence values take a lot of value, in fact the gain
becomes very important for even Mr. Madam everyone, it has a huge
impact so there is a planning to do if this is the case , the exemption is
possible we can take the exemption not the exemption, the exemption until
2010, so from 2018 the trust cannot, that means that the gain realized from
January 1, 2018 there today today if there was sale today this portion to the
lots of capital gain, well you would have to pay the tax on the capital gain
Chia: Ok it's a really really big impact, we're talking about double there
Chantal: It is to be planned, if we are in this situation, I think we will have to
look with a tax specialist.

Chia: Yeah, you're right, I think that's why recently there was a family who
entrusted me with the mandate to buy their residence and then they were
very hesitant about whether they must buy in their personal name or in the
name of their trust and finally their tax specialist said no no you are buying
in your own name. But speaking of that, not everyone has a trust, but
several people, in fact, it's much easier to incorporate. The following
situation is really very common that I see very very often, that is to say that,
for example, a client she bought her main residence then after that she was
able to refinance and she bought a triplex, she buys another triplex and
there suddenly and she has about ten doors then before buying the next
one she says is it advantageous to incorporate me and buy and transfer
these buildings there in the name of incorporation ? So is there like a simple
rule to follow, like how many doors do I have and then am I going to buy on
behalf of the company?
Chantal: In fact there are no rules because each case is different because it
will depend on the income that is generated in relation to real estate
investment also because basically if we hold it personally, the income or the
losses depending, because sometimes, you know, we do it then we finance,
you know, if it's really an investment, well I say ok, I take the money, I buy, I
finance it at 100% then, but at that time it may generate losses at the tax
level the first years so it's okay to have it personally, you know, it can be
advantageous, In fact I would say that it is not the number of doors, it's
more that generates what as income, what is the structure financially then
at some point actually it can become advantageous because you must also
understand that if it is incorporated, it is costs, when we do it we make a
statement of the results for each building, we put that in the declarations of
s personal costs, it's included, if it's a company, a company is a 20:18 so it's a
financial statement, tax declarations but, you know, I will say that it is the
case by case, it also depends on the person's other income.
Chia: Absolutely, that's it.
Chantal: It's not just that situation, you have to look at the whole picture, do
an analysis and then say good, but in your case it would be more
advantageous if, for example, if there are people who have a lot of good,

they will say but I have read in my company when you reach retirement it
also allows you to better plan your retirement income whereas if it is
personal when you are older there are fewer mortgages but there it
generates a lot of income well it's less leeway to plan your retirement
income or your personal income, there are so many factors that lead to
21:02 no i think it's a door shadow it's really c what is your other income?
Which angel is this? You know, it's all the factors together.
Chia: You really have to put all the cards on the table and analyze the
situation well before you can advise.
Chantal: There we understand why there are tax experts, why we specialize,
why we need to learn because everything is complex so yes we would like to
have ready-made formulas but each case is and therefore differs for a good
yes we should incorporate because the person has a lot of personal income,
for the other well no because you are in debt, you have losses, stay like that
then we will see in time it is there to follow, today it's 65 years old, it's
evolving there's nothing that is stable in business.
Chia: Yes, yes, absolutely so, like for example a person does the review of
CRA for example every year with his financial planner or with his private
banker and then in the context of taxation do you also advise to do an
annual review?
Chantal: Each person is different, what I will tell you is that I have been
practicing for thirty years, I work with entrepreneurs, therefore SMEs, when
you plan your 5, 7 and then seven years it's stretched , well, things are
changing, there are lots of things happening, the children are getting older...
so it's difficult I think five years there, then sometimes it can be faster than
that but each situation is different but I would tell you that in my experience
5 years is an average so we have to review our planning, we have to review
our structure, we have to review our will, you know there are a lot of things
all of that is linked because all of life around changes.
Chia: And that's also what's beautiful because I think that's also what keeps
you passionate after so many years of practice because you're a person who
loves people and then you accompany them in this way which is scalable.

