Pre-consturction Condo Purchase and Tax filing

[Rocky]

While filing tax for 2008 - would it be at any advantage for the taxpayer if he/she has signed up for a pre construction condo in 2008 whose occupancy is in about 3 years time however a couple of payments were made for the purchase to the builder (installments) in 2008?

 

[cdr108]

I don't understand the question.

What tax implications are there?

 

[simuls]

There are no tax implications because you haven't bought anything yet and don't pay the gst on the purchase, land transfer tax, etc., until the condo has it's "Final" closing when the building registers, and you don't pay property tax until the condo is ready to be occupied (usually 2-10 months prior to the "Final" closing).

The installments you paid carried no tax burden and there is no tax element to them, they're simply deposits against the purchase price of the condo.

 

[Rocky]

There are no tax implications because you haven't bought anything yet and don't pay the gst on the purchase, land transfer tax, etc., until the condo has it's "Final" closing when the building registers, and you don't pay property tax until the condo is ready to be occupied (usually 2-10 months prior to the "Final" closing).

The installments you paid carried no tax burden and there is no tax element to them, they're simply deposits against the purchase price of the condo.

Thank You Simuls, this is exactly what i was trying to find out ! Much appreciated !!