Property for Sale for Back Taxes
The CRA can seize your assets – including real estate properties – and sell them if you do not pay your tax debt. This is apart of the CRA's incredibly strong powers that it can use to collect tax debt. However there are ways to stop the CRA and secure your home and your assets.
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How a Property Can End Up for Sale Due to Back Taxes
One thing that many people do not actively consider is the possibility of a property for sale for back taxes. If you owe tax debt, and you do not pay it, the CRA can seize your assets and sell them. This includes real estate properties. The sale of such a property is called a “tax sale.”
A tax sale is a situation where a property ends up being sold by a taxing authority to recover unpaid taxes and other debts against the property. In many cases, these properties are sold by municipalities due to unpaid property taxes. However, the Canada Revenue Agency (CRA) has the power to seize assets, including properties, if an individual does not pay their taxes. The agency could then sell these assets through a court enforcement officer and use the proceeds to pay off the tax debt. This is one way that a property for sale for back taxes can occur.
Getting Help with Unpaid Back Taxes
If you owe the CRA money, you need to act as soon as you can. Otherwise, the agency will act first and that could cost you. The CRA has incredibly strong powers that it can use to collect tax debt. This includes the ability to seize and sell your assets. If you do end up in this situation, not only could you lose your home, vehicle, or other assets, but you will also be responsible for paying the costs incurred by the CRA for the process.
Of course, if you owe back taxes, you don’t need to just act quickly. You also need to be accurate with your statements and your actions. You don’t want to rush into the situation unprepared and potentially make a significant mistake. CRA processes tend to be very complex and difficult to understand. One misstep can be costly. That’s why it’s important to work with an experienced professional when you’re dealing with the CRA. Our team can help you navigate CRA processes, communicate with the CRA on your behalf, and give you the best chance of successfully resolving your tax situation.
Other Real Estate Tax Implications To Be Aware Of
There are many other tax concerns relating to real estate, and it is important that you understand these issues. Otherwise, you could end up in serious tax trouble. For instance, if you sell your primary residence, you are exempt from paying taxes on the profit from the sale. However, if you sell a home that is not your primary residence, you will be responsible for paying capital gains taxes or business income taxes, depending on the nature of the property and how it was used. This can be costly If you do not report real income property, you could find yourself in trouble with the CRA. You don’t want to end up with the CRA seizing and listing your property for sale for back taxes.
The agency has been cracking down on real estate transactions and has become more diligent at collecting taxes owed on real estate transactions. If you have been contacted by the CRA regarding the sale of real estate – or any tax situation – you should speak with a professional as soon as possible. Contact us to find out how we can help.
Farber Tax Solutions can help you successfully deal with CRA problems. We utilize the experience of our tax experts to:
- 1| Offer a comprehensive solution that is focused on achieving the most favourable possible outcome for your tax issue;
- 2| Communicate with the CRA on your behalf and navigate the entire CRA dispute process; and
- 3| Offer a complete solution to your tax problems, including ex-CRA professionals and tax lawyers from Farber Tax Law.
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