Chantal: Yes.
Chia: Yes it's beautiful. Then precisely speaking of support, you have
followed so many entrepreneurs then what, I am curious to know, is it that
you have seen an evolution therefore a rise in more women owners of
buildings and if so what would be the percentage among your practices and
of course we do not have statistics on the overall market but I am really very
curious because for example I practice commercial real estate brokerage,
there are very very few of women and then every day when I work with the
sellers, the buyers of buildings, once again, there are more men so I would
like to see your side is it the same situation ? Is there a change? I feel that
there is a change but to what extent?
Chantal: In fact, yes, I think there's really a change, then I explain it's that
basically, you know, we're talking about there's real estate, there's the
individual, there there's the entrepreneur but in general I don't have
statistics either 24:25 but we know that in Quebec, I am very involved in the
background with the network of business women in Quebec, with the ELA
construction therefore promotes women entrepreneurs a lot but there is
really a change, what will it be like in 10 years honestly I don't know but it
will be really different from today. Why are there fewer, there are far fewer
women in real estate, but you have to understand that the entrepreneur,
not necessarily the construction entrepreneur, all entrepreneurs together
become real estate investors at some point, in vast majority I would say, if
we look at putting us in our pool of clients well we are nesting there, real
estate construction, we are in the process of analyzing everything in detail to
see what the needs are but we realize that there is an entrepreneur oops his
business is growing but I am going to build myself a building, oh well he
becomes a real estate investor because we see holding the building via
another company then ok what is we do, is the building big, finally I have to
expand, oh maybe I'm going to have rents or on all kinds of, you know, I
looked recently, we have a problem of manpower, well there we said well
we will do, we have a hand work, well if I bring in work we will buy an
apartment block, you know, it will be added to the immobility in fact
currently there are a lot more men in the business of entrepreneurs it's clear
but I think it's just going to be to change because we see the 25:53, you
know, if I just look at me in my clientele I had very very very very few women

there I was ten years old with whom I worked then today I have some we
are still maybe 30% of the clients I work with then I probably had zero 10
years ago and it's still all the same already in a big change but with
everything that is done with the network of businesswomen also then the
different institutions here in Quebec, in Canada it is really a change.
Chia: Yeah, I'm very very enthusiastic about this change because I too do a
lot of activities for the advancement of women and then precisely I'm in the
process of setting up my own real estate agency and to make money.
commercial real estate then I would really like to propel women, that they
are more equipped, that they are more confident to really take their own
market share. So it's great to have today, I don't know how to thank you.
Chantal: It's me who thanks you Chia.
Chia: I don't know. Ah yes maybe we could talk about the exemption, then,
you know, we often hear the word in each transaction we hear the word
welcome tax in fact nobody finds that welcome. What word. And then there
are the transfer taxes, of course when you buy a residence, the transfer
taxes vary according to the levels, so the market value of the house, on the
other hand, when you buy a commercial property, wow, these duties are
really really high, so first question is is there an online tool to calculate the
transfer duty of a commercial property online, like, you know, as often we
type welcome tax, welcome tax calculator then there we can calculate
according to the cities, the residence.
Chantal: The right of transfer.
Chia: Yes, correct.
Chantal: See on the different sites there is a way where I think the internet
remains above all else.
Chia: Then for the commercial, because until now in my transactions I
always have to consult the lawyer or the notary to know the amount that...
Chantal: Yes, it's a bit more complex there.

