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HST LIABILITY

Posted by on Sep 11, 2013 in Articles | Comments Off on HST LIABILITY

This is not legal or tax advice, but merely a recounting of some (rather scary) experiences of some of our clients. With HST rebates of about $30,000 per unit, the CRA and their collection agents (the new home sellers) have (we are told) hired additional staff to “crack down” on tax fraud where the Ministry of Finance (Land Transfer Tax) reports multiple transactions from the same person(s). Buyers mostly fall into one of 3 categories: Moving In – No problem. Renting- You pay the full HST (rebates are added back to the purchase price) to builder and will likely recover all the rebates 3-6 weeks later upon application to CRA: http://www.cra-arc.gc.ca/E/pbg/gf/gst524/README.html Flipping-Big problem. Like Renting, no principal residence exception to capital gains tax. Worse if CRA deems the flipping as income from a business (where profits are taxed as income not capital gains) if flips are frequent and form a substantial part of taxpayers income. Also NO HST REBATE. Also figure about 10% of the tax owed for penalty and 4% over TBill rate for interest see http://www.cra-arc.gc.ca/tx/bsnss/tpcs/gst-tps/bspsbch/rtrns/pnlts-eng.html CRA and builders are increasingly asking for drivers licenses, utility bills (in addition to the usual sworn statements) linking buyer(s) name(s) to the new address. Also, please don’t ask us to swear your false or misleading statements so that your tax problem also becomes our ethical problem. If you can’t cover the tax and transactional costs on the flips, get out of the game and the CRA will have to look elsewhere for its money. You definitely need specialized tax/legal advice. We can refer or there’s always those tax lawyer guys advertising on 680 News and...

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HOW MUCH TO BUY OR SELL MY HOUSE?

Posted by on Sep 11, 2013 in Articles | Comments Off on HOW MUCH TO BUY OR SELL MY HOUSE?

HOW MUCH TO BUY OR SELL MY HOUSE? I am often asked how much to buy or sell my house? Most clients pay about $1,000.00 for a sale and about $1,800.00 for a purchase all inclusive. I would want to know much more about your deal before giving a more accurate estimate or quote. Can you do any better? I’m cheap too, but at least I’m smart about it. Firstly, we sell a service, not a commodity like a car or an appliance (even there, I would pay a large premium for after sales service!). I don’t use the cheapest dentist or accountant in town, do you? We are a one office, two lawyer, 2-3 law clerk operation. Our clerks are very experienced in real estate transactions. The lawyer/staff ratio allows us to closely supervise our staff and have a lawyer return your call if needed. We are not a “mill”. Secondly, it amazes me that the same clients that haggle over a hundred dollars or so in fees do not even care about the value received for their money. Most lawyers charge little or nothing extra to review the agreement BEFORE it is signed, potentially saving the client from a huge mistake. The “hagglers” often call just before closing when the lawyer can do the least amount of good. Thirdly, no two deals are the same. A single person selling a “cookie cutter” home in a subdivision comes close, but add in estate considerations (for elderly clients), tax readjustments (for recently built homes), complex documentation review (all condos and new homes), title repair (often owners who have lived at the same house forever), tier B and private mortgagees (each with unique requirements), last minute negotiations for property damage or financing issues, and it is easy to see that some deals require greater effort and attention, the very thing lawyers charge for. Finally, I have seen many lawyer’s bills in my career. I am convinced that our clients get excellent value for their money in a business that is so competitive that rates charged do not reflect the cost and risk involved in acting on a transaction. Why do we continue to offer residential real estate services to individuals (many firms got out of the business)? Our services include many things besides real estate. We want clients, not deals. That is he mindset of who you are haggling with. Who should not use our services? People who can’t communicate in English or Mandarin – our small staff means that we can only offer services in these languages. Hagglers – see above. Fraudsters – We cooperate with police / RCMP investigations where it is apparent that fraud has occurred. Client’s who want us to do half the job – ie. “Don’t check adjacent properties for inconsistent descriptions, Don’t ask too many questions….” Who should (we hope) use us? We value referrals from realtors (they control the business, after all) but we put the clients interest ahead of protecting the agent’s commission (and repeat referrals) in the rare instance the two are at odds. Check our website for any upcoming free breakfast seminars on topics of interest to real estate professionals. Our preferred client is a small business owner who may avail themselves of other services such as Wills, Family Law and Litigation services. It bears repeating that we want clients, not...

