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King Portland Centre and Kingly Condos 
620 King St W, Toronto
Developer: Allied Properties REIT, RioCan REIT


King Portland Centre and Kingly Condos | 58m | 15s | Allied | Hariri Pontarini

amnesiajune

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The rental income could very easily be passive. It depends how the asset is held and the owner’s principal business. These taxes are frightening the hell out of the business community for good reason.
No! By definition, it can not be passive because whoever rents out the condo owns and/or manages it, and thus is very deeply involved with the business. Passive income is the opposite of that - income earned by activities that the business has no material involvement with.

"Principal" business doesn't matter. The same corporation can do two completely unrelated things, and neither's profits would be considered passive income as long as the business (or one of its subsidiary, parent or sibling businesses) has material involvement with the business activity.

What the PM and the FM are proposing is tantamount to theft
Ok...
 

LMVDR

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No! By definition, it can not be passive because whoever rents out the condo owns and/or manages it, and thus is very deeply involved with the business. Passive income is the opposite of that - income earned by activities that the business has no material involvement with.

"Principal" business doesn't matter. The same corporation can do two completely unrelated things, and neither's profits would be considered passive income as long as the business (or one of its subsidiary, parent or sibling businesses) has material involvement with the business activity.



Ok...
June you clearly have amnesia again.

If the asset is held in a corp or a trust passively by say a dentist or a group of passive partners and managed by a third party property manager it could very easily see the tax rate climb to over 70% based on the draconian and immoral proposals by our socialist leaders. That’s at risk capital that taxpayers are choosing to to put into our economy.

If you find that to be an acceptable tax policy then you obviously have severely anti-business idealogies.
 

amnesiajune

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If the asset is held in a corp or a trust passively by say a dentist or a group of passive partners and managed by a third party property manager it could very easily see the tax rate climb to over 70% based on the draconian and immoral proposals by our socialist leaders.
"Socialist leaders" - better to have amnesia than delusion.

Anyways, you're completely wrong. If the asset is wholly owned by that dentist or those partners, it's not passive. A passive asset is one where the owner has no involvement except for the piece of paper (or nowadays, the digital record) indicating that they own it. By paying things like maintenance fees and property taxes, a condo that you own and rent out is not a passive investment, even if you hire a third party to manage it.
 

LMVDR

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Anyways, you're completely wrong. If the asset is wholly owned by that dentist or those partners, it's not passive. A passive asset is one where the owner has no involvement except for the piece of paper (or nowadays, the digital record) indicating that they own it. By paying things like maintenance fees and property taxes, a condo that you own and rent out is not a passive investment, even if you hire a third party to manage it.
Not if the investor has no involvement at all and just owns a limited partnership interest in an entity that owns, manages and controls the asset. And that structure represents a huge chunk of the market for real estate investments.

You’re here on Urban Toronto admiring and celebrating all the incredible new buildings being developed in this great city. Do you think the building boom will continue if the profits from all those buildings are taxed at 70% in the hands of the PASSIVE investors that fund them? Are you telling me that the proceeds from those investments will not be taxed at a higher rate?

Wake up from your socialist daydreaming June bug.
 

LMVDR

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You're all kinds of wrong on this. Might as well be saying that the Liberals are gonna make the sky red.
Wow June Bug. What a well thought out and factually supported argument. You’ve really proven your point.

Go crawl back in your little hole called ignorance.

Note: this is my last comment in this thread. I won’t respond to anything further. My time is too valuable to waste on willfully blind idealogues who think punishing businesses people and entrepreneurs is a sport.
 
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That was a pretty well done promo video, really dig the song. Probably could have had more of the actual building in it though.