Chia: Okay fine.
Chantal: Yes, but there are also times, well in fact, no when buying, you have
no choice, you have to pay the transfer taxes, you have no choice, it's not
when you have transactions, restructurings at the level of a group of
companies or other where there may be exceptions and exemptions there
but otherwise.
Chia: Oh yes, it's possible?
Chantal: Yes, but even if you do a roof-to-roof transaction on that, you have
buildings, you decide to put them in a company, for example, well, you know
there are specificities where we can have exemptions so we avoid paying
transfer duties because we are transferring from one person to the same
person but 29:13 to another entity but which is controlled by the same
person so overall there is a blood relationship there in the end where me
now if I transfer furniture to my daughter we have an exemption, it is
provided for by law or if a group of people or a person controls before and
after more than 90% so the control is more 90% is the same. That's really
general, but then we would be exempt from paying the transfer duty in that
transaction, otherwise that's it, that's a tax that exists here in Quebec so
when you buy a building we pay the transfer tax quite simply there we can't
really get out of it there are non-profit organizations which can also have
exemptions. You know, when I told you earlier about the taxes, the taxes
there is the GST, QST, transfer duties it's very very very complex in any case
anyway if you want to know more, I I have a partner who is really specialized
in this then he has written two books, not one, two on taxes, it's called:
"Incidence TPS, QST dans les transactions immobilières" there are 1 and 2
but so it deals a little bit with transfer taxes on that too and it answers a lot
of questions about the particularities that we could have when doing a real
estate transaction, very interesting, it's really well done .
Chia: Well that's it, I'm going to find out more because just last year I had a
transaction of 20 million which was aborted at the last minute because of
transfer duties because the financier finally In fact, said transfer taxes, it's
not part of your financing portion, so you have to take out the extra down

payment, then it's a few hundred miles, it's a few hundred miles in welcome
taxes. Ouch

Chantal: Welcome home.
Chia: That's it.
Chantal: But that's it, it's a lot of little details that you have to take into
account when making a transaction.
Chia: Small steps and big financial impact.
Chantal: Yeah, yeah.
Chia: Yeah that's why you really really have to consult your tax advisor and
your tax advisor.
Chantal: Absolutely.
Chia: Now let's talk about a case of a non-resident investor, okay? You don't
see him often but you don't see him all the same occasionally, it can also be
an emigrant who has already lived here then finally he settles elsewhere and
then so what happens, what you need to know for an investor who does not
have Canadian resident status before he buys and when he is going to sell a
rental property.
Chantal: Well, that too is something complex. We have more and more
substantive transactions with non-residents on the one hand and on the
other, so it's really a specialty that has developed a lot over the past 20
years, I would even say up to we in the team have reached about fifteen
people who do that full time.
Chia: Alright.
Chantal: But in real estate, basically, I think what we could perhaps say is
that, basically, when you hold a good hold then you have income that comes

from elsewhere, it's sure that the country here canada wants to have its
32:48 because you are non-residents which it does not want, it wants to
make sure that if there are revenues that are generated that they are
factual, the principle of bouncing a bar, no matter where it is that there is a

withholding tax which must be made on the income which is paid to a non-
resident therefore for a non-resident for example in the real estate there is a

choice that must be made, the withholding tax is 25% of the gross amounts
so example if there are rents at 1000 dollars per month, well it's 250 for
each 1000 dollars which must be withheld therefore well sent to the income
tax Canada, in the end, ok? If we don't do anything, that's what should be
done, the interesting choice that can be made, then that's really the
overview, for an individual it's the choice of article 216 , or a company too,
it's article 216 that makes it is that we make a request to Revenue Canada to
make this deduction, that this deduction is made but on the net amount.
Chia: Ah, really that changes everything.
Chantal: So we still have to send the request, make a budget and then have
it approved, in fact if now it was 1000 dollars per rent but the offer, I just
take 1000 because it's very easy there, we make the budget then we keep all
the expenses then in the end we make 100 net dollars, well there instead of
being 25% of the 1000, it will be 25% of the 100 $ so 25 $ instead of 250 per
apartment. I would tell you that this choice, in fact I think it has to be made
34:33 when we look at it with my tax experts, my team at the office, but we
just say to ourselves a choice that has to be made there, it's procedures but
that's why when someone arrives here I think he takes support here in
Quebec, we say good but what are my choices, I'm going to buy a building. I
want it to be a building or something, but there particularly because if you
miss it, it's expensive afterwards.
Chia: Yes absolutely, that's why every time there's a foreign investor who
contacts me before we even start shopping, I put him in touch with an
accountant who precisely understands these notions of investors. strangers.
Chantal: Absolutely because that too is really special so everything that
affects the legality of transactions and the taxation of transactions by non-