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Buying a former grow op?

Posted by on Sep 11, 2013 in Articles | Comments Off on Buying a former grow op?

Best way is to check the local police site, most of which indicate properties formerly used for illegal purposes. Please contact me as we have had some experience in these matters. Scarborough Grow Op List

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Effective Legal Solutions

Posted by on Dec 27, 2012 in home_slider | Comments Off on Effective Legal Solutions

Effective Legal Solutions

Superior client care is at the core of Tenenbaum and Solomon’s success. We strive to understand our clients’ diverse needs in order to better serve you and yield results. Your success is our success.Learn more

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HOW MUCH DOES IT COST FOR A SIMPLE DIVORCE?

Posted by on Aug 21, 2012 in Uncategorized | Comments Off on HOW MUCH DOES IT COST FOR A SIMPLE DIVORCE?

This memorandum is intended to answer the most frequent questions relating to simple divorce proceedings.   DO I NEED THE DIVORCE? Most people do not realize that a divorce judgment initiates a 2-year limitation period for spousal property claims which may be needed where there is no separation agreement. Of course, without a divorce, your “ex-spouse” is still your “spouse” for estate purposes, and on an intestacy would inherit by law a preferred share of your estate. Just generally, it makes sense in many ways to clean up and simplify your affairs.   ‘SIMPLE’ v. ‘UNCONTESTED’ We use the term “simple” divorce to refer to an uncontested divorce proceeding in which the only relief requested is a divorce judgment based on grounds of marital breakdown by reason of a separation for at least one year. An uncontested divorce that is based on other grounds such as adultery or cruelty, or in which there is other relief requested such as support or property division, involves slightly more time and effort. For example, where there is any type of financial relief claimed, the divorce applicant must prepare and file a detailed financial statement even if there will be no opposition to such relief in a final divorce judgment.   GROUNDS FOR DIVORCE Under Section 8 of the Divorce Act, a spouse can obtain a divorce from the other on grounds of marital breakdown which can be proven by showing that the spouses have lived separate and apart for at least one year before the judgment. (The Court application can in fact be commenced before the expiry of that one year term.) Adultery and cruelty are other evidence that supports marital breakdown, and permit a divorce earlier than one year; but those grounds require somewhat inflammatory allegations. Most couples are prepared to wait the one year period to obtain a simple divorce.   COURT PROCEDURE InCanadaa divorce can only be granted by a Court judgment. Judgment can be obtained in most circumstances without a court attendance, using written affidavit evidence.   WHAT DO WE NEED FROM YOU? When you come to us for a simple divorce, please have the following information or documents: 1. The marriage certificate; 2. Information relating to each spouse and the marriage including the date and place of birth, and particulars of any prior marriage of either spouse, including the divorce decree or judgment: 3. Details of the other spouse’s address for service (if you do not know it, we need as much information as we can in order to initiate a search for the other spouse); 4. If you seek to include in the divorce judgment any financial matters such as support or property, then we need information about your income and assets to complete a financial statement.   LAWYER FEES Our fees are based on time spent. In the usual simple divorce our fees do not exceed $400.00 plus H.S.T.   OTHER COSTS The most common disbursements and other fees for a simple divorce are: The most common disbursements and other fees for a simple divorce are: Issue Application Court Fee $157.00 Search Registry Gov’t Fee $10.00 Service by Process Server (Est.) Fee (higher for multiple attempts, foreign spouse) $64.20 Motion for JudgmentCourt Fee $280.00 Court clerk for Filing Attendances + GST (Est.)Fee $53.50 Certificate of Divorce Court Fee $19.00 TOTAL $583.70 WHY USE A LAWYER? There are stationer’s divorce kits available which detail the steps needed to obtain a simple divorce; however, the procedure can be rather confusing and time consuming. For example, be prepared to wait for hours in line at the court offices...

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