Quote:
Originally Posted by 4X4
I'm not sure what you're not getting. You seem to agree that because he pays his landlor in cash, that it somehow translates into tax fraud. The crazy sumbitch wants to sic CRA on the guy because he *thinks* that he's not paying taxes. The guy has no idea what he's talking about! And you're egging him on!
Let's go throught this really slowly...
When you have a rental property, you have to pay TAXES. Where do you get this money? Your paycheque? From collected rents? Who the F*** cares? You pay the taxes on that property.
Are you collecting a little more per month than what you owe on the property? Perhaps. What's the difference? If you're lucky, a hundred or three per month. What's the R&M per year on the property? A fu**load more than that. So again, why are you or the OP getting in on this business? Everyone pays capital gains, so it's not like there are pirates running off with gazillions of dollars worth of rent money.
You people have no idea what you're talking about.
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Well first of all, I'm not referring to property tax. I'm talking about tax on the the rental property revenue (or loss as the case may be.)
Every person is required to file tax returns, I'm sure you are familiar with that.
If a person (or business) owns rental property, that also has to be reported on the appropriate tax return.
You mentioned you have tenants so I'm sure you are then familiar with this form.
http://www.cra-arc.gc.ca/E/pub/tg/t4...tml#P195_12960
If not, I suggest you give Locke a call. IIRC he is an accountant.
Paying cash in and of itself isn't necessary a big deal. The fact there is ZERO paper trail in this case is a HUGE
red flag.