residents, I think we can't do that without asking questions, you have to
consult , Its very important.
Chia: Absolutely. Should these choices be made every year or should they be
made at the time of resale?
Chantal: Well, in fact, for rents, you have to buy them at the time of
purchase, you basically know when you have income, you buy the building,
etc. you have to send the request to be able to make this choice in the
bottom then the budget so that the deduction, you know, even that.
Chia: Let it be less.
Chantal: Yes, that's it, you know, then the RC even asks for a liaison officer to
take care of collection and everything. Well, you know, the goal is for each
government, whether it's here, in the United States or elsewhere, they want
to have their share of the revenues, so technically we have to tax our
revenues everywhere in the world, it's the same, the fact that if someone
comes here, well, he can't make an income and then he can't pay tax, you
know, if you pay tax there for a period of a month when you return home,
you have credits then you don't pay twice but technically everyone wants
their share.
Chia: Otherwise why are we investing?
Chantal: Yes, that's it, but we feel that everyone wants their share anyway,
so that's still important here.
Chia: Ok, so in this kind of specific situation, your firm can therefore act as
an administrator to facilitate tax management.
Chantal: Facilitate demand and management, yes, absolutely.
Chia: That's it, perfect, great. Then speaking precisely of your niche on the
construction, I would like to end our interview with a last question, I know
that this question is also very complex.

Chantal: Everything was complex.
Chia: Everything about taxation, but hey, I know you're going to try to
explain it to us in a very, very simple way. Is that, with regard to construction
and self-assessment, what are the amounts allowed on the federal side, on
the provincial side per door?
Chantal: Yes, that too is in the book.
Chia: I have a live book there.
Chantal: Yes, actually the construction rate basically is I'm building a rental
building so in terms of taxes there's a self-assessment that we have to do
when it's when we're at 90% of the construction or when the first tenant
takes possession of his dwelling, in fact it's the first of the two where we
have to self-assess so remit the tax on the market value of the building,
that's the principle basic. Well, there are actually possible reimbursements,
it's a bit complex all the same, but quickly, it's 36% reimbursement, then the
values are different at the federal level and in Quebec. So at the federal level
it's 450 miles and less per door, then in Quebec it's 225 miles and less, that's
a bit technical, so to make it easier, the amounts are not the same at the
federal level and in Quebec 38 :37 but it's a bit 38:40 also it's something
that's not simple, you know, ah me I'm building nana, ok yes but at some
point you have to do that then, you know I think that it's impossible to be
able to do it all on your own, it takes knowledge to fill in things correctly, to
do the calculations correctly, to fill in the right documents.
Chia: Yeah I think that's it, I'm flashing here, that's why some of my sellers
are actually builders, they said to me "oh but the 15% GST QST is deducted
from the buyer that 36% is returned.
Chantal: Yes, but there is a maximum value.
Chia: That's right, there are x a's.
Chantal: Yes, that's it. You know, when we look at 250 thousand dollars,
we're going to say to ourselves that 39:35 real estate values today, but, you

know, it takes a lot of time with the law to change, in fact maybe that's will
change but it will take, it's to adjust to the reality of the market but if it's a
big machine well it's very long to do it, that's for sure..
Chia: Well that's it today, you know, how do we know that since the
pandemic construction in the workforce, the materials are rare and then are
so expensive so now to build each new door, you know, even 225 doesn't
even cover the construction part in some cases, it depends on the area and
the location, but after that you also have to add the caring cost, the
interquisition, there are so many costs, development costs. In any case what
a joy so that's why 40:23 Yes, yes, that's it.
Chantal: That's why it's exciting, that's why because there's always
something so it's stimulating because there are always questions to ask, we
learn All the time. Basically we're beautiful, we were working on making a
collection of everything we have there, a background in our office there at
the level of the real estate construction niche but we say to ourselves that
we add more all the time then it happens every week where oops, I have
research to do, I have my team of tax experts, you know, this is teamwork I
think that's what's stimulating, that's why that we like it and then that we
are passionate about what it is stimulating, it hasn't gotten any easier.
Chia: But we're here for that too.
Chantal: Yes, absolutely.
Chia: Good, great, thank you again for coming today and teaching us all this
great knowledge, then I'm sure it's going to be very useful and I invite you to
contact Chantal for your accounting and tax questions. over real estate. Until
next time, thank you.

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